Wednesday, March 6, 2024
Headlines Daily Digest
How to Build a Public Broadband Network
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Congress' tech funding falls short
FCC Seeks Comment on Letter Seeking RDOF and CAF II Amnesty
Challenges Industry Stakeholders Face with Broadband Deployment
Funding
State/Local Initiatives
Infrastructure
Wireless
Privacy
Platforms/Social Media/AI
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Policymakers
Stories From Abroad
Funding
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Fiscal Year 2024 Appropriations Bill
The Fiscal Year 2024 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act provides $26.228 billion in total funding. The bill would provide $169,959,000 for US Department of Agriculture broadband programs including:
- $40 million for Distance learning and telemedicine (DLT) grants
- $9.6 million for Congressionally Directed Spending/earmarked DLT grants
- $90 million for ReConnect Loans and Grants
- $10.4 million for Reconnect earmarks
- $20 million for Community Connect Grants
The Fiscal Year 2024 Commerce, Justice, Science, and Related Agencies (CJS) Appropriations Act provides a total of $68.537 billion in discretionary funding. The bill provides $10.8 billion for the Department of Commerce. This includes programs reauthorized or newly created by the CHIPS and Science Act, including: $41 million for the Economic Development Administration (EDA) Regional Technology and Innovation Hub Program; $175 million for the National Institute of Standards and Technology (NIST) Manufacturing Extension Program to improve the competitiveness of domestic manufacturers and strengthen domestic supply chains; and $37 million for the Manufacturing USA program. The bill also provides up to $10 million for NIST to establish a U.S. Artificial Intelligence Safety Institute. Additionally, the bill provides $25 million for EDA’s Good Jobs Challenge initiative and $5 million for EDA’s Assistance to Indigenous Communities Program—a new grant program focused exclusively on the economic development needs of Tribal governments and indigenous communities. The bill also includes a provision to allow the National Telecommunications and Information Administration (NTIA) to access additional funding to implement broadband programs under the Infrastructure Investment and Jobs Act, assisting grantees in all 50 states, the District of Columbia, Puerto Rico, and the territories. These programs are critical to connecting every American to high-speed, affordable broadband, and they include the Digital Equity Act Programs, the Middle Mile Program, and the Tribal Connectivity Program.
Lawmakers agreed on six spending bills to partially fund the government for the rest of 2024, but fell far short of CHIPS and Science Act goals and agency budget requests. The National Telecommunications and Information Administration received less than half its requested $117.3 million. And the Department of Justice's antitrust division asked for $325 million to support its major tech antitrust cases against Google and other platforms but got $233 million. Lawmakers have until March 8 to pass this spending package, or there will be a partial government shutdown affecting emerging technologies and research and design.
FCC Seeks Comment on Letter Seeking RDOF and CAF II Amnesty From 69 ISPs, Trade Associations, State and Local Officials, School Districts, Unions and Civil Organizations
The Federal Communications Commission's Wireline Competition Bureau (Bureau) seeks comment on a letter from 69 Internet Service Providers, Trade Associations, State and Local Officials, School Districts, Unions, and Civil Society Organizations [including the Benton Institute for Broadband & Society]. The letter requests that the FCC provide “[Rural Digital Opportunity Fund] and [Connect America Fund Auction] awardees who cannot or do not intend to build their networks a very short and expedited amnesty period of no more than a month that allows them to relinquish all or part of their winning areas without being penalized to the full extent that the Commission’s rules provide.” Interested parties may file comments on or before March 26, 2024; reply comments are due April 9, 2024.
April will officially be the last full month for the Affordable Connectivity Program (ACP) due to insufficient funding. The FCC will let providers know soon about the amount to expect per customer in May, leaving the providers with a choice to make. Should they end their participation in the program after April? Should they pass on a partial benefit to customers for May and require the customers to pay the extra portion? Or should they offer a full ACP benefit in May by contributing whatever they need to to reach the full $30 per month discount per low-income household? And what happens after May? Providers that don’t already have a low-income offering also must decide whether they want to create one as an option for ACP customers losing their benefits. As they make these decisions, providers also must comply with requirements to make several notifications to ACP customers about the impending end of the program.
