Monday, August 26, 2024
Headlines Daily Digest
23 Million Americans Navigate Hiked Internet Costs Since the ACP Ended
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In May, the $14.2 billion Affordable Connectivity Program officially ran out of money, leaving 23 million households with internet bills that were $30 to $75 higher than the month before. That's if they decided to hang on to their internet service at all: 13% of ACP subscribers, or roughly 3 million households, said that after the program ended they planned to cancel service, according to a Benton Institute survey conducted as the ACP expired. Spectrum said it lost 154K customers in the second quarter, noting that it was "largely driven" by the end of the ACP. For as long as the internet has existed, there's been a gap between those who have access to it—and the means to afford it—and those who don't. The vast majority of federal broadband spending over the past two decades has gone toward expanding internet access to rural areas. Case in point: In 2021, Congress dedicated $90 billion to closing the digital divide, but only $14.2 billion went to making the internet more affordable through the ACP; the rest went to broadband infrastructure. Most people who use the ACP won't cut their internet subscriptions; they'll just feel their already-strained budgets stretched a little thinner.
The Biden administration is moving to blunt the loss of an expired broadband subsidy program that helped more than 23 million families afford internet access by using money from an existing program that helps libraries and schools provide WiFi hotspots to students and patrons. Jessica Rosenworcel, chairwoman of the Federal Communications Commission, said that the agency had voted in July to “modernize” a federal program known as E-Rate to fill at least some of the gaps left by the Affordable Connectivity Program, which gave families with limited income a monthly subsidy to pay for high-speed internet. The Affordable Connectivity Program, part of a broader effort pushed by the administration to bring affordable internet to every home and business in the country, was not renewed by Congress and ran out of funding earlier in 2024.
On July 24th the National Telecommunications and Information Administration (NTIA) launched the Digital Equity Competitive Grant Program Notice of Funding Opportunity. As applicants work on their applications, it is critical to keep in mind the importance of sustainable project planning and meaningful change. Meaningful change can create a lasting, measurable impact that resonates for years to come. Successful Digital Equity Projects should be designed with both the present and future in mind, ensuring that the benefits extend well beyond the initial grant period. These projects must focus on Covered Populations—those most impacted by the digital divide. By addressing the needs of those who are often left behind, we create stronger, more connected communities where everyone has the opportunity to participate and succeed. Effective projects should address the root causes of these barriers with sustainable, long-lasting solutions.
The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has approved Guam’s Initial Proposals for the Broadband Equity, Access, and Deployment (BEAD) program, a cornerstone of the Biden-Harris Administration’s “Internet for All” initiative. This approval enables Guam to request access to funding and begin implementation of the BEAD program. Guam was allocated over $156 million to deploy or upgrade high-speed Internet networks to ensure that everyone has access to reliable, affordable, high-speed Internet service.
The United States Department of Agriculture (USDA) is accepting applications for funding that will help rural businesses create and save jobs in their communities. USDA is making loans and grants available under the Rural Economic Development Loan and Grant (REDLG) programs for fiscal year 2025. Through the programs, USDA provides zero-interest loans to local utilities which they then provide to local businesses for projects to create and retain employment in rural areas. Through the REDLG programs, USDA also provides grants to local utility organizations, which use the funding to establish revolving loan funds to finance community facilities. Applicants may use funds to support business startup, expansion and incubators; technical assistance and feasibility studies; essential community facilities; and advanced telecommunications services and computer networks for medical, educational and job training opportunities. USDA is particularly interested in applications that will advance Biden-Harris Administration priorities to:
- Reduce climate pollution and increase resilience to the impacts of climate change through economic support to rural communities.
- Ensure all rural residents have equitable access to Rural Development (RD) programs and benefits from RD-funded projects.
- Help rural communities recover economically through more and better market opportunities and through improved infrastructure.
GAO Report Underscores Sen. Cruz’s Concerns Over Wasteful Broadband Spending and Hidden Phone Bill Tax
The Government Accountability Office (GAO) released a report requested Sen Ted Cruz (R-TX) that found the Universal Service Fund (USF) operator is burning through cash with only minimal government oversight of its budget. The report confirms the need for greater Congressional oversight of the USF as Sen. Cruz laid out in his Blueprint for Universal Service Fund Reform, published last year. Most significantly, the report’s findings underscored Sen. Cruz’s call for greater accountability of a hidden regressive tax on Americans’ phone bills. On May 10, 2023, Sen. Cruz asked GAO to probe the private non-profit, the Universal Service Administrative Company (USAC), -which operates USF-funded programs meant to expand high-speed Internet access. According to the GAO’s findings, USAC’s operational costs have surged by 27.5% over the past five years, with 2023 expenses reaching nearly $248 million—an amount that is almost half of the FCC’s 2023 annual budget of $514 million. This represents a growing share of the total USF tax, with USAC’s administrative costs rising from 2.2% in 2018 to 3% in 2023, surpassing the typical 2% cap set by Congress for administrative expenses.
The Federal Communications Commission issued notices of Citation and Order to eleven broadband providers for failure to file mandatory broadband data. The Broadband DATA Act requires the Commission to collect broadband service availability data twice per year for use in creating coverage maps. The companies that received citations had missed two or more occasions to submit data. The companies are:
- City Wireless
- Crazy Communication
- A.C.T.S.
- Gila Broadband
- Lake Linx Inc.
- FiberSpark Inc
- Internet Service Inc.
