Wednesday, May 29, 2024
Headlines Daily Digest
New National Broadband Map Update v4, Data as of December 2023
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President Biden Wants to Send Billions to Rural America, but This Must Happen First
Broadband Funding
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State/Local
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Net Neutrality
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Wireless
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Platforms/Social Media/AI
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The Federal Communications Commission recently released the 4th version of the National Broadband Map, with data as of December 2023. At a high level, the trend continues of fewer and fewer unserved and underserved locations: in the previous version, 10.1 million locations were unserved or unserved. Now, with six months more data, we’re down to 8.8 million locations needing better broadband service. That’s an 11% decrease over one six-month period. Here’s another way to think about it: when NTIA made the formal allocation, there were 11.9 million unserved locations. That was $3,341 per location. On the basis of less eligible locations alone, since the available funding stays the same, now there’s $4,645 per location — a 39% increase. And that’s not counting the 3.5 million+ locations that will be served by the FCC's Rural Digital Opportunity Fund (RDOF) or Enhanced Alternative Connect America Model (ACAM) and not even eligible for this funding. Nevada went from 53,508 underserved and unserved to 28,842 locations. North Dakota also lost 40% of its unserved, and there are many states that lost 15% or more of their unserved.
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Western Governors encourage Congress and federal agencies to recognize that the current definition of broadband – 25/3 Mbps – does not correspond with the requisite download and upload speeds necessary to support many business, education, and health care applications that promote economic and community prosperity. We support efforts to adopt a higher, scalable, and consistent standard across federal broadband programs – at least 100/20 Mbps and scalable to 100 Mbps symmetrical – that more accurately reflects modern innovations and bandwidth demands. Western Governors request that the Federal Communications Commission (FCC), National Telecommunications and Information Administration (NTIA), U.S. Department of Agriculture (USDA), and other federal entities prioritize scalable broadband infrastructure investments that meet communities’ increased bandwidth demands into the future. Funds for equipment maintenance and upgrades are essential to ensure that federal broadband investments continue to provide high-quality service. While Western Governors are heartened by significant federal investments in broadband, principally the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program established through the Infrastructure Investment and Jobs Act (IIJA), Western Governors urge the FCC, NTIA, USDA, and other federal agencies involved in broadband deployment to work closely with Governors and state and territorial agencies and respond to and address their needs and concerns prior to releasing large tranches of funding. In particular, federal agencies that make independent broadband infrastructure awards should consult with states and territories prior to finalizing awards to ensure they align with state and territorial BEAD plans. Federal funding and allocation formulas should reflect the exorbitant costs and challenges that the West faces when deploying broadband so that states and territories receive adequate funding to bring sufficient internet access to as many hard-to-reach households as possible.
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President Joe Biden regularly emphasizes how the major pieces of legislation he has signed — the Infrastructure Investment and Jobs Act, the CHIPS and Science Act and the Inflation Reduction Act — expand opportunities for Americans. This is especially true for rural Americans. Those three laws appropriated billions of dollars — about $464 billion — for many projects that could be particularly relevant to rural communities, allowing them to dream of a different economic future. Will rural voters give President Biden credit for all that money and the changes it could bring and will show their appreciation at the ballot box. My answer is that it is unrealistic to expect place-specific investments to have an immediate impact on elections. Rural places remain skeptical that federal policymakers have their best interests at heart. Proving otherwise will take intention and time. Above all, implementation matters. These investment opportunities will be meaningless unless they reach rural America. For that to happen, federal and local officials and many people in between will need to focus on intentional targeting and sensitivity to the challenges that rural places face. It is important to keep in mind that many rural governments are led by unpaid elected officials, and few rural city halls have staffs to work on planning, project development and grant writing. A critical first step will be to make sure that local communities have the staff and access to the expertise and administrative capacity necessary to secure and manage these investments.
[Tony Pipa is a senior fellow at the Center for Sustainable Development at the Brookings Institution]
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The looming expiration of the Affordable Connectivity Program could mean the end of high-speed internet access for just under 1 million low-income households in New York City, a new analysis from the Center for an Urban Future shows. The new analysis shows that the federal subsidy program was most popular in East Harlem, a wide swath of the South Bronx, and Long Island City, which contains the country's largest public housing complex in the country. East Harlem and the South Bronx were among the areas with the lowest broadband access citywide in 2021, before the program launched, according to data compiled by the City Council. Around two-thirds of households in East Harlem and the South Bronx received discounted internet through the federal program. Roughly 44% of all Bronx households were enrolled in the program.
