Monday, February 12, 2024
Headlines Daily Digest
Don't Miss:
What's Your State's Digital Equity Plan?
The Quickening Pace of Landline Retirement
Congress poised to gift billions to internet service providers
Broadband Funding
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State/Local Initiatives
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Wireless
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Telephony
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Platforms/Social Media/AI
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Elections & Media
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Devices
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Labor
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Cybersecurity
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TV
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Agenda
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Company News
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Stories From Abroad
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Broadband Funding
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Legislation currently wending its way through Congress could extend 100 percent bonus depreciation of property for US businesses. That could add billions of dollars to the coffers of Internet service providers (ISPs) like Verizon, AT&T and Charter Communications. Thomson Reuters defines bonus depreciation as "a tax incentive designed to stimulate business investment by allowing companies to accelerate the depreciation of qualifying assets, such as equipment, rather than write them off over the useful life of the asset. This strategy can reduce a company's income tax, which in turn reduces its tax liability." The new legislation would "provide significant financial benefits to ISPs," summarized Blair Levin, a policy adviser to New Street Research and a former high-level Federal Communications Commission official, in a note to investors.
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With BEAD Initial Proposals submitted to the National Telecommunications and Information Administration (NTIA) for review, state broadband offices (SBOs) are turning their focus to the next step in unlocking IIJA broadband funds—the Challenge Process. On a recent Broadband Breakfast webinar, I had the chance to join other SBO leaders to discuss our states’ processes. The engaged audience made one thing very clear: The Challenge Process raises provider fears of overbuilding to new heights. States are committed to getting to the most accurate BEAD eligible location set to ensure public dollars are only spent on locations that lack qualified broadband service. Some providers are committed to the belief that SBOs are ignorant bureaucrats conspiring to kill their business. Fun times! Approaching the Challenge Process with a collaborative spirit versus an adversarial one can help make it less painful for both sides.
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To achieve true digital equity, deploying broadband to every household in the United States will not be enough. What is also needed are robust, comprehensive programs that address the human side of closing the digital divide and ensuring everyone has access to the technologies, skills, and opportunities necessary to thrive. Over the last seven months and with funding from the Digital Equity Act's State Digital Equity Planning Grant Program, all 50 states, the District of Columbia, and Puerto Rico have released draft digital equity plans for public review and comment. Prior to these efforts, only California had developed a statewide digital equity plan. By creating their own plans, states can identify barriers to digital equity and outline specific measures aimed at addressing those barriers. Once these plans are approved by the National Telecommunications and Information Administration (NTIA), states will be able to apply for funds from the State Digital Equity Capacity Grant Program to implement those plans. NTIA required each plan to include a clear description of the state’s vision for digital equity in the context of its overarching strategy and goals.
Governor Justice announces nearly $33 million in preliminary approval of Line Extension Advancement and Development program award
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Governor Justice (R-WV) announced the preliminary approval of ten awards totaling nearly $33 million through Round 3 of the Line Extension Advancement and Development (LEAD) program of the West Virginia Broadband Investment Plan. These awards will improve access to high-speed broadband and reliable service in nine counties throughout the state and represent a significant milestone in West Virginia’s continued commitment to ensuring that every West Virginian has access to reliable broadband service. Four internet service providers will install approximately 660 miles of new infrastructure, connecting over 5,200 targeted locations that previously lacked access to reliable broadband services. The four awardees are:
- Armstrong Telecommunications
- Citynet
- Comcast Cable Communications
- Spruce Knob Seneca Rocks Telephone
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The Indiana Connectivity Program announced the eighth round of awards on January 8, 2024. The eighth round of the program awarded $637,346 to expand broadband to 175 addresses across 23 counties. Of these addresses, 168 are homes and seven are businesses. Internet providers carrying out the projects matched $1,145,002 for a total investment of $1,782,348. The ten providers who received awards are:
- Airwave Networks, LLC
- Auburn Essential Services
- Berry Communications
- Central Indiana Communications
- Joink Inc.
