Monday, June 26, 2023
Headlines Daily Digest
Today: Smart Rural Community and Expect News on BEAD Allocations
Don't Miss:
Senators Suggest FCC Explore Supplemental Funding for RDOF Winners
Boosting Digital Equity in Phoenix
The Affordable Connectivity Program Needs More Funding to Continue Closing the Digital Divide
Budget
Broadband Funding
State/Local Initiatives
Wireless
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Budget
The Senate Committee on Appropriations approved, on a 28-0 vote, the fiscal year 2024 Agriculture bill. The committee provides $98 million for the ReConnect program at the Department of Agriculture. The committee again reminds USDA that funding should not be used in areas that are already largely served and should be focused in areas where at least 90% of households lack access. In doing so, the committee intends that USDA
should avoid efforts that could duplicate existing or planned broadband networks, including avoiding granting funding in areas where another provider already has received funding from another Federal, State or local funding program to build, has otherwise committed to a government entity to build, or has invested private risk capital to build in an area and has obtained necessary permits to do so, even if construction is not yet complete. The committee urges USDA to continue coordinating closely with the National Telecommunications Information Administration and the Federal Communications Commission in a transparent manner to ensure that there is a common agreement about which areas are currently unserved, to utilize a common map to reach those conclusions that is updated each time a new funding decision is announced, and to have a clear and understandable challenge process. To avoid waste, funding should be given only to applicants that can and will follow through with their commitments by prioritizing applications from applicants that have demonstrated the technical and financial experience required to construct and operate broadband networks. To incentivize participation, applications should be as streamlined as possible, including allowing all providers to offer proof of financial capability through bond ratings instead of submitting financial documentation, and to offer collateral for loans as well as security for performance under grants using alternate forms of security instead of providing a first lien on assets. Applications should only require the data strictly necessary to evaluate the application and post-award burdens should be minimized. In addition, while the pilot is intended to be technology neutral, it is critical that federal broadband investments support projects that are both scalable and adequate for both current and future technological requirement and consumer needs.
The committee also recommends an appropriation of $195,721,000 for the Distance Learning, Telemedicine, and Broadband Program with some Congressionally Directed Spending for certain activities and locations.
The House Committee on Appropriations’ Subcommittee on Financial Services and General Government approved a fiscal year 2024 bill, providing funding for certain federal agencies and proposes, among other things, $381.9 million for the Federal Communications Commission, which is $8.2 million below the FY 2023 enacted level. The bill would prohibit the FCC from from changing rules regarding single connection or primary line restrictions—and from increasing the minimum service standard for the Lifeline program.
Broadband Funding
Treasury Department Announces Approval of Federal Funds to Connect 33,000 in Washington State
The US Department of the Treasury approved $195.7 million for high-speed internet projects in Washington state from the Capital Projects Fund (CPF). The state estimates the support will help connect about 33,000 homes and businesses to affordable, high-speed internet. The plan approved by the Treasury Department represents 100% of the state’s total allocation under the CPF program. Washington will implement three competitive broadband infrastructure programs that aim to provide reliable internet access to households across the state.
- Washington’s State Broadband Office (SBO) broadband grant program will prioritize the investment of $118.5 million to provide reliable internet in communities without internet service and then to those with internet speeds below 25/3 Mbps.
- The state will also invest $43.7 million of its CPF award to the Public Works Board (PWB) Broadband Program – a program designed to provide high-speed internet in distressed rural counties, or areas identified as Indian country.
- Washington will additionally invest $23.8 million towards the Community Economic Revitalization Board (CERB) Rural Broadband Program to expand last-mile broadband access in rural areas of the state without reliable internet.
Since Phase I of the Rural Digital Opportunity Fund (RDOF) concluded, it has become more expensive to deploy broadband due to rampant increases in construction materials, equipment, and labor costs. Given the challenges, RDOF winners—especially smaller providers—are facing, we appreciate your review of the following options:
- The FCC could make supplemental funding available from the initial amount obligated for the RDOF Phase I auction. If so, this supplemental funding might be limited to auction winners with less than 250,000 current broadband subscribers.
- Absent supplemental funding, the FCC could permit RDOF Phase I winners to relinquish their RDOF Phase I obligations without exposure to forfeitures or other penalties, so that these areas can be funded through BEAD and other programs.
Twenty-seven states are expected to see larger allocations in the Broadband Equity, Access, and Deployment (BEAD) Program based on the updated Federal Communications Commission's National Broadband Map in comparison with earlier estimates based on older data, according to a new analysis conducted by researchers at Cartesian for provider association ACA Connects. The other 23 states will see less funding, according to the updated estimates. The increase or decrease for 31 states will be no more than 20%. The state that is expected to see the biggest gain is Nebraska, which was originally estimated to receive $210 million but is now expected to receive $633 million — an increase of over 200%. Other big gainers are expected to include Alaska (84%), Iowa (63%), New Jersey (63%), Oregon (60%), and Kansas (50%). The states that are expected to see the biggest drop in comparison with Cartesian’s previous estimates are Arkansas, Michigan, and South Carolina, all of which are expected to see declines of 25%.
