Thursday, January 9, 2020
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Demand for Broadband in Rural Areas: Implications for Universal Access
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I'm sharing with my fellow commissioners a draft order that would establish the Rural Digital Opportunity Fund, a modern approach for connecting those hardest-to-serve corners of our country. At the FCC's January open meeting, we'll vote on this order—our biggest step yet to close the digital divide. The new Fund will provide up to $20.4 billion over the next decade to support the deployment of high-speed broadband networks in those parts of rural America that currently lack fixed broadband service that meets the Commission's baseline speed standards. To maximize the impact of these investments, we will use a multi-round, descending-clock reverse auction. The Commission used this same reverse-auction approach in 2018 for Phase II of our Connect America Fund, and it helped us fund the deployment of high-speed broadband to 713,000 unserved rural homes and businesses for just 30% of our projected cost. And we don't want millions of rural Americans to wait longer than necessary to obtain the economic, educational, and healthcare opportunities provided by high-speed broadband. That's why I'm proposing that we divide the Rural Digital Opportunity Fund into two phases. Phase I would provide up to $16 billion to fund the deployment of high-speed broadband in census blocks where we know that there's not any service available meeting the Commission's baseline speed standards. Based on our initial estimates, almost 6 million homes and businesses in rural America would be eligible for Phase I of the Rural Digital Opportunity Fund. And then, once we complete our efforts to update our broadband maps to more precisely identify connectivity gaps, we will move forward with Phase II, which will cover unserved households in census blocks where some households are served, as well as areas that don't receive funding in Phase I. We also want to prioritize the deployment of broadband networks that will meet the needs of tomorrow as well as today. Congress has called on the Commission to fund sustainable and forward-looking networks that will stand the test of time. I agree. That's why, in addition to more than doubling the minimum speed required of bidders in the Connect America Phase II auction, I'm proposing a significant additional measure to favor the deployment of faster services. Once the reverse auction in Phase I hits the clearing amount of $16 billion, a bid to provide faster service to an area will automatically be chosen over a competing bid to provide slower service to that same area. The Rural Digital Opportunity Fund has the potential to transform the lives of millions of our fellow citizens in rural America and revitalize parts of our country that are currently being left out of our digital economy. That's why I hope that my colleagues will join me on January 30 in supporting this bold initiative.
Other items on the January agenda:
- The FCC has long-standing rules that require both manufacturers and service providers to make available handsets that meet specified technical criteria for hearing-aid compatibility. In 2019, the American National Standards Institute adopted new technical specifications, but the Commission's rules are still based on outdated standards from 2011. To reflect technological advances, I'll call a Commission vote at our January meeting on a proposal to incorporate the new standard into our rules.
- For Americans with more severe hearing loss, Video Relay Service, or VRS, has been critical to helping them use American Sign Language to communicate with voice telephone users. To improve the effectiveness of this vital service, the FCC launched a pilot program in 2017 to allow qualified sign-language interpreters to work as communications assistants from home workstations as opposed to requiring them to work at call centers. The pilot has shown that in-home interpreters can work as efficiently and effectively as those in call centers and that our safeguards can both impede waste, fraud, and abuse and maintain the privacy of communications. That's why I've proposed to my colleagues to make the at-home call-handling program permanent.
- Currently, cable and satellite operators must provide broadcast TV stations with notice by paper delivery before they take certain actions. Satellite television providers must similarly give notice by paper prior to retransmitting certain stations or launching new services into a market. In July 2019, we proposed making these paper notices electronic instead. Commenters unanimously supported this common-sense idea, and, in three weeks, the FCC will vote on an order that will require these notices to be transmitted electronically.
The US Department of Agriculture invested $23 million in two high-speed broadband infrastructure projects that will create or improve rural e-Connectivity for 2,643 rural households and 78 businesses in North Dakota. Polar Communications will use a $21.2 million loan and grant combination in ReConnect Program funding to construct a fiber-to-the-premises network encompassing 1,870 square miles. The service area is expected to reach 2,237 households, six educational facilities, one health care center and one critical community facility in Grand Forks, Walsh and Pembina (ND) counties. Daktel Communications will use a $1.8 million ReConnect Program grant to provide broadband service to 406 households and three educational facilities over 354 square miles. Daktel Communications is a Competitive Local Exchange Carrier that provides services within the Jamestown (ND) exchange.
