Competition/Antitrust

On behalf of "America's Broadband Providers," USTelecom sent a letter to Biden Administration officials on how the administration can "make the most of America's $65 billion broadband investment." "Connecting every American, regardless of geography or income, will require unprecedented collaboration across the private and public sectors, spanning federal, state, Tribal and local governments," says the letter. "Getting the details right will ultimately make (or break) this work.

"The Federal Communications Commission has long banned internet service providers from entering into sweetheart deals with landlords that guarantee they are the only provider in the building," said Federal Communications Commission Chairwoman Jessica Rosenworcel. "But the record in this proceeding has made it clear that our existing rules are not doing enough and that we can do more to pry open to the door for providers who want to offer competitive service in apartment buildings. That’s why we take three steps today.

Internet-service providers (ISPs) weighed in on the White House‘s promotion of the 10 million households now served by its Affordable Connectivity Program. The ISPs wanted to point out they have been offering affordable broadband to millions through their own subsidy programs for years, though they welcome the Biden administration‘s help (as long as it is targeted to the unserved and not to overbuilding in the name of price and competition).

The Federal Communications Commission has adopted rules to unlock broadband competition for those living and working in apartments, public housing, office buildings, and other multi-tenant buildings (MTEs). To ensure competitive choice of communications services for those living and working in MTEs, and to address practices that undermine longstanding rules promoting competition in MTEs, the FCC takes three specific actions. First, the agency adopts new rules prohibiting providers from entering into certain types of revenue sharing agreements that are used to evade existing rules.

The cable industry has long operated using a promotional pricing strategy, with consumer broadband costs jumping up once an introductory period has ended. But analysts argued the proliferation of fiber service options with flat rates could force cable players to rethink their strategy. New Street Research’s Jonathan Chaplin noted cable’s promotional pricing is generally competitive with fiber offers. The problem, however, is that cable service ends up costing consumers significantly more than fiber once those introductory rates disappear.

The Federal Communications Commission is cracking down on sweetheart deals made between building owners and broadband providers, but that could leave some tenants out in the cold when it comes to reliable internet access. Analysts have warned that without extra financial incentives, some fiber providers may be unwilling to invest enough to deliver a quality network.

AT&T largely lost an advertising dispute with Charter Communications, with a review panel recommending the operator change or discontinue claims its fiber service is better than cable. The case dates back to 2021, when Charter filed a complaint with the National Advertising Division (NAD) challenging assertions made in AT&T ads that it offers “up to 20x faster upload speeds” than cable and is “half the price.” Charter also disputed AT&T’s claims that fiber offers “better internet” than cable.

In the Infrastructure Investment and Jobs Act (IIJA), Congress allocated around $65 billion to connect Americans to broadband internet and gave the National Telecommunications and Information Administration (NTIA) a leadership role in guiding states on how to spend the funds. Now, it will be up to the NTIA and the states to ensure that congressional goals become a reality. This Request for Comment by the American Action Forum raises important questions about the appropriate path forward, and these comments aim to guide the NTIA to maximize the efficiency of each tax dollar spent.

In a letter to National Telecommunications and Information Administration (NTIA) Assistant Secretary Alan Davidson, Sen Chuck Grassley (R-IA), Sen Steve Daines (R-MT) and several other senators urged the agency to prioritize funding for broadband projects in unserved rural areas. "NTIA has an opportunity to make substantial impact on connecting rural America. However, doing so will require that your agency outline rules that specifically prohibit overbuilding and that set clear criteria to ensure projects targeted at unserved areas are actually prioritized," said the February 4 letter.

The internet has failed to nourish our news and information diet the way we hoped it would twenty years ago. The norm is major platforms poaching the news they distribute directly from newspaper and television newsrooms while failing to make any meaningful investments in journalism despite generating billions of dollars in advertising revenue that traditional media once depended upon. Solutions have been suggested; one option is vigorous anti-trust to break up monopolies.