Friday, March 31, 2023
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FCC Takes Next Steps Towards Just and Reasonable Communications
Rural operators cheer, cable companies jeer proposed A-CAM changes
Digital Equity
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Digital Equity
On January 5, 2023, President Joseph Biden signed into law the Martha Wright-Reed Just and Reasonable Communications Act of 2022 (Martha Wright-Reed Act) to ensure just and reasonable charges for telephone and advanced communications services in correctional and detention facilities. The law is the product of efforts by multiple individuals and committed stakeholders over a number of years to comprehensively address the persistent problem of unreasonably high rates and charges incarcerated people and their families pay for communications services. On March 16, the Federal Communications Commission launched a proceeding to implement the new law and ensure just and reasonable charges for telephone and advanced communications services in correctional and detention facilities. Here, we look at the issues the FCC is exploring and seeking public input on.
Charter Communications, Comcast, and Cox Communications all met with Federal Communications Commission officials earlier in March 2023 to discuss A-CAM issues. A-CAM refers to the FCC’s Alternative Connect America Model program, which supports broadband deployments in eligible high-cost areas. The program is divided into two award phases: support which was granted under the original program founded in 2016 (A-CAM I) and that allocated during a second round in 2018 (A-CAM II). Each phase has its own service and deployment requirements. A-CAM I mandates speeds of only 10 Mbps downstream and 1 Mbps upstream and runs through 2026. A-CAM II raises this bar to 25/3 Mbps in exchange for an additional two years of support. As of May 2022, the FCC said the total amount of support provided to A-CAM I and A-CAM II participants was $1.1 billion each year. Operators are so keen to talk about an old program already well underway because another extension is on the line, and a decision is expected soon. In May 2022, the FCC called for input on a Notice of Proposed Rulemaking to see whether it should adopt changes to the A-CAM program suggested by rural operators in the ACAM Broadband Coalition. The proposed changes would create an Enhanced A-CAM program by making three main changes:
- Providers would be required to deploy service with speeds of at least 100/20 Mbps to 90% of eligible locations. This would bring locations covered by the A-CAM program in line with the government’s definition of what counts as “served” under the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program.
- Raise the cap on support from $200 to $300 per location – a tweak that would raise the annual program cost to $1.49 billion per year.
- Extend the term of support by six years for most program participants.
However, in a recent filing, NCTA said it, as well as representatives from Comcast, Charter, and Cox, all recently met with the FCC to push back against the proposal. The parties argued that operators “have made significant investments” in rural expansions in recent years and that “expanding the A-CAM programs by awarding incumbent LECs a sole-source contract, with no competitive bidding process, would be a poor policy choice.” It is unclear when exactly the FCC might take further action on the matter, but many are hoping for a decision soon.
Windstream, a privately held company that provides wired broadband, has completed the removal of all Huawei equipment from its network. And it said the Federal Communication Commission's rip-and-replace reimbursement program will cover all its costs. Windstream’s network included Huawei gear acquired as part of its 2017 purchase of EarthLink. Huawei systems made up less than 1% of its network and provided services limited to Layer 1 transport. In 2019 Congress passed the Secure and Trusted Communications Networks Act, mandating the removal of Huawei and ZTE equipment from American telecom networks. Congress allocated $1.9 billion to reimburse telecommunications operators for the cost of ripping and replacing the Chinese gear. However, the FCC received valid reimbursement requests totaling a whopping $4.98 billion. And Congress still has not acted to close the $3.08 billion funding gap. Because of the funding shortfall, the FCC has been paying companies a prorated percentage of 39.5% of their reimbursement costs. However, Windstream seems to have done well, navigating the system to rip and replace its Huawei gear. Windstream is in the process of receiving reimbursement funds, relying on its own capital to make the network changes.
Broadband Infrastructure
Fiber Broadband Association Digs into Microtrenching’s Ability to Close the Digital Equity Gap
A new best practice white paper explores micro-trenching, an advantageous fiber broadband deployment method. The report compares micro-trenching amongst other deployment methods as a valuable option in the fiber broadband construction toolkit and it also details the scrutiny that micro-trenching faces, success stories, and best practices. The white paper finds that micro-trenching is cost-effective and proven to speed installation and the connection to the symmetrical gigabit-capable networks needed to establish digital equity and close the rural digital divide. The white paper also explores multiple fiber deployment styles, including micro-trenching, horizontal directional drilling, plowing, conventional trenching, and missile boring. In terms of cost, conventional trenching can be roughly five times the cost of micro-trenching. From a time perspective, micro-trenching reduces one-third of the time it takes for a fiber installation using traditional methods, in some cases, moving from days to hours. Installing new utilities, like fiber, brings concerns about damage to previously installed utility infrastructure (such as gas lines and water pipes). The white paper features a risk profile between the different deployment styles by investigating the average strikes (damage to an existing utility that causes a service failure) per mile. The profile reveals that micro-trenching had the lowest (0.03) strikes per mile, compared to conventional trenching with the highest (13.97) strikes per mile. So, while damage and risk are unavoidable, micro-trenching can be regarded as a deployment style with relatively high output and low utility damage risk.