- Telecast Communications
- WIFAST LLC
- Community Cable and Broadband
- Simple Fiber Communications
The rapid expansion of Power Users (subscribers consuming 1 TB or more per month) and the ongoing surge in upstream traffic are placing significant pressure on broadband network capacity and Quality of Experience (QoE), according to the 2Q24 edition of the OpenVault Broadband Insights (OVBI) report. In the second quarter of 2024, 18.2% of all subscribers fall under the “Power User” category, including Power Users of 1 TB or more, Super Power Users of 2 TB or more, and Extreme Power Users of 5 TB or more. OpenVault projects that all three groups of Power Users will account for more than 20% of all broadband subscribers by the end of 2024. Other highlights from the report include:
- The monthly average data consumed by subscribers in 2Q24 was 585.8 GB, up 9.7% from 2Q23's average of 533.8 GB.
- The percentage of subscribers with speeds lower than 400 Mbps decreased over 33% between 2Q23 and 2Q24, down to only 41%.
- Monthly average upstream data usage growth, up 15.9% from 2Q23, continues to outpace average downstream usage growth (9.3%).
Governor Mike DeWine (R-OH), Lt. Governor Jon Husted (R-OH), and Ohio Department of Development Director Lydia Mihalik announced a state investment of $94.5 million that will provide affordable, high-speed internet access to more than 35,000 households across the state. As part of the second round of the Ohio Residential Broadband Expansion Grant (ORBEG) program, the Broadband Expansion Authority authorized BroadbandOhio to provide funding to two internet service providers, Time Warner Cable Midwest and Brightspeed, for six projects serving 23 counties. The program is designed to provide internet service with speeds of at least 100/100 Mbps to households upon project completion.
After Louisiana was the first state to have its Broadband Equity, Access, and Deployment (BEAD) rural broadband funding released in late 2023, it was several months before any other states had their funding released. It looked like a sure bet that Louisiana would be the first to make BEAD awards—and, according to Louisiana Broadband Director Veneeth Iyengar, that’s still the case. Montana recently became the first state to begin accepting BEAD applications. Louisiana began accepting applications a few days later, on August 19. Louisiana is giving broadband providers just two weeks to apply in Round 1, and the state expects to begin accepting applications for a second round just a few weeks later. The second round also will have a two-week deadline. Iyengar expects the state to make its final decisions for the entire $1.3 billion that the state was awarded for BEAD no later than November 1.
Frontier Awarded $6.5 Million Grant to Expand Fiber Broadband Service to Unserved and Underserved Communities in Knox County, Illinois
Frontier received $6.5 million in Connect Illinois grant funding to expand high-speed fiber broadband service in rural Knox County. The grant from the Illinois Office of Broadband, along with $1.1 million in American Rescue Plan Act (ARPA) funding committed by the Knox County Board, will accelerate our expansion of our fiber-optic network in the county. With this grant, we will bring fast, reliable connectivity to homes and businesses in rural Knox County, boosting economic and educational opportunities for the county. This work strengthens our commitment to providing unserved and underserved communities with access to our high-speed fiber internet.
Spectrum announced the launch of Spectrum Internet, Mobile, TV and Voice services to more than 440 homes and small businesses in Midland County (MI). Spectrum’s newly constructed fiber-optic network buildout will serve residents and businesses in portions of Geneva, Greendale and Jasper Townships.
In an effort to stop resellers from buying dishes in one region—where the hardware is cheaper—and selling them in another, Starlink is imposing a new “outside region fee” for its satellite internet kits activated “outside of the region they were originally sold in.”Starlink has designated these six specific regions as the US and Canada, Europe, Asia, Africa, Latin America, and Oceania. The company only says “it is possible” the fee will be applied to activations—not a guarantee—but it’s steep enough to be a discouragement. For the Standard and Standard Actuated kits, the fee is $200, but for the Starlink Mini, it’s $300. That’s in US currency, but Starlink also warns the fee “may be applied in USD or local currency,” which could make it even more expensive based on the currency exchange.
As a lifelong disabled person who constantly copes with multiple conditions, I have a natural tendency to view emerging technologies with skepticism. Most new things are built for the majority of people—in this case, people without disabilities—and the truth of the matter is there’s no guarantee I’ll have access to them. AI could make these kinds of jumps in accessibility more common across a wide range of technologies. But you probably haven’t heard much about that possibility. For someone with visual and motor delays, using ChatGPT to do research can be a lifesaver. Of course, data needs to be vetted for accuracy and gathered with permission—there are ample reasons to be wary of AI’s potential to serve up wrong or potentially harmful, ableist information about the disabled community. Still, it feels unappreciated (and underreported) that AI-based software can truly be an assistive technology, enabling people to do things they otherwise would be excluded from. AI could give a disabled person agency and autonomy. That’s the whole point of accessibility—freeing people in a society not designed for their needs.
[Steven Aquino is a freelance tech journalist covering accessibility and assistive technologies.]
Upcoming Events
Aug 28––A Community Conversation About Digital Equity, Job Creation and Entrepreneurship in Michigan (NTIA)
Aug 28––Washington Internet for All Webinar (Washington State Broadband Office)
Aug 29––Technological Advisory Council (FCC)
Aug 29––E-rate HotSpot Lending (SHLB Coalition)
Aug 29––Digital Inclusion and College Students (Community Tech Network)
Aug 29––Emerging Tech and the Future of Accessibility (ITIF)
Aug 29––The Path to Digital Equity: Elevating Local Voices to Drive National Impact (Public Knowledge)
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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