Monday, June 3, 2024
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FCC Brings Affordable Connectivity Program to a Close
Louisiana's Plan for Affordable Broadband
How the Office of Minority Broadband Initiatives Connected Communities in 2023
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On May 31, Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel wrote to Congressional leaders to provide an update on the end of the Affordable Connectivity Program (ACP). Due to the expiration of funding, the FCC ended the ACP on May 31, 2024. Chairwoman Rosenworcel acknowledged some of the groups that will be impacted, including seniors, veterans, school-aged children, and Tribal households. The Chairwoman also detailed the steps the FCC has taken to help households adjust to the end of the ACP. "The ACP filled an important gap that provider low-income programs, state and local affordability programs, and the Lifeline program cannot fully address. Millions of ACP households nationwide, and households that may be eligible but have not yet enrolled, are looking to Congress to provide the funding needed to keep the ACP up and running. The Commission is available to provide any assistance Congress may need to support funding the ACP in the future and stands ready to resume the program if additional funding is provided."
Fact Sheet: President Biden Highlights Commitments to Customers by Internet Service Providers to Offer Affordable High-Speed Internet Plans, Calls on Congress to Restore Funding for Affordable Connectivity Program
May 31st is the final day that households will receive any benefit from the Affordable Connectivity Program on their internet bills. Without Congressional action to extend funding for the program, millions of households are now at risk of losing their internet connections. President Biden is once again calling on Congress to extend funding for the Affordable Connectivity Program, so tens of millions of Americans can continue to access this essential benefit. In the absence of funding for the Affordable Connectivity Program, President Biden remains committed to doing everything possible to ensure families continue to access affordable high-speed internet. The White House highlights voluntary commitments to customers from over a dozen internet service providers to offer plans at $30 or less to low-income households through 2024, so that families across America can continue accessing low-cost internet. This includes commitments from small, rural carriers that serve a single region and larger providers that cover multiple states.
Today, the bipartisan Affordable Connectivity Program expires. This will cause real harm to millions of Americans. ACP is the most effective program we have ever had in closing the digital divide. Over 23 million households enrolled in ACP, realizing the benefits of affordable, high-speed broadband. And now we are leaving them behind. Let’s put that 23 million in context. That’s one in six households in the country. Millions of veterans, seniors, families of color, and households with children. Americans living on Tribal lands, urban areas, and rural areas – where ACP outperformed enrollment expectations.... Not only does the end of ACP impact these individual Americans, it also has significant consequences for our nationwide broadband infrastructure deployment efforts. ACP works hand in glove with the Broadband Equity Access and Deployment Program, reducing the subsidy necessary to support ISP network deployment. Losing ACP means that we will be handcuffing the $42.5 billion working to build new networks that will reach primarily rural communities. There is bipartisan legislation pending in Congress to re-fund ACP, a vital and life-changing program for Americans everywhere. The time to act is now. Broadband is at the center of modern, everyday life – it powers our work, education, finance, healthcare, communication, entertainment, and more. Connecting Americans, including the millions who struggle to afford broadband, is essential for both their future and the future of the country.
The end of the ACP will undo the significant progress we have made toward closing the divide and harm millions of Americans. Not only that, but it will have economic and competitive consequences for our country if we fail to maximize the $42.5 billion investment we’ve made in broadband infrastructure through the Broadband Equity Access and Deployment Program. It is, as they say, penny wise and pound foolish. Connectivity has never been more important. By ensuring that all Americans can afford highspeed Internet, the ACP is an investment in our nation’s prosperity and the promise of opportunity for all. It is critical that Congress act to save the ACP and keep the progress made to close the digital divide.
Astound is the latest service provider to announce a low-income ACP (Affordable Connectivity Program) replacement service. The news comes on the last day that low-income households will have some or all of the costs of broadband connectivity paid for through the federal program, which has run out of funding. Astound’s Internet First service is available to customers who qualify for and participate in public assistance programs like the National School Lunch Program, housing assistance, Medicaid, SNAP, SSI, and other program for low-income consumers. Eligible customers will receive the service for as low as $9.95 per month for 50 Mbps service. For $19.95 per month, those customers will be able to get 150 Mbps service. The service will be free for the first three months for new customers.
On May 30, ACA Connects President and CEO Grant Spellmeyer wrote to Assistant Secretary of Commerce for Communications and Information Alan Davidson to urge the National Telecommunications and Information Administration (NTIA) to make sure small and medium-sized wireline broadband providers have a fair opportunity to compete in the Broadband Equity, Access, and Deployment program (BEAD). “The small and medium-sized wireline broadband providers represented by ACA Connects are eager to participate in the Broadband Equity, Access, and Deployment program (BEAD), but they will be deterred if they must comply with overly restrictive or burdensome requirements to offer and administer the 'low-cost service option.' Fewer participants in BEAD will mean less competition for funds, less fiber deployment, and a heightened risk of stranding Americans on the wrong side of the digital divide. We urge the National Telecommunications and Information Administration (NTIA) to keep these concerns front-and-center as it reviews and approves State and Territory plans for low-cost service options."
