CCG Consulting
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Is Broadband Essential?
There is an easy way to simplify the upcoming battle between the Federal Communications Commission and big internet service providers (ISPs) over Title II regulation and net neutrality. The public expects the government to regulate industries that are essential. That’s the reason we regulate electric companies and drinking water quality. It’s the reason we regulate meat and drug safety.
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Reinventing ReConnect
It’s my understanding that the annual Agriculture Reauthorization Bill includes new money for the ReConnect grant program that is administered by the Rural Utilities Service (RUS), which is part of the Department of Agriculture. The ReConnect grants only fund areas that are remote and include a test that gives priorities to grant areas that are the farthest distance from towns and cities. There have been changes in the broadband industry that have made it harder each year to define a ReConnect grant area. The RUS grant rules favor grant requests that cover large contiguous areas.
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Broadband Choice
One of the most questionable facts circulating in the broadband industry is that a large percentage of homes in the country have multiple internet service provider (ISP) options. A recent U.S. News and World Report states that the FCC data shows that 94 percent of homes have a choice of three or more ISPs. I’ve seen similar statistics elsewhere, and it’s not hard to see that this information comes from the latest FCC mapping data. I’m not surprised to find that the FCC maps show that 94 percent of homes in the country have three or more ISPs claiming the ability to provide service.
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Defining Broadband Discrimination
One of the provisions of the Infrastructure Investment and Jobs Act (IIJA) is that it requires the Federal Communications Commission to “take steps to ensure that all people of the United States benefit from equal access to broadband internet access within the service area of a provider of such service.” In legalese, the term equal access, in this case, means that consumers should be able to expect to get the same speed, capacity, and latency as other customers buying the same product from the same internet service provider (ISP) sold elsewhere.
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An Alternate to the FCC Maps
It’s been easy to criticize the Federal Communications Commission broadband coverage maps since they are still full of errors and fantasy. I don’t foresee the maps getting any better as long as internet service providers (ISPs) can continue to decide what they want to report in terms of broadband coverage and speeds. Too many ISPs have reasons for reporting maps they know are inaccurate, and it’s hard to think that’s going to change.
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Criticizing BEAD
A report from Senator Ted Cruz (R-TX) highlights some of the problems and issues of the Broadband Equity, Access, and Deployment (BEAD) grant program. Sen. Cruz's first criticism of BEAD is that the allocation gives too much funding to places that have good broadband and don’t need the money—like Washington (DC) and Delaware.
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Labor Downsizing
I’m mystified when large internet service providers (ISP) and carriers have significant layoffs at a time when they seem to be doing well; it’s a pattern that we’ve seen over and over during the last several decades. The latest big layoff is coming from T-Mobile, which announced in August that it is eliminating 5,000 jobs, about 7 percent of its total workforce.
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In Search of the Killer 5G App
AT&T and Comcast joined the 5G Open Innovation Lab, a venture that has been funding start-ups and others working in 5G research. Along with looking to improve 5G edge technology, a primary goal of the OAI Lab is to search for killer apps for 5G. The group hopes that adding the large carriers will help to continue to support the 118 start-ups that have already been funded by the organization which has raised over $1.5 billion. I always find talk of a killer app to be interesting since that was never the real goal of 5G.
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The Fifth FCC Commissioner
Anna Gomez is the newest, and fifth, Commissioner at the Federal Communications Commission. This may allow the FCC to pursue a Democratic agenda to tackle various issues:
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Universal Service Fund Under Fire
There have been several lawsuits over the last few years that challenge the legitimacy of the Federal Communications Commission's Universal Service Fund (USF). A suit from a non-profit group called Consumers’ Research argues that USF fees are taxes and that the original creation of the USF was unconstitutional since the Telecommunications Act of 1996 gave the FCC the power to levy taxes.