Monday, March 15, 2021
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In the shadow of its exceptionalism, America fails to invest in the basics
Attending school at a fast-food spot: 12 million US students lack internet a year into pandemic
States Look at the Data as They Try to Address the Digital Divide
Infrastructure
Digital Inclusion
Education
Wireless
Universal Service Fund
Security/Privacy
Platforms
Life As We Know It Now
Policymakers
Infrastructure
Compared with its developed-world peers, America has always been a study in contrasts, a paradox of exceptional achievement and jaw-dropping deprivation. Rarely have the disparities been rendered as vividly as in recent weeks and months. Historic breakthroughs in science, medicine and technology coexist intimately — and uneasily — alongside monumental failures of infrastructure, public health and equitable access to basic human needs. America spins out endless entertainment to keep millions preoccupied during lockdown — and keep tech shares riding high on Wall Street — but leaves kids disconnected from the access they need to do their schoolwork. The disparities reflect a multitude of factors, experts say, but primarily stem from a few big ones: Compared with other well-to-do nations, the United States has tended to prioritize private wealth over public resources, individualism over equity and the shiny new thing over the dull but necessary task of maintaining its infrastructure, much of which is fast becoming a 20th century relic. Those choices can pay dividends, as they do when the US leads the world in health-care innovation or electrifies the automobile. They also have consequences. The nation’s infrastructure — the airports, broadband networks, transit systems, utility lines, ports and sewers that keep society humming — is in a perilous state from decades of underinvestment that has transcended both Republican and Democratic administrations.
The American Rescue Plan, the biggest infusion of funds in decades, will soon start putting state, local and tribal governments in a situation they have not experienced in years: Items that had long seemed totally unaffordable are now well within reach. Erie County (NY), which includes Buffalo, has for years struggled with barely functioning internet in its rural areas, which have been mostly bypassed by internet providers. A plan for the county to lay cable for internet service was scrapped a year ago when COVID-19 blew a hole in the county’s budget, but the county executive plans to include the broadband project in the $178 million the county will receive.
All 32 Democratic members of the House Commerce Committee introduced the Leading Infrastructure For Tomorrow’s America Act, or LIFT America Act. The sweeping legislation will modernize the nation’s infrastructure, rebuild the economy, combat climate change, and protect public health and the environment. The legislation invests more than $312 billion in clean energy, energy efficiency, drinking water, broadband, and health care infrastructure. Support for Expansion of Broadband Internet Access Nationwide:
- $80 billion for the deployment of secure and resilient high-speed broadband to expand access nationwide by funding connections to the internet in unserved and underserved rural, suburban, and urban areas, facilitating crucial connectivity that will lead to stronger small businesses, more jobs, and a powerful economy in communities that have been left behind. This investment will allow for 100 percent broadband deployment throughout the nation.
- $15 billion in grants for the deployment and implementation of Next Generation 9-1-1 services across the country to protect American lives through more accessible, interoperable, effective, and resilient 9-1-1 services that allow callers to send text messages, images, or videos to 9-1-1 in times of emergency.
- $5 billion in federal funding for low-interest financing of broadband deployment with a new program that would allow eligible entities to apply for secured loans, lines of credit, or loan guarantees to finance broadband infrastructure build out projects.
- $9.3 billion for broadband affordability and adoption to ensure that everyone can afford internet service and have the knowledge and tools to use the internet in ways that meet their needs.
In the borough of New Oxford (PA), ten miles east of the county seat (Gettysburg), the non-profit media group Community Media of South Central Pennsylvania is leading the charge to bring Fiber-to-the-Home (FTTH) victory for the approximately 102,000 residents spread out across the rural county’s 520 square miles. But with restrictive state laws that protect incumbent providers from competition by not allowing municipalities to provide broadband service, and scarce funding for non-governmental entities to build broadband infrastructure, victory is far from certain. About 10 years ago a county initiative known as Adams County Connected tried to entice the big incumbent Internet Service Providers (ISPs) to invest in broadband infrastructure that would reach unserved parts of the county. It’s a harsh lesson in the “free market” economics practiced by the big incumbent ISPs in rural communities across the nation. In sparsely populated regions dominated by monopoly providers interested in maximizing short-term profits, it doesn’t make “business sense” for the big cable and telco companies to make large capital investments associated with quality broadband infrastructure. As hundreds of other communities have come to realize, if they want better broadband infrastructure, they’ll have to build it themselves.
