Universal Broadband

Here, a look at three rural counties, in three different states, demonstrates how country folk are leading their communities into the digital age the best way they know how: ingenuity, tenacity, and good old-fashioned hard work.
The 'Silicon Hollow', Letcher County (KY)
Internet on the TV, Garrett County (MD)
Ahead of the Curve, Coshocton County (OH)

Ninety percent of US housing units had fixed wireless or landline broadband service at speeds of 25 Mbps downstream/ 3 Mbps upstream available to them as of mid-2016, according to an analysis of Federal Communications Commission broadband data conducted by USTelecom and CensusNBM. Ten percent of housing units could get service at downstream speeds of 1 Gbps (and any upstream speed), USTelecom/ CensusNBM said. If fixed wireless is not included in the analysis, both numbers drop by one percentage point.

The numbers also vary when urban and rural areas are broken apart. Just 64% of people in rural areas can get 25/3 Mbps fixed wireless or wired service, while 97% of people in non-rural areas can get service at those speeds, according to the report, titled “U.S. Broadband Availability Mid-2016.”

Beginning in 2013, the city of Opelika (AL) became the state’s first “Gig City,” offering broadband Internet services to its 11,000 households over a $43 million fiber-optic network constructed and operated by the city’s electric utility, Opelika Power Services (“OPS”). How is Opelika’s system doing financially?

According to Mayor Gary Fuller, the city’s network, in its fourth year of operation in 2016, is “on pace with our five-year plan to be at break even.” As explained in this perspective, this rosy assessment is entirely at odds with the city’s own books. The city’s telecommunications service has experienced large and continuing financial losses through 2016, accumulating millions in financial losses during its four years of operation. Before “break even,” these millions in losses must be recovered and the $42 million in debt paid. In this persepective, I conduct an analysis of the OPS broadband network’s financial health using the city’s financial statements. By any meaningful financial metric, OPS’s broadband network is unlikely ever to be “profitable.”

[Commentary] The Federal Communications Commission’s proposal to reclassify broadband as an information service – the status it had for nearly two decades under which the internet grew and flourished -- has received over 20 million comments expressing views on both sides of the issue. Amid all the noise, it’s important to ensure that one aspect of the rulemaking not be overlooked: its huge impact on rural America.

The best way to ensure that all corners of the country get the connectivity they need is for the FCC to restore the classification of broadband as an information service. Thereafter, Congress should enact legislation that codifies open internet rules and at long last puts to rest a debate that has raged for more than a decade.

[Rick Boucher was a Democratic member of the US House for 28 years and chaired the House Communications Subcommittee. He is honorary chairman of the Internet Innovation Alliance (IIA) and head of the government strategies practice at the law firm Sidley Austin.]

With high-speed internet access in West Virginia’s rural areas seriously wanting, Sen Shelley Moore Capito (R-WV) is pushing policy proposals favored by players on the right and left. According to the Federal Communications Commission, the Mountain State ranks 48th in the nation for broadband coverage. That helps explain why Capito co-chairs the Senate’s Rural Broadband Caucus, and why she’s willing to try practically anything. Last week, Sen Capito joined Sen Kirsten Gillibrand, (D-NY), in introducing the Broadband Connections for Rural Opportunities Program Act, which would channel as much as $50 million in grants annually to build out broadband infrastructure through a Department of Agriculture entity, the Rural Utilities Service.

The legislation introduced by Sen Gillibrand would provide as much as 75 percent of the construction and select deployment costs of a high-need broadband project, and it mentions prioritizing applicants such as state, local and tribal government stakeholders and nonprofits. Typically, low-interest loans and grants made through the Rural Utilities Service have gone to local co-ops and utilities.

[Commentary] Broadband infrastructure is only a prerequisite for adequate digital inclusion, not a sustainable solution in itself. Research examining the economic impacts of broadband access in rural regions in the US found a stark difference in economic outcomes when ‘access’ was defined as the availability of broadband infrastructure versus ‘access’ being defined as the adoption of a residential broadband connection. Broadband infrastructure alone provided only minimal economic benefits to households and regions, while increased broadband adoption was linked to individual-level and community-level economic improvements.

