Thursday, February 2, 2023
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Today's Congressional Hearings
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Broadband Funding
The Federal Communications Commission committed over $30 million in a new funding round through the Emergency Connectivity Program, which provides digital services for students in communities across the country. These funding commitments support applications from all three application windows, benefiting approximately 75,000 students across the country, including students in Colorado, Florida, Idaho, Nebraska, New Jersey, and Nevada—and will fund applications from all three application windows that will support over 200 schools, 15 libraries, and 1 consortium. The Emergency Connectivity Program, which launched in 2021, has provided schools and libraries three different “application windows” for schools and libraries to apply for support. Of the approximately $6.5 billion in funding commitments approved to date, approximately $4.1 billion is supporting applications from Window 1; $833 million from Window 2; and $1.6 billion from Window 3.
An earlier model estimated how far the Broadband Equity, Access, and Deployment (BEAD) funding might go, using estimates of the unserved and underserved from the old Form 477 data. The prediction was that with an optimal allocation between states, there would be almost enough money to reach all the unserved and underserved. Well, we’re getting closer to real and final data, and an update is in: $41.4 billion at an average national cost of $6,214 per location should reach 6.7 million locations. Considering the 3.5 million locations already committed to by Rural Digital Opportunity Fund (RDOF), we should be able to reach 10.1 million locations, or 79% of the total unserved and underserved nationally. As of this writing, 3.5 million locations have been authorized for RDOF funding. These are locations that are intended to be rural and unserved. There should be a 100% overlap between RDOF locations and BEAD-eligible locations. While RDOF-authorized locations are counted as unserved for the purposes of the allocation of money, by rule BEAD money can’t be used to fund a project for the same location. In the fall I was optimistic about how far the BEAD money can go in closing the Digital Divide. The new maps, if anything, make me more optimistic.
There needs to be a way to consistently track the billions in broadband infrastructure money coming from the federal government, said Information Technology and Innovation Foundation panelists. With $42.5 billion coming to the states from the National Telecommunications and Information Administration’s (NTIA) Broadband Equity, Access, and Deployment (BEAD) Program, experts floated the idea of having mandated ongoing reporting requirements on what that money is doing. Brookings Institution senior fellow Nicol Turner-Lee said her research group is discussing their own version of a tracking mechanism, noting the number of broadband programs from BEAD to the Agriculture Department’s ReConnect Program. However, Rob Rubinovitz, senior vice president and chief economist at the trade association NCTA, said that’s all very difficult to do, adding the NCTA has tried that. He noted that the jurisdictions down to the county level do things differently, which means different ways of collecting data; but he suggested perhaps a more uniform way of collecting the data for all recipients of funding would help resolve the issue.
Sens Thune, Luján, Klobuchar, Fischer Reintroduce Bipartisan Legislation to Increase Access to Rural Broadband
US Senators John Thune (R-SD) and Ben Ray Luján (D-NM)—ranking member and chairman, respectively, of the Senate Subcommittee on Communications, Media, and Broadband—and Amy Klobuchar (D-MN) and Deb Fischer (R-NE) reintroduced the Rural Internet Improvement Act. This bipartisan legislation would streamline and bolster US Department of Agriculture (USDA) Rural Development broadband programs and ensure that their funding is being targeted to rural areas that need it the most. Sens Thune, Luján, Klobuchar, and Fischer are all members of the Senate Committee on Agriculture. The Rural Internet Improvement Act would:
- Streamline USDA’s broadband authorities by merging and codifying the popular Rural e-Connectivity Pilot Program (ReConnect) with USDA’s traditional broadband loan and grant program;
- Ensure ReConnect funding is going to areas most in need of reliable broadband service by limiting funding to areas where at least 90 percent of households lack access to broadband service;
- Enhance the participation of all types of broadband providers in the ReConnect Program by removing unnecessary barriers;
- Increase transparency by improving the challenge process in the ReConnect Program;
- Improve the coordination between USDA and the Federal Communications Commission on broadband programs; and
- Require USDA to enter into a memorandum of understanding with the FCC and National Telecommunications and Information Administration (NTIA) to facilitate outreach to rural residents and businesses of available federal programs that promote broadband access, broadband affordability, and broadband inclusion.
