Wednesday, July 12, 2023
Headlines Daily Digest
Many Events Today including NTIA Reauthorization and FCC Nominees Markups
Don't Miss:
House Subcommittee to Consider Bills to Reauthorize NTIA
Providers Winning CPF or BEAD Funding Must Support ACP, But ACP Could be Gone in 2024
Microsoft Can Close Its $75 Billion Buy of Activision Blizzard, Judge Rules
NTIA Reauthorization
Digital Equity
Mapping & Data
State/Local Initiatives
Environment
Ownership
Platforms/Social Media/AI/Content
Privacy
Security
Policymakers
NTIA
The House Commerce Committee's Communications and Technology Subcommittee will convene on July 12 to consider a number of bills to reauthorize the US Department of Commerce's National Telecommunications and Information Administration (NTIA). The main bill under consideration is the NTIA Reauthorization Act of 2023 (H.R. 4510). Introduced by Subcommittee Chairman Bob Latta (R-OH) and Ranking Member Doris Matsui (D-CA), H.R. 4510 would provide NTIA with $62 million in fiscal years 2024 and 2025 and change the director of the NTIA from an Assistant Secretary of Commerce for Communications and Information to an Under Secretary of Commerce for Communications and Information. The legislation establishes three new policy priorities for the NTIA [much more at the link below]
President Joe Biden (D) announced a milestone in the Internet for All funding from our $42 billion Broadband Equity, Access, and Deployment—or BEAD—program. Florida will receive over $1.1 billion to bring high-speed Internet service to every home and business within its borders. However, it is not enough to simply deploy Internet infrastructure. A connection to a family’s home doesn’t help if that family can’t afford Internet service. And an affordable connection doesn’t help if they don’t have the devices, or the skills and know-how to be productive online, or if they can’t find content in the language that they speak. That is why I am so excited about NTIA’s Digital Equity Program, and the $2.75 billion in funding we will be distributing thanks to the Bipartisan Infrastructure Law. That means in the next 3-4 years we will likely spend more on digital equity than has been spent by the government in the history of digital equity. I am thrilled to report that every state and territory has signed up to be part of our Digital Equity Program - we have 100 percent participation. Five years ago, there were states that hadn’t paid attention to anything like digital equity. Now, every state has committed to having a digital equity plan by the end of this year. And they have planning money in hand to make it happen. These plans must ensure that everyone has the skills and tools necessary to reap the full benefits of the digital economy.
Read the rules for broadband deployment programs such as the Capital Projects Fund (CPF) or Broadband Equity, Access, and Deployment (BEAD) Program and you’ll see a requirement for service providers receiving funding to participate in the low-income Affordable Connectivity Program (ACP). Yet the future of that program is uncertain. The program was given an infusion of $14.2 billion, which is expected to run out in 2024. That’s a big problem for the BEAD program, said Kathryn de Wit, Project Director for the Broadband Access Initiative at Pew Charitable Trusts. The US has set a goal of getting everyone in the country connected to affordable high-speed broadband and, according to Director de Wit, both BEAD and ACP are necessary to reach that goal. In addition, de Wit said, ACP eliminates the need for customers to repeatedly sign up and cancel service because they sometimes have trouble paying their bills. In other words, ACP “stabilizes and increases the revenue base” for providers, de Wit said. Without this stability, providers may not be willing to apply for CPF or BEAD funding or may need to scale back on anticipated matching funds, potentially threatening the ability of the programs to meet broadband deployment goals. Whether Congress will pass legislation to continue to fund the ACP or a successor program is unclear, particularly considering that the debt ceiling bill adopted several weeks ago contained various “clawbacks” on government funding programs. One possible solution that could be quickly implemented as a stopgap measure would be to direct unspent funding originally allocated for COVID relief efforts to the ACP program, de Wit said.
State/Local
Governor Ron DeSantis Awards More Than $247 Million Through the Broadband Infrastructure Program
Governor Ron DeSantis (R-FL) awarded more than $247 million through the Broadband Infrastructure Program, connecting more than 59,000 unserved and underserved businesses, homes, farms and anchor institutions like hospitals and libraries to high-speed Internet. Infrastructure deployment through 63 strategic projects in 43 Florida counties ensures that Florida residents have reliable and efficient access to workforce, education and health monitoring opportunities for generations to come. [See list of awardees at the link below]
Indiana Lt. Gov. Suzanne Crouch, OCRA award $898K to expand broadband access to over 200 locations through the Indiana Connectivity Program
Lt. Gov. Suzanne Crouch (R-IN) and the Indiana Office of Community and Rural Affairs announced 216 addresses will gain access to high-speed broadband as a result of $898,075 awarded in the sixth round of the Indiana Connectivity Program (ICP). ICP helps Hoosier residents and business owners, often in rural areas, obtain access to reliable broadband by assisting internet providers with the expense of extending its services to underserved locations of Indiana. Of the 216 addresses funded in ICP’s round six, 208 are households and eight are businesses. Internet providers carrying out the projects are matching over $2.1 million for a total investment of more than $3 million. Broadband providers must complete their projects within nine months of the contract date. The program accepts addresses on a rolling basis.
