Tuesday, March 15, 2022
Headlines Daily Digest
Today: Competition, Concentration and Antitrust: Squaring the Circle
Don't Miss:
What the American Rescue Plan is Doing for Broadband
E-Rate And Rural Health Care Programs' Inflation-Based Caps For Funding Year 2022
KKR raises $17 billion for broadband and other infrastructure investments
American Rescue Plan
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American Rescue Plan
The Biden Administration celebrated the one-year anniversary of the American Rescue Plan Act last week. The law aimed to address the impact of the COVID-19 pandemic on the economy, public health, state and local governments, individuals, and businesses. Broadband played a big role. A year later, we look at the types of broadband projects the American Rescue Plan Act is funding.
As we reach the first anniversary of President Biden signing the American Rescue Plan into law, the obvious questions include: How did it help? Where or whom did it help the most? And most importantly, did the $1.9 trillion bill do what Congress and the president intended? Did it help Americans get back to work and rebuild communities with an eye towards reducing the inequities that were magnified during the COVID-19 pandemic? The one-year progress report shows the remarkable short-term results it achieved, and sets the stage for positive long-term impacts. Cities are using Rescue Plan funds to address the digital divide. Before the pandemic, 79 percent of white adults had home broadband access compared to 66 percent of Black adults and 61 percent of Hispanic adults. After COVID caused schools to close and a transition to working from home, a study from Rice University found 1 in 10 white parents reported challenges with internet and/or digital access compared to 1 in 3 Black families and 1 in 4 Hispanic families. And even pre-COVID, an NTIA survey indicated AAPI families were 4 percent less likely to go online compared to their white non-Hispanic peers. As we look to the long-term potential of the Rescue Plan, we can turn to Brownsville, Texas, where Mayor Trey Mendez took office in one of America’s most poorly connected cities in 2019. The city chose to use these funds to build out 95 miles of infrastructure and bring broadband to some of the most underserved communities in the area. The American Rescue Plan worked. We are already seeing how investments over just the past year are building a brighter future for all Americans.
[Rep Marilyn Strickland represents Washington's 10th District and is an honorary co-chair of NewDEAL. Debbie Cox Bultan is CEO of NewDEAL.]
The coronavirus pandemic highlighted the need for federal assistance to develop high-speed internet connectivity in all parts of the country, members of a US House subcommittee said as they reviewed provisions that are likely to be included in the next farm bill. “I represent a largely rural district in north-central, northeast Florida, and we have children who do their homework in a Hardee’s parking lot,” said Rep Kat Cammack (R-FL). Several members of the House’s Commodity Exchanges, Energy and Credit subcommittee echoed those concerns about so-called “overbuilding” of existing infrastructure during a March 14 hearing that sought to review the rural development component of the next farm bill, which could be approved in 2023. The current farm bill was last renewed in 2018 and partially expires next year. It’s a wide-ranging law that was expected to cost about $428 billion over the course of five years. About three-fourths of that money is devoted to food assistance for low-income residents, and most of the rest goes to crop insurance, commodity support and land conservation. Previous farm bills provided loans to develop internet infrastructure, but for the first time in 2018, lawmakers also established grants for the projects and raised the minimum speed thresholds that define whether an area has sufficiently fast access, according to the Congressional Research Service. Lawmakers also created the ReConnect Program in 2018 that is separate from the farm bill’s Rural Broadband Program but has similar goals, and states have implemented their own programs.
The city of Houston (TX) has started the deployment of digitally interactive kiosks, which will offer wayfinding information and act as Wi-Fi hot spots. In the two years since the COVID-19 pandemic shifted schools and government alike to operate virtually, digital equity has become a top priority for cities. Local governments have taken a number of routes to establish more public Wi-Fi hot spots, deploying them at libraries and even in smart streetlights. For the city of Houston, the project — led by the Mayor’s Office of Economic Development with support from the Mayor’s Office of Innovation (MOI) — has been part of the mayor’s vision to be a smart city and provide residents with digital amenities, explained Director of Innovation Jesse Bounds. The city released an RFP in March 2020 and selected IKE Smart City as the vendor a year later, which was followed by the City Council’s May 2021 approval. In early February, the city unveiled its first kiosk. Notably, each kiosk will act as a free Wi-Fi hot spot that can support connectivity up to 75 feet away. This Internet access is throttled and restricted with time limits, Bounds said. This is an important component of the project as it will create “pockets of digital connectivity” for city residents, as Bounds explained. The devices can also be used to communicate with city residents. For example, the city can use the kiosks to push out information on topics like services or COVID-19 testing sites.
