Thursday, May 20, 2021
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$288 Million in Funding Available to States to Build Broadband Infrastructure
An update on Verizon’s Emergency Broadband Benefit program
Gigi Sohn Discusses Communications Policy Under Biden Administration
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Broadband Infrastructure

The US Department of Commerce’s National Telecommunications and Information Administration (NTIA) announced the availability of $288 million in grant funding for the deployment of broadband infrastructure. Grants will be awarded to partnerships between a state, or political subdivisions of a state, and providers of fixed broadband service. NTIA’s Broadband Infrastructure Program was established by the Consolidated Appropriations Act, 2021. In the priority order defined by the law, NTIA will accept applications for projects that are designed to:
- Provide broadband service to the greatest number of households in an eligible service area;
- Provide broadband service to rural areas;
- Be most cost-effective in providing broadband service; or
- Provide broadband service with a download speed of at least 100 Mbps and an upload speed of at least 20 Mbps.
Sens Hassan, Capito Introduce Rural Broadband Financing Flexibility Act to Spur Investment in Rural Broadband

Sens Maggie Hassan (D-NH) and Shelley Moore Capito (R-WV) reintroduced bipartisan legislation to help states, cities, and towns spur investment in rural broadband projects. The bipartisan Rural Broadband Financing Flexibility Act would allow state and local governments to issue tax-exempt bonds to finance rural broadband projects, including public private partnerships, as well as allow the federal government to assist state and local governments in bond payments. In addition, it would create a federal tax credit that states and localities could direct toward rural broadband projects.

AT&T unveiled plans to spin out and merge WarnerMedia with Discovery. The company's failed media deals destroyed more than $50 billion in shareholder value. The telecoms sector has long been fascinated with Hollywood as it has railed against the notion that the industry is little more than a collection of “dumb pipes” that act as conduits for value created by other companies. Yet telecoms-media convergence often comes at great cost and companies including AT&T and Verizon have embraced the notion that focusing on the pipes may not be so dumb after all.
Coalition to FCC: Broadband Subsidies Meant for Truly Unserved Areas, Not Some of Nation’s Most Well-Connected and Wealthy Communities

In a letter to the Federal Communications Commission, a coalition of organizations noted widespread concerns about the accuracy of the FCC’s broadband maps and called the FCC’s attention to newly released information from the Competitive Carriers Association (CCA) that questions thousands of locations where significant Rural Digital Opportunity Fund (“RDOF”) funding is set to be awarded to subsidize areas that are served today. CCA found that subsidies are targeted for:
- Apple’s headquarters in Cupertino, California
- The Massachusetts Institute of Technology’s campus in Cambridge, Massachusetts
- Fisherman’s Wharf, the popular urban center and tourist destination in San Francisco
- Chicago’s Inner Loop business district
- Large international airports, like DFW International in Dallas-Ft. Worth and SFO International in San Francisco
The coalition is calling on the FCC “to devote resources to review questionable applications before dollars go out the door,” and explains that “CCA provides a useful playbook for doing so.” The letter is signed by the Center for Individual Freedom, the Competitive Enterprise Institute, Douglas Holtz-Eakin, Electronic Frontier Foundation, Free Press, Jennifer Huddleston, National Grange, National Taxpayers Union, Public Knowledge and R Street Institute.

USAC has released version 4.0 of the Connect America Fund Broadband Map (CAF Map), an interactive online map that shows the impact of the Connect America Fund (CAF) on broadband expansion to close the digital divide in rural America. The Connect America Fund – part of the federal Universal Service Fund High Cost program – provides funding to telecommunications carriers to deliver voice and broadband service in rural areas where the market alone cannot support the high cost of deploying network infrastructure and supplying connectivity. First launched in 2018, the CAF Map displays the geographic locations – by latitude and longitude – where carriers that receive CAF support have built out mass-market, high-speed Internet service. Version 4.0 of the map contains updated information to include deployment completed in 2020. The map currently contains broadband deployment data from carriers participating in the following Connect America Fund programs: Connect America Fund Phase II (CAF Phase II), Alternative Connect America Cost Model (ACAM), Connect America Fund Broadband Loop Support (CAF BLS), Alternative Connect America Cost Model II (ACAM II), the Alaska Plan, Rural Broadband Experiments (RBE), and Connect America Fund Phase II Auction (CAF II Auction).

