Daily Digest 1/29/2024 (David Lennox Mills)

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

Remarks by President Biden on Investing in America and the Bipartisan Infrastructure Law  |  Read below  |  President Joseph Biden  |  Speech  |  White House
WISPA underwrites tool for state broadband offices to calculate high-cost thresholds  |  Read below  |  Linda Hardesty  |  Fierce
Wireless group raises new BEAD concerns  |  Read below  |  Nicole Ferraro  |  Light Reading
Affordable Connectivity Program: Closing the Digital Divide  |  Read below  |  Letter  |  United Way Blog
Affordable Connectivity Program: The true cost of winding down  |  Read below  |  Jeff Sural  |  Analysis  |  Sural Consulting
This subsidy has connected thousands in Baltimore to affordable internet. It runs out soon.  |  Baltimore Banner
NTCA Applauds Tax Relief for American Families and Workers Act, Urges Inclusion of Broadband Grant Tax Treatment Act  |  Read below  |  Shirley Bloomfield  |  Letter  |  NTCA - The Rural Broadband Association
Chairwoman Rosenworcel's Response to Senator Lujan Regarding Proposals to Modify the Contribution Base for the Universal Service Fund  |  Read below  |  FCC Chairwoman Jessica Rosenworcel  |  Letter  |  Federal Communications Commission
Fact check: No government program for free internet and tablet, contrary to viral claim  |  USA Today

Broadband Infrastructure

Fiber Deployment Annual Report  |  Read below  |  Research  |  Fiber Broadband Association, Cartesian
BITAG: Overview of Broadband Technologies  |  Read below  |  Research  |  Broadband Internet Technical Advisory Group
As the FCC Refines Broadband Map Challenge Process, It’s Pretty Much an Anti-Climax  |  Read below  |  Joan Engebretson  |  Analysis  |  telecompetitor
How do subsea cables work?  |  Tech Brew

State/Local

AT&T, Cox, 29 Smaller Providers Slated to Share $374 Million In Oklahoma Broadband Funding  |  Read below  |  Joan Engebretson  |  telecompetitor
$120 Million Undersea Cable Project will Expand High-Speed Internet for Hawaii  |  Read below  |  Press Release  |  University of Hawaii

Spectrum/Wireless

Modernizing and Expanding Access to the 70/80/90 GHz Bands  |  Read below  |  Public Notice  |  Federal Communications Commission

Platforms

Apple and Google are losing power. Here’s how your apps could change.  |  Washington Post

Surveillance 

There’s So Much Data Even Spies Are Struggling to Find Secrets  |  Bloomberg

Security

Proposed law aims to boost food and agriculture industry’s cyber posture  |  Next Gov

Labor

Nearly 25,000 tech workers were laid off in the first weeks of 2024. Why is that?  |  National Public Radio

Content

Elon Musk Is Spreading Election Misinformation, but X’s Fact Checkers Are Long Gone  |  New York Times
Fakes, forgeries and the meaning of meaning in our post-truth era  |  Financial Times

TV

Amazon Prime Video Set To Grab More Than $1 Billion in Ad Revenue in 2024  |  Broadcasting&Cable
The dream of cheap, ad-free streaming TV is dead  |  Washington Post

Company News

Is Comcast Experiencing a Goldilocks Moment in Broadband?  |  Read below  |  Daniel Frankel  |  Next TV
Did Comcast Just Slip to Become the No. 2 U.S. Pay TV Operator?  |  Next TV

Policymakers

FCC Adopts Joint Boards Appointment Order  |  Read below  |  Public Notice  |  Federal Communications Commission

Stories From Abroad

New subsea cable project aims to stabilize internet connections in South Pacific  |  Read below  |  Kelcee Griffis  |  Tech Brew
Apple’s Proposed Changes Reject the Goals of the Digital Markets Act  |  Spotify
Today's Top Stories

Broadband Funding

Remarks by President Biden on Investing in America and the Bipartisan Infrastructure Law

President Joseph Biden  |  Speech  |  White House

I’m here today to talk about something that doesn’t get enough attention: the progress we’re making to invest in America — in American workers, in American products — to invest in America.  That’s what we’re doing: bringing work, opportunity, and hope to people and communities all across this country.....We’re making sure every American ... have access to affordable high-speed Internet. High-speed Internet is essential to today’s economy. It’s as essential as electricity was when Franklin Roosevelt was president. Not a joke. That’s why, nearly a century ago, Franklin Roosevelt signed the Rural Electrification Act. He signed it to bring electricity to nearly every home and farm in America because it became essential — an essential part of the economic growth of the country, an essential way to access the modern life. And so is high-speed Internet today. In Wisconsin and Minnesota, we’re investing $2.5 billion — $2.5 billion in high-speed Internet. And we’re going to save more than 600,000 families in these two states up to $30 a month on their Internet bills.

