Friday, January 31, 2020
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FCC Launches Rural Digital Opportunity Fund
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News From the FCC Meeting

The Federal Communications Commission took its single biggest step to date to close the digital divide by establishing the new Rural Digital Opportunity Fund (RDOF) to efficiently fund the deployment of high-speed broadband networks in rural America. Through a two phase reverse auction mechanism, the FCC will direct up to $20.4 billion over ten years to finance up to gigabit speed broadband networks in unserved rural areas, connecting millions more American homes and businesses to digital opportunity.
The first phase of the RDOF will begin later in 2020 and target census blocks that are wholly unserved with fixed broadband at speeds of at least 25/3 Mbps. This phase would make available up to $16 billion to census blocks where existing data shows there is no such service available whatsoever. Funds will be allocated through a multi-round reverse auction like that used in 2018’s Connect America Fund (CAF) Phase II auction. FCC staff’s preliminary estimate is that about six million rural homes and businesses are located in areas initially eligible for bidding in the Phase I auction. The RDOF auction will prioritize networks with higher speeds, greater usage allowances, and lower latency. To support the deployment of sustainable networks in this auction, the auction will prioritize bidders committing to provide fast service with low latency. This will encourage the deployment of networks that will meet with needs of tomorrow as well as today. Bidders must also commit to provide a minimum speed more than double than was required in the CAF Phase II auction.
Phase II of the program will make available at least $4.4 billion to target partially served areas, census blocks where some locations lack access to 25/3 Mbps broadband. Using the granular, precise broadband mapping data being developed in the FCC’s Digital Opportunity Data Collection, along with census blocks unawarded in the Phase I auction.

While the spirit of this effort is right on—we have a broadband problem—the way we go about addressing it is not right.
- We need maps before money and data before deployment.
- We fail to recognize that cost is a barrier to broadband availability. The FCC could have asked funding recipients to offer a low-cost service for consumers when they are receiving billions in support from the government. But if you comb through the text of this decision, you’ll find we took a pass.
- This broadband fund is backward-looking with stale service speeds and data caps. This program will set in stone data caps for some services for the next ten years. That’s bonkers.
- Fourth: Haste makes waste. This effort has been pushed out so fast I fear we are only starting to understand what is not workable in this framework.
In the end, this is not the broadband plan we need. It is not guided by maps. It is not guided by data. It is guided by a desire to rush out the door, claim credit and pronounce our nation’s broadband problems solved.

In his dissenting statement, Federal Communications Commissioner Geoffrey Starks objected to a sentence included since the initial draft of the Rural Digital Opportunity Fund Order. The Starks dissent states: “The version of the Order now before us excludes from RDOF any area that the Commission ‘know[s] to be awarded funding through the U.S. Department of Agriculture’s ReConnect Program or other similar federal or state broadband subsidy programs, or those subject to enforceable broadband deployment obligations.’” (emphasis in original)
The following can be attributed to Harold Feld, Senior Vice President at Public Knowledge: “Read broadly, this surprise last-minute change impacts almost every state in the Union. Nearly every state either has its own broadband subsidy program, receives funds under the Department of Agriculture ReConnect program, or receives other federal funding for broadband. Even read narrowly, this would appear to cut off millions of unconnected rural Americans from a program designed explicitly to help them. According to a PEW Report published in December 2019, 35 states have funds that directly subsidize broadband. Numerous other states have funds that might qualify as a ‘subsidy’ or ‘enforceable broadband deployment obligations,’ depending on how the FCC Order defines these terms Hopefully, publication of the Order will contain some sort of clarification. But even read as narrowly as possible, this change makes no sense. Connecting all of America will require the combined effort of every level of government — federal, state, and local. We should encourage states to take initiative and reward those that rise to the challenge. At least, we should not punish states by making them depend exclusively on underfunded federal programs doled out from Washington, D.C.”

The House Commerce Committee's Subcommittee on Communications and Technology held a hearing entitled Empowering and Connecting Communities Through Digital Equity and Internet Adoption. To our recollection, it was the first Congressional hearing exploring digital equity and broadband adoption. Digital equity, if you are new to the term, is defined by the National Digital Inclusion Alliance as a condition in which all individuals and communities have the information technology capacity needed for full participation in our society, democracy, and economy. Although many of us may take ubiquitous internet access for granted, at least 141 million people in the United States do not subscribe to fixed home Internet at the Federal Communications Commission’s broadband benchmark -- 25 Megabits per second download and 3 Megabits per second up (what policy wonks commonly refer to as 25/3 Mbps). The part of this divide that has garnered the most attention of late is those geographical areas (mostly rural) where broadband networks simply have yet to be deployed. But the bigger obstacles are that for too many people, a network is available but unattainable because the cost of service is too high, the price of internet-capable devices is too steep an investment, and/or they lack the skills needed to connect to and navigate the internet. More than half of American adults are “relatively hesitant” when it comes to using broadband technology. Digital equity recognizes the truly universal ambitions of broadband adoption.

