Wednesday, September 28, 2022
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The push for tech companies to pay broadband providers for network use
City of Chicago Strategic Broadband Planning Request for Information
Bambi Kraus is the new Chief of the FCC's Office of Native Affairs and Policy
Interconnection
State/Local Initiatives
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Orange Group CEO Christel Heydemann and Federal Communications Commissioner Brendan Carr, called on technology giants to contribute a “fair” share to broadband infrastructure costs, arguing such companies are driving a need for continued upgrades and have disproportionately benefitted from telecommunications investments to date. Regulators in the US, EU, and South Korea are weighing rule changes that would force the likes of Alphabet, Amazon, Meta, and Netflix to pay telecom companies for the large amounts of traffic they generate. Heydemann questions whether the current arrangement between telecom companies and tech companies is sustainable, noting internet traffic is growing “30 to 40% annually while telecom revenues are based mostly on flat rates.” Ultimately, Heydemann calls on the EU to implement a “fairer system” in which large traffic emitters pay fees to operators to help pay for network maintenance and upgrades; Commissioner Carr agrees, stating, “After all, large technology companies benefit tremendously from these high-speed networks, and they generate the lion’s share of network traffic both in Europe and in the US." However, Google executive Matt Brittin warned if traffic fees are implemented it will be consumers who pay the price either financially or by receiving poorer quality services.
Big Tech companies shouldn't have to pay for Internet service providers' network-upgrade costs, a Google executive said amid a push in Europe to have tech companies pay for broadband expansions and improvements. In November 2021, the CEOs of 13 large European telecommunications companies called on tech giants to pay for a portion of the Internet service providers' network upgrade costs. "Large and increasing part of network traffic is generated and monetized by big tech platforms, but it requires continuous, intensive network investment and planning by the telecommunications sector," the telecom CEOs wrote in a joint letter. EU regulators are taking the idea seriously, as the EU's executive body will launch a consultation in early 2023 on whether tech giants should bear some of the costs of Europe's telecoms network. The idea drew protest from 54 members of the European Parliament (MEPs), stating, "Large telecom companies have tried for decades to require compensation from content providers for providing access to customers, despite the fact that the telecom companies are already being paid by their own customers to provide access." Letting broadband providers collect these payments "would reverse decades of successful Internet economics by requiring the providers of websites and applications to pay fees to broadband providers that have never existed before," and "abolish key net neutrality guarantees that Europeans fought hard for," the letter said.
Gov Roy Cooper (D-NC) is launching North Carolina's first digital equity grant program, which will help North Carolinians afford high-speed internet, obtain digital devices, and access digital literacy resources. The multi-phased program, administered by the NC Department of Information Technology’s Office of Digital Equity and Literacy, will invest up to $24 million of federal American Rescue Plan Act (ARPA) funds for collaborative digital equity projects. The program’s first phase will invest $10 million in total funding to support 10-15 state government entities to develop or expand digital inclusion programs. Each grantee will be awarded a maximum of $2 million for a project that must be completed by the end of 2024. In winter 2023, the Office of Digital Equity and Literacy will launch the second phase of the digital equity grant program, a competitive grant process with $14 million in total funding, which will be open to applications from municipalities and nonprofits, community-based organizations, and key stakeholder groups for local digital inclusion projects and device distribution.
More than 206,000 Chicago households (approximately 17%) don’t have internet at home, and over 115,000 (roughly 10%) don’t have a computer. Over the past two years, Chicago has made historic progress in tackling digital disparities. Despite this progress, there is still work to be done to address the racial and economic disparities behind the digital divide. Communities with the lowest rates of internet connectivity are also those where more than 88% of residents are Black, and where the average median household income is less than $30,000. The City of Chicago seeks ideas on how the private sector, philanthropic foundations, and non-profits can leverage City real estate assets and Chicago Recovery Plan resources to ensure every household has an affordable, quality broadband option that meets their needs. Specifically, Chicago seeks to:
- Identify how City resources (including real estate assets and Chicago Recovery Plan funds) can be made available to increase affordable residential broadband connectivity
- Identify creative solutions and potential purpose-aligned partner organizations
- Design initiatives that use federal and state funds to increase broadband connectivity
The Lee County (IL) Board is earmarking $1.7 million toward a massive, multi-county project to expand broadband in rural areas. Ogle County (IL) has spearheaded a Broadband for All initiative that’s a public-private partnership to improve broadband access in counties including Ogle and Lee. The partnership is with Syndeo Networks, and the group is applying for a $28 million “Enabling Middle Mile Broadband Infrastructure Program” grant through the National Telecommunications and Information Administration (NTIA). Lee County’s contribution would be about $1.7 million for more than $11 million in improvements, and Ogle’s is about $2 million for $13 million in work. Lee County Board Chairman Bob Olson said the amount will come from county capital funds, and board member Jim Schielein said it’s an investment for the county’s economic future.
