Friday, June 7, 2024
Headlines Daily Digest
Don't Miss:
New NTIA Data Show 13 Million More Internet Users in the U.S. in 2023 than 2021
The Areas Hit Hardest by the End of the ACP Internet Subsidy
Ten Things About ACP that Ted Cruz Cares About #3 Net Cost Savings to Government
FCC News
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Digital Divide
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Stories From Abroad
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The Federal Communications Commission proposed updated rules to offer greater flexibility in supporting providers’ deployment of high-speed internet services in high-cost, rural communities. FCC broadband deployment programs target communities where the high cost of deployment makes it difficult for private funding alone to make deployment cost-effective. To make sure public dollars are safeguarded, the FCC requires that certain broadband providers who receive Universal Service Fund support to deploy broadband to high-cost areas maintain letters of credit from a qualifying bank and with a sufficient value. Amid concerns that the burden from those requirements can impact deployment, the FCC seeks comment on changing its existing bank rating standards and allowing certain providers to reduce the value of their letter of credit sooner, freeing more capital for deployment. In the last two years, a significant number of banks have lost their eligibility to issue letters of credit for high-cost support recipients as their safety ratings have fallen below the standard established by the Commission. Carriers are then burdened by the possibility of needing to obtain a new letter of credit from a qualifying bank. The Notice of Proposed Rulemaking seeks to address those burdens and seeks comment on the appropriate standard for determining the eligibility of a United States bank to provide a letter of credit to a provider participating in certain FCC high-cost programs. The NPRM also seeks comment on reducing the letter of credit value for Rural Digital Opportunity Fund support recipients that have demonstrated sufficient broadband deployment using program funds, and also seeks comment on allowing Connect America Fund Phase II providers that have met deployment and reporting obligations to reduce their letter of credit burden by following the Rural Digital Opportunity Fund letter of credit rules.
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The Federal Communications Commission adopted a three-year, $200 million Schools and Libraries Cybersecurity Pilot Program. This program will allow the FCC to obtain actionable data about which cybersecurity services and equipment would best help K-12 schools and libraries address the growing cyber threats and attacks against their broadband networks. From this program, the FCC aims to learn how to improve school and library defenses against sophisticated ransomware and cyberattacks that put students at risk and impede their learning. The pilot program will allow the FCC to gather the data needed to better understand whether and how universal service funds could be used to support the cybersecurity needs of schools and libraries and to share lessons learned with our federal partners to jointly combat this growing problem. Modeled after the Connected Care Pilot Program, the pilot program will make $200 million in Universal Service Fund support available to participating schools and libraries to defray the costs of eligible cybersecurity services and equipment. These funds are separate from the FCC’s E-Rate program, to ensure gains in enhanced cybersecurity do not undermine E-Rate’s success in connecting schools and libraries and promoting digital equity.
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The Federal Communications Commission proposed action to help protect America’s communications networks against cyberattacks by improving internet routing security. The proposal would require broadband providers to create confidential reports on the steps they have taken, and plan to undertake, to mitigate vulnerabilities in the Border Gateway Protocol (BGP), the technical protocol used to route information across the internet. The nation’s largest broadband providers would also be required to file specific public data on a quarterly basis demonstrating their BGP risk mitigation progress. The proposal would promote more secure internet routing and provide the FCC and its national security partners with up-to-date information on this critical issue. The Notice of Proposed Rulemaking proposing that:
- Broadband internet access service providers prepare and update confidential BGP security risk management plans at least annually. These plans would detail their progress and plans for implementing BGP security measures that utilize the Resource Public Key Infrastructure (RPKI), a critical component of BGP security.
- The nine largest broadband providers file their BGP plans confidentially with the FCC as well as file quarterly data available to the public that would allow the Commission to measure progress in the implementation of RPKI-based security measures and assess the reasonableness of the BGP plans. These large providers would not have to file subsequent detailed plans with the FCC if they met a certain security threshold.
- Smaller broadband providers would not be required to file their plans with the Commission but rather make them available to the FCC upon request.
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Results from the latest National Telecommunications and Information Administration (NTIA) Internet Use Survey point to significant progress toward achieving Internet for All, as 13 million more people used the Internet in the United States in 2023 compared with just two years earlier. Working to achieve digital equity in the United States has long been at the core of NTIA’s mission. NTIA is committed to enabling widespread use of the Internet for communicating, learning, sharing ideas, and growing the economy. To reach this goal, we need solid, evidence-backed research to inform policies and programs. While we have data from dozens of questions to explore, we have found much to celebrate in our initial analysis:
- 83 percent of people ages 3 and older in the United States used the Internet in some fashion in 2023, compared with 80 percent in 2021. That’s the largest increase since the 2015-2017 period.
- These gains came in large part from segments of the population that historically have been more likely to find themselves on the wrong side of the digital divide. For example, 83 percent of American Indians and Alaska Natives used the Internet in 2023, up from 75 percent in 2021.
- Internet adoption also increased among those in lower-income households, from 69 percent in 2021 to 73 percent in 2023 among those in households making less than $25,000 per year (see Figure 2).
- 72 percent of people lived in households with both fixed and mobile Internet connections in 2023, up from 69 percent in 2021.
- Just 12 percent of people lived in households without any Internet connection in 2023, compared with 14 percent in 2021.