High-speed internet service at home is no longer a luxury—it is a necessity. From remote learning, to working from home, to starting a business or accessing telehealth services, high-speed internet is a vital service in US homes--but not everyone can afford the cost of the service. Since its inception in December 2021, the Affordable Connectivity Program (ACP) has successfully supported more than 18 million qualifying low-income households with discounts on their monthly internet bill. The ACP has given millions of Americans the transformative power of an internet connection that has opened doors to access remote education and learning and opportunities to boost the economy by working from home and starting businesses. Despite its resounding success, the ACP is now in danger of running out of funding. According to recent analysis, funding for the ACP is likely to run out by mid-2024. This should ring alarm bells for Congress to pass legislation to extend the program. The Biden-Harris administration is set to invest a historic $42 billion in the Broadband Equity, Access, and Deployment (BEAD) program to build broadband infrastructure across the country. If Congress allows funding for the ACP to lapse it would thwart the efficacy of the BEAD program’s purpose to ensure that every American has access to reliable high-speed internet. All Americans deserve to be able to participate in the digital economy, and the ACP plays a significant role in ensuring that this occurs. It is imperative for Congress to move quickly to extend funding for the ACP before it runs out. Closing the digital divide and the future of our economy and global competitiveness depend on it.
[Melanie Campbell is the president and CEO of the National Coalition on Black Civic Participation; Joycelyn Tate is the senior technology policy advisor for the Black Women’s Roundtable and project director for the Black Women’s Roundtable Digital Equity, Connectivity and Women’s Economic Empowerment Project]
A partnership between Common Sense Media, Arizona State University (ASU), and the Digital Equity Institute is working to increase awareness of and enroll eligible households in the Federal Communications Commission’s (FCC) Affordable Connectivity Program (ACP). Through a multipoint marketing campaign targeted to low-income communities with high eligibility for the federal broadband subsidy program, Common Sense Media is directing Phoenix residents toward the ASU Experience Center, a call center with more than 100 phone specialists. Here, trained employees walk Phoenicians through the ACP application process. With the Digital Equity Institute, ASU is working to bring a team of digital navigators to the Experience Center and build off of the partnership with Common Sense Media. With additional funding from Maricopa County, ASU’s Experience Center continues to expand its capabilities to make a range of digital equity resources available to callers. This work could not be done without combining national resources and community knowledge. Local organizations and preexisting digital navigators ground the work in community knowledge and connections, while the policy expertise and resources provided by Common Sense Media help to expand reach. ASU’s Experience Center has the infrastructure and people to run the campaign’s programming end, building off of other efforts to help ensure that everyone is online.
Gov. Tim Walz (D-MN) and legislative leaders met with senior White House officials to highlight a historically productive 2023 session, holding up Minnesota as a model for other states looking to enact infrastructure policies. The trip is the latest stop on a national campaign to prop up the long list of progressive proposals Gov Walz and the Minnesota Democratic-Farmer-Labor (DFL)-led Legislature passed in a five-month span. Senate Majority Leader Kari Dziedzic (DFL-Minneapolis) said the group talked a lot about clean energy and broadband. "You can't do precision agriculture in greater Minnesota without the broadband and Wi-Fi," she said, describing the process of applying modern technology to farming.
There was an interesting political effort in the Washington State Legislature recently to expand the use of open-access networks. There was language included in Substitute House Bill 1147 that would require that any network funded from Broadband Equity, Access, and Deployment (BEAD) Program grants must become open-access and available to other broadband providers. Open-access has been a topic in Washington for many years. There was a long-time prohibition against Public Utility Districts (PUDs) from offering retail broadband. These county-wide government-owned utilities wanted to bring better broadband and settled by building open-access networks. Open-access is a network where multiple providers can reach customers. This provides customers with the choice of using multiple providers on the same network. The BEAD grant rules have a clear preference for open-access networks, and any carrier promising an open network will get extra points on a grant application. But the open-access preference is only a suggestion and not a requirement.
Satellite internet competitors OneWeb and SpaceX are in the running to reconnect Alaskans after ice damaged a sub-sea fiber-optic cable in the Arctic Ocean. While repairs are expected to take an additional six to eight weeks, satellites could help locals weather the widespread outage. Residents in the rural towns of Utqiaġvik, Point Hope, Wainwright, Kotzebue, Nome, and other communities found themselves without internet or cellular connectivity when the 1,200-mile fiber cable owned by the Alaska-based broadband company Quintillion suffered a break. Quintillion says the cable broke as “a result of an ice scouring event.” The outage has caused disruptions throughout the region, hampering 911 calls, closing businesses, and even impacting credit card transactions. While Quintillion says it’s working to get a repair vessel to the area, it could arrive as early as August 2023, depending on weather and ice conditions. In the meantime, Quintillion is looking to satellite connectivity to hold residents over.
