Thursday, June 30, 2022
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Broadband Speeds Have Significant Impact on Economy
Second study links broadband access to lower Covid death rates
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Broadband and higher speeds have made significant contributions to economic growth over the last decade according to Raul Katz, director of business strategy research at Columbia University. Katz conducted his research to determine where the United States economy would be if broadband had not evolved since 2010. He developed four models to explain the economic contribution of broadband, and all found support to suggest that broadband development has contributed to substantial economic growth. The long-run economic growth model showed that between 2010 and 2020, a 10.9 percent growth in broadband penetration drove a .04 percent increase in gross domestic product (GDP) – the measure of the value of goods and services produced in the nation. States with higher speed broadband had an economic impact of an additional 11.5 percent. “States with higher speeds of broadband have a higher economic effect,” said Katz. “Not only is there penetration as a driver, but there’s also… return to speed. At faster speeds, the economy tends to be more efficient.” The study found that if broadband adoption and speed had remained unchanged since 2010, the 2020 GDP would have been 6.27 percent lower, said Katz.
A new study from Tufts University’s Digital Planet initiative found a correlation between broadband and Covid-19 death rates, highlighting a particular link between greater access and better outcomes in urban areas. The report comes after researchers at the University of Chicago released a paper earlier in 2022 that came to a similar conclusion. The study from Tufts included data from the US Census Bureau, the Department of Labor, Department of Commerce, Broadband Now and a Covid-19 map put out by USAFacts, among other sources. Researchers found that even after controlling for a range of factors including age, gender, healthcare access, poverty and racism, a 1 percent increase in broadband access reduced Covid death rates by approximately 19 people per 100,000 in the U.S. Put another way, a 1 percent increase in broadband access led to a 0.1 percent decline in Covid mortality overall. The impact of broadband was especially pronounced in metro areas, with access associated with a decrease in mortality of 36 people per 100,000. Or, to offer a comparison with the percentage figure above, a 1 percent increase in broadband access led to a 0.24 percent decline in Covid death rates.
Telecommunications companies have surprisingly strong opinions about pole attachments. Several groups filed comments with the Federal Communications Commission advocating for a more streamlined process related to pole attachments. But AT&T and Verizon, to the contrary, filed comments indicating they don’t want any changes. The FCC is interested in clarifying the process and costs for those seeking to attach telecommunications equipment to utility poles. It issued a Notice of Proposed Rule Making (NPRM) in March and has since been seeking stakeholder comments. Yesterday, INCOMPAS, an association that represents fiber builders, filed comments that were reflective of the views of many companies. “While it may sound like an under-the-radar issue, pole attachment policy may ultimately determine the speed, success or failure of the nation’s historic bipartisan broadband infrastructure investment,” said Chip Pickering, CEO of INCOMPAS. It said red-tape, costs and other barriers from utility pole owners “fundamentally restrict providers from reaching the most hard-to-reach, most unserved customers by frustrating an already challenging economic model in such areas.” But Verizon and AT&T have completely different opinions about the issue. Verizon’s filing yesterday said the current pole attachment rules correctly allocate costs and provide the clarity and predictability needed to reduce disputes and promote deployment.
The Schools, Health & Libraries Broadband (SHLB) Coalition filed comments in response to the Federal Communications Commission’s Second Further Notice of Proposed Rulemaking (SFNPRM) to remove barriers to infrastructure investment. In our comments, the SHLB Coalition made several recommendations to the FCC, often drawing from our Pole Attachment Principles:
- Pole replacement costs should be equitable. Specifically, pole owners should not be able to impose the entire cost of replacing a pole on a new pole attacher.
- Cost allocation standards for pole replacements should encourage efficiency. A pole owner’s attachment procedures, project timelines, costs, and other components impacting pole attachments should be transparent.
- The FCC should resolve pole-related disputes quickly. When disagreements arise between pole owners and attachers that hold up active deployments, the FCC could automatically place these proceedings on the Accelerated Docket.
[Kristen Corra is policy counsel at the Schools, Health & Libraries Broadband Coalition.]