Millions of dollars in federal funding are currently making their way to northern Michigan to aid in the buildout of fiber-optic broadband internet infrastructure throughout the region. As a historic moment, these fiber internet investments mirror what the government did with electricity back in the 1930s. But are the investments good for northern Michigan, or are they inadvertently steering the region away from the kinds of local operators and stakeholders that are best positioned to provide stable, long-term solutions to the area’s connectivity challenges? What is playing out now regarding fiber internet buildouts in rural parts of the country has been called a modern equivalent of the Rural Electrification Act. According to a 2022 report conducted by the Fiber Broadband Association (FBA), only about 43% of American households currently have access to fiber internet. And per a 2021 Pew Research Center report, only 77% of Americans have any kind of high-speed broadband internet connection at home – even if those connections aren’t fiber. Both of those statistics leave considerable room for providers to build out networks and close the gaps, and a recent surge in funding is making the possibility of universal broadband access that much more likely. Proponents of state and federal funding for broadband say public dollars are the key to unlocking better internet service to support robust business development, remote work possibilities, online education, and improved quality of life in rural parts of the country. Still, some skeptics say that state and federal funding for fiber and broadband might not necessarily result in the most stable, sustainable, or complete networks.
Without a record to point to yet, addresses from new governors tend to be light on details as they grapple with forming their cabinets, articulating policy priorities, confronting economic realities, and delving into budget details. But a clear through-line emerged, nonetheless: Governors are going deep on broadband. Whether an incumbent or newly elected, thanks to a historic infusion of federal funds, governors cited the millions in investment going to bolstering connectivity within their borders, with many getting specific about residents and businesses slated for high-speed Internet. Apart from broadband, tech-heavy initiatives were hard to find in this year’s speeches, though a couple of governors mentioned intentions to “modernize” and “streamline” government operations, which will certainly involve upgraded technology. See an analysis of governor broadband addresses.
The Common Ground Alliance (CGA) recently issued its 2021 Damage Information Reporting Tool (DIRT). The goal of the CGA is to highlight and reduce damages done to all utilities when working underground. Here are the current trends discussed in the DIRT report:
- CGA used statistical models that show that there has been a plateau, or perhaps a tiny decrease in the frequency of damages caused by underground construction since 2019.
- Calls to locate services increased by 8% in 2021, which CGA believes is a precursor to the construction that will result from the Infrastructure Investment and Jobs Act (IIJA). In past years the frequency of damages has correlated to the overall volume of construction work, so the expectation is that damages due to construction will increase over the next few years.
- The most common source of damages (almost half) is work done by a backhoe.
- The most commonly damaged infrastructure is natural gas and telecom infrastructure.
- The most prevalent cause of the damage (25%) occurs when work is done without first calling to locate other utilities. CGA research says that professional awareness of the need for locating services is high, but 60% of all damages due to no notification are attributed to professional excavators.
- The next two primary reasons for damages are excavators failing to pothole, failing to maintain sufficient clearance between digging equipment and buried facilities, and facilities not being marked or being marked inaccurately due to locator error and/or incorrect facility records/maps.
This report is an interesting reminder that good work practices can make a big difference in avoiding damage. Fiber construction projects are often brought to a screeching halt when damage is done to existing utilities, particularly gas and water lines. This is well worth reading for anybody associated with construction.
When the covid-19 pandemic hit, Dr. Corey Siegel was more prepared than most of his peers. Half of Siegel’s patients — many with private insurance and Medicaid — were already using telehealth, logging onto appointments through phones or computers. Siegel’s Medicare patients weren’t covered for telehealth visits until the pandemic drove Congress and regulators to temporarily pay for remote medical treatment just as they would in-person care. The $1.7 trillion spending package Congress passed in December 2022 included a two-year extension of key telehealth provisions, such as coverage for Medicare beneficiaries to have a phone or video medical appointments at home. But it also signaled political reluctance to make the payment changes permanent, requiring federal regulators to study how Medicare enrollees use telehealth. The federal extension “basically just kicked the can down the road for two years,” said Julia Harris, associate director for the health program at the D.C.-based Bipartisan Policy Center think tank. At issue are questions about the value and cost of telehealth, who will benefit from its use, and whether audio and video appointments should continue to be reimbursed at the same rate as face-to-face care. The omnibus bill’s provisions include: paying for audio-only and home care; allowing for a variety of doctors and others, such as occupational therapists, to use telehealth; delaying in-person requirements for mental health patients; and continuing existing telehealth services for federally qualified health clinics and rural health clinics. Fears over potential fraud and the cost of expanding telehealth have made politicians hesitant, said Josh LaRosa, vice president at the Wynne Health Group, which focuses on payment and care delivery reform. The report required in the omnibus package “is really going to help to provide more clarity,” LaRosa said.
