telecompetitor

Assistant to the Secretary for Rural Development Anne Hazlett announced that the US Department of Agriculture (USDA) is investing more than $200 million in infrastructure projects to bring broadband to hundreds of unserved and underserved rural communities.  Hazlett discussed USDA’s work to expand broadband access in rural areas during a visit today to Upshur County (WV).

[Commentary] With the Sprint T-Mobile merger called off, what’s next for the wireless carriers? Many saw the merger as the best move for Sprint, which has been struggling in a competitive wireless market. The merger was less critical for T-Mobile. But that company has been a disruptive force in the wireless industry and hasn’t been one to simply maintain the status quo.

As roughly half of US states consider a FirstNet opt out or opt in decision, considerable confusion has arisen about states’ options – confusion resulting, some say, from pressure tactics applied by FirstNet, the government entity created to administer the nationwide mobile broadband public safety network that carries the same name.

AT&T rural broadband expansion via Connect America Fund-supported fixed wireless service now reaches 160,000 locations across 18 states. Nine states were recently added. The expansion nearly doubles the reach since AT&T’s last update on the service in June 2017. Arkansas, California, Illinois, Indiana, Kansas, Michigan, Ohio, Texas, and Wisconsin join Alabama, Florida, Georgia, Kentucky, Louisiana Mississippi, North Carolina, South Carolina and Tennessee. AT&T has plans to reach 400,000 locations by the end of this year, and over 1.1 million locations by 2020. The Connect America Fund, the Federal Communications Commission’s program to expand rural broadband access.

In its latest deal, TPG Capital is backing RCN’s $2.3 billion Wave Broadband acquisition. Wave Broadband will join TPG Capital’s cable and broadband portfolio, which also already includes RCN and Grande Communications – two operators that, like Wave, are focused on multi-play offerings including broadband and video in competition with incumbent telcos and cable companies. The combined company will be the nation’s sixth largest internet and cable operator. Bringing Wave, RCN and Grande together will create a regional market leader in next-generation, high-speed data services for residential and business customers with a presence spanning the West Coast, East Coast, Chicago and Texas. The $2.36 billion deal is expected to close in the second half of 2017.

Just shy of 220 million people worldwide have gigabit broadband availability, according to the latest Gigabit Monitor from test and measurement vendor Viavi. That’s roughly 3 percent of the world population.

Seventeen percent of the population – 56.4 million people – have gigabit broadband access in the U.S. That’s the highest number of people in any country in the world. Overall, there are 603 gigabit broadband deployments up and running in a total of 41 countries worldwide –72 percent more than there were in June 2016 by Viavi’s count.

Libraries in five states – Georgia, Maine, Nebraska, South Dakota and Washington – number among a total of nine projects awarded funding and support from the Gigabit Libraries Network (GLN) and San Jose State University’s School of Information (iSchool) to expand the Libraries WhiteSpace Project. Launched with grant funding from the Institute of Museum and Library Services (IMLS), Libraries White Space Project funds are awarded to libraries that have initiated projects in partnership with other community service organizations to explore and develop innovative uses for TV White Space (TVWS) spectrum to provide remote fixed and portable library broadband access points at new locations. The first of these is slated to open this summer, GLN and iSchool explain.

Stakeholders know that because small cells will have shorter range, operators will need a dense fiber network to support them. Verizon CEO Lowell McAdam offered a sense of just how dense that network will need to be.

Verizon small cells and densification efforts are driving the deployment of 1700-strand fiber in Boston (MA), where the company is undertaking a major network upgrade, McAdam said. In comparison, he said, the company deployed six-strand fiber when it began deploying its FiOS landline broadband and internet service in the early 2000s. Verizon worked closely with its supplier Corning to get 1700 fiber strands in a single sheath, McAdam said, also noting that the company recently placed a $300 million order with another fiber supplier Prysmian. “The largest fiber network in the country will be wireless” and will be operated by Verizon to provide backhaul and other types of connectivity, said McAdam.

The Gigabit Opportunity Act, also known as the GO Act, aims to spur gigabit broadband deployment by using a range of tax breaks.

Sen Shelley Moore Capito (R–WV) said the GO Act “gives states flexibility, streamlines existing regulations and eliminates barriers to investment so we can better connect our low-income and rural communities.” The act calls for state governors to establish Gigabit Opportunity Zones that would be eligible for tax breaks including enabling companies to immediately expense the cost of gigabit-capable equipment and temporarily deferring capital gains for broadband investments and upgrades. It also directs the FCC to release a framework that encourages states, counties and cities to voluntarily adopt streamlined broadband laws, with which Gigabit Opportunity Zones would have to comply.

If this sounds familiar, that’s because the Gigabit Opportunity Act is based, in part, on a Gigabit Opportunity Zone proposal made by FCC Chairman Ajit Pai prior to his chairmanship. Not surprisingly, Chairman Pai issued a statement in support of the proposed legislation. The Gigabit Opportunity Act, he said, is “an important step toward closing the digital divide.” He added that “[w]ith targeted tax incentives and regulatory streamlining, the GO Act aims to remove the major barriers holding back internet access in economically challenged areas.” Some stakeholders argue, however, that while removing regulatory barriers and providing tax incentives can help spur broadband deployment, they are not a complete solution.

Just a few months after having its credentials for participation in the Federal Communications Commission’s low-income Lifeline program revoked, FreedomPop has found a new Lifeline-related revenue stream: The company is licensing a database system originally developed for its own use to service providers approved to offer Lifeline service. FreedomPop CEO Steve Stokols said the FreedomPop Lifeline database took about a year to develop and offers fraud prevention capabilities, as well as providing leads for service providers pursuing Lifeline business.

According to Stokols, former FCC Chairman Tom Wheeler encouraged FreedomPop to participate in the Lifeline program, which is what drove the company to develop a system that essentially provides the functionality that the FCC verification database was intended to provide. Current FCC Chairman Ajit Pai has different views on Lifeline than his predecessor, however. Chairman Pai didn’t support 2016’s Lifeline reforms, and one of his first moves as chairman was to reject nine Lifeline service provider approvals made at the federal level under Wheeler’s chairmanship – including FreedomPop’s. Subsequently, Chairman Pai shifted responsibility for Lifeline service provider approvals back to the states. As a result, according to Stokols, “the approval process is basically shut down.” Stokols estimated that it would take five years and a lot of legal fees to get Lifeline approvals on a state-by-state basis.