Verizon will deliver enhanced connectivity to approximately 80 Bureau of Indian Education (BIE) schools operated by Native American tribes on 64 reservations in 13 states. Verizon’s network investment across diverse tribal lands is expected to lead to reliable, high-speed internet service and connected devices for thousands of students. The work will support BIE's mission to provide quality education opportunities from early childhood through life in accordance with a tribe's needs for cultural and economic well-being. Verizon had previously upgraded more than 100 sites from legacy T1.5s to 100MB sites, work awarded via the US General Services Administration’s (GSA) Networx contract. Many of those schools will now gain access to 1Gb internet connections through an extension of Verizon’s existing Enterprise Infrastructure Solutions (EIS) task order. Native American students across the program’s 13 states will benefit from more robust technology in the classroom, and significantly increased speed and bandwidth. Addressing this challenge has been a long-term commitment by Verizon as part of its responsible business plan - Citizen Verizon - whose mission includes expanding digital access and resources to promote digital equity and inclusion. Verizon coordinated with multiple third-party access suppliers to design and engineer special access arrangements on a site-by-site basis. The infrastructure work across the 13 states will take place through 2023.
The city of Amarillo (TX) announced a $24 million project with AT&T to build its fiber network to more than 22,000 customer locations throughout the city. The project proposes providing access to AT&T Fiber for homes, businesses and government agencies in the city center. The project is contingent upon funding approval by the city of Amarillo and a final contract between AT&T and the city. Extensive planning and engineering work will begin immediately upon execution of the contract.
It’s the time of the year when the results come out for the American Customer Satisfaction Index that asks customers to rate their satisfaction with a wide range of industries and the larger companies within those industries. This is a huge nationwide poll that ranks the public’s satisfaction with 400 large companies in 45 sectors. As has been happening for many years, the large Internet Service Providers (ISPs) come in dead last when comparing ISPs to 44 other industries. ISPs were given an overall customer service ranking of 64. The industries ranked just above ISPs at the bottom were related, with subscription TV services (66) and video-on-demand services (68). This puts ISPs below gas stations (68), hospitals (69), and the US Post Office (70). What I find most amazing about this ranking is how politicians have fought so hard and often to protect these companies from regulation. Maybe it’s just me, but I’ve always thought that a state politician running to strongly regulate the biggest cable company in a state would gain a lot of votes.
[Doug Dawson is president of CCG Consulting.]
When Zachary Cohn and his wife bought a house in the Northgate neighborhood of Seattle (WA), they didn't expect any trouble getting home Internet service. It was only after closing on the house in July 2019 that they learned the bad news. "All six neighbors I share a property line with are wired for Comcast, but our house never was," Cohn said. Comcast had wired up the neighborhood with cable decades earlier and provides high-speed broadband to the abutting properties. But the cable TV and Internet service provider never extended a line to the house purchased by Cohn and his wife, Lauryl Zenobi. Cohn spent many months trying to get answers from Comcast on how he and Zenobi could get Internet service. Eventually, he contacted his City Councillor's office, which was able to get a real response from Comcast. Comcast ultimately said it would require installing 181 feet of underground cable to connect the house and that the couple would have to pay Comcast over $27,000 to make that happen. Cohn and Zenobi did not pay the $27,000, and they've been relying on a 4G hotspot ever since.
Shannon Thomas Carroll, head of global environmental sustainability for AT&T, knows how difficult it is to find reliable climate data. When sustainability officials at the telecommunications giant began searching for local-level data on climate impacts as part of the company’s efforts to shore up its infrastructure in response to climate change, they had a lot of trouble finding usable information. So AT&T engaged the Department of Energy’s Argonne National Laboratory in 2019 with about $1.6 million in funding to help with its resiliency project, which culminated in the development of a tool to model how climate change will impact weather disasters over the next 30 years. In May 2022, the company publicly unveiled new projections on how future wildfires and droughts will affect the contiguous 48 states. Carroll spoke at the Aspen Ideas: Climate conference in Miami Beach (FL) about why the company launched and funded the project, what the data says and doesn’t say about climate risk and the importance of getting internal stakeholders on board.
Rep Brad Schneider (D-IL) re-introduced legislation to ensure critical online LGBTQ resources are not blocked at schools and public libraries. Currently, public schools and libraries that receive discounted telecommunications and internet rates through the Federal Communication Commission E-Rate Program must enforce an internet safety policy that in some cases leads to the blocking of useful LGBTQ resources. The “Don’t Block LGBTQ Act of 2022” (H.R.8249) would clarify that schools and public libraries that block LGBTQ resources would lose access to discounted rates under the E-rate program. This bill does not prevent schools and libraries from blocking indecent and other explicit content that could be harmful to minors, as current law intends. Schneider previously introduced the bill in the 116th and 115th Congresses.
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 Grace Tepper (grace AT benton DOT org) — we welcome your comments.
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