The Federal Trade Commission (FTC) has taken enforcement action for the first time under its Health Breach Notification Rule against the telehealth and prescription drug discount provider GoodRx Holdings Inc., for failing to notify consumers and others of its unauthorized disclosures of consumers’ personal health information to Facebook, Google, and other companies. In a first-of-its-kind proposed order, filed by the Department of Justice on behalf of the FTC, GoodRx will be prohibited from sharing user health data with applicable third parties for advertising purposes, and has agreed to pay a $1.5 million civil penalty for violating the rule. The proposed order must be approved by the federal court to go into effect. California-based GoodRx operates a digital health platform that offers prescription drug discounts, telehealth visits, and other health services. The company collects personal and health information about its users, including information from users themselves and from pharmacy benefit managers confirming when a consumer purchases a medication using a GoodRx coupon. Since January 2017, more than 55 million consumers have visited or used GoodRx’s website or mobile apps. According to the FTC’s complaint, GoodRx violated the FTC Act by sharing sensitive personal health information for years with advertising companies and platforms—contrary to its privacy promises—and failed to report these unauthorized disclosures as required by the Health Breach Notification Rule. In addition to the $1.5 million penalty for violating the rule, the proposed federal court order also prohibits GoodRx from engaging in the deceptive practices outlined in the complaint and requires the company to comply with the Health Breach Notification Rule.
The House voted 221-206, mostly along party lines, to pass legislation requiring federal agencies to revert to their pre-pandemic telework policies, although the measure is likely to meet stiff resistance in the Democratically controlled Senate. The Stopping Home Office Work’s Unproductive Problems Act (H.R. 139), introduced by Rep. James Comer (R-KY), would require agencies to “reinstate and apply the telework policies, practices and levels . . . in effect on December 31, 2019” within 30 days of the bill’s enactment. If agencies want to expand telework beyond 2019 levels, they would have to submit to Congress a plan certified by the Office of Personnel Management. The legislation also requires a study of how telework during the pandemic impacted agencies’ missions and customer services.
Government Performance
GAO Highlights $14 Billion Broadband Subsidy Program’s Success And How To Improve
The Government Accountability Office (GAO) released an essential report AFFORDABLE BROADBAND: FCC Could Improve Performance Goals and Measures, Consumer Outreach, and Fraud Risk Management, written by GAO Director of Infrastructure Andrew Von Ah, a tour de force of 106 pages. To prepare the report, the GAO assessed the Federal Communication Commission Affordable Connectivity Program (ACP) program proceedings, outreach materials, and enrollment data; interviewed 27 dozen diverse policy stakeholders, reviewed enrollment fraud risk vis-à-vis the Social Security Administration and the US Postal Service, and audited the Federal Communication Commission (FCC) performance of the program. The ACP has become one the largest and most important programs of broadband adoption ever tried. The GAO report is a treasure trove for policy researchers. Overall, the GAO report makes a positive assessment of the ACP as part of the goal to close the digital divide and its adherence to the timeline stipulated by the Infrastructure Investment and Jobs Act. The GAO compliments the FCC overall on its commitment to continuous improvement, and the report confirms that the ACP fulfills its goal to close the digital divide in a timely fashion and with continuously improving FCC management and performance.
[Roslyn Layton is a Senior Contributor on International Tech Policy for Forbes.]
Telephone companies (telcos) that have been deploying fiber broadband are having a moment in the sun, finally reversing years of broadband subscriber losses to the cable companies. But will this last? What has given telcos an edge is fiber broadband’s ability to support gigabit and even multi-gigabit speeds bi-directionally. With traditional technology, cable companies can offer gigabit and multi-gigabit speeds but only in the downstream direction. Upstream speeds sometimes top out at just 20 Mbps. All that is set to change, though. Curtis Knittle, vice president of wired technologies for Cablelabs believes that upstream speeds are poised to get a lot faster – maybe not fully symmetrical, but probably fast enough for most consumers. Perhaps of greater concern, it’s still a lot easier to upgrade cable hybrid fiber coax (HFC) infrastructure than it is to replace telco copper with fiber. (HFC networks use fiber networks from the cable company headend to a node where signals are converted to coaxial cable for delivery to customer locations.) To maximize speeds, cable companies will be deploying DOCSIS 4.0, the next generation of the DOCSIS standard. They also will be deploying, and in some cases already have deployed, distributed access architecture (DAA). In addition, cable companies are expanding the amount of spectrum that is available for use within the coaxial portion of the link and making more of that spectrum available for upstream communications. For telcos, the process of upgrading existing DSL networks to fiber broadband takes longer and, in some cases, the upgrade to fiber may not be cost-effective.
