Internet/Broadband

Almost all internet traffic—including Zoom calls, movie streams, emails and social media feeds—reach us via high speed fibre optics laid on the ocean floor.

The Universal Service Fund is a $8 billion decades-old mechanism created by Congress in 1996 to support vital communications investments where the marketplace falls short: connecting schools and libraries to high-speed internet; helping rural hospitals adopt telemedicine; ensuring low-income households have basic communications services; and investing in broadband in communities that need it most. The Fifth Circuit Court of Appeals recently held that the current administration of the Universal Service Fund is unconstitutional. Why is the Universal Service Fund so important?

Consumers and policymakers always care about broadband prices. The issue is of particular interest to policymakers now that the Affordable Connectivity Program (ACP) has ended and as states try to figure out what the “affordability” requirements of the BEAD grants mean and how to implement them. Such analysis should begin with an understanding of current prices and how they have changed. This analysis uses three sources to consider the cost of broadband to consumers: the Federal Communications Commission’s Urban Rate Survey (URS), the U.S.

In 2021 when the pandemic was raging, President Joe Biden led a bipartisan effort to pass the Affordable Connectivity Program as part of the Infrastructure Act so low-income families would have subsidized internet service. It was especially important to get low-income families hooked up since their children would need to do their schoolwork from home.

The Fifth Circuit Court of Appeals threw federal broadband policy into chaos recently by declaring the Universal Service Fund unconstitutional. The decision threatens to shut down the Federal Communications Commission’s longstanding system of collecting fees from telecommunications customers to subsidize rural broadband deployment and Internet access for low-income households, schools, and other programs. For years, policymakers have acknowledged the need to overhaul the USF because of its ballooning fees, potential for waste, and outdated priorities.

Between 2019 and 2021, the number of Ohioans working from home tripled, demonstrating the vital function of high-speed internet services like broadband in Ohio’s workforce. Additionally, remote learning, telemedicine and other online programs continue to thrive well after the pandemic.

Library Wi-Fi hotspot lending programs (via the Federal Communications Commission’s E-rate program) are a complement to broadband providers and permanent connections at home—not a replacement for those connections, said Larra Clark, Deputy Director of the American Library Association’s (ALA) Public Policy and Advocacy Office and Deputy Director of the Public Library Association.

Money is beginning to really flow into the U.S. fiber ecosystem, but the dollars are coming from a somewhat unexpected source—middle-mile and long-haul fiber projects.

Kendall County (IL) wanted to deliver a better broadband experience to its residents. So, it reached out to the local incumbent providers which reacted with smugness and arrogance. The county was so put off by the incumbents that it instead pursued a public-private broadband partnership. Many of the county’s residents have been dissatisfied with their selection of broadband providers, which include AT&T, Comcast and Metronet. So, the county decided to put out a request for proposal (RFP) for a private company to bring some broadband competition to the area.

Cable companies seem to have turned the corner from continually gaining customers to now losing customers. This is a consequence of increased competition from fiber overbuilders and FWA cellular wireless. In the first quarter of 2024, the sale of FWA cellular slowed down for T-Mobile and Verizon, from 929,000 to 759,000 in the first quarter. But FWA still counts for practically all of the net broadband gains for the quarter. Experts are predicting a much smaller number of total net customer additions for 2024, which is due to two issues.