Telecommunication

A lawsuit filed by a major provider of broadband services alleges that a recent decision by the Iowa Utilities Board has prevented it from participating in the rollout of a $23 million expansion of broadband service for rural Iowans. LTD Broadband, a Las Vegas-based company with roughly 150 employees, owns and operates more than 2,500 communications towers in Iowa and six other states, and is suing the Iowa Utilities Board over the alleged delays.

This Beyond Telecom Law Blog entry highlights the current rural broadband funding opportunity presented by the $1.15 billion “ReConnect” program administered by the US Department of Agriculture’s (USDA) Rural Utilities Service (RUS). Under the Funding Opportunity Announcement for its third round of Reconnect funding (ReConnect III), the RUS will be awarding loans and grants to construct, improve, or acquire facilities needed to provide broadband service to rural areas.

In March 2021, Recon Analytics conducted a demographically representative survey of 1,000 Americans using internet and cell phones, asking them about their opinions and attitudes around universal access, funding mechanisms, conduct, and usage. When it comes to broadband in the US, Americans overwhelmingly support two ideas. First, they agree that fast broadband should be available to every American at prices they can afford.

After years of broadband subscriber losses, larger telecom companies are poised to see subscriber gains in the 2023 to 2024 time frame, according to researchers at investment bank Cowen. This will occur as the telecom companies complete “record-setting” fiber broadband deployments. But the cable companies’ broadband market share will decline only slightly, from 60 percent today to 58 percent in 2027, the researchers argue. Meanwhile, the size of the broadband market will increase.

Federal Communications Commission nominee Gigi Sohn [Senior Fellow and Public Advocate at the Benton Institute for Broadband & Society] could be running into more Republican and industry headwinds in the Biden administration's effort to get a Democratic majority on the agency.

Not long after Beth Ford became CEO of the Land O’Lakes cooperative in 2018, she toured agriculture co-ops and farms across rural America. By early 2019, she was alarmed that many small towns and rural residents lacked high-speed internet service, which she feared would leave them behind in the 21st-century economy. She recognized the technology deficit would greatly reduce access to education and health care and harm job creation. Ford became hell-bent on securing broadband funding at the federal level.

Before 2020, explaining why the US needed to invest in expanding high-speed internet infrastructure was not always easy. Lawmakers or community leaders often did not understand or could not justify spending money on what can often be an expensive venture. Fast forward to 2021, and the level of broadband-related federal funding is mindboggling – upward of $370 billion. Now that the infrastructure bill passed, that figure rises by billions of dollars more.

The explosion of the internet of things (IoT) is enabling communities across the globe to evolve into smart cities. Leveraging sensors, networks and data analysis, communities are addressing challenges in health care, energy, the workforce, public safety and many other sectors. But what’s behind the pulse of the smart city? Fiber infrastructure serves as the veins that support emerging applications, such as smart traffic sensors, connected vehicles and modern, cloud-connected medical devices.

Comcast has touted all the network upgrades it is doing as it pushes toward DOCSIS 4.0, but it appears to be planning one more key move: rolling out new Wi-Fi routers that can handle the speeds it’s aiming to deliver. Comcast Cable CEO David Watson said the company views Wi-Fi as a key element of its broadband package.

Overseas telecom providers, increasingly frustrated with American tech firms whose apps are gobbling up bandwidth, are pushing them to pay more for it. Any effort to reslice the "cost of internet bandwidth" pie could shake up the entire industry, make new winners and losers, and put new pressure on US tech giants.