Friday, May 3, 2024
Headlines Daily Digest
As ACP Funding Dwindles, What is the Future of Broadband Affordability?
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Evaluating the Impact of the Affordable Connectivity Program
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Digital Equity
Without congressional action, funding for the Federal Communications Commission's Affordable Connectivity Program (ACP) will expire at the end of May 2024. With this in mind, the Senate Commerce Subcommittee on Communications, Media and Broadband convened a May 2 hearing on 'The Future of Broadband Affordability' to discuss congressional funding of U.S. broadband programs and the potential impact of the end of the ACP with expert researchers, educators, and policy advocates in the field. During the hearing, senators considered the current state of broadband affordability and what lies ahead for broadband equity, access and deployment in the US. The witnesses at the hearing were:
- Jennifer Case Nevarez, Director and Lead Educator, Community Learning Network; Member of the Broadband and Digital Equity Support Team for New Mexico and the Office of Broadband Access and Expansion
- Kathryn de Wit, Project Director, Broadband Access Initiative, The Pew Charitable Trusts
- Blair Levin, Policy Advisor, New Street Research; Nonresident Senior Fellow, Brookings Metro
- Dr. Paul Winfree, President and CEO, Economic Policy Innovation Center
[more at the URL below]
The likely expiration of the Affordable Connectivity Program, the largest ever connectivity support program for low-income households, invites a discussion about the impact of the program and what alternative policy tools are available to promote digital equity. This study offers a preliminary assessment of the ACP’s goal to promote fixed broadband among lowincome households. It combines broadband deployment data from the Federal Communications Commission with Universal Service Administration Company (USAC) data about ACP subscriptions and demographic information from the Census Bureau’s American Community Survey (ACS). Considering the relatively short lifespan of the ACP program and the time lag in data availability, the results of the study are necessarily preliminary. At the same time, given the expiration of broadband support for over 23 million of the most vulnerable households, the need for evidence that supports discussions about the future of universal service is urgent. The results indicate that the ACP program resulted in an increase of between 6 and 10 percentage points in broadband and PC adoption in low-income counties adequately served by fixed broadband, relative to underserved counties. This represents an increase of about 7% relative to the average adoption level in adequately served counties in 2021.
Electric cooperatives serve 92% of the nation’s persistent poverty counties and are deploying broadband networks in many hard-to-reach parts of the country. The National Rural Electric Cooperative Association conducted a survey in the summer of 2023 that showed strong participation in and support for the Federal Communications Commission's Affordable Connectivity Program by member co-ops. At least 57% of respondents said ACP discounts resulted in new broadband customers that would not have otherwise subscribed for service. Although ACP is expiring, NRECA continues to engage with lawmakers and emphasize that broadband affordability is critical to adoption, particularly in high-cost, low-density rural areas.
The US Congress faces an imminent decision about the future of the Affordable Connectivity Program (ACP) and the connectivity it delivers to 23 million households. When it comes to low-income and hard-to-reach households, policymakers have long understood that federal support is necessary to help close the digital divide. The ACP is the federal government’s concrete commitment to ‘walk its talk’ and put real resources behind its long-stated goal of universal connectivity. Which is why in the short term, Congress needs to summon the wisdom and the courage to act now to provide immediate bridge funding to save the ACP. For the longer term, Congress should carefully consider advancing a financially responsible, and self-sustaining solution: moving the ACP into a modernized, right-sized Universal Service Fund. Congress can close the affordability gap by requiring Big Tech—the primary financial beneficiaries of universal connectivity—to also contribute to this shared national goal. Universal connectivity is within our grasp. But it requires all stakeholders to join with America’s telecommunications providers and do their part. It should be the great hope of everyone who believes in this vital national goal that they will do so.