The cost of fixed broadband subscriptions is often cited as the single most important factor in hindering broadband adoption in areas where the infrastructure is available. However, research suggests that while affordability is certainly key, there are also other factors that should be considered. One well-cited cross-country analysis of cultural factors affecting broadband adoption lists lack of understanding of the services and content that can be accessed online as one reason individuals in the US may not adopt high-speed broadband, as well as an actual insufficiency in online content relevant to a particular community. To truly equalize the digital playing field, we need to carefully consider the factors affecting individuals’ ability to gain high-speed broadband access once the infrastructure becomes available in their geographic region. The findings cited here speak to the importance of investments in educational programs and services addressing digital literacy, content creation, and other aspects critical to sustainable broadband adoption.

[Jana Wilbricht is a Ph.D. Candidate in Communication Studies at the University of Michigan, and worked with NDIA during the summer 2017 as a research fellow of the Consortium on Media Policy Studies (COMPASS).]

During my confirmation hearing last month, I spoke about the important role that tech and telecom policies can play in creating jobs, spurring investment, and growing the economy for the benefit of all Americans. It is one of the reasons that I am focused on policies that will promote broadband deployment. Whether it is the workers that manufacture and deploy broadband infrastructure, the app economy that runs over high-speed networks, or the businesses that use these connections to reach customers around the world, I testified about the ability of broadband to harness the talents of all Americans, to create good-paying jobs, and to help drive our nation’s economic growth.

There are many small business benefits of rural broadband, argues ACT – The App Association in a well-researched blog post that cites numerous real-world examples of those benefits. ACT, an association of small technology firms, wrote the blog post to advocate for TV white spaces (TVWS) broadband, but the benefits cited would apply to other high-speed broadband technologies as well. The business benefits of rural broadband that ACT references include:
Small and medium businesses that access global markets over the internet have a survival rate of 54%, which is 30% higher than for SMBs that are not internet-connected, according to the World Economic Forum.
30% of companies that sell goods online through Etsy are based in rural areas – and considering that $2.84 billion in goods were sold through Etsy last year, those rural retailers apparently are generating considerable revenues online. Etsy sellers generally are small businesses, which the company refers to as entrepreneurs and “internet-enabled microbusinesses.”
Small businesses create roughly two thirds of jobs in rural America, according to the U.S. House of Representatives small business website, highlighting the important economic benefits those businesses could generate, provided that they have high-speed broadband available to them.

Attorney Daryl Parks has filed a formal Federal Communications Commission complaint against AT&T on behalf of three African American low-income residents of Cleveland (OH) alleging digital redlining. The complainants--Joanne Elkins, Hattie Lanfair, and Rochelle Lee--allege that "wealthier and predominantly white areas have gotten premium upgradable high speed broadband access at bullet speed," while the three complainants "receive slow speeds at a rate as low as 1.5 mbps downstream or less, although they pay AT&T for high speed access."

They say that is unjust and unreasonable discrimination in violation of the Communications Act. They also allege that is part of a pattern of discrimination by AT&T nationwide, relying on a study by the National Digital Inclusion Alliance. The parties say they met with AT&T in July, which "flatly" denies that it is redlining, hence the suit. The complaint concedes AT&T offered to expand a 5G wireless broadband pilot program, but says that is not sufficient. Parks and company want the FCC to investigate the charge, including holding a hearing, which would likely be before the FCC's Administrative Law Judge, and they want damages.

The National Association of Broadcasters is firing back at a letter from tech executives who wrote the Federal Communications Commission in support of reserving broadcast band channels, so called "white spaces," for unlicensed device use. A group of tech company execs banding together as Voices for Innovation Aug 22 raised their voices in support of a proposal by Microsoft that the FCC reserve channels in the white spaces of the broadcast TV band for unlicensed devices as a way to promote rural broadband deployment. NAB is no fan of the plan, and made that clear in its response to the tech exec letter on TV white spaces. That letter talked up the use of the unlicensed spectrum to get broadband to 34 million more homes. Broadband deployment is a signature issue for the FCC under new chairman Ajit Pai.