As of 2019, over 20 million Americans—predominantly those living in rural areas—lacked access to high-speed broadband service according to the Federal Communications Commission. Federal subsidies underwritten by taxpayer funds and long-distance telephone subscriber fees have injected billions of dollars into rural broadband markets over the past decade—mostly on the supply side in the form of grants, loans, and direct support to broadband providers. Yet, adoption rates have leveled off after more than a decade of rapid growth, even as broadband providers have extended service to remote and hard-to-serve areas. The overall share of US adults using the internet has not grown significantly since 2013—a trend reflected in rural broadband subscription rates, which continue to lag significantly behind rates in urban areas. Observers note that weak demand in nascent broadband markets makes it more difficult for federal agencies to elicit private-sector program participation and investment in high-cost, high-risk rural areas. Even in subsidized markets, broadband infrastructure buildout ultimately rests on business decisions made in the private sector. On average, rural areas are less wealthy than urbanized areas, and have older populations with lower educational attainment—factors which negatively correlate with demand for broadband service. Related barriers to adoption, such as lower perceived value, affordability, computer ownership, and computer literacy, have persisted over many years.
Options for congressional consideration include measures to address obstacles to adoption and additional incentives for private sector investment in the rural broadband sector. These may include expansion of end-user subsidies, both within the broadband sector and other sectors that utilize broadband-enabled technologies. Congress may also consider measures to encourage broadband providers to increase investment in persistently underserved rural areas and more aggressively develop nascent broadband markets. These may include adjustment to subsidy rates and program rules, including introduction of adoption milestones for subsidy recipients. Additionally, Congress may consider measures to increase education and outreach.
Rural communities face many challenges, and climate change is only making matters worse. If done right, taking climate action will be a win-win for rural communities, counteracting the shifts to their way of life. Nearly one-quarter of rural Americans do not have access to broadband internet, which has major financial implications for farmers. According to the USDA, universal deployment of broadband-enabled precision technology could reduce water use by 30 percent, cut herbicide reliance significantly, reduce fuel use by 10 percent, and increase yields by 70 percent, generating cost savings of approximately $47 billion to $65 billion annually in additional gross benefit for the US economy. As part of rural infrastructure upgrades, CAP recommends a “dig once” approach that links upgrades to the rural electricity grid for renewable energy and expands broadband access. Congress should explore options for allocating grants, low-interest loans, and loan guarantees to rural electric co-ops—rather than wholly relying on large telecommunications companies—to expand broadband access in rural-remote areas left behind by the private market. This could be accomplished by expanding and fully funding the existing USDA Rural Utilities Service programs such as the Broadband Reconnect Program, the Rural Broadband Access Loan and Loan Guarantee Program, and the Community Connect Grant Program.
Federal Communications Commission Chairman Ajit Pai continues to double down on the claim that net neutrality was a huge boon for American consumers, even if supporting evidence for that claim remains largely nonexistent. Speaking at the Consumer Electronics Show (CES), Chairman Pai once again insisted that his decision to ignore the public and repeal net neutrality protections resulted in faster broadband speeds for consumers—and a spike in overall network investment. “Since we made the decision in December 2017, broadband speeds are up 60 percent according to Ookla, infrastructure investment is up, more Americans are getting connected to the internet than ever before,” he said. “More fiber was laid in 2019 to homes and businesses in the United States than in any year since they’ve been keeping records, breaking the record we set in 2018.”
“I would like to say that thanks to our efforts, more Americans than ever before, faster than ever before, are able to hate-tweet their favorite FCC chairman.”
CenturyLink has agreed to pay nearly $9 million to settle allegations the company overbilled Minnesota customers, said MN Attorney General Keith Ellison. AG Ellison said the settlement requires CenturyLink to pay more than $844,000 in refunds to more than 12,000 Minnesota customers who were promised a discount they did not receive. The company will pay an additional $8 million that Ellison's office will use to distribute refunds to other customers. The settlement also requires the Louisiana-based company to change its billing practices and to disclose the true price of its services at time of sale and in its advertisements.
The House has passed three bipartisan 5G bills, which passed out of the House Commerce Committee in Nov. The bills are primarily about considering and strategizing and encouraging, rather than commanding, which helped them get that bipartisan support. It is likely the bills will get Senate approval and President Donald Trump's signature.
- H. Res. 575, expressing the sense of the House of Representatives that all stakeholders in the deployment of 5G communications infrastructure should carefully consider and adhere to the recommendation of "the Prague Proposals," was introduced by Reps Bill Flores (R-TX) and Darren Soto (D-FL). The resolution also encourages the President and federal agencies to promote trade and security policies on the international stage that are consistent with "The Prague Proposals." The bill passed by voice vote.
- The Secure 5G and Beyond Act of 2019 (HR 2881) was introduced by Reps Abigail Spanberger (D-VA), Elise Stefanik (R-NY), Elissa Slotkin (D-MI), Francis Rooney (R-FL), Tom O’Halleran (D-AZ), and Susan Brooks (R-IN). This legislation requires the President to develop the "Secure Next Generation Mobile Communications Strategy” with the heads of the Federal Communications Commission, the National Telecommunications and Information Administration (NTIA), and Department of Homeland Security, as well as the Director of National Intelligence and Secretary of Defense. The legislation then requires the President to develop a separate implementation plan for the strategy for the NTIA to carry out. The bill passed 413-3.
