Thursday, July 22, 2021
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The FCC’s emergency internet discounts are leaving millions behind
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Understanding Broadband Speed Data in NTIA’s Indicators of Broadband Need
Broadband Details Spill Out Ahead of Infrastructure Vote
House of Representatives Passes Five Communications and Technology Bills
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Digital Inclusion
Nearly 4 million households have enrolled in the Federal Communications Commission's emergency broadband benefit program since it launched in May. But as researchers have begun digging into data recently released by the FCC, they're finding that not only are the vast majority of eligible Americans still being left out of the $3.2 billion program, but there are also stark geographic differences in where people are being enrolled. According to a new report by the Benton Institute for Broadband & Society, only one in 12 households that are eligible for the EBB program are currently enrolled. The study also found that major cities including Houston and Chicago are falling far behind in terms of their enrollment rates, while Puerto Rico and cities including New Orleans, Detroit, Milwaukee, Baltimore, Cleveland and Philadelphia are seeing higher rates of adoption. That part, at least, is encouraging, says John Horrigan, a senior fellow at the Benton Institute who authored the report, because these are cities that have traditionally had low rates of broadband use. "It's good that the data makes sense," Horrigan said.
But others are not so encouraged. "The data shows that the benefit is not getting adopted at the rate you might hope and might have expected given the magnitude of the assistance available and who's eligible," said Jonathan Mayer, assistant professor of computer science at Princeton University and former chief technologist of the FCC. "I think it's now very likely that the overwhelming majority of the EBB will be unspent by the time the pandemic has come to a close for many Americans." Mayer ound that while enrollment rates were fairly low across the country, three areas stuck out as outliers with particularly high adoption: one area that includes Apache County, Arizona; another that includes McKinley County, New Mexico; and a pocket of Eastern Kentucky. Mayer dug deeper and found that all of these areas are home to small, locally focused internet service providers that appear to be more proactive about enrolling people in the program.
A glimpse into how Senate negotiators may structure the $65 billion in broadband investments the infrastructure package would provide. The draft is likely to fuel renewed advocacy from consumer groups and anyone else hoping for ultra-fast fiber optic buildout, as it instead opts for lower minimum broadband speed thresholds (100 Megabits per second download over 20 Mbps upload would count as "underserved" for the $40 billion tentatively slated to go to the Commerce Department’s state grants, less than the fiber-focused minimums some Democrats wanted). But the draft is just a draft; it’s likely not the final word on broadband. The pages don’t address money for the Department of Agriculture’s rural broadband program, for instance, and policymakers may still be grappling over affordability provisions. (The draft leaves the proposed “low-cost broadband option” undefined.) Although heavyweights like AT&T had hoped Congress would substantially rethink the Federal Communications Commission subsidy model, the draft shows the Senate is at least eyeing changes. Language would have the FCC report to Congress within nine months about including broadband in its universal service mandate, including recommendations for how Congress could help.
The House of Representatives passed the following five communications and technology bills on June 20:
- H.R. 678, the “Preserving Home and Office Numbers in Emergencies Act of 2021” or the “PHONE Act,” would prohibit providers of voice service from reassigning phone numbers of subscribers in certain designated areas, within an area subject to a major disaster declaration, for up to two years after the declaration. The bill also prohibits providers of voice service from assessing early termination fees to cancel service, or connection fees to re-subscribe at a new address, for subscribers whose residence is rendered inaccessible or uninhabitable due to a major disaster.
- H.R. 1250, the “Emergency Reporting Act,” would require the Federal Communications Commissions to establish formal processes to take effect in instances when the FCC activates the Disaster Information Reporting System.
- H.R. 1754, the “Measuring the Economics Driving Investments and Access for Diversity Act of 2021” or the “MEDIA Diversity Act,” would require the FCC to consider, with the input of its Office of Communications Business Opportunities, market entry barriers for socially disadvantaged individuals in the communications marketplace.
- H. Res. 277 is “a resolution reaffirming the commitment of the House of Representatives to media diversity and pledging to work with media entities and diverse stakeholders to develop common ground solutions to eliminate barriers to media diversity.”
- H.R. 3003, the “Promoting United States Wireless Leadership Act of 2021,” directs the National Telecommunications and Information Administration to encourage participation by American companies and other stakeholders in standards-setting bodies. It also offers technical assistance to stakeholders that do elect to participate in developing standards for 5G networks and future generations of communications networks.