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Today’s interconnected world makes it hard to imagine a day or more without internet access, but that may soon be the reality for millions of Americans when funding for a critical federal program runs out. The Affordable Connectivity Program (ACP) provides a monthly subsidy to eligible low-income households to help pay their monthly broadband bill. The ACP has made tremendous progress in getting and keeping low-income Americans connected to affordable broadband, but if Congress fails to fund it by the end of May, the digital divide will widen. The ACP is the nation’s most successful and sensible broadband affordability program by many metrics. The program’s popularity stems from a few factors. First, the subsidy amount makes a meaningful difference for those with limited resources. For the fiscally minded, ACP differs from most federal programs because, to borrow a phrase, it provides “a hand up, not a handout.” Politically, Americans support renewing the program: 79 percent of all Americans, including 64 percent of Republicans, 78 percent of independents and 95 percent of Democrats. Regardless of one’s political affiliation, funding the ACP offers a rare win for all—for members of Congress, constituents, veterans, seniors, students, workers and our future. Members on both sides of the aisle should renew funding for the program and keep America connected.
[Mignon L. Clyburn was the first acting female chairwoman of the Federal Communications Commission. Michael O’Rielly served as a commissioner of the Federal Communications Commission from 2013 to 2020.]
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Unlike in the past, internet connectivity isn’t a luxury—it’s as necessary as electricity. But currently, this critical lifeline for veterans hangs in the balance as the Affordable Connectivity Program (ACP) approaches the end of its funding at the end of May. The ACP is a key factor in ensuring all veterans have connectivity, especially in rural areas. For many, the ACP can be life-saving. It plays a crucial role by providing access to telehealth appointments, job opportunities and a connection to community resources. Without assistance, many veterans are left to fend for themselves, navigating the complexities of transitioning into civilian life without adequate support. Lawmakers must prioritize the well-being of our veterans and their families by working together to ensure they have access to the care and support they need for today’s technologically-driven world.
[Jim Whaley is the CEO of Mission Roll Call and former director of communications at the U.S. Military Academy at West Point.]
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Affordable Connectivity Program (ACP) broadband benefits are set to halt at the end of May, leaving millions of families with a difficult choice to make. For the sake of 60 million Americans who depend on ACP, the program must be renewed. But we can’t stop there. Senator Ted Cruz (R-TX) called the US “the standard bearer for high-speed internet connectivity”, lauding the US sector as more competitive than its European peers. In reality, the US has some of the world’s highest internet prices, thanks to years of industry consolidation, anti-consumer practices, and corporate lobbying to block competition. Studies consistently show Europeans pay about half what Americans do for the same level of service. High prices keep people offline. While ACP is essential to limit the number of families being pushed off the digital precipice, it doesn’t address the broken nature of a sector which has left over 80 million Americans with only one choice of provider. Getting to the root of the problem means changing the way broadband is built and shaping a more competitive sector. A growing number of communities are building their own solutions in the form of municipal and community-owned networks, co-ops, and public private partnerships.
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The release of the State Digital Equity Capacity Grant Program Notice of Funding Opportunity (NOFO) on March 29th triggered the countdown for the Digital Equity Competitive Grant Program. The Infrastructure Investment and Jobs Act (IIJA) mandates releasing the Competitive Grant NOFO within 30 days of the first Capacity award, so we expect it by late summer/early fall 2024. We will not know all the specifics until the NOFO is released. But, there are some details in the law (the Digital Equity Act) can give us some guidelines:
- While your project is not required to align with your state’s digital equity plan, understanding the state’s plans, where your project aligns, and how your project complements or supports the state plan will enhance your application.
- Fill out as much of the SF-424 forms as possible now. This way you can focus on program-specific requirements when the NOFO is released.
- Read the National Digital Inclusion Alliance's guide to applying for federal grants.
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The mayor of the city of Vineland (NJ) says residents of his city are underserved by currently available broadband services. And he’s moving forward with a plan to create a municipal broadband network. This has already sparked lobbying against the prospect by a dark money group called the Taxpayers Protection Alliance Foundation. According to the city’s initial proposal, Vineland suffers from high economic distress with some areas having unemployment rates as high as 9% and poverty rates as high as 19.2%. The city says the incumbent providers have no plans to expand or enhance their services in Vineland. So, the city plans to tackle the problem itself by funding a $35-$40 million project to construct a municipally-owned fiber broadband network. It plans to construct a fiber ring around the city and make high-speed, competitively priced broadband available to every resident and business. The city has begun the process by commissioning a feasibility study—conducted by the open access fiber company Bonfire—which found that “at least 42% of the city does not have access to viable, quality service.”