In the world of rural broadband, all eyes are on the $42.5 billion Broadband Equity Access and Deployment (BEAD) program as individual states continue to assemble their plans. NTCA—The Rural Broadband Association CEO Shirley Bloomfield believes that BEAD has interesting potential for her members, while acknowledging that there are some wrinkles that need to be ironed out. Challenges include managing through the fragmented, state-by-state approach when it comes to implementation, the critical need for accurate mapping, the challenge process and the need to provide a low-cost option. Bloomfield is particularly concerned that the challenge process could prove burdensome for rural providers, possibly causing some of them to walk away from BEAD opportunities.
The overarching goal of the Broadband Equity, Access and Deployment (BEAD) Program, established by Congress in the Infrastructure Investment and Jobs Act, is to deploy broadband networks that reach every American and provide access to reliable, affordable, high-speed internet. Congress decided to allocate BEAD funds to states and territories since they are best situated to determine the needs of their communities, but it did not change any existing federal authority to oversee broadband or pricing. The National Telecommunications and Information Administration (NTIA) was given administrative oversight and programmatic support responsibilities to ensure the funds would be spent consistent with Congressional intent, including the review and approval of proposals after significant consultation between the state or territory and NTIA. These are critical procedures for NTIA to follow in determining whether low-cost plans are in fact affordable for the areas and markets where they are proposed. What is affordable in one community may not be considered affordable in another, so the Infrastructure Investment and Jobs Act gives NTIA the responsibility of reviewing and approving different approaches on a state-by-state basis. In this and a forthcoming series of articles, the Benton Institute for Broadband & Society is looking at states' plans to ensure affordable services are available on BEAD-supported networks. We begin with Louisiana. The state received a $1.355 billion allocation from the BEAD Program, the eighth-largest in the nation and the 10th-largest per capita.
Kinetic has been awarded an $11.9 million grant to significantly expand its fiber-optic network in Clarion County, Centre County, and Erie County, Pennsylvania, by the end of 2026. This expansion will bring gigabit internet speeds to nearly 2,400 previously underserved and unserved locations. Kinetic received the $11.9 million grant from the Commonwealth of Pennsylvania's $204 million Broadband Infrastructure Program. In addition, Kinetic will invest $11.3 million of private capital in the fiber-to-the-home project and also cover any cost overruns. In Clarion County, a $20 million project will bring gigabit internet speeds to 1,760 locations. In Centre and Erie counties, the investment totals approximately $3 million and will deliver gigabit internet to almost 640 locations. This landmark network expansion is made possible through a blend of funding from the American Rescue Plan Act and private capital from Kinetic, showcasing a successful public-private partnership model.
Michigan’s Broadband Office Prioritizing Digital Equity Sustainability through a Proposed Digital Inclusion Fund
Michigan is once again leading the country with its innovation. This time, however, the innovation isn’t new technology—but a funding strategy that would catalyze new technologies, and ensure access to jobs, healthcare, education, and government services are available and accessible in perpetuity. Their innovative strategy—leveraging Broadband Equity Access and Deployment (BEAD) non-deployment funds to establish a Michigan Digital Inclusion Fund is designed to sustain digital inclusion work throughout the state beyond the short-term federal investments. In their BEAD Volume II draft plan, the Michigan High-Speed Internet Office (MIHI) within the Michigan Department of Labor and Economic Opportunity (LEO) proposes using the majority of their non-deployment funds to establish a “Michigan Digital Inclusion Fund” so that “digital equity can be pursued, achieved, and maintained.” In other words—so Michigan’s digital equity efforts have a powerful tool for sustainability.
Access to affordable, reliable broadband may have once been viewed as a luxury, but there is no question that it has now become an integral part of our daily lives. Similar to how we view electricity and other utilities, internet access is essential in the 21st-century—critical for everything from remote work and job searching, to education and socializing. Yet the digital divide still persists in far too many communities. The situation is particularly dire in many rural and low-income areas of New York that have either no broadband options or just one provider who operates with a de facto monopoly. Realizing universal broadband access in New York requires an aggressive expansion of municipal broadband, coupled with efforts to make it easier for municipalities to build out new networks. I recently introduced a bill that would streamline the process for municipalities to approve new projects, moving up their timelines and bringing access to those still in need.