Why Minnesota is unlikely to meet its broadband expansion goals on time, despite influx of federal cash
During a stop in Minnesota in June 2023, US Secretary of Commerce Gina Raimondo made a promise: The $652 million earmarked for Minnesota to help build infrastructure for rural high-speed internet would be enough to finally cover every part of the state. Is that true? It depends, it turns out, on how you define a finished job. When calculating who has access to proper broadband, the federal government counts much slower internet speeds compared to Minnesota’s definition. As a result, the cash may be enough to hit federal goals for universal broadband, but not state ones. Here are three things to know about what is, by any measure, a huge influx of cash meant to help telecom companies and other broadband developers build fiber-optic cable and other infrastructure across Minnesota:
- The money probably won’t arrive for years: But state officials say it could take another two years before Minnesota can spend its share. Once the money arrives, it will likely need to be spent over “numerous years.”
- It’s (still) not enough to fully hit state goals for speed: Even if the federal money were to arrive faster, it still wouldn’t be enough cash to fully hit the state’s broadband goals, because the state has higher standards for speed than the federal government.
- Officials are keen to prevent another LTD debacle: The last time Minnesota was in line for such a large influx in cash for broadband infrastructure, it turned into a bona fide debacle. LTD faced a litany of questions from competitors and broadband advocates about its ability to actually meet its promises and build infrastructure. Eventually, LTD came under state investigation and then had its awards revoked by the FCC, almost two years after winning them. The company CEO always maintained LTD could do the work. But either way, Minnesota was left in the lurch.
American Association for Public Broadband Executive Director Gigi Sohn’s hope is that the incumbents that oppose community broadband will come to realize that there are better business opportunities for them to support the concept rather than fight it. For instance, they could have bid on the project in Bountiful City (UT), rather than use shadowy tactics to try and kill it. For decades, these incumbents have argued that taxpayer dollars should not be used to compete against their private investments. In response to that, Sohn said, “I’m sorry to laugh. But please name me one big company that doesn’t take a dime of taxpayer’s money.” She said many of the incumbents that fight municipal broadband get billions of dollars from programs such as the Universal Service Fund (USF), the Affordable Connectivity Program (ACP), and the Capital Projects Fund (CPF). Now, the incumbents, along with new players, are licking their lips at the prospect of billions of dollars from the government's Broadband, Equity and Deployment (BEAD) Program to build broadband networks in unserved locations. Some of their old knee-jerk tactics of using lobbyists and lawyers to fight municipal broadband may have to change as they begin to actively compete for broadband projects all around the country. “There’s only so many places that need to be wired," said Sohn. "There will come a point where there isn’t an opportunity to build greenfield. The only opportunity will be to actually compete.” She said she would love to see incumbents “lay down their arms” against community broadband and see the future as a competitive business opportunity.
Spectrum Partners With Town of Erin (WI) to Extend its High-Speed Internet Network as Part of $4.5 Million Construction Project
Spectrum announced a $4.5 million construction project to bring its advanced fiber-optic network to nearly 1,500 homes and small businesses in the Town of Erin (WI). The project is being funded by a $4.2 million investment from Spectrum and a $300,000 American Rescue Plan Act (ARPA) grant received through the Town of Erin.
For decades, AT&T, Verizon, and other firms dating back to the old Bell System have known that the lead in their networks was a possible health risk to their workers and had the potential to leach into the nearby environment. They knew their employees working with lead regularly had high amounts of the metal in their blood, studies from the 1970s and ’80s show. Environmental records from an AT&T smelting unit in the 1980s show contamination in the soil. Government agencies have conducted inspections, prompted by worker complaints, that led to citations for violations involving lead exposure and other hazardous materials more than a dozen times over four decades. Over the years, AT&T officials themselves expressed concern about possible worker exposure to lead. Risks include kidney issues, heart disease, and reproductive problems in adults. Yet the companies haven’t meaningfully acted on potential health risks to the surrounding communities or made efforts to monitor the cables. The telecommunications industry’s lead-covered cables have been largely unknown to the public. The industry doesn’t have a program to remove or assess their condition. Some lead experts say the cables should be removed, and any contaminated soil should be taken to an appropriate landfill. Removing a lead-sheathed cable could release lead into the environment during the process but some experts say leaving the lead could result in decadeslong contamination.