The Department of Commerce's Inspector General asked industry stakeholders to identify challenges they are facing with broadband programmatic deployment to unserved and underserved locations. In response, these stakeholders identified challenges regarding expanding high-speed internet access via infrastructure deployments: the Broadband Equity, Access, and Deployment (BEAD) Program Notification of Funding Opportunity’s (NOFO’s) Extremely High Cost Per Location Threshold (EHCPLT) provision for broadband technology could limit applications and reduce BEAD funding, programmatic exclusion of unlicensed spectrum or satellite could lead to overbuilding without oversight, lengthy permitting processes could lead to broadband deployment delays, and workforce shortages could slow infrastructure deployment. These challenges could impact stakeholders’ ability to successfully deploy broadband as required by the Infrastructure Investment and Jobs Act, discourage technology providers from applying for grants, decrease competition, encourage wasteful spending to connect locations with existing broadband access, and increase deployment cost. To address the potential impacts of the identified challenges, NTIA should consider:
- Relaxing the BEAD NOFO’s fiber preference and Extremely High Cost Per Location Threshold provision to take into consideration the limited availability of resources to support fiber preference.
- Developing a formal oversight process to ensure overbuilding would be limited to those locations permitted by the Infrastructure Investment and Jobs Act, which NTIA identified as locations with existing internet service using unlicensed spectrum or satellite.
- Working with or forming a coalition with the broadband industry, states, and territories to develop a national database of critical broadband industry jobs and national, standardized training programs, certifications, and licenses.
From all over the country, I’m hearing stories about internet service providers who are gaming the Federal Communications Commission (FCC) broadband maps in order to block areas from being eligible for the BEAD grants. It’s relatively easy for a provider to do this. All that’s needed is to declare the capability to deliver a speed of 100/20 Mbps in the FCC maps. Providers can largely do this with impunity. The archaic FCC rules allow providers to claim ‘up-to’ marketing speeds in the maps. A lot of providers decided to start claiming 100/20 Mbps capabilities in the last update to the FCC maps. It’s not hard to understand the motivation for this. When a provider declares 100/20 Mbps speed capability, the area is removed from BEAD grant eligibility. The provider operating in that area will have squelched a new competitor from entering the market using BEAD grants. The NTIA’s and the FCC’s response to this issue is that it is the responsibility of communities to police this issue and to engage in the upcoming state BEAD mapping challenges. I can barely talk about that position without sputtering in anger. Most counties are not equipped to understand the real speeds that are available from a provieder. From my own informal survey, I don’t think that even 10% of counties are considering a map challenge.
At least 13 states intend to undertake “nondeployment” projects as part of their funding under the $42.5-billion BEAD program, according to their initial proposals. The number of states that expect money left over after allocating funds for all unserved and underserved locations could be higher, and perhaps considerably so. In addition to the 13 states that have specified nondeployment funding proposals to the National Telecommunications and Information Administration, seven more states say they have enough funding to meet all locations, but do not detail specific nondeployment plans. The 20 states that are optimistic about being able to use what they regard as sufficient BEAD funds to connect all un- and underserved locations are Arkansas, Florida, Hawaii, Idaho, Indiana, Kentucky, Louisiana, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, North Carolina, Ohio, South Carolina, Tennessee, Vermont, Virginia, West Virginia, and Wisconsin. Many of these states have outlined plans for how they will use any remaining BEAD funds in drafts. States can only pursue nondeployment activities if they have a comprehensive plan to deploy broadband service to all currently unserved and underserved areas within its jurisdiction.
California's Broadband Loan Loss Reserve Fund is a $500 million fund that provides a credit enhancement related to the financing of local broadband infrastructure development. The reserve fund expands the ability of local governments, tribes and non-profits to secure financing for building last-mile projects, with an emphasis on public broadband networks. The Fund will provide collateral to local governments to enable more favorable borrowing rates and terms for bonds issued to deploy broadband infrastructure. The Fund was established in 2021. The benefits of the Fund include:
- Public broadband infrastructure can be a cost-effective and revenue-generating solution for providing high-speed broadband in communities with limited or no broadband access that improves access, lowers costs, and improves customer service
- Providing authority to enable local governments to participate in CPUC programs, issue bonds, and acquire, construct, improve, and maintain broadband infrastructure
- Borrowed funding would be returned through the operating funds of a last-mile project upon maturity
The Loan Loss Reserve Program will accept applications from Tuesday, March 12, 2024, through Tuesday, April 9, 2024.
Governor Tim Walz (D-MN) announced over $50 million in grants to expand broadband access to an estimated 8,900 homes and businesses throughout Minnesota. Twenty four broadband expansion projects will receive grants from the Department of Employment and Economic Development's (DEED) Office of Broadband Development, helping deploy new broadband infrastructure around Minnesota. Using the grant funding, providers plan to expand high-speed broadband – offering speeds of at least 100 megabits per second (Mbps) download and 20 Mbps upload—in 25 counties across Minnesota. [The 24 grantees are listed at the link below]
The Maine Connectivity Resource Exchange is Maine Connectivity Authority's home to resources and knowledge to support, enable, and empower municipal and Tribal governments, nonprofit organizations, subgrantees, and the public on all aspects of the broadband ecosystem in Maine. The first module is in support of the upcoming BEAD State-Led Challenge Process. This module contains 7 units that will work to guide our partners through this several months-long process. This process in particular will engage local, municipal, and Tribal governments, internet service providers (ISPs), nonprofit organizations and individuals.