Alaska Communications says that after a successful pilot of fiber-to-the-home service in 2022, it plans to extend its fiber network to another 14,000 homes over the course of 2023. Alaska Communications’ fiber network already serves some neighborhoods in Anchorage, Fairbanks, and Soldotna. The fiber service offers three pricing tiers of symmetrical speeds up to 2.5 Gbps. While Alaska Communications is starting with fiber in the state’s urban areas, it also has longer-term plans which include a rural focus and federal funding. Alaska Communications is part of the Alaska FiberOptic Project—a collaboration with Calista Corporation, Doyon Limited, Gana-A ‘Yoo Limited, and the Tanana Chiefs Conference—to connect up to 20 communities along the Yukon River and Kuskokwim River with fiber. The project is split into three phases, and the partners have applied for federal funding through the National Telecommunications and Information Administration (NTIA), which is administering the largest of a number of federal broadband deployment funding mechanisms. Alaska Communications says that it began the permitting process for the build-out in January 2023.
Our analysis of 2021 American Community Survey (ACS) data shows that the Chicago Connected program helped to more than halve the connectivity gap for Chicago’s school-age children — from roughly 110,000 children in 2018 to roughly 46,000 children by the end of 2021 (19% disconnected in 2018 vs. 8% in 2021). The number of disconnected adults was also reduced in 2021 by 2% (from 15% to 13%) which amounts to a reduction of nearly 30,000 adults in 2021 alone. Relative to 2018, Chicago Connected helped reduce the connectivity gap for adults by 8%, or roughly 160,000 adults, through the end of 2021. However, this means that we still have about 185,000 disconnected households in the city. Disconnected households that have yet to be reached demand additional effort and focus on behalf of government agencies, community-based organizations, businesses, nonprofits, and internet service providers. We continue to emphasize the device gap – nearly 260,000 Chicago residents do not own a laptop or desktop computer. As we noted in the Defeating the Digital Divide report, we strongly believe that every Chicago household should own a laptop or desktop to fully participate in modern life.
Hughes has been offering geosynchronous (GEO) satellite-based internet service for a couple of decades. It has more than 1 million internet subscribers in the Americas. But now it’s boosting its service with the help of some terrestrial wireless providers. HughesNet Fusion is a new home internet offering that combines satellite and wireless technologies to improve latency. Plans are currently available in select areas, with expanded availability expected in the coming year. Mark Wymer, senior vice president with Hughes, said that Hughes has partnered with some unnamed wireless carriers in North America for Fusion. The problem with GEO-based internet has always been the vast distances that traffic must travel – 23,000 miles from Earth to a satellite and back. This causes latency in the connection. “The wireless eliminates that initial latency," said Wymer. He explained that when a user initiates a data session, the call for that data will simultaneously go to the satellite as well as to a nearby wireless network. Hughes refers to this as “multi-path” technology. Once the internet session begins, it will switch over entirely to the satellite connection. Of course, there needs to be a terrestrial wireless service in the area of the customer. And there may not be. A lot of customers who are using HughesNet for their internet service are doing so because they’re in such remote areas that there are no other providers.
Some people in the telecommunications industry like to compare the copper or fiber lines transmitting data under our feet to railways. They are both natural monopolies, they argue: duplication is wasteful, the high costs of construction deter new entrants, and economies of scale are essential for survival. But laying fiber costs much less than laying a railway track. The very fact that over 100 alternative network providers — or “altnets” — have popped up, backed by billions in private capital, suggests the financial incentives are there to multiply the infrastructure. But infrastructure competition in the sector has been a powerful motor for the government’s ambition of turbocharging full fiber rollout across the UK, which had been lagging other countries, and getting ultrafast internet to larger swaths of the public. Many of these companies are now struggling against a backdrop of soaring inflation and high interest rates that have closed off financial taps. Consolidation in the sector was always inevitable. Now Ofcom finds itself in a tricky position. On the one hand, the regulator wants Openreach to continue quickly rolling out fiber and ensure that customers are incentivized to make the leap from copper to fiber. On the other, it wants to ensure that Britain does not return to the relative stasis facilitated by a reticent monopoly.
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 David L. Clay II (dclay AT benton DOT org) — we welcome your comments.
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