[Jeremy Cooney, D-Rochester, represents the 56th District in the New York State Senate.]
Spectrum announced the launch of Spectrum Internet, Mobile, TV and Voice services to more than 330 homes and small businesses in Vance County (NC). Spectrum’s newly constructed fiber-optic network buildout in Vance County is part of the company’s approximately $5 billion Rural Digital Opportunity Fund-related investment in unserved rural communities, partly offset by $1.2 billion in the Federal Communications Commission’s (FCC) RDOF auction. The company’s RDOF expansion will provide broadband access to 1.3 million customer locations across 24 states in the coming years. Spectrum has also won more than $700 million in state broadband expansion subsidies, which, combined with Spectrum investment, will connect another 300,000 homes and small businesses.
Surf Internet and the Newton County (IN) Economic Development Commission (EDC) are paving the way for nearly all of the county’s residents to be connected to high-speed, fiber-optic internet by the end of 2024. Newton County is investing $4 million towards the project, matched with $6.6 million from Surf, for a total $10.6 million investment across multiple areas, serving nearly 4,000 households. The combination of private and local funds allows Surf to provide fiber-optic services to previously underserved areas, including Lake Township, incorporated areas of Lake Village, Roselawn, and Thayer, and extremely rural areas in the county. As a result, over 97 percent of the county will be serviced by fiber-optic broadband by the end of 2024.
Broadband industry groups are asking a federal appeals court to scuttle the Federal Communications Commission's new disclosure obligations on telecommunications companies that suffer data breaches. The agency specifically required companies to notify consumers, federal law enforcement agencies and the agency about all breaches—even “inadvertent” ones—that expose personally identifiable information, including sensitive financial information. The broadband lobbying groups argue that Congress stripped the FCC of authority to issue the new regulations. The groups point to Congress's 2017 decision to revoke privacy rules passed by the FCC during the Obama administration. Those rules—which never actually took effect—would have required broadband carriers to obtain consumers' permission before harnessing information about their web activity for ad targeting. The Obama-era privacy rules also required providers to notify customers and law enforcement agencies about some data breaches that exposed personally identifiable information. Congress repealed the regulations under the Congressional Review Act. Congress has only rarely used the Congressional Review Act, and it's not clear how courts will determine when new rules are “substantially” the same as revoked ones.
In a surprise turn of events, CommScope will pay $45.1 million to purchase the cable assets of Casa Systems. It had previously seemed that Vecima Networks would snag these assets from Casa's bankruptcy proceeding. But on May 29 CommScope entered the winning bid through a bankruptcy auction. A sale hearing is scheduled with the U.S. Bankruptcy Court for the District of Delaware, and the transaction is expected to close June 6. CommScope said the assets will strengthen its Access Network Solutions business, including enhancing its virtual cable modem termination system (CMTS) and passive optical network (PON) product offerings.
The Fiber Broadband Associations Technology Committee published a new white paper on "The Benefits of Retiring Copper Today." Many telecommunications providers still face unnecessary complexity and expense by continuing to operate legacy copper last-mile broadband infrastructure, especially if they already migrated to fiber in the core and access network. The white paper explores the cost benefits and reasons why operators should accelerate the removal of copper completely and deploy future-proof fiber. In addition to fiber’s operational savings and better performance factors, FBA’s white paper outlines several approaches to replacing copper with fiber that recoup the capital expense of the migration, including:
- Reclaim Assets: The ducts and poles that carry copper can be reduced and/or repurposed to carry fiber, media that delivers exponentially more capacity than existing copper cable. The associated pole attachment fees will also be reduced as less fiber will be required due to its capacity, and the savings could be up to 50%.
- Real Estate: Many FTTH networks are centralized, minimizing the number of existing buildings and huts where the future network would occupy space and creating an opportunity to decommission this real estate and sell the properties.
- Salvage Goods: Copper is a valued commodity. Service providers can recover and sell existing copper cables for recycling to support other industries.
The National Telecommunications and Information Administration's (NTIA) Office of Minority Broadband Initiatives (OMBI) has released its Annual Report for 2023. Through the Consolidated Appropriations Act, 2021, the Assistant Secretary of Commerce established within NTIA the OMBI in August of 2021 to improve America’s economic competitiveness and create the conditions for economic growth and opportunity for all communities. The approach centers on the OMBI collaborating with stakeholders in federal, state, local, and Tribal governments; Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and Minority-Serving Institutions (MSIs); and stakeholders in the communications, education, business, and technology fields. OMBI's 2023 report describes the office's efforts to promote equitable broadband access and adoption through anchor institutions to communities through the Connecting Minority Communities Pilot Program.
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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