Pending Bills In WA State Legislature Aim To Allow Public Utility Districts to Partake in Retail Broadband Market
In Jan, bills aiming to advance broadband connectivity by allowing public entities to participate in the retail broadband market were presented in the House and Senate of the Washington State Legislature. The two bills have both cleared their respective chambers, and are waiting to be heard in committees of the opposite legislative chamber. Both bills aim to grant public entities, such as Public Utility Districts (PUDs) and ports, the authority to operate as Internet Service Providers (ISPs). Some are concerned part of the legislation will allow incumbent ISPs too much leverage to convince the WA Broadband Office that some community broadband initiatives — aimed at connecting the unserved, creating a more competitive marketplace, and improving end-user experience — classify as “overbuilding”. Laura Loe, Executive Director of Share the Cities, called lobbyists’ utilization of the term overbuilding an “excuse to not allow public entities to eat into private profits,” which echoes a point made more substantively by John Sallet in the recently published report, Broadband For America’s Future. In that report, Sallet wrote “what some call ‘overbuilding’ should be called by a more familiar term: competition.”
As incoming Chairman of the Senate Finance Committee, I’m making the case that broadband needs to be at the center of any infrastructure or relief package Congress passes in 2021. It is not dreaming too big to demand, right now: Every community should be connected to the twenty-first century shipping lane and communications pipeline—the Internet.
Here’s my blueprint for closing the digital divide. Step one is putting cables in the ground to get Internet access where it needs to go. Congress can keep costs in check by putting smarter policies in place to prevent duplication and waste. There also must be more access-related accountability for providers that receive federal funding. I also urge the new Administration to use the current moment on antitrust to finally go after the predatory telecommunications monopolies, which leave millions of Americans with virtually no choice when it comes to broadband service. Finally, the government needs to ensure, once and for all, that in communities where the big ISPs decide it’s not worth their time to serve, cities and towns have the choice to operate their own networks.
The Biden Administration’s goals of restoring a functional federal government, driving economic recovery, and “building back better” lend themselves to a new strategy for universalizing broadband, with a three-pronged approach to directly address each of the barriers I have described that have stalled universal access. First, any significant plan for investing in infrastructure must include sufficient funding in the form of grants and loans for both initial capital investment and ongoing operations and maintenance of universal, future-proofed broadband networks. Second, the Administration should recognize that the task of universalizing broadband has become too important to remain solely the domain of telecom policy. Rather, broadband needs to be elevated to reflect its role as part of the foundation for almost every aspect of the domestic recovery, from remote learning to rural development, telehealth to structural equality. Third, policymakers and advocates need to recognize that, for better or worse, Internet service is going to continue to be provided, on the whole, by a handful of private companies. If the government is going to subsidize companies’ network deployments, then the dollars should be conditional on providers offering affordable services for the lifetime of the network. Similarly, if the government is going to subsidize adoption, the taxpayer should get a volume discount, not pay retail rates or settle for sub-standard service that continues to disadvantage low-income consumers.
[Paul de Sa is a co-founder of advisory firm Quadra Partners and served as Chief of the FCC’s Office of Strategic Planning from 2009-12 and 2016-17.]
AT&T said it will bring fiber Internet to a few million more homes and businesses by the end of 2021. "In 2021, AT&T plans to increase its fiber footprint by an additional 3 million customer locations across more than 90 metro areas," AT&T said. This would raise AT&T's fiber deployment to about 18 million homes and businesses. AT&T provided a list of the 90 metro areas here. The vast majority of them already have AT&T fiber access. This likely means the 3 million new locations will primarily consist of homes and businesses close to AT&T's existing fiber installations instead of homes and businesses in entirely unserved areas.