Verizon strongly supports the Federal Communications Commission’s Emergency Broadband Benefit program, and we believe in giving our customers a wide range of choices to best fit their needs. To get our program up and running quickly, Verizon made all current Fios Mix & Match plans eligible for participants in the EBB. We believe our current in market Fios Mix & Match plans, which over one million customers enjoy today, offer the most choice at the best value. These plans include no extra fees and the ability to pay only for what’s needed. However, we heard from some customers that they prefer to stay on the legacy plans they have. Moving forward, we will offer customers on legacy Fios plans (no longer in market today) the ability to enroll in EBB. We are not asking customers to upgrade their plan in order to take advantage of the EBB benefits. Our goal is to help eligible customers find the plan that best meets their needs.

Jackson County Kentucky has one stop light in its 347 square miles—but also high-speed fiber optic internet service to rival any big city. In the coal country of eastern Kentucky, the 800-person town of McKee is the hub of a one-thousand-mile fiber-to-the-home network covering two of the nation’s poorest and most remote counties. The fiber link was built almost entirely with dollars from the federal government. It is a powerful example of the infrastructure of the 21st century and the importance of extending those connections to all Americans.
President Joe Biden’s infrastructure plan includes $80 billion to connect unserved areas to high-speed broadband networks. The plan has been christened the American Jobs Plan because of the jobs that will be created to build the new infrastructure. The Kentucky experience illustrates the power of fiber connections to create jobs after the construction crews have gone home. When the fiber came to the areas around McKee, employment increased despite the collapse of the area’s main employer, the coal industry.
If the infrastructure plan is adopted, the story of McKee, Kentucky could be the story of every remote, rural, high-cost area in the United States. The story of McKee, Kentucky—where a fiber optic connection has changed lives, created jobs, and recruited residents—is a story that should be available everywhere.
Digital Divide Tops North Carolina Governor's Recommendations on How to Use American Rescue Plan Money

Governor Roy Cooper (D-NC) shared his recommendations for how North Carolina can most effectively invest in its recovery through the American Rescue Plan (ARP). The $5.7 billion in federal funds offer a once-in-a-generation opportunity to invest in North Carolina and ensure a shared recovery from the global pandemic. The Governor’s recommendations include assisting families most impacted by the pandemic, upgrading our infrastructure, helping more people get a degree or trade after high school, preparing the state’s workforce and promoting business development and innovation. He recommends investing $1.2 billion in broadband access and affordability to close the digital divide in North Carolina. While North Carolina’s economy recovers from the COVID-19 pandemic, the gap between residents enjoying economic growth and those struggling to secure jobs, find housing, and pursue educational resources is widening. The funds will provide access to affordable, high-speed internet in every corner of the state and will ensure high-speed internet is equitably adopted and residents are able to access education, healthcare, and business opportunities.
Delivering Financial Products and Services to the Unbanked and Underbanked in the United States – Challenges and Opportunities

A look at the obstacles and viable solutions for improving financial inclusion, providing access to bank accounts to the unbanked population in the United States, which currently represents approximately 6% of US households, and for reducing utilization of high-cost non-bank financial products and services. The report concludes that instead of establishing a large, duplicative and potentially expensive banking infrastructure to create bank accounts through the Federal Reserve or the U.S. Postal Service (postal banking), there are more effective and less costly ways to address the unbanked/underbanked challenge, including Expanding Broadband Access: Expanding broadband internet access to underserved areas allows individuals to better leverage digital banking services, which are the most convenient way to engage with unbanked/underbanked households.

Where you live, how educated you are, whether you have health insurance and whether you have access to the internet are all correlated with how likely you are to be vaccinated against the coronavirus. None of these factors has anything to do directly with an individual's risk. Instead, this emphasizes, yet again, the powerful role played by social determinants of health.