WISPA underwrites tool for state broadband offices to calculate high-cost thresholds

Linda Hardesty  |  Fierce

The Wireless Internet Service Providers Association (WISPA) has been telling everyone for a couple of years that some unserved locations in the US will be too expensive to reach with fiber broadband, and trying to cover these locations with fiber will waste BEAD money. And now, WISPA has underwritten an analysis tool to help state broadband offices set their extremely-high-cost thresholds. WISPA has underwritten the new Broadband Funding Optimization Tool, which was created by the Vernonburg Group. The tool is designed so broadband officers can change settings and assumptions to determine where best to set their extremely-high-cost per location thresholds. To create the high-cost-threshold calculating tool, Vernonburg used data and models from a number of organizations, including the fiber models from Cartesian and Tarana. The Vernonburg tool also takes into account the mix of aerial and buried fiber, which will vary from state to state, because the cost difference between aerial and buried can be quite substantial.

Wireless group raises new BEAD concerns

Nicole Ferraro  |  Light Reading

The Wireless Internet Service Providers Association (WISPA) sent a letter to the National Telecommunications and Information Administration (NTIA) raising concerns that multiple states will fail to reach all unserved locations by funding fiber over other technologies. The concern comes as the NTIA is working on approving initial proposals for how each state and territory will conduct its Broadband Equity Access and Deployment (BEAD) grant program. As WISPA raises in its letter, several states have indicated in those proposals that "a planned over-reliance on funding fiber infrastructure is likely to exhaust BEAD funds before all unserved and underserved locations are connected." Among the states of concern, WISPA references proposals from Maryland, California, Minnesota, New York and North Carolina that suggest their allotted BEAD funds may not be able to cover 100 percent of their unserved and/or underserved locations with fiber. In addition to concerns from WISPA, another trade group – ACA Connects, which represents small and independent cable providers – released data showing that 6.4 million unserved and underserved locations are expected to be eligible for BEAD funding, for which there are enough funds to connect "at least 71 percent of eligible locations" with fiber.

Affordable Connectivity Program: Closing the Digital Divide

Letter  |  United Way Blog

As organizations committed to positive change and public policy that advances opportunity, equity, and progress for all Americans, we urge you to prioritize funding to extend the landmark Affordable Connectivity Program in any new spending package or legislation. ACP is a true bipartisan success story – growing out of initiatives supported by the current and prior Administrations and the broad, national consensus in support of universal access to affordable broadband. Combined with private sector discount programs run by the nation’s major internet providers, ACP can make home broadband effectively free for low-income families. Currently, over 22 million American households are enrolled in this effective, life changing program – massively expanding access to online education, work, health care, government services, and entertainment and culture. It’s one of the most important, effective public policies in place today driving towards equal opportunity and a level playing field for all. But without more funding, the ACP will expire in just a few months. We urge you and your colleagues to act on the Administration’s $6 billion request in emergency funds to immediately re-fund and extend ACP to ensure all Americans continue to have affordable access to high-speed internet at home.

Affordable Connectivity Program: The true cost of winding down

Jeff Sural  |  Analysis  |  Sural Consulting

In separate conversations with the leaders of two internet service providers, both mentioned that the wind down of the Affordable Connectivity Program (ACP) is at the top of their things-that-keep-me-up-at-night list. Despite the stereotypical caricature of CEOs, these leaders were sincerely concerned and grappling with how to tell customers. This got me thinking about the true cost and fall out from the termination of the ACP. Many families will have to make the difficult decision to keep or end service. As for businesses, notifying customers, implementing changes in the billing process, and terminating services incur expenses in terms of money, staffing, and time. Then there is the cost to the government. I would imagine the Federal Communications Commission could calculate the amount of resources and staff time it will take to halt the program. These costs, typically borne by the taxpayer or rate payer, are often overlooked. With these costs in mind, the logic of reauthorizing and funding the ACP is apparent from both a common sense and economic standpoint. The call to action is clear: securing the ACP's continuity and stability now is a prudent and forward-thinking choice.