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After the end of the Affordable Connectivity Program on June 1, Government Technology analyzed enrollment data published by the White House to determine where state and local government leaders might expect to see the biggest impact as a result of the end of the program. While California, New York, Texas, Florida and Ohio had the largest numbers of Internet subscribers enrolled in the ACP, the Federal Communications Commission reports that households in every county in the country had taken advantage of the program. New York’s Congressional District 13, where there were about 160,000 households enrolled in the program, had the highest percentage in the country, with about 1 in 2 households receiving discounts on their Internet. That’s a significant difference from the enrollment numbers in nearby, more affluent areas. For example, New Jersey’s 7th Congressional District only had about 4 percent, or 1 in 25 households, enrolled in the program.
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As of June 1, the Affordable Connectivity Program has officially come and gone. Question is, now what? Some providers—like Astound, Frontier and Verizon—have announced either alternatives to ACP or that they would subsidize the $30 benefit themselves for a period of time. Despite attempts from carriers to provide discounted internet service, the ACP going away still puts both consumers and internet service providers in a “fairly precarious state.” The ACP’s expiration also doesn’t bode well for the Broadband Equity, Access and Deployment (BEAD) program. According to Kathryn de Wit, director of Pew’s Broadband Access Initiative, states in their initial proposals had to outline how a provider that wins BEAD funding would make a low-cost service option available to ACP-eligible households. “Not only is the ACP subsidy critical to the success of BEAD, but states are also relying on the administrative infrastructure of the National Verifier to determine which households are eligible for a low-cost service option,” said de Wit.
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By connecting more people to the internet via the Affordable Connectivity Program, the savings from reductions in the cost of Medicaid alone could result in a net gain to the government. And that does not incorporate savings from Medicare, the Veterans Administration, and other government-funded healthcare programs. Further, there are other savings related to other government programs. For lower-income individuals, adopting in-home broadband increases their likelihood of employment by 14%, with 62% of those newly connected households citing the connection as having helped them or a family member successfully find employment. This trend, applied across all ACP recipients, would reduce the cost of unemployment insurance.
[Blair Levin is the Policy Advisor to New Street Research and a nonresident senior fellow at Brookings Metro.]
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The Nebraska Public Service Commission (PSC) approved an Order awarding a second round of Capital Projects Fund (CPF) grants designed to bring broadband to unserved and underserved areas of the state. The PSC received 60 applications for funding during the second round. As part of the grant review process, the Commission also received challenges from parities stating that they already served an area covered by a grant application, or that they plan to provide service to the area in the near future. Upon review of the applications and challenges received, the PSC determined 28 applications would be funded for a total of $30, 921.432. The awarded projects will bring broadband to approximately 1,640 unserved and 1,570 underserved locations.
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I always find it interesting when old regulations bubble up into the news. As reported by Jon Brodkin in Ars Technica, an administrative law judge at the California Public Utilities Commission (CPUC) rejected a petition by AT&T to walk away from its carrier of last resort obligations for voice service. In the petition in California, AT&T requested to be relieved of carrier of last resort obligations, which would give it the ability to stop providing telephone service in rural areas. The AT&T petition was met with a lot of protests from rural residents asking the CPUC to not let AT&T kill their telephone service. The Administrative law judge rejected the AT&T petition. He ruled that he was unable to ignore the existing California rules that require carrier of last resort. He also ruled against the AT&T claim that California rules would require AT&T to keep copper. He noted that there is nothing in the California rules that would stop AT&T from decommissioning copper wires. To some degree, this ruling is too little, too late.
Comcast and Charter Are in a Better Position Than Smaller Cable Companies To Resist Fixed Wireless Competition, S&P Global Ratings Says
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A report by S&P Global Ratings suggests that the revenue lost for cable operators from customers opting for fixed wireless access (FWA) services is greater than the gains generated from new "junior cable" mobile services. Amid this dynamic “wireless convergence” marketplace, S&P analyst Chris Mooney said Charter Communications and Comcast are “better positioned than other cable providers” dabbling in mobile, primarily because of their respective wholesale mobile virtual network operator (MVNO) agreements with Verizon. These MVNO deals date back to a 2011 spectrum sale, in which Comcast, along with the erstwhile Time Warner Cable and Bright House Networks, sold wireless spectrum to Verizon for $3.6 billion and wholesale use of its network in perpetuity.
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Private capital is opening fiber availability outside of traditional telecom models, with the Gigapower joint venture between AT&T and infrastructure investor Blackrock a prime example. Gigapower is focusing on an open access model that will initially pass 1.5 million homes nationwide and enable the network to be used and shared by multiple fiber-to-the-home service providers. The open access model will be built with XGS PON with upgrades possible to deliver 25G and beyond. An open access network model is capital efficient for internet service providers (ISPs) entering into new markets because they simply pay as they add subscribers; they don’t have the large upfront cost associated with building a dedicated network. Once subscribers are added, that’s when ISPs begin actually paying for services. Service providers can focus on marketing and customer service rather than planning, building, and operating the fiber network.AT&T will use the Gigapower network to offer fiber broadband services outside of its established territories, and CEO Bill Hogg expects other carriers, large and small, to do the same.
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Montreal-based Cogeco Communications has restructured its operations, combining the “commercial, operational and technical” functions of its Canadian and Breezeline-branded U.S. telecommunications businesses into one North American unit. With the change, Breezeline president Frank van der Post will depart. Among a series of other job shifts announced in the press release, Sean Brushett, VP of customer services and technical operations for Breezeline, will become chief operating officer of the combined North American group. Cogeco acquired U.S. cable operator Atlantic Broadband for $1.36 billion in July 2012. It rebranded the operation as Breezeline in January 2022.
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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