CCG Consulting

Inflation has returned to the historical average of around 2.5% per year, but we’ve experienced several years in a row of much higher-than-average inflation. In times of inflation and rising prices, consumers and businesses normally cut back on expenditures. Most of us have good reasons for not wanting to lose broadband. At the end of 2023, over 12% of U.S. employees worked remotely. A huge percentage of homes use broadband for entertainment to stream video and music. 70% of American adults use social media. Three out of four Americans plan games online. Most households now bank online.

The end of the Affordable Connectivity Program (ACP) put the kibosh on the business plans of internet service providers (ISPs) working to tackle the urban digital divide. I’m aware of a several ISPs working to bring broadband to neighborhoods where the majority of customers qualified for the $30 ACP discount.

Hurricane Hellene arrived in Asheville (NC) on the evening of September 26. However, there was a big precursor to the storm, and we had over 15 inches of rain in September before the storm got here. That means the ground was fully saturated, the streams were already running at near-flood conditions, and lakes and reservoirs were already full.

In an interesting lawsuit, VoIP-Pal, a patent holding company brought suit against AT&T, T-Mobile, Verizon, and Deutsche Telekom for now allow customers an option to use WiFi calling and WiFi texting. Of course, anybody with a smartphone can make a WiFi call across their phone’s data connection, and the lawsuit is really a complaint that the cellular companies are forcing customers to pay for a traditional voice and texting plan when customers only want to buy a bare broadband connection.

One of the unexpected consequences of Hurricane Helene is that it disrupted and shut down the high-quality quartz mines near Spruce Pine, North Carolina. This will cause a temporary disruption for the semiconductor industry. One of the most important steps in making silicon chips and key components for solar panels is to melt down a highly purified substance called polysilicon.

Now that Broadband Offices have started the process of soliciting Broadband Equity, Access, and Deployment (BEAD) grant applications, I thought I’d discuss a topic that anybody who wins a BEAD grant is going to care about—how a Broadband Office will reimburse grant winners for making expenditures. You might think this is straightforward, but unfortunately it is not. Grant offices are taking a wide variety of approaches to how they reimburse internet service providers (ISPs) for grant expenditures. Why does the method of payment matter? It probably doesn’t to giant ISPs.

The Federal Communications Commission (FCC) has gone on the offensive and defended itself against possible lawsuits that might claim that the FCC has overstepped its regulatory authority that was granted by Congress.

A recent Politico article quoted a National Telecommunications and Information Administration (NTIA) spokesperson as saying that the Broadband Equity, Access, and Deployment (BEAD) program was intended to be completed on a 10-year cycle. This is the first time I’ve heard that BEAD was intended to be a 10-year plan. States will be making BEAD awards starting sometime in 2025.

One of the oddest areas of law under the jurisdiction of the Federal Communications Commission is 47 U.S.C. § 230 (Section 230). This is the law that shields internet service providers and social media platforms from liability for content created by users. Section 230 is very much in the political news these days. There were 25 bills introduced in Congress over the last two sessions to modify Section 230 language. The bills look at a range of different topics. One set of proposed regulations would provide more protection for children online.

Pretty much everybody in the industry agrees that the Broadband Equity, Access, and Deployment (BEAD) grant process has taken too long. The Infrastructure Investment and Jobs Act legislation that authorized BEAD was signed into law in November 2021. A few states are now opening a grant portal to accept BEAD grant applications—nearly three years after the legislation was passed. Not all grant programs have taken this long. An interesting contrast to BEAD is another huge-dollar federal grant program, the Capital Project Fund (CPF).