The Federal Trade Commission, along with law enforcement agencies from six states, sued Internet service provider Frontier Communications, alleging that the company did not provide many consumers with Internet service at the speeds it promised them, and charged many of them for more expensive and higher-speed service than Frontier actually provided. In a complaint, the FTC and its state partners allege that Frontier advertised and sold Internet service in several plans, or tiers, based on download speed. Frontier has touted these tiers using a variety of methods, including mail and online ads, and has sold them to consumers over the phone and online. In reality, the FTC alleges, Frontier did not provide many consumers with the maximum speeds they were promised and the speeds they actually received often fell far short of what was touted in the plans they purchased.
The FTC’s allegations concern Frontier’s Digital Subscriber Line (DSL) Internet service, which is transmitted over copper telephone wires. Frontier provides DSL service to approximately 1.3 million consumers, many in rural areas, across 25 states. Since at least Jan 2015, thousands of consumers complained to Frontier and government agencies that the company failed to provide DSL Internet service at the speeds they were promised. Many consumers have complained that the slower speeds actually provided by Frontier failed to support the typical online activities they should have been able to perform at the speed tiers Frontier had sold to them.
The FTC’s complaint was filed with the attorneys general from Arizona, Indiana, Michigan, North Carolina, and Wisconsin, as well as the district attorneys’ offices of Los Angeles County and Riverside County on behalf of the State of California.

The largest pay-TV providers in the US – representing about 95% of the market – lost about 1,895,000 net video subscribers in 1Q 2021. The top pay-TV providers now account for about 78.7 million subscribers – with the top seven cable companies having 43.1 million video subscribers, other traditional pay-TV services having about 28.9 million subscribers, and the top publicly reporting Internet-delivered (vMVPD) pay-TV services having about 6.7 million subscribers.
- Top cable providers had a net loss of about 775,000 video subscribers in 1Q 2021 – compared to a loss of about 595,000 subscribers in 1Q 2020
- Net cable losses in 1Q 2021 were more than in any previous quarter
- Other traditional pay-TV services had a net loss of about 865,000 subscribers in 1Q 2021 – compared to a loss of 1,150,000 subscribers in 1Q 2020
- AT&T Premium TV had 620,000 net losses in 1Q 2021 – compared to 897,000 net losses in 1Q 2020
- Top publicly reporting vMVPDs had a net loss of about 255,000 subscribers in 1Q 2021 – compared to a loss of about 210,000 subscribers in 1Q 2020

SiFi Networks is dangling 10 Gbps capabilities in front of US operators, aiming to entice them to adopt a more European infrastructure model and sign on as tenants on its wholesale fiber network rather than building out the last mile themselves. SiFi has build commitments in place covering 13 cities across seven states. This will eventually yield a projected footprint of “well over” 40 million feet of fiber covering more than half a million homes and businesses. The company's open access network model is fairly revolutionary in the US, although “It’s very much commonplace in other countries, in particular in Europe, said CEO Ben Bawtree-Jobson. "[B]ut in the US having last-mile infrastructure that’s independently operated, that isn’t under the control of the service provider is a new model." This is primarily due to the “the legislative influence of the big telco and cable operators,” said Jeff Heynen, VP of broadband access and home networking at analyst firm Dell’Oro Group. He said major incumbents like Verizon and AT&T “were able to successfully lobby legislators that they should own their networks and equipment because they bear the heavy cost of the initial deployment.” In states like North Carolina, these players even convinced lawmakers to “block the rollout of municipal fiber networks because they were argued to be unnecessary.”

On March 10, Benton Senior Fellow and Public Advocate Gigi Sohn joined Womble Bond Dickinson’s Womble PRIDE, an affinity group for the firm’s LGBTQ+ team members and allies, and the National LGBT+ Bar Association for an in-depth look at how the Biden administration may reshape the communications landscape. Sohn discussed network neutrality under President Joe Biden, Section 230, and closing the digital divide.
Sohn said the digital divide will receive a renewed emphasis in the next four years. She said the first step is a comprehensive study indicating where broadband is still needed and which communities remain unserved. “You can’t make good policy with bad maps,” she said. “The focus should be getting every single household in American robust broadband access.”
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 Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.
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