- Mulberry Telecommunications
- Orange County REMC
- PSC Fiber
- SEI Communications
- Surf Broadband
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The Pennsylvania Broadband Research (PBR) Institute—a collaboration between the Media, Inequality & Change (MIC) Center at the Annenberg School and the Donald P. Bellisario College of Communications at The Pennsylvania State University—is researching and promoting ways to get Pennsylvanians — and other Americans — online. For years, members of the Institute have studied internet access in Pennsylvania and across the country, looking at broadband costs, infrastructure, policy, and access. Sascha Meinrath, Palmer Chair of Telecommunications at Penn State, mapped broadband connections across Pennsylvania in 2018 and found that there wasn’t a single county in the state where at least 50 percent of the population received broadband connectivity, despite Federal Communications Commission reports stating otherwise, while Christopher Ali (Ph.D. ‘13), Penn State Pioneers Chair of Telecommunications, traveled through rural America to investigate the progress of broadband projects subsidized by the government. When the COVID-19 pandemic hit, the consequences of not having access to reliable internet came into stark relief, says institute member Victor Pickard, Professor of Media Policy and Political Economy at Annenberg and MIC Co-Director, as families struggled to connect to telehealth appointments or stream classes held on Zoom. In 2022, Pickard and MIC Postdoctoral Fellow Pawel Popiel examined efforts to close the digital divide in Philadelphia during the pandemic, finding that strategies to get residents online failed to address basic digital access gaps along racial and class-based lines.
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As President Biden met with heads of state around the world these past couple of years, he’s been repeating a curious phrase. “Open RAN.” This obscure technology for cellular towers — which the Brookings Institution once dubbed the “Huawei killer” — is Washington’s anointed champion to try to unseat Chinese tech giant Huawei Technologies from its throne as the largest supplier of the “pipes” that carry the world’s internet data and phone calls. Open radio access networks, or Open RAN, is an emerging technology for cell towers that allows for the use of mix-and-match parts from different vendors — a little akin to Google’s Android ecosystem. This diverges from the Apple-esque, proprietary, all-in-one systems from Huawei, Ericsson and Nokia that dominate the market. U.S. officials hope that this new initiative will help U.S. vendors get back in a game they were largely squeezed out of during two decades of globalization. Biden’s personal appeals to the leaders of India, the Philippines, Saudi Arabia and other countries reflect the issue as a top priority in Washington. A broad administration push is underway to persuade countries around the world to say “yes” to Open RAN and “no” to Huawei.
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The Federal Communications Commission (FCC) said it's going to more carefully look at the "competitive effects" of T-Mobile's plan to purchase more 2.5GHz spectrum for its 5G network. It's possible the agency's investigation into the topic could lead the FCC to reduce the amount of spectrum that T-Mobile hopes to gain. Broadly, the development may represent yet another setback in T-Mobile's efforts to obtain the spectrum it won during the FCC's Auction 108 of midband 2.5GHz spectrum that ended in 2022, with T-Mobile capturing around 90 percent of all the licenses sold. T-Mobile agreed to pay around $304 million for those licenses—a relative steal considering the C-band auction for similar spectrum licenses generated an astounding $81 billion in winning bids. However, the FCC didn't issue T-Mobile its spectrum winnings after the auction because, shortly after it ended, the agency lost its congressional auction authority to administer spectrum licenses.
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AT&T is attempting to pull its landline service from much of California and the Bay Area, raising concerns among those living in rural areas who rely on the service during emergencies. AT&T submitted an application early in 2023 to end its status as California’s Carrier of Last Resort, or COLR, in a vast swath of the state. The designation requires the company to provide basic telephone service, typically in the form of landline service, to any residents who request it. In its application to the state Public Utilities Commission, which will ultimately have the final say on the matter, AT&T argued that having to maintain an “antiquated, narrowband network with an ever-dwindling base of subscribers” gives other companies a competitive advantage. It said the number of California households using landline service dropped 89% between 2000 and 2021. The California Public Utilities Commission has scheduled a series of public hearings where residents are encouraged to share their feedback on AT&T’s proposal. An evidentiary hearing is scheduled for April, and a proposed decision from the commission is expected by September.