NTCA Applauds Tax Relief for American Families and Workers Act, Urges Inclusion of Broadband Grant Tax Treatment Act

Shirley Bloomfield  |  Letter  |  NTCA - The Rural Broadband Association

Congress has recently committed tens of billions of dollars to broadband deployment, but taxing broadband grants dramatically reduces their impact. In addition, most of the assets to be purchased and deployed leveraging recent federal broadband deployment funding will likely not qualify for 100% bonus depreciation even if extended, since much of the network construction will not be completed until after the Tax Relief for American Families and Workers Act of 2024 bonus depreciation extension expires – leaving many small, rural broadband providers unable to take full advantage of this pro-investment tax relief.

Chairwoman Rosenworcel's Response to Senator Lujan Regarding Proposals to Modify the Contribution Base for the Universal Service Fund

FCC Chairwoman Jessica Rosenworcel  |  Letter  |  Federal Communications Commission

On Dec 12, 2023, Sen Ben Ray Luján (D-NM) wrote to Federal Communications Commission Chairwoman Jessica Rosenworcel requesting input on proposals to modify the contribution base for the Universal Service Fund (USF). Specifically, he requested information about potential impacts of three mechanisms to reform the USF contribution system: (1) expanding the contribution base to assess broadband revenues; (2) expanding the contribution base to include edge providers; and (3) expanding the contribution base to include digital advertising. As Congress considers much-needed updates to the programs funded by the USF, "we must ensure that the Fund has a sustainable funding model to address our ongoing and future needs.," Sen Luján wrote. On Jan 12, Chairwoman Rosenworcel replied noting that since Congress last directed the FCC  to establish the current contribution framework in 1996, "there have been revolutionary changes in how we communicate, with the need for a broadband connection eclipsing the home telephone as need-to-have service." She agreed that "any reform to the contribution system must result in a sustainable funding model and also fully consider the current telecommunications marketplace and the potential cost burdens on consumers." 

  • The FCC  anticipates that expanding the type of revenues used to fund USF to include revenues from mass market broadband providers, in addition to the revenues from the current telecommunications contributors, is estimated to expand the contributions base to $250 billion, an increase of an additional $220 billion in revenue above the current base of approximately $33 billion.  As a result, the Commission estimates the contribution factor would drop substantially, to approximately 3.3 percent, assuming the current size of all USF programs.  For reference, the contribution factor in the first quarter of 2024 is 34.6 percent.  This change, however, would actually lead to an increase in the monthly broadband bills paid by the average household. In fact, it would double the typical payment from an average USF line item of around $2.00 on consumer telephone bills to a combined total of approximately $4.00 on monthly broadband and telephone bills.
  • Expanding the contribution base to include edge providers would require congressional action authorizing the FCC to assess edge providers for USF purposes. This approach would expand the the contribution base by approximately $2.3 trillion on top of the current base of approximately $33 billion. But consumers could potentially face rising costs for certain edge services, particularly those that directly bill consumers. 
  • Expanding the contribution base to include digital advertising would expand the contribution base to approximately $250 billion. This would result in a contribution factor of approximately 3.3 percent, assuming current USF demand.  Unlike the expansion focused on broadband revenues, the FCC anticipates that assessing digital advertising revenue would lead to a decrease in USF fees on monthly household telephone bills to approximately $0.30 (30 cents), because data indicates that an assessment on digital advertising is less likely to be passed on to consumers. 

Infrastructure

Fiber Deployment Annual Report

Research  |  Fiber Broadband Association, Cartesian

The Fiber Broadband Association partnered with Cartesian to research the cost of fiber deployment and provide insight on how costs are evolving over time. While no two deployment projects are alike, we found many common themes:

  • The cost per foot of aerial deployment is less than half that of underground- Typical costs ranged from $11 to $24 per foot for underground deployment, and $4 to $9 per foot for aerial deployment
  • Labor accounts for over two-thirds of build costs- The average split was 73% labor, 27% materials for underground construction, and 67% labor, 33% materials for aerial construction
  • Population density has a large impact on the cost per foot of underground builds- This generally held true for aerial deployments also, with a median of $5.00/ft for rural and $6.54/ft for urban areas
  • Building in rocky areas costs twice as much as laying fiber in soft earth- Underground deployment had a median cost of $10/ft in soft earth, but twice that in rocky terrain at $20/ft
  • Where available, a choice of construction method can reduce cost- Trenching had the lowest reported median cost, and plowing the highest
  • The Western states had the highest cost ranges- Northeast had the lowest typical costs
  • Anticipated cost increases expected to cool slightly- While 46% of respondents reported “significant” cost increases in 2023, only 24% expect the same in 2024

BITAG: Overview of Broadband Technologies

Broadband internet access is central to our society and economy. Tens of billions of dollars are now being allocated for construction of new last mile connections. But these construction grants and subscription subsidies may not always be informed by up-to-date information concerning the technical capabilities of various last mile network technologies. Indeed, while some stakeholders may believe there is only one best network technology - fiber to the premises via passive optical networking - there is actually no one single best last mile technology, given the varied climate, terrain, time needs, and budgets for broadband construction and subsidization. The report covers in detail Hybrid Fiber Coaxial networks, Digital Subscriber Line, Fiber to the Premises, Licensed and Unlicensed Fixed Wireless Access, Mobile, Low Earth Orbit Satellite, and Wi-Fi. Home network technology is also briefly explored, since the home network is such a significant factor affecting end user performance. Bottom line: there is not one “best” technology—as factors like mobility, terrain, installed base, population density, local regulation, time needs, available construction labor and materials, cost, and so on mean that the answer is “it depends”.

As the FCC Refines Broadband Map Challenge Process, It’s Pretty Much an Anti-Climax

Joan Engebretson  |  Analysis  |  telecompetitor

It’s unfortunate that this couldn’t have happened sooner, but the Federal Communications Commission (FCC) recently released a public notice seeking input on the challenge process for the Broadband Data Collection that the commission undertakes twice yearly. Broadband providers are required to report on broadband availability, and the data ultimately is used to update the National Broadband Map. The FCC said it also wants input on “the effectiveness of the challenge processes in improving the quality and accuracy of our broadband availability data.” The move comes seven months after state allocations were made in the $42.5 billion BEAD rural broadband funding – allocations that were based on the National Broadband Map as it existed at that time. The process for creating the map was rushed, and some stakeholders had asked for additional time to make challenges to the map data, but BEAD administrators at the National Telecommunications and Information Administration opted not to extend the challenge timeline because they wanted the BEAD program to proceed promptly.

State/Local

AT&T, Cox, 29 Smaller Providers Slated to Share $374 Million In Oklahoma Broadband Funding

Joan Engebretson  |  telecompetitor

The state of Oklahoma has tentatively announced $374 million in broadband funding awards to AT&T, Cox and 29 smaller providers. Funding came through the federal American Rescue Plan Act State and Local Fiscal Recovery Fund. Awardees will contribute an additional $90 million to project costs. More than 55,000 locations are expected to get high-speed service. As with many other state broadband funding programs, competition was intense. Applicants requested a total of more than $5.1 billion in funding. Awards were made through the Oklahoma Broadband Office. Cox is slated to take home $84.7 million for 14 awards. AT&T is slated to take home $22.5 million for 10 awards. Other companies winning large amounts of funding include Pine Telephone Company, which is slated to take home $22.5 million for a single award, and Chisholm Broadband, which is slated to receive $21.8 million for 10 awards.

$120 Million Undersea Cable Project will Expand High-Speed Internet for Hawaii

Press Release  |  University of Hawaii

The University of Hawaiʻi (UH) and Ocean Networks, Inc. (ONI) announce a $120 million, public-private partnership to construct a submarine optical fiber cable system that will connect the Hawaiian Islands and improve and expand high-speed broadband internet throughout the state. The project, the Hawaiian Islands Fiber Link (HIFL), is a key component of Connect Kākou, the state's broadband initiative, a top priority of the Governor Josh Green administration. Under the direction of Lt. Governor Sylvia Luke, Connect Kākou will ensure that people from all walks of life have reliable and affordable access to high-speed internet. ONI is responsible for the supply, construction, operations and maintenance of the inter-island cable system. Partial funding will be provided through a federal grant through the American Rescue Plan's Capital Projects Fund, and the remaining funds will be secured by ONI through private equity and secured debt. When it goes online, HIFL will be able to process a high volume of data with minimal delay and will be the inter-island backbone of Connect Kākou.

