Daily Digest 6/11/2024

Benton Institute for Broadband & Society
Table of Contents

Affordability

Understanding uptake in demand-side broadband subsidy programs: The affordable connectivity program case  |  Read below  |  John Horrigan, Brian Whitacre, Hernan Galperin  |  Research  |  Telecommunications Policy
Benton Foundation
ACP vs Private Low-Income Plans  |  Read below  |  Blair Levin  |  Analysis  |  Benton Institute for Broadband & Society
ISPs Response to the End of ACP  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting

Broadband Funding

NTCA Recommends Four Steps Toward Successful BEAD Projects  |  Read below  |  Carl Weinschenk  |  telecompetitor

Net Neutrality

FCC Denies Petition to Stay 2024 Open Internet Order  |  Read below  |  Trent Harkrader  |  Public Notice  |  Federal Communications Commission
FCC Files Motion to Move Net Neutrality Appeal to DC Circuit  |  Read below  |  Scott Noveck  |  Public Notice  |  Federal Communications Commission
Supreme Court Denies Consumers' Research Challenge to FCC's Universal Service Fund  |  Supreme Court of the United States

State/Local Initiatives

Gov Holcomb announces more than $81 million broadband expansion  |  Read below  |  Press Release  |  Indiana Office of the Governor
Alaska broadband company MTA says FTTH costs $9,000 per passing  |  Read below  |  Linda Hardesty  |  Fierce
Benton Foundation
Connections and Collaboration in the Mountains  |  Read below  |  Zoë Walker  |  Benton Institute for Broadband & Society
States push back on ISP copper retirement plans  |  Read below  |  Masha Abarinova  |  Fierce

Wireless

This is the ‘world’s first’ phone call made using spatial audio  |  Vox
Millimeter wave is key to Verizon’s FWA, DAS strategies  |  Fierce

Health

For hospitals, packet loss can equal blood loss  |  Fierce

Social Media/Platforms/AI

The Internet and the First Amendment  |  Read below  |  David McCabe  |  New York Times
The Implications of Section 230 for Black Communities  |  Read below  |  Spencer Overton, Catherine Powell  |  Research  |  Joint Center for Political and Economic Studies
How Washington Missed the Boat on AI Regulation  |  Foreign Policy
States Take Up A.I. Regulation Amid Federal Standstill  |  New York Times
Apple Jumps Into A.I. Fray With Apple Intelligence  |  New York Times
Apple Intelligence: A Guide to Apple’s AI-In-Everything Strategy  |  Wall Street Journal
Google is ready to fill free streaming TV channels with ads  |  Vox
Spotify flexes knowledge of your music taste with in-app suggestions  |  Vox
California lawmakers revive debate over bill requiring tech platforms to pay for news  |  Los Angeles Times
This AI-powered “black box” could make surgery safer  |  MIT Technology Review
Propagandists are using AI too—and companies need to be open about it  |  MIT Technology Review

Devices

Preliminary Terms with Rocket Lab to Expand Production of Compound Semiconductors that Power Spacecrafts and Satellites  |  Department of Commerce

Agenda

A Techno-Economic Agenda for the Next Administration  |  Information Technology & Innovation Foundation

Stories From Abroad

Billionaires Sunil Mittal and Mukesh Ambani take on Elon Musk in India’s internet space race  |  Financial Times
In Europe, fiber's the future, but HFC has a long life ahead  |  Light Reading
The UK is at risk of losing Europe’s tech crown  |  Financial Times
Today's Top Stories

Understanding uptake in demand-side broadband subsidy programs: The affordable connectivity program case

John Horrigan, Brian Whitacre, Hernan Galperin  |  Research  |  Telecommunications Policy

This paper hypothesizes that Affordable Connectivity Program (ACP) enrollment decisions are not solely individual, but also influenced by community-wide considerations, such as housing costs, share of occupied houses, presence of anchor institutions such as public libraries, and population density (i.e., whether a place is urban or rural). The paper develops a regression model that predicts ACP enrollment rates among eligible households at the 5-digit zip code geography as a function of the variables discussed above. The analysis also controls for existing levels of broadband subscriptions and computer ownership in a given area. The difference between predicted and actual ACP enrollment rates at the 5-digit zip code level is proposed as a metric of ACP performance. The empirical findings show that high levels of economic distress are a strong determinant of ACP enrollment in a given area, but social and community-wide indicators are important as well. Understanding spatial variations in ACP performance can help policymakers and other stakeholders better target resources to address the digital divide.