While Indiana continues to battle the digital divide–the gap between those who have and don’t have broadband access–there are significant signs of progress. State and federal funds totaling nearly $1.5 billion are being deployed to help connect the estimated 150,000 unserved or underserved Hoosier addresses. Private sector companies are also getting engaged, including AT&T, which is in the midst of fiber projects in 12 Indiana communities and regions, and it’s all part of what some are calling a once in a generation opportunity. Purdue University Vice President for Engagement Roberto Gallardo said if someone is on the wrong side of the digital divide, it impacts their quality of life. There are signs, however, that Indiana is moving the needle when it comes to connectivity. According to the Indiana Broadband Office, there were around 300,000 unserved or underserved addresses in Indiana three years ago. Today, that number is closer to 150,000. Now, with Indiana’s $868 million allocation from the federal Broadband Equity, Access and Deployment program, the state is at a tipping point.
Elaina Zempel, manager of the Wyoming broadband office, laments that the office didn’t have more funds to distribute in its recent Capital Projects Fund (CPF) program, which awarded funding to network operators to cover some of the costs of deploying broadband to 15,000 unserved and underserved locations. Fortunately, NTIA allocated $347.9 million in rural broadband funding to Wyoming for the BEAD rural broadband funding program, so there is still an opportunity to fund many of the failed requests from Wyoming’s CPF round of funding. The CPF allocations were for fiber projects, but Zempel expects the BEAD funding to skew more toward less costly technologies. Industry experts estimate that Wyoming will be one of the states that will deploy the least per-capita fiber in the BEAD program. According to Zempel, the state’s BEAD allocation is roughly a third of what would be required to get fiber to everyone. “We are grateful for the investment but there isn’t enough money to deliver the program’s stated goal of broadband for all” with fiber, Zempel said.
This white paper ultimately represents the story of how our newly formed office found an efficient and effective way to address the digital divide in our community through the development of a novel local benefit program, as told by our associate Augusta Groeschel-Johnson. We accomplished all this by first and foremost listening to the advice of others, whether it was Department of Social Services case workers, our Procurement officers, or the Maryland team that developed its statewide benefit and whose input helped us click the final pieces into place. Building our program as a supplement to the Affordable Connectivity Program (ACP) allowed us to minimize administrative overhead and fraud risk, while providing these funds to community members with a demonstrated need. Developing our program with the input of so many partners will allow us to chart new paths, ones we had already mapped out before ACP fell in our lap.
Akron (OH) residents will have affordable broadband internet access by 2030, says Mayor Shammas Malik
Akron (OH) Mayor Shammas Malik announced a long-term plan to bring affordable high speed internet to all city residents. Through a partnership with SiFi Networks, $200 million will be invested in a plan to install, maintain and operate an underground fiber optic internet network by the above targeted year of 2030. SiFi Networks plans to foot the entire $200 million bill at no cost to the city of Akron. “In 2024, it is essential that every person in Akron has access to high-speed, affordable internet,” said Mayor Malik. “Through this partnership with SiFi, every resident and business in Akron will have access to fiber internet, and SiFi has agreed to work with us to subsidize rates. I’d like to thank all of the City staff who have put in many hours over the last year vetting this partnership in order to move the needle on providing internet access for our residents.”
For decades, public broadband networks have been successfully serving hundreds of communities with fast, robust, and affordable internet access. Unlike private-sector networks, municipal, tribal, and other community- and member-owned broadband networks are focused on ensuring universal, robust connectivity at affordable prices. The results have been remarkable. Small cities and regions like Chattanooga, Tennessee; Wilson, North Carolina; Morgan, Utah; and the Massachusetts Berkshire region have been transformed into vibrant centers of economic opportunity, education, and culture. Yet for all of the progress that public broadband networks have made in recent years, there are still many communities that want to explore network ownership but don’t know where to begin. That’s why the American Association for Public Broadband (AAPB), partnering with the Benton Institute for Broadband & Society, has developed a handbook that sets out, in simple terms, the key decisions a community and its leaders must make, as well as the concrete steps they must take to build a successful public network. Own Your Internet: How to Build a Public Broadband Network, authored by Bill Coleman, also provides a list of resources that can help with both—including law firms, financial advisors, public relations firms, construction firms, equipment vendors, grant applications and management platforms, operational and business support systems, and firms that design, build, and operate networks.
[Gigi Sohn is Executive Director of the American Association for Public Broadband and Benton Senior Fellow and Public Advocate]
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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