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When Aaron Wheeler, Washington state broadband office director joined the office, he inherited a process and plans put in place by retiring broadband director Mark Vasconi, and he’s not about to slow the state’s Broadband Equity, Access, and Deployment (BEAD) process down. While some states are more deliberate and trying to slow down the process of Volume 2 approval to delay the 365-day “shot clock” kicking in, Wheeler explains that in Washington, they’re “going to be at full speed all 2024 so we can finish as much of the process as possible and focus on shovels in the ground next year.” With an upbeat and positive nature, he recognizes that both the NTIA offices as well as individual state broadband offices are faced with “flying a plane while we build it.” A Washington native and a self-professed ‘trekkie,” Wheeler embraces this moment in time to deliver digital equity and connectivity to his state’s myriad different cultures. He quotes the creator of Star Trek, Gene Rodenberry as an inspiration to him for pointing out that, “We must strive to embrace our differences, for it is in our diversity that we find strength.”
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The Federal Communications Commission recently voted to subject the Internet, once again, to legacy public utility telecommunications regulation originally designed for the old Ma Bell monopoly. While the FCC’s new rules do not push so far as to regulate retail rates (though they do regulate wholesale termination rates), the FCC’s rules open the door to potential retail rate regulation of broadband services by the states. Some special interest groups have called for rate regulation, while others desire the outright government takeover of broadband networks. A sensible question to ask is what should consumers expect from a broadband market subject to these more aggressive sorts of public utility regulation or complete government ownership of broadband networks? Analysis reveals (at least) two policy-relevant insights. First, despite the highest inflation the nation has seen in decades, broadband prices are falling. Second, the regulation and nationalization of broadband service is no cure for allegations of high broadband prices, which are, in fact, falling over time unlike the prices of rate-regulated and nationalized services. Broadband services should be left to competitive market forces, a policy which has served consumers well during the recent economic turmoil.
T-Mobile to Acquire UScellular Wireless Operations and Deliver Exceptional Value, a Superior 5G Experience and Unparalleled Benefits to Millions of Customers
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T-Mobile has agreed to acquire substantially all of UScellular’s wireless operations. This includes UScellular’s wireless customers and stores, as well as certain specified spectrum assets. Upon closing, T-Mobile’s leading 5G network will expand to provide millions of UScellular customers, particularly those in underserved rural areas, a superior connectivity experience, moving from a roaming experience outside of the UScellular coverage area to full nationwide access on the country’s largest and fastest 5G network. Additionally, UScellular customers will have the ability to fully participate in the Un-carrier’s industry-leading value-packed plans filled with benefits and perks, and best-in-class customer support with the opportunity to save UScellular customers hundreds of millions of dollars. T-Mobile customers will also get access to UScellular’s network in areas that previously had limited coverage and the benefit of enhanced performance throughout UScellular’s footprint from the addition of the acquired UScellular spectrum to T-Mobile’s network.
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Sowmyanarayan Sampath, CEO of Verizon’s consumer business, recently said that Verizon expects to have 4 to 5 million fixed-wireless access (FWA) customers at the end of 2024, up from 3.4 million at the end of the first quarter of 2023. Financial analysts at TD Cowen who predict that Verizon will add 888,000 new net subscribers in 2024 while T-Mobile will add 1.3 million more customers to add to the 4.8 million customers at the end of 2023. FWA broadband has majorly disrupted the broadband industry. According to the TD Cowen estimates, FWA operators will gain 2.6 million new customers in 2023 while fiber operators will add around 600,000 new customers. It’s clear that FWA growth is probably the most important statistic in the market today since other internet service providers are competing for the customers who aren’t opting for FWA.
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A common reaction among tech policy and internet freedom advocates to the upcoming ban of TikTok in the US is to reject it as a step back from the traditional US internet policy of openness, free speech, and innovation. How, they say, can the US argue for these traditional values internationally when the US is so blatantly violating them itself? This reaction fails to come to grips, however, with the implications of the United States’ current confrontational policy toward China, a policy that is predicated on a conception of China as seeking every opportunity to undermine and destroy US interests domestically and internationally. Once one adopts the perspective that the Chinese government is the mortal enemy of the US, it becomes unthinkable to allow a social media app under its control—with access to half the US population—to operate in the US, even under a regulatory regime designed to prevent its use for surveillance and propaganda. And this exclusionary practice is only beginning. Other Chinese companies will almost certainly be banned as well. Tech policy and internet freedom advocates who want to restore the traditional US posture of openness, innovation, and the free flow of ideas toward China must challenge the underlying foreign policy and national security posture that justifies the TikTok ban.
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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