Policymakers and other stakeholders are becoming more aware of the hazards of assuming everyone has online access. Many are interested in understanding the places where online access may be lower than the norm and the population groups that may have limited or no access to the internet. Recent work I have done sheds light on some of these issues. Close examinations of high-speed internet adoption gaps in Maryland, Connecticut, and Illinois highlight the variations among different geographies and demographic groups. Two key points are worth highlighting from those broadband adoption reports, which are based on an analysis of American Community Survey data. A growing number of state policymakers view closing the digital divide as a part of larger strategies to address the economic and social disruptions of the pandemic. This is heartening to see. Having data on the nature of the gaps should help them as they formulate policies to get more people online.
[John B. Horrigan is a frequent contributor to Benton's Digital Beat and a Senior Fellow at the Technology Policy Institute, with a focus on technology adoption, digital inclusion, and evaluating the outcomes and impacts of programs designed to promote communications technology adoption and use.]
March 12, we are filing our application to participate in the Federal Communications Commission’s Emergency Broadband Benefit program so we can offer low-income customers additional options for discounted broadband services. We appreciate the Commission’s efforts to move swiftly to implement this program and we look forward to its official launch date. While the EBB will help address the immediate broadband connectivity needs of many low-income Americans, we will continue to work with Congress and others to identify permanent and sustainable funding solutions.
Education
Attending school at a fast-food spot: 12 million US students lack internet a year into pandemic
There are estimated 12 million students who, according to a recent analysis, lack internet service or make do with a patchwork of short-term fixes to participate in remote learning. Their issues are regionally specific, from a lack of broadband in the isolated reaches of Appalachia to worn-out and obsolete devices distributed to poor families on Chicago’s South Side. But the heartache and exhaustion are universal. The federal government is addressing the divide with $7 billion schools can use for internet hotspots and devices, part of the pandemic relief bill President Joe Biden signed. The issues, however, aren’t just technological. As schools continue to reopen this spring, they will confront the pandemic’s legacy of lost learning, one that has disproportionately affected students of color and those from low-income families.
A growing number of school districts across the country, spurred in part by the coronavirus pandemic, are going into the cell tower business. Many school districts have tried for years to provide internet service to needy families with mixed success. The rise of cell towers—typically the province of large telecommunications companies—means that a more sturdy local infrastructure is taking shape that could outlast the emergency of the pandemic. Many school districts have tried for years to provide internet service to needy families with mixed sccess. The rise of cell towers—typically the province of large telecommunications companies—means that a more sturdy local infrastructure is taking shape that could outlast the emergency of the pandemic.
After buying more than 4.5 million computers and hotspots for students over the last several months, Texas education officials have a new goal: making free at-home internet available to every public school student beyond the pandemic. The ambitious target, laid out in interviews and statements by education leaders, suggests Texas plans to ride momentum building across the nation to close the so-called digital divide. The issue has come into stark view as many students shifted to online-only classes when the novel coronavirus began sweeping the country last March. While many details of the state’s plans remain in the works, Texas Education Agency officials said they are building new systems, negotiating with internet service providers and starting to work with legislators to provide at-home broadband to more than 1 million students who currently lack access. State leaders hope to begin connecting some children and families as early as August.
Senators Ben Ray Luján (D-NM) and Lindsey Graham (R-SC) introduced bipartisan legislation to provide E-Rate Support for School Bus Wi-Fi to help close the homework gap while students travel on their daily school bus routes. The legislation expands eligibility for the Federal Communications Commission E-Rate program to reimburse schools that equip school buses with Wi-Fi technology. According to the FCC, one in three households lacks broadband access, and a December study estimated that nearly 17 million students are stuck in the homework gap without internet access at home to complete their school assignments. The COVID-19 pandemic brought the digital divide into stark contrast, and school districts turned to other funding to provide Wi-Fi hot-spots on school buses and parked them throughout communities. The bill is also co-sponsored by Senators Catherine Cortez Masto (D-NV), Cory Booker (D-NJ), Ron Wyden (D-OR), Sheldon Whitehouse (D-RI), Ed Markey (D-MA), and Kyrsten Sinema (D-AR). Companion legislation was introduced in the House by Representative Peter Welch (D-VT). (S. 741 | H.R. 1673)
Lack of student connectivity at home may seem like a recent problem borne of the digital age. But it has historical antecedents in the movement to ensure all students have access to textbooks that they can use both in school and at home. It should, therefore, be viewed as part of a broader dialogue about what is required for an adequate and equitable education.