The House of Representatives passed the Consumer Protection and Recovery Act, largely along party lines, to revive the Federal Trade Commission’s (FTC) authority to return money to constituents harmed by companies found to engage in deceptive practices. The bill passed with widespread support from Democrats, yet Republicans opposed to the bill argued on the floor that the legislation was incomplete at the time of the vote. The passage of the bill comes after the Supreme Court unanimously ruled in early 2021 that the FTC did not have authority under a provision known as Section 13(b) to obtain equitable monetary relief. The Biden administration issued a statement in support of the House bill, stating, “The Administration applauds this step to expressly authorize the FTC to seek permanent injunctions and pursue equitable relief for all violations of law enforced by the Commission and ensure that the cost of illegal practices falls on bad actors, not consumers targeted by illegal scams.”
The Loudoun County Board of Supervisors voted unanimously in favor of a measure that addresses a lack of reliable high speed internet, primarily in western Loudoun, VA. As part of the county’s Emergency Broadband Implementation Plan, the county administrator was directed to apply for a Virginia Telecommunications Initiative (VATI) grant in partnership with All Points Broadband for the extension of broadband into unserved portions of the County. The board allocated $12.425 million in federal funding from the American Recovery Plan Act as the county’s grant match. As part of the board’s recent plan to hasten the deployment of broadband to underserved and unserved areas, county staff has provided quarterly updates to the board with recommendations to prioritize and accelerate the expansion of broadband services to residential areas. The Department of Housing and Community Development, which will review the VATI grant application, will notify all parties of “challenge determination” on December 3. The awards announcement will be in late December 2021.
Prospects for universal broadband across the Fauquier County, VA are brighter than ever. There has been a gush of federal and state funds, and the board of supervisors is pushing for a new public-private partnership that will use ubiquitous electric lines to deliver broadband over fiber–by far the fastest connection–to those who’ve been left out. The Fauquier County Broadband Authority, whose members are the five supervisors, took the first step on July 8 toward striking an agreement with All Points Broadband and Dominion Energy Virginia, the state’s largest electric utility, to provide wired broadband service to homes. Dominion will carry fiber over the middle miles while All Points will tackle the more challenging last mile to get fiber to homes that may be far off the beaten path. While Fauquier County was not selected for a Virginia Telecommunication Initiative grant and had to drop their subsequent bid for the second round, the county aims to use CARES Act funds and other federal funding efforts to invest in broadband infrastructure. Cedar Run, VA Supervisor Rick Gerhardt concurs that universal broadband is achievable in three years. “With all the resources that are being committed to us and the companies coming to us with solid plans,” he said, “the time is right.”
The Federal Communications Commission has yet to distribute funding to the winners of its Rural Digital Opportunity Fund (RDOF) Phase I auction, but that isn’t stopping Charter Communications from getting to work on rural coverage expansion projects. Charter handed Gibson Technical Services a contract to handle construction for its RDOF projects in Alabama, Louisiana and North Carolina. The award includes 8,600 miles of “full-service construction,” which includes aerial construction, underground construction, fiber placement, placement and activation of power supplies, fiber optic cable slicing and testing. Work is set to begin immediately and continue over the next five to six years, Gibson parent company Orbital Energy Group said in a press release. When asked about whether the operator plans to award additional contracts for RDOF projects, Charter--the second-largest winner in the RDOF auction--stated it is "making strong progress in terms of both in-house project leadership and contract labor for our RDOF buildouts, but [they] don't have any specific announcements to share right now." Charter’s decision to award a construction contract to Gibson comes despite uncertainty around when the FCC might begin doling out RDOF funding to auction winners.
The National Telecommunications and Information Administration (NTIA) recently released a new public map, the Indicators of Broadband Need. This publicly available resource accompanies the National Broadband Availability Map (NBAM), pulling together public and private broadband internet access service datasets. The Indicators of Broadband Need map and National Broadband Availability map are both proving helpful to communities as they plan how and where to improve broadband services for their residents. But the landscape of assessing or measuring who does and doesn’t receive quality and affordable Internet service is complicated by the conflation of measurement datasets covering different aspects of Internet connectivity and user experience. In a recent Measurement Lab (M-Lab) article, we discuss the inclusion of data from our Network Diagnostic Tool (NDT) in the NTIA map and dig into the detail of each dataset provided in the Indicators of Broadband Need map. The post gives readers a deeper understanding of the differences and context to the various datasets in the NTIA Indicators of Broadband Need Map, as well as our understanding of how each relates to the 25/3 national broadband standard.
[Chris Ritzo is the Program Management & Community Lead for Measurement Lab, where he supports researchers, policymakers, advocacy groups, and individuals interested in M-Lab’s open Internet measurement data. Lai Yi Ohlsen is the Director of Measurement Lab, a fiscally sponsored project of Code for Science & Society. Previously, she worked to defend and promote human rights online with eQualitie as Technical Programs Manager.]
