Monday, September 19, 2022
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White House Releases Comprehensive Framework for Responsible Development of Digital Assets
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Broadband Funding
Rep Harris Asks NTIA to Reconsider Letter of Credit Requirements for Infrastructure Investment and Jobs Act Broadband Programs
Rep Andy Harris (R-MD) recently sent a letter to US Commerce Secretary Gina Raimondo regarding the National Telecommunications and Information Administration's (NTIA) requirements for its Infrastructure Investment and Jobs Act (IIJA) broadband programs. Specifically, the September 14, 2022 letter expresses concerns about the Letter of Credit (L/C) requirement included in the NTIA's Notices of Funding Opportunity (NOFOs) for the Broadband Equity, Access and Deployment (BEAD) Program and the Enabling Middle Mile (MM) Broadband Infrastructure Program. "Under this requirement," said Harris, "for a broadband provider to be eligible for a grant under the MM and BEAD programs, it must obtain a standby irrevocable L/C from a bank that equals 25% of the grant amount." Harris stated that "this L/C requirement contravenes the IIJA because it prevents the 'distribut[ion of] the funds in an equitable and nondiscriminatory manner' to all broadband providers, both small and big."
On September 15, 2022, the National Tribal Telecommunications Association (NTTA) sent letters to Federal Communications Commission Chairwoman Jessica Rosenworcel, Commissioners Carr, Starks and Simington, and Chief of the Wireline Competition Bureau Trent Harkrader attaching a white paper on examining the need for ongoing broadband support on Tribal lands. According to NTTA, the paper examines the need for ongoing support to assist in eliminating the digital divide that currently exists between broadband availability on Tribal lands and the rest of the United States. It calls for a “sustainability funding” program that assists Tribes with the high cost of operating and maintaining broadband-capable networks, especially for those providers not currently assisted under existing federal high-cost support programs. The NTTA urged the FCC to consider the issues discussed in the white paper in its upcoming proceeding to determine the “reorientation” of the High Cost Program.
US Department of Agriculture (USDA) Under Secretary Xochitl Torres Small warned changing the definition of what counts as “rural” broadband could negatively impact programs like the agency’s ReConnect initiative, resulting in a greater disparity between available funding and requests than already exists. The program currently defines rural as "any area that is not located in a city, town, or incorporated area that has a population of greater than 20,000 inhabitants or an urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants." Small noted that what is considered “rural” is very different across the country and acknowledged that federal definitions like those used by ReConnect don’t always reflect that diversity. Small added that changing the definitions for existing programs will have consequences, stating, "We’ve also got to recognize that changes in eligibility would also impact who’s applying for the loans and grants and that the vast majority of our programs are oversubscribed," and that “conversations about eligibility also mean who’s competing for already limited funds. But it’s a huge need.”
Universal Service
FCC Chairwoman Rosenworcel Responds to Lawmakers' Concerns About the Future of the Universal Service Fund
On September 8, 2022, Federal Communications Commission Chairwoman Jessica Rosenworcel penned responses to two groups of lawmakers who had written to Rosenworcel about the future of the Universal Service Fund. In her responses, the chairwoman highlighted the FCC's Report on the Future of the Universal Service Fund adopted on August 12, 2022. The Report includes discussion of the costs of data transportation and their impact on rural providers, according to Rosenworcel. "It recommends that the FCC initiate a proceeding to consider the future support needs of networks serving high-cost areas, and in doing so assess what continuing support is needed to develop, maintain and improve broadband operations in those locations," she said. "In addition, the Report includes discussion of middle-mile development in high-cost areas," she continued, and recommends that the FCC “engage with NTIA on this program, and then study its results and its implications on for High Cost and the other universal service programs.” Rosenoworcel also states that the Report includes discussion of whether the Universal Service Fund contribution base should be broadened to include “edge providers,” such as streaming video providers or major digital advertisers, which are by many accounts responsible for a significant volume of traffic on networks serving high-cost areas."
You’re going to hear a lot in the next few months about the Federal Communications Commission's broadband mapping fabric. This blog describes what that is and describes the challenges of getting a good mapping fabric. The first set of broadband map challenges will be about the fabric, and I’m not sure the FCC is ready for the deluge of complaints they are likely to get from every corner of the country. I also have no idea how the FCC will determine if a suggestion to change the fabric is correct because I also don’t think communities can count passings perfectly. This is not the only challenge. There are going to be challenges of the coverage areas claimed by internet service providers. The big challenge, if the FCC allows it, will be about the claimed broadband speeds. If the FCC doesn’t allow that they are going to get buried in complaints. I think the National Telecommunications and Information Administration was right to let the dust settle on challenges before using the new maps.
As broadband becomes more and more important for students to be successful, we need to know how differences in availability affect their achievement. How do some students’ achievements compare to their more well-off peers with fancy 1 gigabit fiber connections? Suppose we could randomly build out fiber-optic broadband to different parts within a neighborhood and then compare a student’s test scores before and after fiber became available to the students that didn’t get access. This would mimic a “natural experiment” with which we could assess the effect of fiber access on student achievement. As it turns out, the gradual build-out of fiber over the last decade has roughly mirrored this “natural experiment,” and subsequently serves as an informative opportunity for policymakers and researchers studying broadband. What happens to the achievement of students who live in areas where fiber is offered? It turns out that not only does internet access matter, but the speed of the connection does as well! Six years of exposure to fiber for students in grades 3-8 increases their standardized math and reading scores by about 2.3 and 1.1 percent of a standard deviation respectively. This research suggests that broadband is a key piece of modern education. Students benefit greatly from broadband access and in particular reliable, fast broadband. Policymakers should strive to equalize both availability and take-up of fiber-based broadband. Failure to do so could unduly restrict the educational outcomes with limited or no broadband access or those too poor to afford a subscription for broadband service. You can view the most current version of the research paper here.
Digital Assets
White House Releases Comprehensive Framework for Responsible Development of Digital Assets
Digital assets present potential opportunities to reinforce US leadership in the global financial system and remain at the technological frontier. President Biden’s March 9, 2022 Executive Order on Ensuring Responsible Development of Digital Assets outlined the first whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology. Agencies across the government have worked together to develop frameworks and policy recommendations that advance the six key priorities identified in the Order:
- Consumer and Investor Protection - issuing guidance, increasing enforcement resources, and aggressively pursuing fraudulent actors.
- Promoting Financial Stability - collaborating with financial institutions to bolster their cybersecurity capabilities and neutralize emerging strategic risks.
- Countering Illicit Finance - monitoring the development of the digital assets sector and working to expose and disrupt illicit actors.
- US Leadership in the Digital Assets Sector - leveraging US positions in international organizations to set standards for the digital asset sectors.
- Financial Inclusion - exploring a US Central Bank Digital Currency that enables access to a broad swath of US consumers.
- Responsible Innovation - developing a Digital Assets Research and Development Agenda and encouraging innovation in US-based, digital assets firms.
To read more follow this link.
The Federal Communications Commission announced that the charter of the Consumer Advisory Committee will be renewed for a two-year period pursuant to the Federal Advisory Committee Act (FACA) and following consultation with the Committee Management Secretariat of the General Services Administration. In keeping with its advisory role, the FCC Consumer Advisory Committee will continue to provide recommendations to the FCC on consumer topics, as specified by the agency, gather data and information, and perform analyses that are necessary to respond to the questions or matters before it. The mission of the Committee is to make recommendations to the FCC on topics specified by the agency relating to the needs and interests of consumers.
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 Grace Tepper (grace AT benton DOT org) — we welcome your comments.
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