The homework gap is a distinct subset of this broader problem, and it deserves its own targeted set of solutions. First, we need to recognize that with so much learning activity migrating online, educational equity requires addressing the homework gap. Second, we need to quantify the homework gap at the local level in order to target solutions effectively. Third, we need to survey state and local initiatives to solve the homework gap and replicate those that have been successful. Fourth and finally, we need to modernize the E-Rate program to address the homework gap.
The single most important thing is that we get started now. We don’t need another pandemic or viral picture to galvanize us toward change. We have all the evidence we need that addressing the homework gap needs to be a national priority so that no child is left offline.
The Federal Communications Commission's Wireless Telecommunications Bureau issued the majority of the Priority Access Licenses won in the 3.5 GHz auction (Auction 105). The Bureau granted 222 out of the 255 applications received for Priority Access Licenses. The 3.5 GHz auction had the highest number of winning bidders in a spectrum auction to date. These applications represent 17,450 Priority Access Licenses. Over seventy percent of the applicants issued licenses this week received a very small business, small business, or rural service provider bidding credit in the auction. Spectrum Access System Administrators will manage shared used of the 3.5 GHz band by federal and non-federal users in the three tiers of authorization: Incumbent Access, Priority Access, and General Access. The Bureau continues to review and process the remaining applications for Priority Access Licenses. More information on the granted applications is available in the Bureau’s Public Notice: https://www.fcc.gov/document/auction-105-long-form-applications-granted
Verizon, T-Mobile and AT&T held events to update investors and analysts on spectrum auction results, and laid out plans for expanding their 5G networks. There is "no question" the carriers' new spectrum holdings will improve consumers' experience of using 5G, said Craig Moffett, founding partner and analyst at MoffettNathanson. But the carriers largely expect it will take several years to put the new spectrum to use. This spectrum auction helps the carriers, especially AT&T and Verizon, fill a key gap in their 5G networks. Three categories of spectrum are used to build 5G networks. High-band, or "millimeter wave," networks provide blindingly fast speeds but limited geographic coverage. For that reason, it only makes sense for carriers to build high-band networks in densely populated areas like cities and airports, where many cell sites can be installed close to each other." Low-band spectrum provides much broader coverage, making it effective for use in nationwide 5G networks, but data speeds are only marginally faster than on 4G LTE. Mid-band is the "Goldilocks" spectrum that balances speed and coverage, which has largely been lacking in US 5G networks until now. Carriers bid on mid-band spectrum in the latest auction, and it didn't come cheap.
- Verizon spent $52.9 billion to more than double its mid-band spectrum holdings. The company plans to allocate $10 billion more in capital expenditures over the next three years, on top of its existing spending plans, to put the new spectrum to use.
- AT&T bid $27.4 billion to bolster its mid-band holdings, and expects to spend between $6 billion and $8 billion in additional capital from 2022 to 2024 on the mid-band network buildout.
- T-Mobile had an advantage coming into the auction: a significant amount of mid-band spectrum already in its portfolio, thanks to its $26 billion acquisition of Sprint. As a result, T-Mobile spent just $9.3 billion to fill select gaps in its network.
Cellphone carriers that spent years promoting their blueprints for new fifth-generation wireless networks devoted the past week to explaining how they plan to pay for them. AT&T and Verizon said they would spend billions of dollars more in the coming years on cellular-tower equipment, fiber-optic lines, and other infrastructure to use new wireless spectrum licenses they acquired through a federal government auction. T-Mobile said it would put the new licenses to use without increasing its capital budget.
AT&T reassured investors March 12 that it wouldn’t need to slash its $15 billion annual dividend this year to pay its tab. Verizon, meanwhile, launched a $25 billion bond sale to spread the costs over several years. The plans, detailed in a series of online investor events this week, will add more obligations to an already debt-laden wireless sector.