ACP vs Private Low-Income Plans

Blair Levin  |  Analysis  |  Benton Institute for Broadband & Society

I applaud private efforts to address low-income adoption, particularly Comcast’s Internet Essentials, which is the oldest and most extensive program. Comcast started the program in 2011 and has continually studied and changed the program to improve its outcomes. That is the path the Federal Communications Commission (FCC) and Congress should follow with the Affordable Connectivity Program (ACP). But the question ignores how the ACP, by focusing on improving the demand side of the equation, improved the supply side of low-income offerings.  ACP caused the private sector to improve the quality of their offerings to lower income Americans—both in terms of the price actually paid by the consumer and the quality of the service—in response to greater aggregate demand from lower-income households. Moreover, I don’t think that private efforts alone will solve the problem of universal broadband, in the same way that the admirable private efforts providing meals for the hungry would not eliminate the need for SNAP or the commendable charitable efforts related to healthcare would not eliminate the need for Medicaid.

ISPs Response to the End of ACP

Doug Dawson  |  Analysis  |  CCG Consulting

The press is suddenly full of articles talking about how some internet service providers (ISPs) are offering affordable rates to low-income homes now that the Affordable Connectivity Program (ACP) monthly subsidy has died. Some ISPs are extending the $30 discount for a limited time, while others are offering more affordable broadband plans than in the past. Other ISPs are only making a nod towards affordable broadband and some aren’t giving any discounts to low-income households. A lot of ISPs didn't put much effort into enrolling consumers into the ACP because it was only a temporary program, and the cost and potential downside to participating was bigger than the upside. There is still a chance that the ACP will be funded sometime this year. The folks in Congress looking at restarting the ACP should realize that many ISPs are going to shun ACP if the funding mechanism has to be reauthorized by Congress every few years. If Congress brings back the ACP, then bring it with a permanent funding source—or don’t bother.

NTCA Recommends Four Steps Toward Successful BEAD Projects

Carl Weinschenk  |  telecompetitor

NTCA–The Rural Broadband Association advises stakeholders to heed four recommendations regarding the $42.5 billion Broadband Equity, Access, and Deployment funding program. NTCA’s first recommendation applies to providers that don’t plan to apply for BEAD funding, as well as those who plan to do so. Noting that most states are just beginning the BEAD challenge process, NTCA said the challenge process is critical to determining areas eligible for funding. The association also had some advice about the size of project areas that could apply to state broadband offices. “Smaller, right-sized project areas target funds to the areas that most need them and will encourage program participation by those best able to serve them.” NTCA’s third recommendation was to use the most future-proof technology possible. Although the association didn’t use the word “fiber,” that’s clearly what it had in mind. NTCA’s fourth recommendation applies to legislators and advocates for not taxing broadband grants. Taxing grants could deter small and rural providers from participating in many states, NTCA said.

FCC Denies Petition to Stay 2024 Open Internet Order

Trent Harkrader  |  Public Notice  |  Federal Communications Commission

On May 31, 2024, USTelecom – The Broadband Association, NCTA – The Internet & Television Association, CTIA – The Wireless Association, the Wireless Internet Service Providers Association, ACA Connects – America’s Communications Association, the Florida Internet & Television Association, MCTA – The Missouri Internet & Television Association, the Ohio Cable Telecommunications Association, the Ohio Telecom Association, and the Texas Cable Association (together, Petitioners) filed a petition for the Federal Communications Commission to stay the Declaratory Ruling, Order, Report and Order, and Order on Reconsideration (2024 Open Internet Order or Order) pending judicial review. We deny Petitioners’ stay request.

FCC Files Motion to Move Net Neutrality Appeal to DC Circuit

Scott Noveck  |  Public Notice  |  Federal Communications Commission

In a series of orders beginning in 2005, the Federal Communications Commission has acted to promote the widespread deployment of broadband networks that are open, affordable, and accessible to all. Four of these previous orders have been reviewed by the D.C. Circuit; the challenge to a fifth order is currently pending (but in abeyance) there as well.  The D.C. Circuit has approved aspects of the FCC’s orders but disagreed with others—on several occasions remanding to the FCC for further action or additional deliberation. Thus, for more than a decade, the D.C. Circuit has repeatedly engaged with the FCC concerning the lawful contours of the agency’s Open Internet rules.  Respondents submit that it would be most efficient, and in the interest of justice, to transfer this latest round of follow-on litigation to the D.C. Circuit.