The US Department of Agriculture (USDA) has invested $55.3 million in four, high-speed broadband infrastructure projects in rural Kentucky. These projects will create or improve rural e-Connectivity for more than 12,250 rural households and nearly 100 farms and businesses across Kentucky and northern Tennessee. USDA announced the following investments in rural Kentucky:
- Ballard Rural Telephone Cooperative Corporation will use a $2.4 million ReConnect Program grant to deploy a fiber-to-the-premises (FTTP) network in rural McCracken County. The funded service areas include 578 households and a critical community facility spread over 20 square miles.
- Duo County Telephone Cooperative Corporation Inc. will use an $18.7 million ReConnect Program grant to deploy a fiber-to-the-premises network in rural Adair, Cumberland and Russell counties. The funded service areas include almost 3,650 households spread over 45 square miles.
- Gibson Electric Membership Corporation will use a $32 million ReConnect Program loan to deploy an FTTP network in rural Fulton, Graves and Hickman counties (KY) and in Dyer, Lake, Obion and Weakley counties (TN). The funded service areas include almost 7,400 households spread over 1,056 square miles.
- Thacker-Grigsby Telephone Company Inc. will use a $2.3 million ReConnect Program grant to deploy an FTTP network in rural Breathitt County. The funded service area includes 637 households spread over 109 square miles.

The US Department of Agriculture (USDA) announced a $9.87 million investment in four infrastructure projects that will create or improve rural e-Connectivity for 4,527 households and 215 businesses in rural Maine. USDA announced the following projects:
- The Town of Arrowsic will use a $604,254 ReConnect Program grant and a $604,254 ReConnect Program loan to construct a fiber-optic broadband network with speeds up to 100 megabits per second (Mbps) to connect 237 households, 20 pre-subscribed businesses and four pre-subscribed farms.
- Monhegan Plantation will use a $626,298 ReConnect Program grant to connect the entire island community in Lincoln County, which is home to a school, power district, municipal office, museum, post office, library, and several inns and small businesses. The project’s service area includes 40 households, an educational facility, a critical community facility, 11 pre-subscribed farms and 15 pre-subscribed businesses.
- The Town of Roque Bluffs will use an $893,170 ReConnect Program grant to construct a fiber-optic network to connect 166 households, 22 pre-subscribed farms and 16 pre-subscribed businesses in Washington County. The network will connect to the Downeast Ring of Maine’s “three-ring-binder” network backbone in Machias, 4.5 miles from the town line on Roque Bluffs Road.
- The Biddeford Internet Corporation will use a $3.5 million ReConnect Program grant and a $3.5 million ReConnect Program loan to expand its gigabit Fiber-to-the-Premises (FTTP) network to connect 4,084 households, 30 pre-subscribed farms, 28 educational facilities, 23 pre-subscribed businesses, 15 health care centers and 12 critical community facilities in Hebron, Sumner, Hartford, Buckfield, Canton, North Turner, Turner, South Paris and West Paris.

The US Department of Agriculture (USDA) has invested $2.4 million in a high-speed broadband infrastructure project that will create or improve e-Connectivity for approximately 250 households and home-based businesses in rural Mason County (WA). Mason Public Utility District 3, based in Shelton (WA), will use a $2.4 million ReConnect Program grant to provide high-speed broadband to the unserved Grapeview community. The Three Fingers Rural Broadband Fiber Project will provide middle-mile and last-mile fiber-optic service to each premises located within the targeted area.

The US Department of Agriculture (USDA) has invested $1.6 million in a high-speed broadband infrastructure project that will create or improve rural e-Connectivity for 1,492 rural households, 27 pre-subscribed businesses, six educational facilities, four pre-subscribed farms, three critical community facilities and a health care center. Wecom Inc. will use a $1.6 million ReConnect Pilot Program grant to construct a Fiber-to-the-Premises (FTTP) and hybrid Fiber-to-the-Node (FTTN) fixed wireless system that is expected to connect 1,492 households in Peach Springs (AZ), many belonging to members of the Hualapai Tribe, and the surrounding area to high-speed internet.