The Federal Communications Commission's Wireline Competition Bureau announces the E-Rate and Rural Health Care (RHC) programs’ funding caps for funding year 2022. The new caps represent a 4.2% inflation-adjusted increase in each program cap from funding year 2021. The E-Rate program funding cap for funding year 2022 is $4,456,460,992. The new cap represents a 4.2% inflation-adjusted increase in the $4,276,833,965 cap from funding year 2021. This is a $179,627,027 increase for the E-Rate program funding cap as a whole, including a $134,383,203 increase for the category one services funding level and a $45,243,823 increase for the category two services funding level. The RHC program funding cap for funding year 2022 is $637,721,108. This is a $25,704,690 increase for the RHC program funding cap. The internal cap for upfront payments and multi-year commitments in the Healthcare Connect Fund program is $161,022,761. These new funding caps represent a 4.2% inflation-adjusted increase to the $612,016,418 RHC program funding cap and the $154,532,400 internal cap for the Healthcare Connect Fund program’s multi-year commitments and upfront payments from funding year 2021.
Health
House Republicans Express Concerns With the Biden Administration's Statements on Health Misinformation Online
House Republican Leaders sent a letter to US Surgeon General Vivek Murthy regarding the Biden Administration's approach to COVID-19 related misinformation on tech platforms. "We write with significant concerns that the Biden Administration continues to undermine the First Amendment by pressuring technology companies to censor specific users and certain speech," reads the letter sent by Reps Cathy McMorris Rodgers (R-WA), Jim Jordan (R-OH), Steve Scalise (R-LA) and James Comer (R-KY). "The First Amendment prohibits the government from directly censoring speech it finds objectionable. To bypass that prohibition, Biden Administration officials continue to pressure private companies to do what it cannot." The lawmakers detail the surgeon general's public statements on health misinformation online and claim the Administration's stance on this content is unconstitutional. "As defenders of free speech," they said, "we are deeply troubled by the Biden Administration's efforts to silence Americans and your specific role in chilling free speech and expression under the guise of 'public health.'" The representative request that Murthy respond to a variety of questions about his communications to other Biden officials and to tech companies about COVID-19 misinformation by March 25, 2022.
The tech industry is lobbying statehouses across the country to pass privacy bills that critics call weak. Most tech firms would prefer a nationwide law, but since Congress hasn't budged on the issue, the industry now seeks to preempt states from approving tougher privacy rules like California's. Utah lawmakers considered and passed a state privacy bill in less than two weeks, and it's now awaiting the governor's signature. Utah would become the fourth state with a privacy law, following Colorado, Virginia and California. A bill similar to the Utah measure is under consideration in Iowa, and other states, including Tennessee and Maryland, are also weighing privacy bills. The Utah bill is meant to give consumers greater control over their data, such as allowing them to delete the information or opt-out of some data collection. Yes, but: Consumer groups say it's unclear how much control consumers would have over whether their information is used for targeted advertising, and the enforcement mechanism is weak. Consumer advocates say industry groups TechNet and the State Privacy and Security Coalition (SPSC) are pushing weak privacy bills in states while Congress dithers. TechNet argues the Utah bill gives clear protections for consumers and gives Utah's businesses the clarity they need. SPSC describes itself as a coalition of leading tech, telecom, media and retail companies. Members include AT&T, Apple, Google, Amazon and Meta. SPSC said, "Our multi-sector coalition provides substantive expertise to state policymakers, including context on the operational implications of policy proposals and how to help align state privacy laws given the absence of federal law.”
The race to 5G is forcing the world's biggest telecom giants to consolidate. 5G is all about scale; when companies combine, they have more resources and capital to bid on spectrum and build out tools to get ahead. Orange and Masmovil announced they entered exclusive talks to merge their operations in Spain at a valuation of €19.6 billion ($21.7 billion). The companies said the merger helps them "gain the necessary scale and efficiency to undertake an ambitious and sustainable expansion of its FTTH [fiber to the home] and 5G networks." In the US, T-Mobile got ahead in the 5G race by acquiring Sprint in 2020. "We win in this business because of the capacity that we can generate on this network," said Neville Ray, president of technology of T-Mobile US. Ray said the capacity T-Mobile could build over a five-year period is 14 times what it would be without Sprint — a statistic he has previously touted.
“In 5G, it is T-Mobile that looks poised to lead," MoffettNathanson senior analyst Craig Moffett said, citing T-Mobile’s mid-band spectrum scale, which came as a result of the merger.
Broadband appears to be on the list of priorities for private equity firm KKR as it looks to invest $17 billion from a newly created fund in infrastructure projects across the globe. Countries like the US are already pouring a significant amount of money into improving infrastructure. But KKR’s head of North American Infrastructure Brandon Freiman said, “Global demand for building and upgrading critical infrastructure, as well as supporting responsible energy transition and growing broadband access, requires funding far in excess of public sources.” That’s where private equity comes in, Freiman said. Though the fund will look at global investments, it plans to focus on opportunities in countries in North American and Western Europe which are part of the Organization for Economic Co-operation and Development. It is unclear just how much money KKR plans to pump into broadband investments as opposed to other types of projects. However, the company has historically been interested in fiber and fixed wireless access technologies.
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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