Ownership
Democratic Senators Push FCC to Scrutinize Verizon’s Tracfone Acquisition & Secure Commitments to Prioritize Consumers
Senators Edward Markey (D-MA), Richard Blumenthal (D-CT), Sheldon Whitehouse (D-RI), Dianne Feinstein (D-CA), and Ron Wyden (D-OR) pressed the Federal Communications Commission to probe Verizon’s proposed acquisition of TracFone and secure specific commitments from the company to ensure that this acquisition will not harm consumers. In the $6.9 billion transaction, Verizon would acquire one of the largest operators of the Lifeline program which provides free or discounted internet and affordable prepaid mobile phone services to low-income Americans. TracFone’s SafeLink Wireless Brand supports 1.7 million Lifeline subscribers in 43 states and approximately 21 million customers overall. The senators expressed the need for Verizon to maintain services and affordability of offerings for current TracFone subscribers. The lawmakers pressed the FCC to secure binding commitments from Verizon prior to the acquisition, including requiring participation in the Lifeline program and making 5G offerings available to Lifeline and prepaid consumers at the same rate as other Verizon customers.
When T-Mobile acquired Sprint in April of 2020, it brought our major wireless carrier choices from four down to three. Recognizing that this would indeed be a bad thing for US wireless customers (aka all of us), T-Mobile agreed to a set of conditions with the FCC’s blessing that would theoretically position Dish Network to fill the Sprint-shaped hole in our wireless landscape. In other words, one wireless competitor was allowed to reduce competition only if it agreed to help set up another competitor in its place. Sounds a little suspect, right? Surely a deal like that would include a lot of conditions, requirements, and oversight to make sure it would actually work. But looking back, these were the major requirements imposed on T-Mobile to prop up Dish as a competitor:
- Sell Sprint’s prepaid business, including Boost Mobile, to Dish within 120 days after the close of the merger, and maintain Boost’s competitiveness before the divestiture
- Provide Dish’s wireless customers with access to the T-Mobile network for at least six years through a wholesale MVNO agreement while Dish builds its own network
- Provide transition services for up to three years afterward to ensure Boost customers are transferred smoothly
- Not do anything anticompetitive toward Boost, like throttling or limiting access to new network technologies
- Sell Sprint’s 800 MHz spectrum to Dish three years after the closing of the merger
- Give Dish the option to acquire old Sprint cell sites and retail stores that T-Mobile opts to decommission
- Provide Dish with reasonable advance notice of network transition plans that could affect Boost customers
What’s missing there is any definition of success.
Long-time analyst Craig Moffett said "AT&T has let Dish off the hook" in Dish's new services agreement with AT&T, which guarantees AT&T at least $5 billion in wholesale revenue over ten years. With a two-year “transition period” on top, it is arguably more like a twelve-year deal, and that’s a “huge, game-changing win” for Dish, Moffett said. What matters is not the wholesale revenues that T-Mobile loses but the competitive damage done to the industry by enabling Dish to be a hybrid mobile virtual network operator (MVNO) “indefinitely.” The comments came after Dish announced, through its own press release and an 8-K filing, that AT&T will be Dish’s MVNO network partner. AT&T replaces T-Mobile, whose acrimonious relationship with Dish has been widely reported despite Dish’s role in getting the merger with Sprint approved. A large part of that rancor is due to T-Mobile’s plans to shut down its code division multiple access (CDMA) network by January 2022, leaving a good portion of Dish’s Boost Mobile customers in the lurch. For years, Dish has acquired licensed spectrum without building out a network to show for it. That has rankled, to no end, wireless carriers that have spent billions on wireless spectrum and built out bona fide networks while Dish’s spectrum sat idle. To say that AT&T “let Dish off the hook” is like throwing gasoline on a bonfire.
Platforms/Social Media
Sens Wicker, Capito, Young Introduce Bill to Explore Collecting USF Contributions from Big Tech
Sens Roger Wicker (R-MS), Shelley Moore Capito (R-WV), and Todd Young (R-IN) introduced the Funding Affordable Internet with Reliable (FAIR) Contributions Act. The legislation would direct the Federal Communications Commission to conduct a study into the feasibility of collecting Universal Service Fund (USF) contributions from internet edge providers such as YouTube, Netflix, and Google. The FAIR Contributions Act would:
- Direct the FCC to issue a Notice of Inquiry seeking public comment on the feasibility of collecting USF contributions from internet edge providers, and issue a final report on the matter within 180 days.
- Require the FCC to consider:
- Possible sources of Big Tech revenue, such as digital advertising and user fees;
- The fairness of the current system and a system under which contributions could be assessed on Big Tech firms;
- The feasibility of assessing contributions on such a broad category of firms that do not currently register with the FCC;
- The effects such a change would have on Tribal, low-income, and elderly consumers; and
- The changes to current law necessary to implement this system.
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 Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.
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