Friday, August 27, 2021
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Employment Effects of Subsidized Broadband Internet for Low-Income Americans
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TracFone concerns still run high for consumer groups
Older cellphones going dead in 2022. Are you prepared for 3G's end?
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Digital Inclusion
This research presents evidence on the relationship between broadband pricing and labor market outcomes for low-income individuals. Specifically, it estimates the effects of a Comcast service providing discounted broadband to qualifying low-income families. Author George Zuo uses a triple differences strategy exploiting geographic variation in Comcast coverage, individual variation in eligibility, and temporal variation pre-and post-launch. Local program availability increased employment rates and earnings of eligible individuals, driven by greater labor force participation and decreased probability of unemployment. Internet use increased substantially where the program was available.
The COVID-19 pandemic has further highlighted the deep digital divide in Mexico and the enormous challenge faced by its education system in continuing to educate the country's students while under confinement. This article examines the determinants of internet access, use and productive uses for school-age children in households of different socioeconomic levels. The research shows that children's internet access and usage patterns depend on the level of schooling, economic status, digital skills, and place of residence, as well as the presence of electronic devices and infomediaries in the household. These findings suggest the urgent need to redesign the current information and communication technology (ICT) policy with a long-term integrated vision that guarantees access to ICTs and their productive use for students immersed in a digital ecosystem of educational innovation.
As another Covid-era school year begins, it’s not just local and state governments and internet providers that are desperate for broadband cash. A coalition representing schools and libraries is urging Congress to replenish funding for a Federal Communications Commission funding program aimed at boosting connectivity for students, school staff and library patrons. It is “imperative” for lawmakers to include the SUCCESS Act as part of the $3.5 trillion budget partisan spending package that Democrats are pushing through Congress, the Education and Libraries Networks Coalition said. The group includes the American Federation of Teachers, the American Library Association and the National Education Association. That bill, sponsored by Sens. Ed Markey (D-MA), Chris Van Hollen (D-MD), and Rep. Grace Meng (D-NY), would authorize $40 billion over five years for the FCC program. It’s not clear how open Democrats would be to that suggestion, given President Joe Biden has said he doesn’t want to double dip into the $3.5 trillion for areas that are expected to receive funding as part of the bipartisan infrastructure package, which already includes $65 billion for broadband funding.
The Federal Communications Commission approved an initial set of 62 applications for funding commitments totaling $41.98 million for Round 2 of its COVID-19 Telehealth Program. The FCC’s COVID-19 Telehealth Program supports the efforts of healthcare providers to continue serving their patients by providing reimbursement for telecommunications services, information services, and connected devices necessary to enable telehealth during the pandemic. This first set of awards will go to applications that qualify for the equitable distribution step, as required by Congress and outlined in the FCC’s rules, to ensure nationwide distribution of funding to healthcare providers. Round 2 is a $249.95 million federal initiative that builds on the $200 million program established as part of the CARES Act. Now that funding has been committed to the highest-scoring applications from each state, territory, and DC, the next funding awards will commit funding to the highest-scoring applications, regardless of geography, until at least $150 million has been committed. The FCC’s Wireline Competition Bureau will then announce an opportunity for all remaining applicants to supplement their applications.
Libraries Without Borders US (LWB US) has been working to promote access to information in underserved communities across the country since 2015. Fundamental to our work is designing and implementing innovative programs that reimagine libraries, often by transforming nontraditional spaces into hubs for community learning and engagement. With this mission in mind, we took our work to the laundromat, prompting the birth of the Wash and Learn Initiative (WALI). The average laundromat user has an income of $28,000; 1 in 4 individuals in this income bracket do not have access to broadband internet. By partnering with local libraries and organizations, LWB US brings not only books, computers, and internet connection directly to laundromats, but also digital skills training and curated resources that promote literacy, digital access, health education, legal information, and other issues. In March 2020, with the onset of the COVID-19 pandemic, we completely reimagined our work and distributed ConnectED Technology Kits, backpacks equipped with a laptop, a mobile hotspot, and a curated educational resource packet, to be used at home. Now, with the support of Google Fiber, we are able to safely reimplement programming in our San Antonio WALI laundromats and continue to serve our community.
An executive order signed by former Gov Gina Raimondo (D-RI) requires Internet service providers to comply with neutrality requirements when entering into certain public procurement contracts in Rhode Island. Lawmakers have proposed a bill to make the order a permanent law. “This is the fourth year the bill has been proposed,” said State Senator Louis DiPalma (D-RI). “It was passed previously by the Senate, but not the House.” The net neutrality principles prevent service providers from blocking lawful content, applications, or services related to network management and prohibiting the impairment of Internet traffic based on content or applications. The rules would also ensure providers are not engaging in paid prioritization or interfering with a customer’s ability to access and use broadband Internet, or preventing customers from using other Internet content, applications, services or devices of their choice. To implement these standards, the state’s Division of Purchases — with input from the Public Utilities Commission, Emergency Management Agency and Division of Information Technology — would amend state procurement rules to meet these requirements. The challenge, going forward, DiPalma said, is getting others to understand the importance of the bill so it can be passed before being overturned.
