CCG Consulting

Can Internet Service Providers Absorb the End of ACP?

State broadband offices are asking internet service providers interested in Broadband Equity, Access, and Deployment (BEAD) funding to self-fund a $30 discount for low-income customers after the end of Affordable Connectivity Program. Since this request came from multiple states, I have to imagine the idea came from the National Telecommunications and Information Administration. I can’t think of any better proof that policymakers are out of touch with the reality of rural business plans. Even providers that are successful in rural markets are going to have small margins.

Taxing Broadband

Cities have been petitioning the Federal Communications Commission to ask it to revisit the issue of the ‘mixed-use’ rule that blocks municipalities from assessing franchise fees on broadband revenues. Cities argue that franchise fees are not taxes, and instead are fees that help cities to manage their rights-of-way. The municipal (or state) franchise fee is capped at 5% of retail cable TV revenue, and cable companies typically tack this fee onto every cable bill. The biggest complaint from cities involves what they call cable company arbitrage.

Another BEAD Mapping Mess

The National Telecommunications and Information Administration made a monstrous mess of the Broadband Equity, Access, and Deployment (BEAD) Program maps when they decided to allow licensed fixed wireless to be counted as reliable broadband. This has a huge ramification for the BEAD grants. It has made maps into hodgepodges of served and unserved homes.

Shouldn’t Broadband Mapping Data Belong to the Public?

My biggest pet peeve about the Federal Communications Commission's mapping is that the agency made the decision to give power over the mapping and map challenge process to CostQuest, an outside commercial vendor. The FCC originally awarded CostQuest $44.9 million to create the broadband maps. Many people think that was an exorbitant amount, but if this was the end of the mapping story, fine.

Is it Time for Rate Cuts?

Comcast and Charter broadband customer growth has stagnated, and all of the cable companies are now slowly losing customers. There are a lot of reasons for the stagnation and customer losses. One of the factors that put cable companies at such a competitive disadvantage is broadband prices. The cable companies have been regularly raising rates annually for years to levels that are far higher than all of their competitors.

The End of Rural Landlines?

Patricia Pereira, an 80-year old woman living in Camp Seco, California, is cut off from 911 and other essential services. At the beginning of 2023, Pereira asked AT&T if landline service could be transferred from a neighboring home to hers. Instead of transferring the service, AT&T cut the copper lines dead on both properties. Pereira lives in a dead zone and barely receives cellular signals. This is happening in rural AT&T areas across the country.

Yet Another Challenge to Federal Communications Commission Authority

Federal courts are full of cases that are challenging the authority of federal regulatory agencies, including the case of Securities and Exchange Commission v. Jarkesy, which is pending before the Supreme Court as of January 2024. Hedge fund manager George Jarkesy was accused of committing fraud by misrepresenting himself to investors. The case was heard by an administrative law judge at the Securities and Exchange Commission (SEC), who imposed a fine and penalties, and ordered Jarkesy to disgorge $685,000 in unlawful profits.

Serving the Hard-to-Reach Areas

It’s clear in reading the various proposed Broadband Equity Access and Deployment (BEAD) rules that State Broadband Offices are following the lead of the National Telecommunications and Information Administration (NTIA) and putting a lot of emphasis on making sure that everybody gets served with the grant funding. I’m not sure they understand the costly consequences of this emphasis. There are some passings in this country that are largely unservable.

Dealing With Broadband Outages

It’s always been a hassle when a business loses broadband. But in the last few years, an increasing number of businesses have been telling me that they are practically immobilized when they lose broadband. This is because businesses, especially small and medium businesses, increasingly rely on software in the cloud. So many day-to-day functions, from timekeeping and payroll systems, reservation systems, to online sales portals, now require a broadband connection. This has made businesses become hyper-aware of broadband outages.

Can the Affordable Connectivity Program be Sustainable?

By now, everybody has written about the pending end of the Affordable Connectivity Program (ACP). The White House asked Congress to fund the ACP for a year for over $6 billion, and almost everyone I know is betting against a miracle from Congress. But even if the ACP gets funded somehow, how sustainable is the ACP if Congress has to act every year to renew it? There have been calls for moving the ACP under the Federal Communications Commission’s Universal Service Fund (USF).