Monday, August 19, 2024
Headlines Daily Digest
Today: The Policy Implications of New Broadband Competition
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Federal Broadband Programs Could Add $146 Billion to GDP
Arizona Aims to Make the "6th C" More Affordable
FCC Announces Counties Where Conditional Forbearance From The Lifeline Voice Obligation Applies
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Broadband programs included in the 2022 Infrastructure Investment and Jobs Act could add $146 billion to the U.S. gross domestic product (GDP), according to a new analysis from Keynesian Technology, which researches the impact of Keynesian economics on the technology industry. The three broadband programs studied are the $42.5 billion Broadband Equity Access and Deployment (BEAD) Program, the $3 billion Tribal Broadband Connectivity Program (TBCP), and the $14.2 billion Affordable Connectivity Program (ACP). The BEAD program covers some of the costs of deploying broadband to unserved and underserved rural areas. The TBCP funds broadband deployments in tribal areas. The ACP, which already has run out of funding, provided $30 a month toward the cost of broadband service for low-income households. The BEAD program’s impact on GDP is estimated at $84.8 billion, while the ACP impact is estimated at $55.2 billion and the TBCP impact is estimated at $5.99 billion.
The Federal Communications Commission's Wireline Competition Bureau announced the counties in which conditional forbearance from the obligation to offer Lifeline-supported voice service applies. This forbearance applies only to the Lifeline voice obligation of eligible telecommunications carriers (ETCs) that are designated for purposes of receiving both high-cost and Lifeline support (high-cost/Lifeline ETCs), and not to Lifeline-only ETCs. The FCC granted forbearance from high-cost/Lifeline ETCs’ obligation to offer and advertise Lifeline voice service in counties where the following conditions are met: (1) 51% of Lifeline subscribers in the county are obtaining broadband Internet access service; (2) there are at least three other providers of Lifeline broadband Internet access service that each serve at least 5% of the Lifeline broadband subscribers in that county; and (3) the ETC does not actually receive federal high-cost universal service support.
Rep August Pfluger (R-TX) introduced the Supporting National Security with Spectrum Act, which fully funds the “Rip and Replace” program to remove Chinese equipment from our telecommunications networks. Without full funding, wireless and broadband providers across the United States will be saddled with billions of dollars in costs that could result in service blackouts and companies closing down. The Rip and Replace program was created in 2020 to remove Chinese components from our wireless communications systems. The Rip and Replace fund needs an additional $3B in order to finish its mission. The continued use of Chinese telecommunications equipment is a major national security concern, especially in areas that serve military bases. The “Supporting National Security with Spectrum Act” fully funds the Rip and Replace program by requiring the Federal Communications Commission to re-auction certain spectrum licenses that were recently returned to the FCC.
Arizona's economic and cultural identity has long been anchored by the "5 C's": Copper, Cattle, Cotton, Citrus, and Climate. The next chapter of Arizona’s story adds a "6th C"—Connectivity. This new cornerstone represents the state's commitment to expand universal broadband internet access for all Arizonans. The Arizona Commerce Authority aims to bridge the digital divide and foster a more connected, inclusive, and prosperous Arizona. Although 88.2 percent of Arizonans have an internet access subscription, broadband adoption varies widely across the state. Many underserved communities—including low-income households and rural areas—face barriers in accessing the digital resources they need for education, employment, healthcare, and civic engagement. The Arizona Commerce Authority recognizes that affordability plays a pivotal role in achieving digital equity in Arizona. Affordability is a central tenet of Arizona's broadband deployment and digital adoption goals and strategies, acknowledging that building new last-mile infrastructure is ineffective if Arizonans cannot afford monthly internet service costs.
Sac and Fox Nation and Centranet broke ground on a $35.8 million dollar fiber project on August 16. Funded by a National Telecommunications and Information Administration grant under the Tribal Broadband Connectivity Program, the grant will make gigabit internet available throughout all tribal lands of Sac and Fox Nation. The Sac and Fox project will be interconnected with Centranet’s full fiber network which serves more than 10,000 subscribers across seven counties in north-central Oklahoma. The Tribal Broadband Connectivity Program is a $3 billion program directed to tribal governments to be used for broadband deployment on tribal lands, as well as for telehealth, distance learning, broadband affordability, and digital inclusion.