Louisiana passed extensive legislation in the past two sessions to help bridge the digital divide, including a plan to auction off valuable communications spectrum for broadband access. HB465 tasks the recently created Office of Broadband and Connectivity with supervising an auction of parts of the 4.9GHz band. The Federal Communications Commission voted in 2020 to allow every state to lease some of this spectrum to help expand broadband development. A state task force recommended to the Louisiana Legislature that 10 percent of the 50 megahertz allocated toward the effort be kept for public safety use. The other 45 MHz should be auctioned off in blocks to businesses and internet service providers, said the task force. The state Legislature also passed SB10, which eased private provider access to infrastructure owned by electric cooperatives. Louisiana has established a dig once policy, which requires public and private workers to coordinate with local governments on laying fiber or conduit when ground is broken on public rights-of-way, making it less costly to implement future broadband projects. Additionally, 13 providers in Louisiana will receive $342 million from the FCC’s Rural Digital Opportunity Fund to connect unserved areas. The state also established a Broadband for Everyone in Louisiana initiative that set a goal of broadband speeds for all residents as set by the FCC at 25 Mbps/3 Mbps, scalable to up to 100 Mbps/100Mbps by 2029.
While the progress of digital equity varies by state, the remaining gaps have been brought to the forefront during the pandemic. In Southern California, Los Angeles officials have worked to implement programs and partnerships to increase access to digital devices and services as well as increasing digital literacy — a fundamental component to digital equity. Jeramy Gray, the county of Los Angeles’ chief deputy at the Registrar-Recorder/County Clerk, said the challenge is not only to provide access to an Internet-connected device but also to enable individuals to use the devices to improve their quality of life. The county has long offered technology literacy classes, free Wi-Fi, tutoring and more, he explained. The pandemic also displayed the importance of partnerships between government and organizations in the nonprofit, private and academic sectors; when local government agencies were challenged with ensuring kids could access Internet so their education experience was not interrupted, public and private partners offered their support. Gray added that while the infrastructure bill recently passed by the Senate offers a significant funding amount, more needs to be done within the space of broadband connectivity to reach digital equity.
Wilson (NC) has had city-wide high-speed fiberoptic internet since 2008. “In Wilson, we see high-speed broadband as infrastructure,” said Grant Goings, Wilson City Manager. Everything started in 2006 when Goings spearheaded a municipal broadband project after he said private telecommunications companies would not invest in high-speed internet in their area. The city would treat broadband internet like any public utility, such as water or electricity, where residents would pay the city for its service if they want it. After just two years, Wilson’s city-run internet and cable company, Greenlight Community Broadband, was up and running. When the coronavirus pandemic hit in 2020, many of the rural Wilson County’s 81,000 residents found that their network's 600 miles of fiber lines kept their internet connected almost seamlessly. While many states have restrictions on municipal broadband projects and critics fear unfair competition, public-private partnerships that utilize American Rescue Plan covid relief funds could bring the municipal network solutions cities and counties are looking for.
Consumer groups are still very much concerned about what happens if TracFone gets acquired by Verizon even though Verizon promises to serve the public interest. Recently, several groups—including the Communications Workers of America (CWA) union, Public Knowledge, Benton Institute for Broadband & Society, Access Humboldt, and the California Center for Rural Policy—announced they were withdrawing their objections because Verizon agreed to a set of commitments: Verizon will continue offering TracFone’s current Lifeline-supported services for at least three years after the close of the transaction. Verizon also said it will honor the rates and terms of the agreements that it’s assuming from TracFone for at least two years, and it will offer 5G plans to TracFone prepaid customers. But in meetings with Acting Federal Communications Commission Chairwoman Jessica Rosenworcel's office, Common Cause and New America's Open Technology Institute repeated their concerns about the transaction’s potential to undermine the Lifeline program and raise prices for low-income consumers. OTI and Common Cause emphasized that Verizon has a burden to demonstrate that the merger will benefit the public interest — not merely that it would avoid harm. “At a minimum, the proposed conditions should be seen as the floor, not the ceiling, for any potential remedy the [FCC] might be considering,” they wrote. The consumer groups said any conditions must be strictly enforced, and behavioral conditions are “notoriously difficult” to monitor.
As 3G cellphone networks disappear next year, people using older devices could be left without a lifeline. Tracfones, flip phones, Jitterbugs and even older-style smartphones will no longer be able to make calls once the networks are taken down. Older cell frequencies are being discontinued as carriers move to 5G; Moving away from 3G frees up network frequencies for faster service, according to the Federal Communications Commission. The FCC says phasing out 3G will also impact older home security systems, tablets, smartwatches, and some medical devices. Cell phone carriers have committed to eliminating 3G service by the end of 2022, yet the exact time differs by the provider. Individual cellphone carriers have lists online with the model numbers so people can see whether their devices will be affected. From their phones, people can check the international mobile equipment identify number; that number is either in a smartphone’s About information or can be found by dialing *#06#. Once they have the model number, they can go here for the phone’s details.
Wireless subscriber growth has been off the charts in 2021, with second-quarter increases nearing records as mobile service providers like AT&T, Verizon and T-Mobile blanket the market with free offerings. But as subscriber numbers have surged, those new customers are a volatile bunch, meaning the industry may soon have to decide whether to keep heavy promotions going just to maintain the status quo or risk losing them by turning off the promotional spigot. According to MoffettNathanson, the wireless industry has added about 8 million new customers in the past 12 months, 5 times the annual population growth rate. They’ve been able to do so via heavy promotions, resulting in a big increase in promotional cap-ex. As an example, Moffett pointed to AT&T, which added about 920,000 prepaid and postpaid wireless customers in Q2, its fastest customer growth in years, as promotions rose sharply in Q2 2021 compared to the same period in 2020. T-Mobile, Verizon and even cable companies have all slashed prices and are offering potential customers free handsets and other perks to boost subscriber rolls.
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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