In my role as House Communications Subcommittee Ranking Member, addressing the “digital divide” has been one of my top priorities. In order to address areas that have unreliable broadband, we need to accurately know where those locations are. The current maps used to allocate resources are woefully inaccurate and result in overbuilding in some areas while other areas remain unserved or underserved. As we aim to utilize spectrum more efficiently, leading to the repurposing and sale of valuable airwaves, we should be using at least some of this revenue to close the technology gap that exists between rural and urban areas.
Having high-tech operations and capabilities in our rural areas is worth the investment if they can access reliable broadband. If they don’t, farmers won’t invest in connected equipment and devices. Last Congress, I authored the Precision Agriculture Connectivity Act, which was signed into law by President Donald Trump as part of the Farm Bill. This law created a task force bringing the United States Department of Agriculture (USDA) and the Federal Communications Commission (FCC) together to help farmers access high-speed broadband and precision agriculture technology.
It’s time to truly close the gap on America’s “digital divide” because leaving Americans behind as we sprint towards a more connected tomorrow isn’t an option.
[Ranking Member Latta is co-chair of Congressional Rural Broadband Caucus.]
Spectrum/Wireless
Technical Feasibility of Sharing Federal Spectrum with Future Commercial Operations in the 3450-3550 MHz Band
As part of an assessment conducted with the Department of Defense, NTIA significant progress in finding potential spectrum sharing options for the 3450-3550 MHz band. Federal operations in the 3450-3550 MHz band include shipborne, airborne, and land-based systems — primarily radars. Our report points to a clear possibility for real time spectrum sharing that would protect these critical missions, while providing attractive opportunities for commercial business. The report analyzes the potential for these federal systems to share spectrum with outdoor base stations, indoor access points, and mobile user equipment. The report assesses two hypothetical commercial deployments, operating at various power levels, which industry has said would be desirable. The next step would be to study how often each of the federal systems actually is used, and then develop mechanisms for reliably informing commercial operations when federal systems are operating nearby. This 100 MHz of spectrum should be well suited for realizing 5G’s promise of higher throughput and lower latency operations. The band could be a valuable resource for commercial deployment, given its position adjacent to the Citizens Broadband Radio Service spectrum at 3550-3650 MHz where widespread new deployments are expected soon.

Free Press Action released its 2020 Right to Connect Voter Guide, an analysis of presidential candidates’ positions on vital media and technology policies. It analyzes the positions of nine Democratic and Republican presidential candidates polling at 3 percent or above in recent national polls. Sens Bernie Sanders (I-VT) and Elizabeth Warren (D-MA) stand out for their proposals to invest billions to expand internet access and rein in steep broadband prices that keep low-income families and people of color offline. Sen Sanders has also offered the most concrete ideas to address the crisis in journalism.
Affordability: The price of broadband is too damn high for many people across the country. Among the Democratic candidates, Sen Sanders’ and Sen Warren’s proposals would do the most to address this crucial issue, and Warren highlights how race factors in the digital divide. Former Vice President Joe Biden, former Mayor Pete Buttigieg and Sen Klobuchar have also put forward strong proposals in support of digital equity, albeit with fewer details. And Biden, Sanders and Warren have all taken stands against extortionary prison-phone rates.
Reliable networks: As climate-related disasters worsen, the next president needs to focus on building resilient networks and protecting the communications needs of vulnerable communities. That should start with addressing the government’s neglect of Puerto Rico in the wake of destructive hurricanes and earthquakes. Sen Sanders has taken the strongest stance here, explicitly calling for “a full review of the post-disaster response to the communications crisis in Puerto Rico [to] ensure broadband and telecommunications services are swiftly restored.” His proposal includes plans to invest in equitable and resilient communications networks. Biden, Buttigieg and Warren have rightly focused on recovery in Puerto Rico. The other candidates haven’t said much
Net Neutrality: All of the leading Democratic candidates but two — Joe Biden and Michael Bloomberg — have strongly and publicly endorsed Net Neutrality on the campaign trail. While Biden served as vice president under the Obama administration — whose Federal Communications Commission passed the strong 2015 Net Neutrality rules that the Trump administration gutted — he has thus far made no public statements about this issue. (However, he has held fundraisers with Comcast executives.)
[Craig Aaron is president and co-CEO of Free Press Action. Dana Floberg is a policy manager for Free Press Action.]

Campaign reform groups are telling the Federal Communications Commission to reject broadcasters' petition to 'clarify' the FCC's disclosure requirements for third-party political ads and follow the National Association of Broadcasters' "rationally tailored approach." NAB and others asked the FCC to narrow its definition of non-candidate ads on “any political matter of national importance" (i.e. "issue" ads) and the disclosure obligations on broadcasters to identify the issues in those ads. In response, the Campaign Legal Center, Sunlight Foundation, Common Cause, the Benton Institute for Broadband & Society, and Issue One say the FCC should not " exclude from disclosure advertisements that address a political matter of national public importance if they also refer to a local or state election." It was complaints from those groups about TV station disclosures, or the lack of them, that prompted the FCC guidance broadcasters are trying to clarify. Those groups say that the public's need to know who paid for an ad that addresses an issue of national importance doesn't decrease because the ad mentions a local candidate.
Stories From Abroad
Implementing policy on next-generation broadband networks and implications for equity of access to high speed broadband: A case study of Australia's NBN

In this article we draw on our recent case study research to examine the policy (and politics) shaping implementation of Australia's National Broadband Network (NBN) and its likely effects on equity of access to high speed broadband (HSB) services. We monitored NBN policy and implementation from 2015 to 2018 through policy documents, reports, and media. We found that equity considerations competed with political and commercial imperatives during the rollout of the NBN. This resulted in positive and negative consequences for equity of access to HSB, with a change in policy and implementation in 2013 bringing greater risks to equity of access. The case study provides a framework for considering equity in the implementation of next generation telecommunications infrastructure and highlights the importance of considering equity in the evaluation of telecommunications infrastructure.
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) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.
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