Spectrum

Modernizing and Expanding Access to the 70/80/90 GHz Bands

Public Notice  |  Federal Communications Commission

The Federal Communications Commission adopted updates to its rules for the 70, 80, and 90 GHz spectrum bands to facilitate broadband access on ships and aircrafts, in addition to backhaul service for 5G.  This action will promote the efficient use of spectrum and will provide opportunities for the development of new broadband service options. The Report and Order establishes new rules and updates existing rules for the 7176 GHz, 81–86 GHz, 92–94 GHz, and 94.1–95 GHz bands.  The new rules authorize certain point-to-point links to endpoints in motion in the 70 GHz and 80 GHz bands to facilitate the use of these frequencies for access to broadband services on aircraft and ships.  They also permit the use of smaller and lower-cost antennas to facilitate the provision of backhaul service in the 70 GHz and 80 GHz bands.  Finally, the Report and Order changes the link registration process in the 70/80/90 GHz bands to require certification of construction of registered links, which will promote more efficient use of this spectrum and improve the accuracy of the link registration database.  The FCC also adopted a Further Notice of Proposed Rulemaking to seek comment on the addition of another type of link as part of maritime operations otherwise authorized in the Report and Order, and the inclusion of Fixed Satellite Service earth stations in the light-licensing regime for the 70 GHz and 80 GHz bands.

Company News

Is Comcast Experiencing a Goldilocks Moment in Broadband?

Daniel Frankel  |  Next TV

Comcast lost 34,000 broadband customers across consumer and business channels in the fourth quarter and bled 64,000 subscribers for the full 2023, results that might have tanked the cable company's stock in previous quarters. But the company’s shares are up nearly 4 percent. Sure, good news from theme parks and streaming platform Peacock have a lot to do with that. But a shift in cable investor thinking continues to occur, according to top telecom-industry analyst Craig Moffett. “We’ve long argued that cable investors are no longer counting on a ‘re-acceleration’ in broadband net additions. They simply want to see broadband net adds or losses that are predictable enough to allow focus to shift elsewhere. Most importantly, on broadband ARPU.” In an earnings call, Comcast CEO Mike Cavanagh spoke of his company's broadband business in resolute terms. There's a belief among management that multi-billion investments in DOCSIS 4.0 cable technology, along with aggressive government subsidies fueling increased passings will soon rekindle customer expansion. Cavanagh said "As I look back on 2023, I am confident that our strategy combined with excellent execution sets us up extremely well to navigate the road ahead."

Policymakers

FCC Adopts Joint Boards Appointment Order

Public Notice  |  Federal Communications Commission

The Federal Communications Commission (FCC) appoints the Commissioners Nathan Simington and Anna Gomez to serve on the Federal-State Joint Board on Universal Service (Universal Service Joint Board) and the Federal-State Joint Board on Jurisdictional Separations (Separations Joint Board). In addition, Commissioners Simington and Gomez are members of the Federal-State Joint Conference on Advanced Services (Advanced Services Joint Conference) by virtue of their positions on the FCC. Commissioner Gomez shall further serve as the federal chair of the Universal Service Joint Board and the Advanced Services Joint Conference. Commissioner Geoffrey Starks shall further serve as the federal chair of the Separations Joint Board. Their terms shall begin immediately. 

Stories From Abroad

New subsea cable project aims to stabilize internet connections in South Pacific

Kelcee Griffis  |  Tech Brew

When an underwater volcanic eruption severed a key internet conduit in 2022, the island nation of Tonga lost most of its connection to the outside world for more than a month.  Thanks to a new subsea cable project Google unveiled on January 17, South Pacific islanders are less likely to be cut off from the global internet in the future. The two planned fiber-optic lines, dubbed Bulikula and Halaihai by project organizers, will directly link the US territory of Guam with the island nations of Fiji and French Polynesia. The pair of cables join a growing network of underwater infrastructure that enables information to crisscross the globe. Without direct physical connections to the global internet, the exchange of data can slow down to a trickle, depending on weather and other conditions that can impede the only other alternative: satellite internet. According to Brian Quigley, VP of global network infrastructure at Google Cloud, the two new cables should be completed by late 2026, with branching cables connecting other South Pacific islands over the following two years.

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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 Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.


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Kevin Taglang

Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
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