Spectrum Completes Rural Broadband Expansion Project in Leelanau County, Michigan, Launching Gigabit Internet, Mobile, TV and Voice Services
Spectrum launched Spectrum Internet, Mobile, TV and Voice services to more than 660 homes and small businesses in Leelanau County (MI). Spectrum’s newly constructed fiber-optic network buildout to residents and businesses in portions of Cleveland, Glenn Arbor, Empire, and Kasson Townships. “Bringing high-speed connectivity to Northern Michigan families remains a top priority for me,” said Representative Jack Bergman (R-MI). “Thanks to the partnership between Charter and the [Federal Communications Commission], high-speed Internet is arriving at more homes and businesses that have not had reliable connectivity. This is another great step in the right direction for those who call Northern Michigan home.”
Downtown Lexington’s (KY) Gatton Park on the Town Branch will have free public Wi-Fi provided by fiber-internet provider Kinetic in a nearly $1 million, multi-year deal to be the park’s exclusive Wi-Fi provider. Kinetic will install and sustain Wi-Fi gateways (modems/routers) throughout the park enabling free Wi-Fi availability throughout the 10-plus acres for the next decade. Gatton Park on the Town Branch is being built by the community for the community with private donations. The park will be funded, programmed and maintained through private donations and grants.
The Federal Communications Commission voted unanimously to begin a proceeding to update the Citizens Broadband Radio Service. Building on years of successful interagency collaboration, the Notice of Proposed Rulemaking seeks comment on a wide range of potential rule changes to improve the Citizens Broadband Radio Service for all current and future users of the 3.55-3.7 GHz band (3.5 GHz band). The NPRM proposes to add definitions to part 96 related to protection of federal incumbent users and modify other part 96 rules governing such protections. It also proposes to sunset rules related to the transition of grandfathered wireless broadband services in the 3.65-3.7 GHz band. In addition to the specific proposals related to federal protection, the NPRM seeks comment on, among other things, whether to align 3.5 GHz protection methodologies with those in adjacent bands, revisit our Environmental Sensing Capability approval procedures, and facilitate the continued introduction of Citizens Broadband Radio Service in areas outside of the contiguous United States.The 3.5 GHz band uses a three-tiered spectrum sharing model that protects Incumbent Access users, allows for geographically licensed operations following the FCC’s 2020 auction of Priority Access Licenses, and permits opportunistic licensed-by-rule General Authorized Access use for a wide variety of uses, including operations within factories, cities, hospitals, research centers, schools, public libraries, and utilities.
Information Sought on Sharing in the 18 GHz Band in Connection With the National Spectrum Strategy Implementation Plan
The Federal Communications Commission's Space and Wireless Telecommunications Bureaus, the Office of International Affairs, and the Office of Engineering and Technology seek to further develop the record for the 18.1–18.6 GHz band (18 GHz band) with the goal of informing the forthcoming report mandated by the National Spectrum Strategy (NSS) Implementation Plan. The NSS identified the 18 GHz band as a potential band for expanded Federal and non-Federal satellite operations, consistent with the U.S. position at the 2023 World Radiocommunication Conference (WRC-23), which would add space-to-space allocations to this band (among others). Fixed-Satellite Service (FSS) downlink operations are currently authorized in the band. In addition, non-Federal Fixed Service is authorized in the 18.1–18.3 GHz segment of the band. The final report with findings is to be completed by May 2025. Comment Date: September 5, 2024. Reply Comment Date: September 16, 2024. GN Docket No. 24-248
US cable operators are struggling to return to broadband subscriber growth, but their mobile strategies continued to bear fruit in the second quarter of 2024. Cable's share of total mobile phone net adds (both post-paid and pre-paid) was roughly 54 percent in the quarter, MoffettNathanson found in its latest analysis of the US mobile market. Analyst Craig Moffett attributes the bulk of US cable's mobile growth to relatively lower pricing when compared to many of the plans offered by AT&T, T-Mobile and Verizon. And the end of the Affordable Connectivity Program (ACP) could also play in cable's favor. Charter, for example, is offering a free unlimited mobile line for one year to help customers absorb the impact of the program's end. US cable operators are also starting to utilize handset subsidies to attract new customers—a sign that resolve to not participate in handset promotions is cracking.
AT&T and Verizon are urging telecommunications regulators to reject a key part of SpaceX's plan to offer cellular service with T-Mobile, claiming the satellite system will interfere with and degrade service for terrestrial mobile broadband networks. Filings urging the Federal Communications Commission (FCC) to deny SpaceX's request for a waiver were submitted by AT&T and Verizon. The plan by SpaceX's Starlink division also faces opposition from satellite companies EchoStar (which owns Dish and Hughes) and Omnispace. SpaceX and T-Mobile plan to offer Supplemental Coverage from Space (SCS) for T-Mobile's cellular network using SpaceX satellites. As part of that plan, SpaceX is seeking a waiver of FCC rules regarding out-of-band emission limits. Verizon and AT&T both warned that the SpaceX proposal would cause harmful interference to their terrestrial services.