Gov Holcomb announces more than $81 million broadband expansion

Press Release  |  Indiana Office of the Governor

Governor Eric Holcomb (R-IN) announced an additional $81.5 million in the final round of the Next Level Connections Broadband Grant Program. The fourth round of the grant program leveraged 17 telecommunications providers and utility cooperatives contributing more than $135 million in matching funds, resulting in more than $216 million total investment for broadband. By providing a 20 percent match, broadband service providers and utility cooperatives can apply for up to $5 million to expand service to unserved areas. The Next Level Connections Broadband Grant  Program has awarded $328 million to connect more than 102,000 homes and commercial locations by funding broadband infrastructure projects. Since 2018, the state has leveraged more than $426 million in private and local investment. Connectivity projects will have been completed in 88 of Indiana’s 92 counties through all rounds of the Next Level Connections Broadband Grant Program.

Alaska broadband company MTA says FTTH costs $9,000 per passing

Linda Hardesty  |  Fierce

If there are any telephone companies in the US that are experts at closing the digital divide it’s the ones in Alaska. The state encompasses 663,267 square miles, which is more than Texas, California and Montana combined. And Alaska’s MTA has been connecting citizens of the state for over 70 years, so it has a lot of experience. MTA is a cooperative where its customers are also its owners. Michael Burke, CEO of MTA, said the company covers broadband subscribers across 10,000 square miles, which is about the same size as the state of Maryland, but with less than 2% population density. Although the Alaska Telephone Company, which won the US Department of Agriculture's ReConnect grant in 2022 quoted the cost to run fiber at $204,000 per passing. Burke said MTA's cost is closer to $9,000 to $10,000 per passing. Burke said MTA will apply for Broadband Equity, Access, and Deployment grants, but “It’s more just continuing to do fiber-to-the-home builds and upgrades.”

Connections and Collaboration in the Mountains

On June 4, the Institute for Emerging Issues (IEI) at North Carolina State University, in partnership with the Dogwood Health Trust, hosted Digital Opportunities: Growing Connections Across North Carolina at Blue Ridge Community College in Flat Rock. A celebration of the completion of digital inclusion plans for the five Western Councils of Government—covering 24 North Carolina counties and the Qualla Boundary, the event brought together over 100 digital inclusion practitioners from across the state. Overall, the conference brought together many talented and dedicated people who are working to advance digital equity for all North Carolinians. Across the board, speakers and attendees emphasized the need for flexibility, creativity, engaging with the community, and above all, collaboration.

States push back on ISP copper retirement plans

Masha Abarinova  |  Fierce

Telephone companies may want to ditch copper and focus on the next best thing (i.e., fiber). But states aren’t about to let them off the hook. According to New Street Research, ILECs seeking to end their carrier of last resort (COLR) obligations are getting pushback from states because consumers might not have another option for internet access—including wireless. A COLR is a telecommunications service provider that’s required to serve upon request all customers within its designated service areas. It must provide basic telephone service, such as free access to 9-1-1 and directory and operator services. In March 2023, AT&T petitioned California’s Public Utility Commission (PUC) asking to be relieved of its COLR obligation. In May 2024, the California PUC issued a proposal rejecting AT&T’s request to withdraw as a COLR. 

The Internet and the First Amendment

David McCabe  |  New York Times

How should we balance freedom of speech with the flood of slanderous statements, extremist manifestoes and conspiracy theories that proliferate on the internet? The United States decided decades ago to let private companies solve that quandary themselves. The Supreme Court made this position official in three major rulings in the 1990s and early 2000s. But lawmakers aren’t sure about this arrangement, now that giant online platforms are the new town square. A series of federal court cases will address these questions. Courts have faced six broad questions about online speech:

  • When can social media sites be sued over what users post?
  • Can government officials block constituents on social media?
  • Can the government force social media sites to host political content?
  • When can the United States push social media sites to remove content?
  • Can the government restrict access to online pornography?
  • Can the government ban a foreign-owned social media platform?

The Implications of Section 230 for Black Communities

Spencer Overton, Catherine Powell  |  Research  |  Joint Center for Political and Economic Studies

A draft of key research, sponsored by the Joint Center for Political and Economic Studies, “The Implications of Section 230 for Black Communities,” was posted on the Social Science Research Network. Section 230 of the Communications Decency Act enables technology platforms to host and remove user-generated content without fear of liability for either the content or the moderation decisions. For years, experts and advocates have called for Congress to reform Section 230, for courts and the Federal Communications Commission to reinterpret it, and for states to regulate tech platforms in ways that some argue conflict with Section 230. Unfortunately, despite the significant opportunities and challenges to Black communities stemming from the law, no entity has comprehensively examined the implications for Black communities of Section 230 or proposed Section 230 reforms. This article fills that void. A final version of the article will be published in the William & Mary Law Review in October 2024. Read the draft here.

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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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