Competition/Antitrust

Frontier Communications recently declared bankruptcy, following a history of increasingly unsustainable acquisitions. It also just missed its milestone for the Connect America Fund, which required the company to deploy obsolete 10/1 Mbps service to 80 percent of the funded locations by the end of 2019 in return for more than $1.5 billion in subsidies. Some 774,000 locations should have at least 10/1 Mbps service by the end of 2020 from a company Consumer Reports repeatedly finds to be one of the worst Internet Service Providers in the nation.

The debate on whether broadband is a luxury or an essential connection to society is over. More than twice as many people are now using residential broadband during business hours as before the COVID-19 crisis. Over 55 million students have been impacted by school closures. The use of telehealth has skyrocketed. This, I believe, is our broadband moment: a hinge of history that will determine whether today’s residential broadband is fit for the changed world in which we inhabit or whether its limits work to disadvantage those that are not equipped to use it.

INCOMPAS — the internet and competitive networks association — led the court challenge opposing the Federal Communications Commission decision to end network neutrality provisions that help first responders, main street businesses and the streaming revolution. The INCOMPAS comments argue net neutrality impacts:

The future of competition in high-speed broadband access looks bleak. A vast majority of homes only have their cable monopoly as their choice for speeds in excess of 100 mbps and small ISPs and local governments are carrying the heavy load of deploying fiber networks that surpass gigabit cable networks. Research now shows that these new monopolies have striking similarities to the telephone monopolies of old.

In late Oct 2019, the Benton Institute for Broadband & Society released a report that explores how leaders at all levels of government can push toward a more connected future. One of the key findings is that state governments must play a crucial role in expanding Americans’ access to broadband services. The report, Broadband for America’s Future: A Vision for the 2020s, examines ways that policymakers at all levels of government can help expand reliable broadband access to every American by the end of the decade.

Charter Communications added 119,000 new internet subscribers in March. Charter is offering free internet access for 60 days during the coronavirus pandemic, so it remains to be seen how many of those new subscribers will stick with it after the free access ends.  Aside of those net additions, Charter said in its filing that paying net adds also increased in March compared to the same month a year ago.

Charter Communications is asking the Federal Communications Commission to block government funding for Internet service providers that want to build networks in parts of New York where Charter is required to offer broadband. An FCC rule for Phase 1 of the commission's $20.4 billion Rural Digital Opportunity Fund (RDOF) bans funding in census blocks where at least one ISP has been awarded money from any federal or state broadband-subsidy program "to provide 25/3Mbps or better service," and it also bans funding in areas that already have home-Internet access at those speeds.

Susan Crawford, a Harvard Law School professor, says the root of the digital divide is that big companies like AT&T and Comcast both control the internet pipelines and charge us to gain access to them. They don’t have an incentive to build affordable internet everywhere.

Speedier 5G wireless technology is rekindling a long-running debate over the best way to reach America’s internet dead zones: by wire or by wave. Cellphone carriers including Verizon and T-Mobile  say new wireless technologies will let them serve more home-broadband subscribers without sending a technician to wire up a customer’s house. The companies have promised to build profitable services where other wireless broadband companies, like Clearwire, have failed to build a viable business, but they have yet to detail how many wireless homes they serve.

Many national Internet service providers (ISPs) have introduced free and discounted plans to keep people connected during the crisis (though there are still holdouts). The charity of these companies is commendable, but their plans still leave many people disconnected, forcing them to choose between staying safe at home and accessing essential services. Eligibility oversights leave out households in need, and overwhelmed call centers make signing up for programs difficult.