- The “Promoting United States Wireless Leadership Act of 2019 (HR 4500) was introduced by Reps. Tim Walberg (R-MI) and Debbie Dingell (D-MI). This legislation directs NTIA to encourage participation by American companies and other stakeholders in standards-setting bodies. It also offers technical assistance to stakeholders that do elect to participate in developing standards for 5G networks and future generations of communications networks. The bill passed by voice vote.
“The House continues to pass legislation that will help keep the American people safe. The whole-of-government approach of the Secure 5G and Beyond Act will force the Trump Administration to get serious about protecting Americans as 5G services are deployed," said House Commerce Committee Chairman Frank Pallone (D-NJ) and Communications Subcommittee Chairman Mike Doyle (D-PA). " The timing is particularly important given the increased risk of cyberattacks arising from the conflict with Iran. All three of these bills are important for securing America’s wireless future, and we hope they won’t languish in the Senate.”
The House Consumer Protection Subcommittee held a hearing "Americans at Risk: Manipulation and Deception in the Digital Age" to look at deep fakes and online manipulation. Subcommittee Chairman Jan Schakowsky (D-IL) used the informational hearing to hammer Big Tech and Facebook in particular. She said that Big Tech had failed to respond to the "grave threat" of deep fakes, dark patterns, bots, and other technologies that are hurting the public in direct and indirect ways. Chairman Schakowsky said that for too long, Big Tech has argued that their e-commerce and digital platforms deserve special treatment and a light regulatory touch, but she said the subcommittee is finding that consumers can be harmed as easily online as in the physical world, and in some cases the online dangers are greater. She said the subcommittee must make it clear that protections that apply in the physical world apply in the virtual world.
Subcommittee Ranking Member Cathy McMorris Rodgers (R-WA) argued that more regulation was not the answer and that manipulating of the public was nothing new. She cited the "yellow journalism" of the newspapers of William Randolph Hearst and Joseph Pullitzer of over 100 years ago. Echoing the Trump Administration's new AI regulatory guidelines, Ranking Member Rodgers said that US tech companies must continue to be free to innovate in AI and facial recognition and other technologies that US values of freedom and independence, not those of authoritarian regimes, undergird the technology.
Twitter recently announced that it will no longer allow political advertisements on its digital platform. Implementation of this decision, if possible at all, will have dire consequences for American democracy. Defining a political advertisement is nearly impossible. And social media helps under-funded candidates. And Twitter's ban will not eliminate disinformation.
We already have readily available databases of advertisements that are aired on TV or radio. It is technically simple to have social media companies build similar databases about the political advertisements on their platforms. Congress has already taken steps towards this direction through bills like the Honest Ads Act, which requires an “online platform [to] maintain, and make available for online public inspection in machine readable format, a complete record of any request to purchase [political advertisements] on such online platform.” Improved ad transparency would help fight disinformation and give voters the information they need to protect their interests.
[Niam Yaraghi is a nonresident fellow in the Brookings Institution's Center for Technology Innovation and an assistant professor of Operations and Information Management at University of Connecticut's School of Business]
What happens when a prime time TV show becomes a potential healthcare policy direction, plus a side helping of broadband adoption strategy? An episode of the NBC TV medical melodrama New Amsterdam inspired a five-city telehealth pilot project involving barbershops and hair salons. The show’s medical director had a brilliant idea to enlist barbershops in African-American neighborhoods to screen customers for hypertension (high blood pressure), which leads to an overwhelming majority of the 140,000 stroke-related deaths a year. Cleveland, Ohio, is one of the five cities. Urban Kutz barbershop was early to facilitate a manual hypertension screening program that started 12 years ago. Owner Waverley Willis reports, “90% or more customers discover the first time they’re screen they have high blood pressure. Several customers’ blood pressure was so high they went straight to the ER, and a good number were well on their way to a stroke or a heart attack.”
[Craig Settles assists cities and co-ops with business planning for broadband and telehealth]
President Donald Trump announced his intention to nominate John Chase Johnson of Oklahoma, to be the Inspector General at the Federal Communications Commission. Johnson is an attorney at Covington & Burling LLP, where he practices in the commercial litigation and government contracts groups. He also serves as a Major and Military Judge in the US Marine Corps Reserves. Before joining Covington, Johnson served on active duty in the US Marine Corps and deployed to Afghanistan. He clerked for Judge Edith Clement of the Fifth Circuit and Judge Victor Wolski of the Court of Federal Claims. A native of Oklahoma, Johnson holds a BA in history from Duke University and a JD from the University of Virginia School of Law.
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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