Microsoft can close its $75 billion acquisition of Activision Blizzard, a federal judge ruled, delivering a major setback to the Federal Trade Commission’s attempt to rein in big mergers. The deal would combine Microsoft’s Xbox videogaming business with the publisher of popular franchises such as Call of Duty, World of Warcraft, and Candy Crush. The ruling means there is no current US obstacle to the two companies merging. The companies are still seeking UK approval, and that effort got a boost when the UK's Competition and Markets Authority said it was prepared to consider new proposals from Microsoft for addressing its competition concerns. US District Judge Jacqueline Scott Corley said in her opinion that the FTC hadn’t shown that Microsoft’s ownership of Activision games would hurt competition in the console or cloud-gaming markets. “To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content,” she wrote. The FTC had sought an injunction to prevent the two companies from completing their mega-deal before the agency began a separate process to challenge it. The FTC can appeal the ruling, although that is uncommon for the agency. It also can continue with its challenge to block the deal. An FTC spokesman said the agency was disappointed by the decision and would announce its next steps in the coming days.
Privacy
FCC Privacy Task Force Announces Chairwoman Rosenworcel's Proposed Rules to Protect Consumers' Cell Phone Accounts
The Federal Communications Commission Privacy and Data Protection Task Force announced new rules to protect consumers against scams that aim to commandeer their cell phone accounts. FCC Chairwoman Jessica Rosenworcel shared the new rules with her colleagues for their consideration. If adopted by a vote of the full FCC, the rules would help protect consumers from scammers who target data and personal information through SIM-swapping scams and port-out fraud by stealing consumers’ cell phone accounts without ever gaining physical control of a consumer’s phone. The FCC is focused on protecting consumers’ data from attacks like these cell phone account scams. To lead and coordinate this important work, Chairwoman Rosenworcel created the Privacy and Data Protection Task Force to work on privacy and data protection issues subject to the Commission’s authority under the Communications Act. The proposed Report and Order would revise the FCC’s Customer Proprietary Network Information (CPNI) and Local Number Portability rules to require wireless providers to adopt secure methods of authenticating a customer before redirecting a customer’s phone number to a new device or provider. It would also require wireless providers to immediately notify customers whenever a SIM change or port-out request is made on customers’ accounts, and take additional steps to protect customers from SIM swap and port-out fraud.
When Mike Sanders started his job as Executive Director for the Oklahoma Broadband Office in May 2023, the state’s broadband office had four employees. At the end of June 2023, he expected that number to hit 15. Previously, Director Sanders served six terms in the Oklahoma House of Representatives, where he chaired the House Utilities Committee and Appropriations Subcommittee on Transportation, was vice-chair of the Human Services Committee, and served as House Majority Leader. Prior to that, he worked for President George W. Bush (R-TX) and served in senior management with the US Department of Agriculture. Among the projects on Sanders’ Oklahoma broadband to-do list:
- Spearheading the award of $382 million that the state received through the federal American Rescue Plan Act (ARPA) for broadband deployments. Oklahoma received 133 applications requesting $4 billion in funding for the ARPA-funded program. Decisions will be made by a governing board and Sanders expects awardees to be announced in late summer or early fall. Those applicants that don’t receive funding will be able to apply for Broadband Equity, Access, and Deployment (BEAD) or Capital Projects Fund (CPF) dollars, he noted.
- Implementing the state’s plans for how it will use CPF dollars. The state is still waiting for the US Treasury’s approval of the plan.
- Planning for and administering the $797 million that will be coming from the federal BEAD program for broadband deployments.
The state was pleased with the $797 million in BEAD funding that it was allotted. Oklahoma was able to maximize its allotment by challenging the Federal Communications Commission's broadband map data. The state is doing its own map, which is expected to come out early August 2023.
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.
© Benton Institute for Broadband & Society 2023. Redistribution of this email publication — both internally and externally — is encouraged if it includes this message. For subscribe/unsubscribe info email: headlines AT benton DOT org
Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
1041 Ridge Rd, Unit 214
Wilmette, IL 60091
847-328-3040
headlines AT benton DOT org
The Benton Institute for Broadband & Society All Rights Reserved © 2023