The Federal Communications Commission's Office of Managing Director announces that the proposed universal service contribution factor for the second quarter of 2021 will be 0.334 or 33.4 percent.
Security
FCC Publishes List Of Communications Equipment And Services That Pose A Threat To National Security
The Federal Communications Commission released a list of communications equipment and services that have been deemed a threat to national security, consistent with requirements in the Secure and Trusted Communications Networks Act of 2019. The list includes five Chinese companies that produce telecommunications equipment and services that have been found to pose an unacceptable risk to US national security or the security and safety of US persons. They include Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology Co., and Dahua Technology Co.
T-Mobile says it will use its customers’ web browsing and app usage data to sell targeted ads unless those customers opt out. It sounds very creepy. But it’s also a good example of just how much of our data can be and is collected through our mobile devices and how few rules there are for the carriers we’re forced to trust with it. Mobile carriers figured out a long time ago that they have two ways of making money off of their customers: what those customers pay to use their services, and then, what carriers earn by selling the data those paying customers provide as they use those services. The latter is buried under lengthy and confusing privacy policies and account settings, and most customers don’t even know it’s happening. There is a little bright spot here: These companies claim that they don’t attach your personal information, like your real name or address, to this data. They either just lump you in with a large anonymous pool of customers to use as aggregate data, or they assign a unique identifier to you, attach a bunch of categories based on interests or demographic information inferred from your data to that identifier, and then give that to third-party advertisers to target their ads to. That’s supposed to prevent advertisers from knowing your real identity, but depending on what’s used as an identifier and how specific the data attached to that identifier is, it could be easy enough to re-identify you through it. You just have to trust that T-Mobile (or Verizon or AT&T) and their advertising partners won’t do that.
Platforms
Microsoft takes aim at Google as it supports bill to give news publishers more leverage over Big Tech.
The House Antitrust Subcommittee debated an antitrust bill that would give news publishers collective bargaining power with online platforms like Facebook and Google, putting the spotlight on a proposal aimed at chipping away at the power of Big Tech. At a hearing. Microsoft’s president, Brad Smith, emerged as a leading industry voice in favor of the law. He took a divergent path from his tech counterparts, pointing to an imbalance in power between publishers and tech platforms. Newspaper ad revenue plummeted to $14.3 billion in 2018 from $49.4 billion in 2005, he said, while ad revenue at Google jumped to $116 billion from $6.1 billion.
Recently, Subcommittee Chairman David Cicilline (D-RI) and Ranking Member Ken Buck (R-CO), introduced the Journalism and Competition Preservation Act. The bill aims to give smaller news publishers the ability to band together to bargain with online platforms for higher fees for distributing their content. Google, though not a witness at the hearing, issued a statement in response to Smith’s planned testimony, defending its business practices and disparaging the motives of Microsoft, whose Bing search engine runs a very distant second place behind Google. “Unfortunately, as competition in these areas intensifies, they are reverting to their familiar playbook of attacking rivals and lobbying for regulations that benefit their own interests,” wrote Kent Walker, the senior vice president of policy for Google.
Here are the names you'll hear a lot as Biden builds out his tech policy apparatus at the Justice Department, Federal Trade Commission and Federal Communications Commission:
- Karl Racine, Federal Trade Commission
- Alvaro Bedoya is being considered for a FTC commissioner slot. He's the founding director of the Center for Privacy & Technology at Georgetown Law School and an expert on data collection and surveillance.
- Jon Sallet is a candidate to lead the antitrust division at the Department of Justice, where he previously was the deputy assistant attorney general for litigation.
- Jonathan Kanter, a longtime antitrust lawyer known for promoting aggressive enforcement, is in the running to head up the Department of Justice's antitrust division.
- Gigi Sohn previously advised former Federal Communications Commission Chairman Tom Wheeler and has strong ties to public interest groups as a co-founder and former CEO of Public Knowledge.
- Edward "Smitty" Smith, the former adviser to Wheeler, served in the Biden transition as part of the FCC review team.
- Anna Gomez, the Wiley Rein attorney and former Commerce Department official, was part of the Biden transition's Commerce review team. Gomez is seen as a contender for a commissioner position with the FCC.
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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