Friday, April 8, 2022
Headlines Daily Digest
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FCC Holds Second Public Hearing on Broadband Consumer Labels
Tech Associations Urge Senate to Confirm Gigi Sohn to the FCC
Michigan Moves to Limit Federal Funds for Municipal Broadband
Broadband Funding
Consumer Protection
State/Local
Wireless
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Digital Governance
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Broadband Funding
With an unprecedented amount of federal funds to build broadband networks flowing into individual states, lawmakers in some states are doing the bidding of the big monopoly Internet Service Providers and potentially blowing a once-in-a-generation chance to invest in the locally-accountable infrastructure that offers the best chance to bridge the broadband gap for millions of families once and for all. That trend looks like it’s continuing in Michigan where Gov Gretchen Whitmer (D-MI) and the state’s GOP-dominated Legislature recently reached a deal to pass a nearly $5 billion spending bill. While the “Building Michigan Together Plan” is being “celebrated” by the governor’s office as a way to “grow the economy, create jobs, and benefit families in every region of the state,” the main supplemental spending bill, known as Senate Bill 565 (SB 565), may sink some hope community broadband advocates have for leveraging the windfall of federal funds the Great Lakes State is getting from the American Rescue Plan Act and the forthcoming funds in the Infrastructure Investment and Jobs Act.
[Sean Gonsalves is senior reporter, editor and researcher for the Institute for Local Self-Reliance’s Community Broadband Network Initiative.]
Over the past few years, the US government has allocated billions of dollars for broadband, most recently setting aside $65 billion in the Infrastructure Investment and Jobs Act passed in late 2021. While that’s a lot of cash, it might not stretch as far as one would think when it comes to covering rural and underserved areas. That’s where private equity comes in, according to GTCR managing director Stephen Jeschke. The way Jeschke sees it, delivering broadband to every American is an all-hands-on-deck kind of task. “The way that the government dollars work well is they’re trying to allocate capital to where there’s a need...[but] they’re not subsidizing 100 percent of the build, so there needs to be capital to go in alongside that capital to complete those builds, and, two, there needs to be somebody kind of overseeing the allocation of that capital at a more micro level once they’ve allocated it at a macro level,” he said. Jeschke also noted private equity has a role to play in helping bring more competition and better service to areas that are technically already considered served and thus aren’t eligible to receive deployment subsidies. GTCR primarily invests in four areas: Financial services and technology; healthcare; business and consumer services; and technology, media and telecom. As far as the latter is concerned, the company is primarily focused on connecting rural markets. Its telecom holdings include Clearwave Fiber (a joint venture with Cable One), Point Broadband and Vyve Broadband. Through these assets, Jeschke said GTCR has its hand in fiber builds across 20 or so states.
The current Congress stuck almost 5,000 earmarks costing almost $9 billion into the $1.5 trillion budget that was recently signed by President Biden. An earmark is when each member of Congress gets to designate funds directly to pet projects. There is no reason that earmark spending can’t be used for broadband infrastructure, and it’s likely that there were broadband construction projects buried inside of the 4,962 projects that were just funded this way. The idea of getting an earmark for broadband is intriguing because I’m not sure anybody knows what rules would apply. If a member of Congress gives an earmark to build fiber in a specific part of a city, I don’t think it would matter what broadband speeds are already there. It probably doesn’t matter if other grants are already promised in the same geographic area. For example, I can imagine earmarks being used to overbuild an area with unawarded Rural Digital Opportunity Funding. If earmarks are here to stay, then communities need to add this As a tool for funding broadband. In much of rural America, the lack of broadband is the number one local issue. A member of Congress might be able to provide the money to build broadband in a whole county – and be a local hero for doing so.
[Doug Dawson is President of CCG Consulting.]
The Federal Communications Commission heard from the public on April 7 as the agency focuses on plans to create broadband consumer labels. This was the second FCC public hearing on so-called nutrition labels as the agency revives an effort from late in the Obama administration to stick the information on internet service provider (ISP) plans. One common thread was that even when information is available on internet service quality, consumers don't know enough about the specifics to grasp what it means for their own online needs. Consumers told the FCC there's no good way to comparison shop for ISPs given the lack of consistent data disclosures. FCC Commissioner Geoffrey Starks said at the hearing's outset that "to be truly useful to consumers, these labels must be simple, accurate, and user-friendly." Starks said the FCC is still working to resolve multiple questions: whether broadband services and the way consumers use them have significantly changed since the 2016 labels; where the new labels should be displayed to best inform consumers; how the FCC should ensure label accuracy; and the appropriate time frame for the commission to require broadband providers to meet the labeling requirements. FCC staff wrapped up the hearing saying they had a better grasp of what stakeholders want as the FCC moves to the next steps. The infrastructure bill requires the FCC to sign off on the labels by the end of 2022.
Google Fiber announced plans to move into its second city in Iowa, revealing construction is set to begin in the capital city of Des Moines (IA) later in 2022. The company said it is currently in the planning stages for the build, kicking off the permitting process ahead of actual its actual construction work. Its move marks an eastward expansion from an existing network project in West Des Moines, where it began offering its 1-gig and 2-gig services in March 2022 after settling a dispute with Mediacom over its work there in January. Google Fiber is working to rapidly expand its footprint, looking to top its record build figures from 2021. Already it has inked several deals to grow its presence in the area of Salt Lake City (UT) and is hiring for dozens of key roles across its multi-state coverage area. It is also reportedly looking to follow Ting Internet into Colorado Springs (CO) by inking a deal to ride on a forthcoming fiber network being built by a local utility.
