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On Saturday, March 23, 2024, President Joe Biden signed into law the Further Consolidated Appropriations Act, 2024 (H.R. 2882), legislation that provides funding through September 30, 2024, for projects and activities of departments and agencies of the Federal Government. H.R. 2882 completes the appropriations process for fiscal year 2024 (FY2024). Earlier in March, President Biden signed the Consolidated Appropriations Act, 2024 (H.R. 4366). As we reported earlier, H.R. 4366 provided some direct spending on broadband. The Further Consolidated Appropriations Act, 2024 is much lighter on broadband; this quick synopsis is a companion to our earlier reporting.
Service providers shouldn’t let reporting requirements or a requirement to offer low-cost service stop them from applying for Broadband Equity, Access, and Deployment (BEAD) funding, said Evan Feinman, BEAD program director for the National Telecommunications and Information Administration. The requirement to offer a low-cost service has become a particularly big concern as funding for the Affordable Connectivity Program (ACP) is set to run out. Many providers had seen the FCC $30-a-month ACP benefit for low-income customers as a means of meeting that requirement. Without the ACP, some providers might be reluctant to participate in the BEAD program. Feinman also offered providers some potential relief on another BEAD requirement that may be holding some providers back from applying: reporting requirements. “We have a very aggressive goal of reducing the amount of reports that [providers] have to do,” he said. “We will try to get guidance out as soon as possible.” Nevertheless, Feinman encouraged providers to enlist the help of people with federal grant writing experience, perhaps on a shared basis with other providers. It should be possible to use a portion of BEAD winnings to go toward the cost of hiring that expert help, he said.
As the Federal Communications Commission (FCC) considers pleas for more lenient Rural Digital Opportunity Fund (RDOF) fines, electric co-ops are saying it's time for defaulters to own up. Internet service providers (ISP) have been defaulting on RDOF grants for years and have been struck with sizeable penalties from the FCC as a result. Last month a coalition of ISPs, unions and local officials penned a letter to the FCC appealing for a brief amnesty period, during which defaulting companies could surrender their contracts with reduced penalties. The proposal has triggered a public comment process, and some aren’t so keen on the idea of default forgiveness. Electric co-ops contend that granting amnesty won’t deter future defaults but will have the opposite effect. In a letter to the FCC, the National Rural Electric Cooperative Association (NRECA), which represents nearly 900 rural electric co-ops, said the proposed remedy to RDOF defaults would set a “dangerous and disruptive” precedent for bailing out defaults in future grant programs.
One hundred fifty billion dollars in new funding is expected to add an additional 59.3 million US homes to be reached by fiber over the next five years, according to the latest research from RVA Market Research & Consulting, with a total of over 137 million US homes passed by fiber by 2028. At the end of 2023, 78 million US homes were passed by fiber with a total of 5.1 million route miles of fiber construction completed. An additional 4.2 million route miles of fiber is expected to be added over the next five years. Michael Render, Founder and CEO, of RVA said that BEAD funding, and unprecedented capital from private equity companies, makes for "a rather spectacular period." Render noted that the RVA five-year US FTTH forecast for 2024-2028 has been reduced to factor in potential constraints expected to come into play during the second half of the projected timeframe. Network operators have concerns around workforce shortages, rising costs, work process constraints such as approvals and access, and materials shortages slowing the pace of deployment, while smaller operators are concerned about BEAD requirements and regulation being significant obstacles to participating in the NTIA grant program.
The state of Maryland has created a useful online dashboard showing how much broadband funding it awarded between 2019 and 2023. Interested parties can check information by provider and by year. A total of 20 entities received grants during the five years covered by the dashboard, which was posted by the Maryland Office of Statewide Broadband. The 10 companies that were awarded the most money were
- Talkie ($40.2 million, 32 projects);
- Comcast (also $40.2 million, 28 projects);
- Choptank Electric ($36.6 million, 9 projects);
- CenturyLink, which sells service under the Spectrum brand ($27.4 million, 11 projects);
- Shentel ($19.4 million, 4 projects);
- Harford County/Think Big Networks LLC ($12.3 million, 4 projects);
- Verizon ($11.1 million, 7 projects);
- Easton Utilities ($10.5 million, 3 projects);
- Charter Communications ($9.7 million, 2 projects); and
- ThinkBig ($7.8 million, 35 projects).
A total of $239 million was granted on 178 projects during the five years covered by the dashboard.
The Minnesota Department of Employment and Economic Development (DEED) announced Minnesota's Digital Opportunity Plan has been accepted by the US Department of Commerce's National Telecommunications and Information Administration (NTIA). The acceptance means the state is now eligible for federal grants to implement the plan, which will help reduce gaps in internet adoption, and expand digital skills and digital technology access. The Digital Equity Act, part of the Internet for All initiative and a key piece of President Biden's Investing in America Agenda, provides $2.75 billion to establish three federal grant programs—the State Digital Equity Planning Grant, Digital Equity Capacity Grant and Digital Equity Competitive Grant—that promote digital equity and inclusion. DEED's Digital Opportunity Plan, produced by the Office of Broadband Development (OBD), details how Minnesota will use its Internet for All grant funding to expand digital access.
The National Telecommunications and Information Administration approved Montana’s plan to expand digital access, skills and affordability as part of the federal $2.75 billion Digital Equity Act. Montana’s Digital Opportunity Plan listed barriers to digital access, which include broadband availability, service affordability, device access, and digital skills—with access and affordability being the top two. The plan is intended to serve as a guide for the state’s efforts to narrow the digital divide. Montana ranks lowest in the country in internet access, with rural communities struggling with access the most. The state created the plan using just more than $600,000 from the State Digital Equity Planning Grant Program, according to the NTIA. The Department of Administration drafted the Digital Opportunity Plan in tandem with the BEAD Five Year Action Plan—which the state submitted along with initial proposals to access $629 million in federal funds to deploy high-speed fiber in unserved communities across the state.
The Commonwealth of the North Mariana Islands (CNMI) Broadband Policy & Development (BPD) Office released its draft Digital Equity Plan, A Voyage to Digital Equity in the Commonwealth of the Northern Mariana Islands. In the dynamic landscape of the digital age, where information and opportunities surge like currents across the Marianas Trench, the concept of digital equity emerges as CNMI's northern star. Embracing the rich heritage of CNMI's traditional art of island navigation, this plan emerges as the compass, guaranteeing fair and inclusive access for every resident of the Commonwealth.
Lawrence County (IN) announced a nearly $2.6 million public-private project with AT&T to expand AT&T Fiber to an estimated 530 customer locations in rural areas of the county. AT&T will invest more than $1.6 million, and Lawrence County will invest $950,000 in a project to provide fiber services to residential and business addresses in rural areas of west central Lawrence County. Extensive planning and engineering work for this project will begin in the second quarter of 2024. The network buildout is expected to be complete within two years. This is the third public-private project announced between AT&T and Lawrence County since 2023.
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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