The [Federal Communications Commission] exercises tremendous power not only over the media, but also over consumers’ pocketbooks. Through the Universal Service Fund (USF) the agency has imposed burdensome taxes on American consumers to fund inefficient, ever-expanding programs. Nominees must be good stewards of funding and stand up for taxpayers’ interests. Despite being repeatedly excoriated by the [Government Accountability Office] and economists for failing to track where USF money was going, the current FCC leadership failed to learn from past mistakes in setting up the Affordable Connectivity Program (ACP). According to the FCC’s own Inspector General, the FCC “did not apply lessons learned” and “failed to implement several important recommendations intended to enhance and safeguard the integrity of the [subsidies].” Proponents for Title II have refused to take accountability for the parade of horribles they manufactured in the lead-up to the Restoring Internet Freedom Order. Rather than articulating meaningful reasons for another policy reversal, they claim they simply want regulatory oversight—in other words, the power to micromanage providers’ pricing and terms of service, and collect billions in new USF taxes—all at the expense of investment, innovation, and consumer choice. Let’s call a spade a spade: any effort to outlaw usage-based pricing is straight-up rate regulation. Worse, bullying providers to ban usage-based pricing would force them to raise prices across the board, making broadband more expensive for all American households.
The Infrastructure Investment and Jobs Act allocates $65 billion to expand internet access to all. Mitch Landrieu, the former mayor of New Orleans, is the man President Joe Biden tapped to make sure the massive job gets done. In this podcast, Landrieu speaks about the Affordable Connectivity Program – which provides monthly $30 subsidies for lower-income individuals to buy internet access. And Kathryn de Wit, project director for the Pew Charitable Trust's Broadband Access Initiative, talks about why accessing the internet is no longer a luxury, but a necessity.
Federal Communications Commission nominee Anna Gomez left little doubt that if confirmed, she would vote in favor of classifying broadband as a Title II telecommunications service—a move that would enable the agency to prohibit carriers from blocking or throttling web traffic. Gomez told lawmakers that internet access was too essential to remain unregulated. “Title II gives the strongest oversight to the FCC over the service,” she added. Broadband is currently considered a Title I information service—and is largely unregulated. Title II classification, by contrast, would allow the FCC to impose common-carrier regulations—including ones that could prohibit internet access providers from censoring traffic. Another issue set to come up for a vote before the FCC by the end of 2023 is rulemaking on digital discrimination. One topic up for debate, and an area of disagreement between the industry and consumer advocates, is whether the FCC should define digital discrimination as solely "intentional" – as preferred by the industry – versus defining it as practices that produce disparate outcomes, as encouraged by some advocacy groups. Gomez declined to comment directly, telling Sen. Cruz (R-TX), "The issue of digital discrimination is something I know Congress tasked the Commission with looking at... but I need to be able to sit down and dig into the record and look at the notice of proposed rulemaking in order to be able to give you an informed answer." Further, Gomez stressed the importance of the Universal Service Fund (USF) and said she would work with the committee if confirmed, "on addressing ways to ensure that we can protect the program going forward."
Anna Gomez, President Joe Biden's nominee for the open Democratic seat on the Federal Communications Commission, told the Senate Commerce Committee that she supports reclassifying internet access as a Title II telecommunications service. Since Gomez’s bureaucratic background left little room for Republicans to attack her in the same way as Gigi Sohn, she’s got a seemingly better chance of getting confirmed. Currently, the FCC classifies internet access as an information service under Title I of the Communications Act, and not subject to common-carrier/open access regulations. That occurred after network neutrality regulations approved under Obama-era Democratic chair Tom Wheeler were then unapproved by the succeeding Republican majority under Ajit Pai. With the FCC’s two current sitting Democrats, Chair Jessica Rosenworcel and Commissioner Geoffrey Starks, both supporting robust network-neutrality rules, the way appears open for their return — and likely a return of the legal battle that has characterized the issue for a couple of decades as changes in administrations have led to shifts in regulatory approaches to the internet. That is, unless Congress steps in to clarify the FCC's broadband regulatory authority, which Gomez said she would support as the best way to resolve the issue. Gomez also said that while she thought Title II gave the FCC the strongest oversight, she did not believe in using that authority to regulate pricing, which could be allowed under Title II.
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 David L. Clay II (dclay AT benton DOT org) — we welcome your comments.
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