[Jonathan Spalter is the President and CEO of USTelecom]
Some 23 million households receive broadband subsidies through the Affordable Connectivity Program, which is more than the number on food stamps. Households qualify if they earn 200% or less than the poverty line or participate in other welfare programs such as Medicaid. This includes relatively affluent households with public-school students in localities like New York City that provide universal free school meals. Broadband providers have said in recent earnings calls that they don’t expect to lose many subscribers once the program ends. Some even expect to benefit by poaching subscribers from competitors. Yet some 230 House Members, including 24 Republicans, have co-sponsored legislation to spend $7 billion to extend the subsidies. Five Senators, including Republicans Kevin Cramer and Roger Marshall, are sponsoring a companion bill. The $7 billion cost tag is an accounting ruse designed to draw more GOP support. Once this pot runs out, the program’s supporters will demand more. Americans aren’t binging Netflix like they did during the pandemic. Why can’t Congress quit its spending binge?
Security
FCC Chairwoman Updates Congress on Funding Shortfall for Removing Insecure Equipment from Communications Networks
Federal Communications Commission Chairwoman Jessica Rosenworcel wrote to Congressional leaders about a more than $3 billion funding shortfall in the FCC's “rip and replace” program. The Secure and Trusted Communications Networks Act requires the removal, replacement, and disposal of communications equipment and services produced or provided by Huawei Technologies Company or ZTE Corporation, and established the FCC’s reimbursement program which has only been appropriated $1.9 billion toward the approximately $4.98 billion in reimbursable costs. Chairwoman Rosenworcel explained the risks national security, network reliability, and small businesses if the program is not fully funded, and urged Congress to fully fund the program. "Several recipients have recently informed the Commission that they foresee significant consequences that could result from the lack of full funding, including having to shut down their networks or withdraw from the program. Because Reimbursement Program recipients serve many rural and remote areas of the country where they may be the only mobile broadband service provider, a shutdown of all or part of their networks could eliminate the only provider in some regions."
Federal Communications Commission Chairwoman Jessica Rosenworcel announced that the items below are tentatively on the agenda for the May Open FCC Meeting scheduled for Thursday, May 23, 2024:
- Promoting the Integrity and Security of Telecommunications Certification Bodies, Measurement Facilities, and the Equipment Authorization Program – The FCC will consider a Notice of Proposed Rulemaking to strengthen requirements and oversight relating to telecommunications certification bodies and measurement facilities to help ensure the integrity of these entities for purposes of our equipment authorization program, to better protect national security, and to advance the Commission’s comprehensive strategy to build a more secure and resilient communications supply chain. (ET Docket No. 24-136)
- Restricted Adjudicatory Matter – The FCC will consider a restricted adjudicatory matter from the Media Bureau.
- Enforcement Bureau Action – The FCC will consider four enforcement actions.
Company News
Introducing AT&T Turbo: A New Wireless Feature That Gives Customers Real-Time Responsiveness and Enhanced Data Connectivity on the Go
AT&T is the first carrier to give customers the choice to purchase enhanced data connectivity for real-time responsiveness with the introduction of AT&T Turbo on May 2. Built to support high-performance mobile applications, like gaming, social video broadcasting and live video conferencing, with optimized data while customers are on the go. AT&T Turbo allows users the choice to optimize their network when they want by adding additional network resources to their mobile data connection. Customers can add AT&T Turbo, priced at $7/month per line on eligible plans, when they want it and remove it from their line when they don’t. Eligible customers will be in control of whether to activate this service, which boosts all the high-speed and hot spot data on a user’s connection while it is active.2 Consistent with open internet principles, once turned on the boost applies to a customer's data regardless of the internet content, applications, and services being used.
The Federal Communications Commission announced the appointment of the Honorable Mary Pat Regan to serve on the Federal-State Joint Board on Universal Service (Universal Service Joint Board). The FCC also announced the appointment of the Honorable Karen Charles,the Honorable Mary Pat Regan, the Honorable Maida J. Coleman, and the Honorable Steven M. DeFrank, to the Federal-State Joint Board on Jurisdictional Separations (Separations Joint Board).
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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