AT&T and Verizon – two of the nation's biggest 5G mobile network operators – own extensive fiber holdings around the country, and both argue that such ownership is critical to their long-term success. T-Mobile and Dish Network, on the other hand, are building extensive 5G mobile networks (though Dish hasn't yet switched on commercial services) without owning any fiber whatsoever. And, according to both Dish and T-Mobile, that's just fine. So, which side is right? Naturally, the answer isn't straightforward. But it's an important topic considering a commercial 5G network cannot exist without somehow connecting into the world's broader fiber Internet backbone. That connection – called backhaul – can account for around 15 percent or more of a mobile network operator's total spending, according to estimates from the GSMA. "While T-Mobile and Dish do not own a fixed network, they lease fiber connections to cell sites and use microwave where fiber is not available," explained analyst Jimmy Yu with research and consulting firm Dell'Oro Group. "AT&T and Verizon use their fixed network for backhaul, lease fiber from other carriers where needed and use microwave when fiber is not available. I'm not sure any one operator's [mobile network] performance is better than the other's due to ownership of backhaul. It may improve their long-term costs to own the backhaul."
[Mike Dano is editorial director of 5G and mobile strategies at Light Reading.]
Secretary of the Treasury Janet Yellen delivered remarks on digital assets policy, innovation, and regulation at American University's (DC) Kogod School of Business Center for Innovation. "A few weeks ago, President Biden signed an Executive Order calling for a coordinated and comprehensive government approach to digital asset policy," Yellen said. "Digital assets have grown explosively, reaching a market cap of $3 trillion last November from $14 billion just five years prior. Digital assets may be relatively new, but they are part of a larger trend – the digitization of finance – that has been in the making for decades. In 1990, there were fewer than 3 million internet users. Now, there are about 4.5 billion, and we take for granted that many aspects of our financial lives can be managed from small internet-connected devices that fit into the palms of our hands. This growth in digital services has opened a world of possibilities and risks that would have seemed fantastical only a few decades ago. Financial services – along with most industries – have evolved in response to exponential advances in computing power and connectivity."
Increasing interdependencies and deepening uncertainty change how the information society can be governed sustainably. In response, policy approaches worldwide are being reconsidered and new approaches developed that are more appropriate to these conditions. This research explores the conditions under which policies that worked in the past remain appropriate and when they will likely fail. It explores the role of dynamic analytical frames and a reconsideration of the normative principles of information society policies in overcoming these weaknesses. New instruments and policy arrangements that are considered include the establishment of boundary conditions (“guardrails”) for players, reliance on adaptive forms of policy, and reliance on ethics across all layers of governance. Driven by the global heterogeneity of values and the diversity of historical, economic, political, and cultural conditions, national and global governance arrangements will likely become more multi-centric. To avoid regulatory drift and fragmentation, policy must strive to create dynamic learning systems that help to continuously improve information society governance.
Seven technology industry associations sent a joint letter to the Senate majority and minority leaders urging the Senate to confirm Gigi Sohn [Senior Fellow and Public Advocate at the Benton Institute for Broadband & Society] as the fifth Federal Communications Commissioner. Associations signing the letter included service provider groups INCOMPAS and NTCA – The Rural Broadband Association, as well as the Consumer Technology Association, Chamber of Progress, CompTIA, Computer & Communications Industry Association, and Internet Infrastructure Coalition. “Our members rely on a functioning FCC fully staffed at the commissioner level to advance regulatory items critical to our ability to help promote a strong economy and maintain our nation’s competitiveness,” the letter says. “The absence of a fifth commissioner hamstrings the agency when US leadership on technology is most needed,” they continued. “We are hopeful that debate over Sohn can move quickly given the Commerce Committee’s vote to advance her nomination and her strong qualifications. We respectfully encourage her swift confirmation.”
Federal Communications Commissioner Geoffrey Starks announced the following staff changes:
- Justin Faulb has joined the office as Wireline and National Security Advisor. Previously, Faulb served as Associate Bureau Chief of the Wireline Competition Bureau, overseeing the implementation of the Secure and Trusted Communications Networks Act and other national security, privacy, numbering, and pricing issues.
- Diane Holland, Starks’s previous advisor for media and consumer protection issues, has moved to the Wireline Competition Bureau to serve as a Deputy Bureau Chief. Austin Bonner will now advise Starks on media and consumer protection issues.
- Morgan Bodenarain is joining the office as Legal Advisor, where she will focus on issues of digital equity. She most recently worked in the office of Congressman G K Butterfield (D-NC), where she managed his Communications and Technology policy portfolio. Bodenarain will succeed Special Advisor Dr. Alisa Valentin, who is departing the FCC for the non-profit space.
Industry/Company News
Breezeline Offers High-Speed Connectivity at No Cost for Eligible Consumers Through Affordable Connectivity Program
Breezeline, the eighth-largest cable operator in the US, has introduced a new “Internet Assist Plus” package with download speeds up to 100 Mbps for customers who are eligible to receive broadband connectivity at discounted prices through the Federal Communications Commission’s Affordable Connectivity Program (ACP). Under the program, Breezeline provides eligible households a discount of up to $30 per month towards broadband service (and up to $75 per month for households on qualifying Tribal lands) so that they can stay connected to daily essentials such as telehealth, distance learning, and work from home. The new 100 Mbps “Internet Assist Plus” service, normally $29.99 per month, is available at no cost for qualifying households after the $30/month ACP credit. The Internet Assist Plus package also includes one free modem. Customers may also choose a higher internet speed under the program and apply the $30 credit. All customers that meet financial eligibility requirements may choose the Breezeline internet package that best fits their household needs. Breezeline will apply the Affordable Connectivity Program discount as a monthly credit against the cost of the broadband service.
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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