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Sooner rather than later, landline telephone service will completely transition to wireless and Internet-based calling (commonly referred to as Voice Over the Internet Protocol or "VoIP"). While the Federal Communications Commission, for over a decade, has precluded a “flash cut” service termination, I expect the timeline for copper wire service retirements to shorten. In 2023, the FCC removed a federal statutory obligation for landline, copper service where “Plain Old Telephone Service” alternative service exists. The big problem—particularly for the elderly and homes with fax machines, burglar alarms, and/or health monitoring—is the added risks and burdens that consumers must bear. Landlines use power provided by the telephone company, while wireless and VoIP require home-provided power. Cellphones need daily recharging. VoIP calling requires modems and special terminals that may run out of backup battery power after a few hours during a blackout.
[Rob Frieden is Academy and Emeritus Professor at Penn State University.]
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Meta will not "proactively recommend political content from accounts you don't follow" on Threads. The policies, which are the same it currently uses to regulate political content on its Facebook and Instagram apps, fill in the details of how Threads and Instagram will handle political content as the election approaches. Threads leadership has previously said the platform did not want to encourage hard news or politics on its platform, but had not laid out the practical measures the company would take to achieve that goal. Threads users will be allowed to follow accounts that post political content, but the algorithm that suggests content from users you don't follow will not recommend accounts that post about politics. Users will have an option that allows them to opt into political recommendations—first on Threads, then on Facebook, at an unspecified date.
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The top three telecommunications companies in the US are shrinking quickly. Across the industry, telecommunications companies are shedding employees as quickly as they can as they automate their networks, outsource tasks to other companies and do less when it comes to customer service.
- AT&T: From 2022 to 2023, AT&T dropped from 162,900 to 150,500 employees
- T-Mobile US: T-Mobile US went from 71,000 employees in 2022 to 67,000 in 2023
- Verizon: Verizon dropped from 117,100 employees in 2022 to 105,400 in 2023
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Lumen Technologies expects to build fiber to an additional 500,000 locations in 2024, matching its pace for 2023. However, some industry watchers believe Lumen could open itself up to fiber overbuilders if it can't accelerate its pace. During Q4 2023, Lumen deployed fiber to another 126,000 new locations, down from 141,000 in the prior period, but ahead of the 113,000 that analysts were expecting. But the pace of Lumen's buildout concerns some analysts. "Our gripe is that they claim an 8-10MM location target for fiber deployment, with a starting point of 3.7MM, and they are only marching towards that target at a pace of ~500k per year. It will take a decade to get there at this pace. In the meantime, they are being targeted by overbuilders," New Street Research analyst Jonathan Chaplin explained in a research note. "If Lumen doesn't build those locations, other overbuilders will build them."
Stories From Abroad
Ukraine Says Russia Is Using Starlink at the Front Line, Prompting Pushback From Elon Musk
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Russian forces are using SpaceX’s satellite internet system near the front line in occupied parts of Ukraine, Kyiv’s military intelligence agency said, potentially undercutting a major battlefield advantage for Ukraine’s army. Access to the system, known as Starlink, has enabled front-line Ukrainian forces to communicate via secure internet chat apps, allowing them to stay in contact without relying on cell or radio signals, which are easier to intercept. Elon Musk, who leads SpaceX and is its largest single owner, responded, “A number of false news reports claim that SpaceX is selling Starlink terminals to Russia. This is categorically false. To the best of our knowledge, no Starlinks have been sold directly or indirectly to Russia.” Starlink users need such terminals to connect with the network’s orbiting fleet of satellites to obtain internet service. Starlink said the service doesn’t work in Russia but didn’t address whether it could be used in Russian-occupied parts of Ukraine.
Upcoming Events
Feb 12—State of the Net 2024 (Internet Education Foundation)
Feb 12—The Race for Space: Property Rights in Satellite Spectrum (Technology Policy Institute)
Feb 13-15––Net Inclusion 2024 (NDIA)
Feb 14––FWA – Sweet Spot for BEAD Deployments (Fierce)
Feb 14––The Future of AI in Cybersecurity (Belfer Center)
Feb 15––February 2024 Open Federal Communications Commission Meeting (FCC)
Feb 21––How Libraries Can Upgrade Their Internet Through the BEAD Program (SHLB Coalition)
Feb 29––Mapping the Future of Digital Privacy (Semafor)
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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