Federal Broadband Programs

The National Telecommunications and Information Administration (NTIA) conducted an annual broadband survey in 2021. The survey asked folks who didn’t have home broadband what they would be willing to pay, with the question, “At what monthly price, if any, would your household buy home Internet service?” The purpose of the survey was to understand the kind of price points that might be needed to get broadband to more of these households. Three-quarters of respondents said they would only get broadband if it was free. I find this result to be troubling for several reasons:

About half of the Milwaukee (WI) households eligible for low-cost internet service are now enrolled in a federal program that offers it, but statewide enrollment is only around 25% and the program’s barely been used in many communities, according to new figures. Even in Milwaukee, where the Affordable Connectivity Program (ACP) has been heavily promoted, thousands of eligible households haven’t signed up for the benefit that provides $30 a month toward the cost of internet service, also known as broadband.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) announced that Ohio received its first planning grants for deploying high-speed Internet networks and developing digital skills training programs under the Biden-Harris Administration’s Internet for All initiative.

EducationSuperHighway released its second No Home Left Offline report on the action needed to accelerate Affordable Connectivity Program (ACP) adoption. Key report highlights include:

On October 6, 2022, the U.S. Department of the Treasury approved Michigan's plan to use its full Coronavirus Capital Projects Fund allocation to support broadband expansion in the state.

The Federal Communications Commission's Wireline Competition Bureau provided additional information concerning the Your Home, Your Internet Pilot Program and the Affordable Connectivity Program (ACP) Navigator Pilot Program, including guidance to assist prospective applicants in preparing to apply for participation in one or both Pilot Programs. The FCC expects to open the Pilot Programs’ application window, and expects the Consumer and Governmental Affairs Bureau to release the Notice of Funding Opportunity (or NOFO) for Pilot Program funding, in November 2022.

A new report entitled “U.S. Cable: What is Embedded in Valuations?” is optimistic about cable’s broadband prospects. Analysts at MoffettNathanson say they believe the market is undervaluing cable’s growth prospects. Moffett's analysis shows a big part of the stock drop can be traced to the current cost of capital, which is something that can change in the future and doesn’t go to the underlying prospects for cable’s broadband business.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has awarded 23 grants as part of the Tribal Broadband Connectivity Program (TBCP). These new grants, totaling more than $601.6 million, bring the total of the program to $1.35 billion awarded to 94 Tribal entities.

Broadband is critical to strengthening our economy, improving educational opportunities, and enhancing the delivery of health care, public safety and other government services. “If you can’t play in this space in the 21st century, you discover that your opportunities are limited,” said Governor Charlie Baker (R-MA).

The deadline for the National Telecommunications and Information Administration (NTIA)'s middle-mile grant program just closed, and the NTIA said that it received 235 applications totaling $5.5 billion in grant requests for a $1 billion grant program. I was surprised when the Infrastructure Investment and Jobs Act (IIJA) legislation allocated only $1 billion to middle-mile fiber. That works out to only $20 million per state. It will be interesting to see how the NTIA spreads the funding.