Wednesday, August 25, 2021
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NTIA’s Broadband Infrastructure Program Receives Over 230 Applications
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Broadband Infrastructure
NTIA’s Broadband Infrastructure Program Receives Over 230 Applications, More Than $2.5 Billion in Funding Requests
The National Telecommunications and Information Administration has received more than 230 applications for the Broadband Infrastructure Program, for a total of more than $2.5 billion in funding requests across 49 states and US territories. NTIA has begun reviewing the applications as part of the $288 million grant program, which was funded by the Consolidated Appropriations Act, 2021. Grants will be awarded to covered partnerships between a state, or political subdivisions of a state, and providers of fixed broadband service. The program’s 90-day application window closed on Tuesday, August 17. Due to the high volume of applications, the award process will be highly competitive. As outlined in the Consolidated Appropriations Act, priority will be given to applications with proposed projects that:
- Provide broadband service to the greatest number of households in an eligible service area;
- Provide broadband service to rural areas;
- Are most cost-effective in providing broadband service; or
- Provide broadband service with a download speed of at least 100 Mbps and an upload speed of at least 20 Mbps.
As the federal government readies to spend tens of billions of dollars on broadband upgrades, the Federal Communications Commission — the agency that has traditionally doled out subsidies for internet connections — is on the sidelines. The broadband money got routed around the FCC for several reasons, according to insiders familiar with the process.
- The White House will be able to exert greater control over how the money is awarded if the Commerce Department is in charge rather than an independent agency like the FCC.
- Sources noted that Commerce Secretary Gina Raimondo was a key player in the infrastructure negotiations.
- The FCC has also come under fire recently for how it handled awarding $9 billion for broadband in rural areas in 2020. Critics say the program, known as the Rural Digital Opportunity Fund (RDOF), was rushed in order to begin before the end of the Trump administration.
As the House debates taking up the Senate’s bipartisan infrastructure deal in tandem with Democrats’ partisan spending plan, lawmakers who work on telecommunications and technology issues used Aug 23's House Rules Committee hearing to outline their specific grievances with how Senate negotiators structured the $65 billion in broadband funding —complaints that are likely to pop up in other forms later this Congress. House Commerce Committee Chair Frank Pallone (D-NJ) told the Rules Committee that the infrastructure bill’s broadband title only “marks the beginning of a renewed fight to close the digital divide” and warned of “real concerns” about the details, such as the fact that Senate negotiators chose to slash a pandemic-era monthly subsidy (the Emergency Broadband Benefit) to help low-income consumers afford internet from $50 to $30. He also expressed worries about provisions in the bill that would let the Defense Department “scuttle” Federal Communications Commission auctions, saying such a carve-out is “bad policy and it decreases the value of the auction unnecessarily.” Committee Ranking Member Cathy McMorris Rodgers (R-WA) criticized parts of the bill’s broadband provisions, even though many Senate Republicans helped author them. She complained the Senate plan “does not target funds for deployment to fully unserved parts of America” and “risks wasting billions of dollars in taxpayer money.” (The Senate bill does prioritize getting grant money to unserved areas of the country before underserved ones based on forthcoming FCC maps, although the Senate text allows for a small portion of each “unserved” area to already have some internet connectivity.) Pallone’s concerns, in particular, could sway future House debates even though neither he nor Rep McMorris Rodgers stands poised to change the substance of the Senate infrastructure deal at this moment.
Digital Inclusion
The Major Obstacle Preventing Americans from Getting the Emergency Broadband Benefit
Throughout the COVID-19 pandemic in our country, millions of Americans cannot connect to the internet because they can’t afford to, preventing them from going to school, working, accessing government benefits and connecting with friends and family. To remedy this problem, Congress created the Emergency Broadband Benefit (EBB), which offers low-income consumers a $50 discount on their internet bills. Unfortunately, because of a shortcoming in the National Verifier, the database used to verify consumer eligibility for the program, many of those in need do not access this important benefit, ultimately keeping the digital divide open. The Verifier is intended to be a one-stop shop to verify consumer eligibility for the EBB based on their participation in a different federal program. The idea is that eligible consumers enter their information on the National Verifier website and are approved if the database shows they participate in one of the qualifying federal programs. However, it doesn’t have data about participation in all qualifying programs. So, frustratingly, if the Verifier doesn’t have data about the program you quality through, you have to go through a process to get documentation that you are eligible. Since you don’t have a lot of time on your hands as the head of a household, and don’t have the internet, you never end up enrolling and stay without internet. If we want to ensure that the EBB (and any future broadband subsidy) can fulfill their purpose of getting low-income consumers connected and narrowing the digital divide, Congress must step in and ensure that all potential participants can be automatically verified through the Verifier.
[Jenna Leventoff is a Senior Policy Counsel at Public Knowledge.]
Governor Larry Hogan (R-MD) announced the launch of Connect Maryland, a transformative new initiative to bring Maryland's total investments in broadband to $400 million. Connect Maryland includes an additional $100 million to expand broadband access across the state, in addition to the $300 million announced in March 2021 as part of a bipartisan budget agreement to allocate federal funding from the American Rescue Plan Act. To ensure that funding is invested in local communities swiftly, Governor Hogan announced the creation of a bipartisan Maryland Broadband Advisory Workgroup, which will bring together key stakeholders from across the state. This panel will include representatives from the counties and municipalities, as well as members of the General Assembly, to advise the state on the best ways to utilize this new investment in broadband infrastructure. Hogan also announced the launch of a new Maryland Emergency Broadband Benefit Subsidy Program, to make broadband more affordable for low-and moderate-income households. A household must already be approved for service under the Federal Emergency Broadband Benefit Program, which provides a discount on internet service of up to $50 per month; when combined with state assistance, households can receive a discount of $65 per month for up to 12 months.
Facebook did something US technology giants have done countless times before: it bought a smaller company and closed the deal without notifying competition regulators. But this transaction -- the $400 million acquisition of image library Giphy -- was particularly bold. Giphy used a common -- and legal -- maneuver that lets companies avoid scrutiny from merger watchdogs: it paid a dividend to investors. The payment reduced the size of Giphy’s assets enough so that the companies weren’t required to report the deal to antitrust officials. Maneuvers like Giphy’s make policing deals all the more challenging at a time when authorities are being called on to take more aggressive steps to curb the growth of dominant companies, especially in the technology industry. It also raises questions about whether the system used to screen mergers for anticompetitive threats is in need of an overhaul. Researchers who study these so-called stealth deals say they’ve found evidence that some companies are manipulating acquisitions to avoid notifying regulators. Others have documented how unreported deals allow companies to consolidate markets and shut down rival products. These acquisitions present yet another challenge for antitrust cops, who are increasingly strapped as a merger boom stretches their resources.
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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