A federal judge is actively considering breaking up Google after a landmark ruling last week that the tech giant has illegally abused its search monopoly. A court-ordered Google breakup would be the U.S.'s most consequential antitrust action in decades—but figuring out how to split up the company could prove daunting. Judge Amit Mehta's decision in a case first brought by the Department of Justice in 2020 held that Google's massive $26 billion payments to competitors, chiefly Apple, violate antitrust laws and inhibit consumer choice and innovation. Now the court must choose a remedy. That could mean new rules requiring Google to share data or change other practices. It could also mean a court-ordered split of the company. However, American courts are reluctant to break up successful companies, and behavioral remedies are more likely than a move to carve up Google into new pieces.
A large Internet service provider (ISP) wants the Supreme Court to rule that ISPs shouldn't have to disconnect broadband users who have been accused of piracy. Cable firm Cox Communications, which is trying to overturn a ruling in a copyright infringement lawsuit brought by Sony, petitioned the Supreme Court to take up the case. Cox said in a press release that a recent appeals court ruling "would force ISPs to terminate Internet service to households or businesses based on unproven allegations of infringing activity, and put them in a position of having to police their networks—contrary to customer expectations... Terminating Internet service would not just impact the individual accused of unlawfully downloading content, it would kick an entire household off the Internet." The case began in 2018 when Sony and other music copyright holders sued Cox, claiming that it didn't adequately fight piracy on its network and failed to terminate repeat infringers.
A federal appeals court in California upheld part of a district court ruling that blocked a landmark online safety bill for children from taking effect. The panel of judges on the Ninth Circuit Court of Appeals objected to a portion of the California Age-Appropriate Design Code Act — specifically, a requirement that online businesses “opine on and mitigate the risk that children may be exposed to harmful or potentially harmful materials online.” The rule “facially violates the First Amendment,” the appeals court concluded. As a result, it’s upholding a preliminary injunction on that portion of the law and related aspects. But it sent another part of the law back to the lower court to reconsider and vacated the rest of the preliminary injunction, saying it was unclear if the rest of the law violated the First Amendment.
U.S. District Judge Margaret Garnett blocked Discovery, Fox, and Disney's new sports streaming service, Venu, from launching, a major blow to the effort. Judge Garnett that the new offering would “substantially lessen competition and restrain trade.” Fubo, a sports-centric streaming service, sued the three companies earlier this year after they announced the joint venture. Lawyers for Fubo argued that Venu is anticompetitive because Fox, Warner, and Disney force the service to pay for a broad bundle of general entertainment channels without the ability to handpick only the sport-centric channels it wants to distribute. The media companies’ new venture, meanwhile, exclusively offers channels that carry major sporting events. The legal battle over the new service underscores the growing importance of live sports in the streaming era. Sporting events have remained a major draw for viewers and a way for entertainment companies to differentiate their direct-to-consumer offerings.
State aid for broadband network deployment: National and subnational governance mechanisms, 2003–2023
This paper examines the governance models of State aid measures for broadband network deployment in European Union Member States. The research is based on 199 decision letters collected from the European Commission's competition cases database, published between 2003 and 2023. Deploying a theory-driven content analysis approach, the analysis reveals and categorises a variety of governance models. These models vary regarding the authority responsible for the decision-making and, in the case of national schemes, the authority responsible for the implementation, including centralised and decentralised arrangements. Different legacies and institutional set-ups explain the governance models, including the typology of state structures, the constitutional powers, the traditions of participation in the telecommunication sector, policy diffusion and regional development. There are several possible pathways to a gradual transition from one model to another. The design of flexible national schemes, which offer subnational authorities the option to implement them in their regions or to rely on central management agencies for specific tasks adapted to their interests, resources and capacities, could be the optimal solution to prevent the launch of ad hoc measures by subnational authorities and to adapt to different institutional arrangements.
Upcoming Events
Aug 19––The Policy Implications of New Broadband Competition (Technology Policy Institute)
Aug 20––Workforce Development Strategies by Minority Serving Institutions (NTIA)
Aug 21––FirstNet Public Combined Board and Board Committees Meeting (NTIA)
Aug 21––Digital Equity Competitive Application Webinar, Part 4: Plans (NTIA)
Aug 22––Digital Equity Competitive Application Webinar, Part 5: Consolidated Budget Form (NTIA)
Aug 23––Multistakeholder Forum for the National Spectrum Strategy Band Studies (Department of Commerce)
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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