Older adults and people with disabilities cannot equitably access the same health information and care as people without disabilities when hospital websites are not accessible. The American Health Information Management Association (AHIMA) found the following key insights relating to digital accessibility and its importance to older Americans:
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Hospitals and health care systems in the U.S. need continuing education on the role of web accessibility in American Disability Act (ADA) compliance given the significance of newly issued federal guidance.
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The home pages of most top U.S. hospitals have many accessibility errors and are not compliant with current Web Content Accessibility Guidelines (WCAG) criteria.
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Older adults and patients with disabilities face barriers to accessing their health information electronically; many have struggled to use a hospital website or patient portal.
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Multisectoral collaboration, including user-based testing with patients with disabilities and older adults, is needed to improve digital accessibility in the healthcare ecosystem.
Ultimately, AHIMA believes it is imperative that all health care organizations consider the broad diversity of users’ functional needs when developing and maintaining digital media.
SpaceX sent the message to the Federal Communications Commission after Globalstar—which is powering the iPhone 14’s satellite connectivity—urged the FCC to reject SpaceX's request for access to the 1.6/2.4GHz spectrum, which it also uses for its own satellite services. SpaceX plans on using the radio bands to power a mobile version of its Starlink satellite internet service capable of beaming data to cellular dead zones. However, Globalstar fears the spectrum push will generate interference with its own satellite-based systems. “Globalstar is eager to compete with MSS [mobile-satellite services] systems operating on unused or otherwise available spectrum, but the FCC should summarily reject unsubstantiated requests that would undercut regulatory certainty and stability and threaten harmful interference to Globalstar’s systems,” the company said. In response, SpaceX is pushing back by saying the FCC never gave Globalstar exclusive access to the 1.6/2.4GHz spectrum. SpaceX also insists it can work with Globalstar to prevent interference while maximizing the use of the same spectrum for the American public. The regulatory battle risks derailing SpaceX’s plans for a mobile Starlink service if the FCC rules against the company.
Comcast recently announced it is introducing a 2-gigabit download broadband product. Along with faster download speeds, Comcast is claiming new upload speeds of as much as 200 Mbps – at least for the 2 Gbps plan. The company made it sound like all upload speeds would be increased by five to ten times the existing speeds. Interestingly, the same announcement said that Comcast would be introducing DOCSIS 4.0 in 2023, at least for some business customers. That’s an announcement that has me scratching my head. Comcast just announced a successful test for DOCSIS 4.0 in January of 2022. To be able to go from a lab prototype to production units in less than two years would be extraordinary. Comcast could hold a field trial of the new technology in 2023. Cable companies are sensitive about the marketing advantage that faster upload speeds give to fiber and even to slower technologies like fixed wireless access (FWA) cellular. It’s hard to know if the Comcast announcement foreshadows big improvements next year or was just a way to signal to Wall Street that cable companies are working towards improved bandwidth.
Federal Communications Commission Chairwoman Jessica Rosenworcel announced Denise Bambi Kraus will serve as the Chief of the Office of Native Affairs and Policy. As Chief, Kraus will further the FCC's efforts to bring the benefits of modern communications to all Native communities. The Office of Native Affairs and Policy (ONAP) assists the FCC in developing policies and programs to address the lack of adequate communications services on Tribal lands nationwide. It also plans and leads the FCC's outreach to Tribal governments and organizations, to increase their awareness and participation in Commission initiatives and proceedings. Additionally, Kraus will be responsible for overseeing the work of the Native Nations Communications Task Force as part of her role as Chief. The Office of Native Affairs and Policy under the leadership of Bambi Kraus will focus on four priority areas:
- Mapping: ONAP will lead Tribal consultation and provide technical assistance to ensure all Tribal Nations have the support that they need to participate in the agency's ongoing broadband data collection effort and expand the accuracy of the FCC's broadband availability maps.
- Access: ONAP will lead a Tribal Nation engagement strategy to connect Tribal libraries through the agency's E-rate program.
- Affordability: ONAP will continue to work closely within Native country to promote the Affordable Connectivity Program (ACP) and its enhanced Tribal benefit.
- Sustainability: ONAP's Native Nations Taskforce will work to develop a framework for long term telecommunications infrastructure sustainability.
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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