Legislation

Residential fixed broadband internet access in the United States (US) has long been distributed inequitably, drawing significant attention from researchers and policymakers. This paper evaluates the efficacy of the Connect America Fund (CAF), a key policy intervention aimed at addressing disparities in US internet access. CAF subsidizes the creation of new regulated broadband monopolies in underserved areas, aiming to provide comparable internet access, in terms of price and speed, to that available in urban regions.

Wondering how the broadband equipment market is doing? Not great, according to Dell’Oro Group. In first quarter 2024, global revenue for the broadband access equipment market dropped 12 percent year-over-year to $4.1 billion, as spending in the market reached a two-year low. What’s the deal? Dell’Oro VP Jeff Heynen said that in some cases, operators are still working through excess inventory they built up in late 2022.

“It is incredibly disappointing and just plain shameful that one of the most successful bipartisan programs to close the digital divide has lapsed. Every Congressional district in the country had constituents benefiting from this program, and still, Congress failed to deliver the funding needed to ensure that over 23 million households won’t lose connectivity. While the efforts made by the program's most ardent supporters in both Chambers were commendable, the resulting lapse of ACP makes it clear that the Congressional appropriations process is ill-suited for funding affordable broadband.

At the end of May, the Affordable Connectivity Program, which helps over 23 million low-income households access high-speed internet at home, officially ran out of funding. This lapse occurs despite strong support from the White House and lawmakers of both parties, as well as the backing of four out of five Americans. The focus must now shift to delivering a long-term fix. Fortunately, the solution is staring us in the face.

Two entities—Maverix Broadband and the Southern Colorado Economic Development District—have won over $750,000 for rural broadband buildouts through an innovative Colorado program. The program, known as the Location Modification Program, followed awards made in the state’s Advance Colorado Broadband Grant Program, which was funded through the federal Capital Projects Fund.

The overarching goal of the Broadband Equity, Access and Deployment (BEAD) Program, established by Congress in the Infrastructure Investment and Jobs Act, is to deploy broadband networks that reach every American and provide access to reliable, affordable, high-speed internet. Congress decided to allocate BEAD funds to states and territories since they are best situated to determine the needs of their communities, but it did not change any existing federal authority to oversee broadband or pricing.

The National Telecommunications and Information Administration's (NTIA) Office of Minority Broadband Initiatives (OMBI) has released its Annual Report for 2023.

Kinetic has been awarded an $11.9 million grant to significantly expand its fiber-optic network in Clarion County, Centre County, and Erie County, Pennsylvania, by the end of 2026. This expansion will bring gigabit internet speeds to nearly 2,400 previously underserved and unserved locations.

The end of the ACP will undo the significant progress we have made toward closing the divide and harm millions of Americans. Not only that, but it will have economic and competitive consequences for our country if we fail to maximize the $42.5 billion investment we’ve made in broadband infrastructure through the Broadband Equity Access and Deployment Program. It is, as they say, penny wise and pound foolish. Connectivity has never been more important.

Michigan is once again leading the country with its innovation. This time, however, the innovation isn’t new technology—but a funding strategy that would catalyze new technologies, and ensure access to jobs, healthcare, education, and government services are available and accessible in perpetuity.