CCG Consulting

There are several states already estimating that the Broadband Equity, Access, and Deployment (BEAD) grant funding is not going to be enough money to reach all of their unserved and underserved areas. California, New Mexico, and Minnesota have estimated that BEAD will fall short. By the time the dust settles there will likely be more states. I’m not surprised by this. Just since the BEAD grant program was enacted by the Infrastructure Investment and Job Act (IIJA) in November 2021, there have been some significant cost increases for building broadband networks.

The Federal Communications Commission recently implemented an increase in the monthly Affordable Connectivity Program subsidy in qualifying high-cost areas from $30 to $75. The reason for the change is easy to understand – this was codified in the Infrastructure Investment and Jobs Act (IIJA) legislation.

Comcast and Charter intend to upgrade cable networks to DOCSIS 4.0 to be able to better compete against fiber networks. The goal is to be able to offer faster download speeds and drastically improve upload speeds to level the playing field with fiber in terms of advertised speeds. It’s anybody’s guess if these upgrades will make cable broadband equivalent to fiber in consumers’ eyes. From a marketing perspective, there are plenty of people who see no difference between symmetrical gigabit broadband offered by a cable company or a fiber overbuilder.

At the end of July 2023, the Federal Communications Commission proposed a $20 million penalty against Q Link and Hello Mobile for not complying with the Customer Propriety Network Information (CPNI). The FCC concluded that the two companies violated the CPNI rules when they failed to protect confidential user data. The companies both had security flaws in their apps that allowed outside access to customer account information. There are stringent privacy rules in place at the FCC for voice providers, but nothing similar for broadband.

An AI expert suggested that AI could be used to produce better broadband maps. I had to chuckle at that idea. The primary reason for my amusement is that Federal Communications Commission maps are created from self-reported broadband coverage and speeds by the many internet service providers (ISP) in the country. ISPs have a variety of motivations for how and why they report data to the FCC. Some ISPs try to report accurate speeds and coverage.

Who still has landline telephones? The Washington Post's Andrew Van Dam found the answer in the National Health Interview Survey that is conducted by the National Center for Health Statistics. Over the years, the survey has shown a correlation between having a landline and overall health. According to the survey, people who cut the cord and only use cell phones are more likely to engage in risky behavior.

On July 24, 2023, the Federal Communications Commission authorized a new subsidy program, Enhanced A-CAM (Alternate Connect America Cost Model). This program will extend subsidies to small, regulated telephone companies at a cost of about $1.27 billion per year for ten years.

In May 2023, the House Commerce Committee marked up nineteen pieces of telecommunications-related legislation.  One bill in particular, the American Broadband Deployment Act of 2023 (H.R. 3557), represents what I’m seeing as a new trend of actions taken by big internet service providers (ISP) to preempt the authority of local governments.  H.R. 3557 would preempt a host of current rights of local governments to manage public rights-of-way for telecom infrastructure.

The broadband industry has always been cyclical. The industry has repeatedly gone through periods of booms and busts that have typically been exaggerated by the manufacturers of telecommunications equipment. We’re now seeing the beginnings of the end of the boom of the big cellular upgrades to 5G.

In October 2022, I wrote a blog about a bipartisan attempt to exempt broadband grant funding from being taxable income. Unfortunately, Congress has still not moved this legislation forward.