Nextlink Internet, which was one of the top 10 winners in the Rural Digital Opportunity Fund (RDOF) rural broadband funding auction, has purchased most of the assets of Bluestem Network, a fiber broadband provider based in Lancaster and Seward Counties in Nebraska. Nextlink said it plans on using Bluestem’s assets as “a base to continue growing our fiber internet presence across southeast Nebraska.” Nextlink is already deploying fiber in nearby Gage County. The company has five local office locations in Nebraska and more than 60 employees in the state. Nextlink won over $400 million in the RDOF program, which used a reverse auction to award funding for an area to the company that committed to deploying broadband for the lowest level of support. The company plans to use a combination of fixed wireless and fiber broadand for its RDOF-funded deployments to support speeds up to 1 Gbps.
T-Mobile US reported fourth-quarter and full-year 2022 results, delivering industry-leading postpaid service revenue and cash flow growth in 2022, enabling the Un-carrier to begin shareholder returns earlier than planned. T-Mobile further extended its fame for value while translating its 5G lead into overall network leadership for the first time, resulting in the company’s lowest ever annual postpaid phone churn along with industry-best and record high postpaid account, postpaid customer and broadband customer growth in 2022. T-Mobile's fourth quarter and overall FY 2022 results, as related to broadband, are as follows:
- Postpaid net account additions were 314 thousand in Q4 2022 and reached a record 1.4 million for 2022;
- Postpaid net customer additions were 1.8 million in Q4 2022 and reached a record 6.4 million for 2022, above the high end of the company’s most recently increased annual guidance range of 6.2 to 6.4 million;
- Postpaid phone net customer additions were 927 thousand in Q4 2022 and 3.1 million for 2022. Postpaid phone churn in Q4 2022 of 0.92% improved 18 basis points year-over-year, and 2022 churn of 0.88% improved 10 basis points year-over-year;
- Prepaid net customer additions were 25 thousand in Q4 2022 and 338 thousand for 2022. Prepaid churn was 2.93% in Q4 2022, and 2022 churn of 2.77% was the lowest in company history;
- High-Speed Internet net customer additions were 524 thousand in Q4 2022 and 2.0 million for 2022. T-Mobile ended the year with 2.6 million High-Speed Internet customers;
- Total net customer additions were 1.8 million in Q4 2022 and reached a record 6.8 million for 2022. The total customer count increased to a record high of 113.6 million;
- Ookla: In its Q4 Speedtest Global Index Market Analysis of mobile providers, T-Mobile’s overall network performance swept the competition and placed first in all categories while its 5G network repeated major wins in: Overall Network Performance: Fastest mobile operator in the US, lowest multi-server latency, most consistent network, the best place to stream video.
Policymakers
Rep Pallone Announces House Commerce Subcommittee Ranking Members and Democratic Roster
House Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) announced the full Democratic rosters for each of the six subcommittees in the 118th Congress, including the six subcommittee Ranking Members and the full Committee Vice Ranking Member, who were elected by the Democrats on the Committee on January 27th, 2023:
- Subcommittee on Communications and Technology – Ranking Member Doris Matsui (CA)
- Subcommittee on Energy, Climate, and Grid Security – Ranking Member Diana DeGette (CO)
- Subcommittee on Environment, Manufacturing, and Critical Minerals – Ranking Member Paul D. Tonko (NY)
- Subcommittee on Health – Ranking Member Anna G. Eshoo (CA)
- Subcommittee on Innovation, Data, and Commerce – Ranking Member Jan Schakowsky (IL)
- Subcommittee on Oversight and Investigations – Ranking Member Kathy Castor (FL)
The appointments will now need to be approved by the Democratic Steering and Policy Committee and the Democratic Caucus. Committee Democrats also elected Rep. Kim Schrier, M.D. (WA) as Vice Ranking Member of the full Committee.
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 Grace Tepper (grace AT benton DOT org) — we welcome your comments.
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