Tuesday, October 3, 2023
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Research Roundup: Notes from the Telecommunications Policy Research Conference
Peak TV Is Over. A Different Hollywood Is Coming.
European telecommunication groups ask Brussels to make Big Tech pay more for networks
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Last month, Benton Institute for Broadband & Society staff, fellows, former fellows, and friends attended the 51st Telecommunications Policy Research Conference (TPRC) in Washington (DC). Benton Senior Fellow and Public Advocate Gigi Sohn delivered the keynote, Executive Director Adrianne Furniss awarded the 2023 Charles Benton Broadband & Society Prize, and I had the opportunity to moderate a fiery panel on the politics of broadband policy. Across two jam-packed days, we also learned about some recent and critical research on broadband and digital equity, some of which I highlight in this research roundup.
[Dr. Revati Prasad is the Vice President of Programs at the Benton Institute for Broadband & Society.]
Local
The City of Syracuse Partners with US Ignite on Broadband Expansion Efforts Including Surge Link, a New Community Broadband Network
The City of Syracuse (NY), Community Broadband Network (CBN), and US Ignite launched the Surge Link, a high-speed Internet connectivity program. Surge Link aims to connect 2,500 underserved Syracuse families to high-speed, affordable broadband. The American Rescue Plan Act (ARPA) funds and Affordable Connectivity Program (ACP) subsidies make the no-cost service possible. US Ignite advised the City on the overall technology, deployment models, and funding strategy for Surge Link. CBN, the selected Internet service provider, will deliver the broadband network. Syracuse plans to use existing city-owned assets and leverage local partnerships for network infrastructure locations to fast-track deployment. Local social service agencies will be vital in informing residents about the new no-cost service access, while local nonprofits and businesses will offer essential technical support and training.
This Reuters Institute report uses survey data from 20 countries and qualitative research from the United Kingdom (UK), US, and Germany to explore who is paying for news content online, which publications they pay for, how much they pay, and what motivations they have for subscribing or donating to news. The focus is on how the cost-of-living crisis is impacting willingness to pay for online news. Key findings include that payment for online news is leveling off with high levels of cancellation strongly linked to the cost-of-living crisis. Additionally, low-price introductory offers are effective at attracting new subscribers but many struggle to see the value when it comes to renewal and paying the full sticker price. Long-term news subscribers tend to be male, older, richer, and better educated, with a strong interest in news and politics, while younger subscribers tend to pay less and are more likely to make donations than older groups. Around half of non-subscribers say that nothing could persuade them to pay for online news, but others could be attracted by a lower price, more relevant content, or less cluttered (ad-free) websites and apps. For some people the value of news subscriptions is partly conditioned by the amount and quality of free content (from both commercial and public service outlets) available in a market, as well as by the price and experience of entertainment services such as TV, sport, and music.
The labor agreement that writers struck with studios and streaming platforms will likely accelerate the end to “peak TV," a decade that included an explosion of programming for viewers and job opportunities for talent in Hollywood. Streamers will have to find a way to pay increased talent costs—from the writers’ settlement, along with an earlier deal with directors and whatever is finalized with actors—without adding to their overall production costs. That will likely mean that companies will make fewer new shows and cancel even more that are on the bubble. In effect, while many people in Hollywood will get better pay as a result of the deal, the contraction in spending means there will be less work to go around. The studios held the line on key issues. Streamers won’t publicly release viewing data, despite the writers’ demands for transparency, but instead will give data on how shows fared to the Guild confidentially to share with its members in aggregate form. The studios also have a license to build artificial-intelligence tools and train them on writers’ scripts, after rejecting a demand from writers that they pledge not to do so. However, writers get some significant AI protections, too. They won’t lose out on writing credits or compensation when AI tools are used to assist in creating scripts.
In the past five years, FOCUS Broadband has gone from deploying fiber connectivity to just two North Carolina counties to eight, nearly doubling its number of customers from 36,000 to 63,000. Approximately two dozen state and federal grants since 2018 has enabled FOCUS Broadband to develop into these new markets, and—in addition to securing more than $120 million in grant funding in that time period—the company invested $30 to $40 million of its own dollars in matches. The end result is the build-out of approximately $150 million worth of grant fiber projects from 2019 through now, and continuing over the next two years. In addition to applying for funding through North Carolina’s Growing Rural Economies with Access to Technology (GREAT) grant program, FOCUS has also applied for US Department of Agriculture (USDA) ReConnect grants. Prior to becoming "FOCUS Broadband," the company was known as the Atlantic Telephone Membership Corporation (ATMC), headquartered in tourist-rich Brunswick County along the Atlantic shoreline. However, in 2019 ATMC started applying for grants and moving into more rural areas to the west.
Twenty-two percent of broadband customers in China have access to downlink speeds of at least 1 Gbps. China is progressing in fixed-line broadband as well as mobile, according to its latest government statistics. The country's three big operators reported 622 million fixed-line broadband users at the end of August, which is up 32.1 million from the start of the year. All told, of the 587 million Chinese broadband users, 94 percent are on 100 Mbps and above. The country's success in rolling out advanced infrastructure and racking up big subscriber adds is due to several factors, such as a supply-side driven approach, the ability of policymakers to force down prices to drive take-up, and a huge digital marketplace led by firms such as Tencent and Bytedance.
Europe’s biggest telecommunications companies have called on the European Union to compel Big Tech to pay a “fair” contribution for using their networks, the latest stage in a battle for payments that has pitched the sector against companies such as Netflix and Google. Technology companies that “benefit most” from telecommunications infrastructure and drive traffic growth should contribute more to costs, according to the chief executives of 20 groups including BT, Deutsche Telekom and Telefónica. They added that regulators need to take action to help secure future investment, with telecommunications groups having to spend billions to support the rollout of 5G and upgrade to full-fiber networks. The companies suggested that a payment mechanism might only make demands on “the very largest traffic generators” with a focus on “accountability and transparency on contributions so that operators invest directly into Europe’s digital infrastructure." The so-called fair share initiative has been picking up support in Brussels, with the European Parliament in June “call[ing] for the establishment of a policy framework where large traffic generators contribute fairly to the adequate funding of [telecommunication] networks without prejudice to net neutrality.”
Upcoming Events
Oct 2-6––Digital Inclusion Week 2023 (NDIA)
Oct 3-5––What's Next For Broadband? (Community Broadband Action Network)
Oct 3––Task Force to Prevent Digital Discrimination Listening Session in Topeka (FCC)
Oct 3––Digital Equity Public Comment Webinar (Kansas Office of Broadband Development)
Oct 4––CHIPS and Science Implementation and Oversight (Senate Commerce Committee)
Oct 5––Task Force to Prevent Digital Discrimination Listening Session in Topeka (FCC)
Oct 10-12––AnchorNets 2023 (Schools, Health and Libraries Broadband Coalition)
Oct 12-13––Digital Inclusion Research Forum (Federal Reserve Banks of Dallas, Atlanta, Philadelphia and Kansas City)
Oct 12-13––FCC Tribal Workshop at Indian Island, Maine (FCC)
Oct 19––2nd Annual Spectrum Summit (Joint Center for Politics and Economic Studies)
Oct 19––2023 Future of Black Communities Summit (Joint Center for Politics and Economic Studies)
Oct 19––October 2023 Open Federal Communications Commission Meeting
Oct 24––41st Annual Everett C. Parker Lecture & Awards Breakfast (United Church of Christ Media Justice Ministry)
Oct 24––The A.I. Divide: What is the Impact of Artificial Intelligence on Digital Equity? (Michelson 20MM)
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org), Grace Tepper (grace AT benton DOT org), and David L. Clay II (dclay AT benton DOT org) — we welcome your comments.
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