Universal Broadband

[Commentary] Promoting universal access to modern communication services and the internet, especially for low-income and disadvantaged Americans, is a noble cause and a pragmatic objective worthy of government support, but the Federal Communications Commission’s (FCC) Lifeline program is not an effective or efficient means of achieving these goals. We need a better approach to open the doors of digital opportunity to low-income and disadvantaged Americans. Here are four principles for replacing the program with a more effective approach to advancing digital opportunity:

First, federal and state governments should work to reduce barriers to broadband deployment and adoption, and to the efficient functioning of the broadband marketplace, so as to lower prices and increase the availability of affordable broadband services.
Second, regardless of whether Lifeline is replaced or reformed, support should be targeted to those who do not already have service.
Third, the replacement for Lifeline should reflect an assessment of who needs help and of what sort.
Fourth, and finally, it is time to consider a new delivery mechanism, one that involves neither the federal regulatory agency which has so grossly mismanaged the Lifeline program nor the telephone companies that have profited so handsomely from that mismanagement.

[Jeffrey Eisenach was on the Trump FCC Transition team, and is a managing director at NERA Economic Consulting.]

A Q&A with Federal Communications Commission Chairman Ajit Pai.

He has made it a priority to increase the availability of broadband internet access across America. But the regulations that telecom companies say are preventing them from investing in broadband infrastructure are the ones that also ensure net neutrality. Critics say the trade-off isn't worth it. Chairman Pai wants to use federal subsidies and slash regulations to try to encourage broadband providers to expand their infrastructure.

Commissioned by the Cleveland Foundation, this report’s purpose is to guide the Foundation's staff and partners as they strategically determine how best to dedicate resources toward digital literacy, internet access and broad technological empowerment. The Cleveland Foundation’s Digital Excellence Initiative aims to position Greater Cleveland as a leader in digital innovation and access by investing in efforts that align with the five focus areas of the foundation’s Digital Excellence Initiative:
Creating a more connected community
Supporting digital skills development
Improving digital civic engagement
Elevating regional digital leadership
Encouraging technology innovation for social good

Despite the continued proliferation of the internet and new digital devices, many low-income communities still lack internet access. Slightly less than half of all households with incomes under $20,000 reported having internet access in the Census Bureau’s most recent American Community Survey. By comparison, about 93 percent of wealthier households with annual incomes exceeding $75,000 were connected. Places where low-income households are least connected are most common throughout rural regions of the South and Appalachia. Higher costs of living might explain differences in other regions of the country, where housing or utility expenses leave households with little income to spare. Demographics further contribute to regional disparities as families of Hispanic immigrants have lower internet adoption rates, as do heads of households over age 65.

Public interest watchdogs are concerned about a proposed merger that could have big implications for rural broadband as it nears the regulatory finish line. CenturyLink’s $34 billion deal to acquire Level 3 Communications would create a potentially formidable competitor to AT&T in the telecommunications market to handle heavy internet traffic for businesses. But opponents say it would hurt broadband access for rural providers by eliminating access to wholesale rates for critical fiber connections to the internet backbone — the high-speed transmission lines that connect users’ various internet service providers to each other.

Level 3 Communications is the sixth largest provider of fiber in the United States by volume and has a broad footprint, with availability across the country. It’s also, notably, a competitive local exchange carrier (CLEC). If approved, the merger would give CenturyLink, one of the largest incumbents, ownership of Level 3’s valuable fiber assets, which are currently available at wholesale rates — but may not be if they come under CenturyLink’s control.

On August 8, 2017, the Federal Communications Commission launched a new assessment of “whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion,” (otherwise known as the “706 Report”). This report is long overdue, as the report is supposed to be issued annually, but the last 706 Report was released on January 29, 2016. The Notice of Inquiry (NOI) properly seeks comment on both fixed and mobile broadband connections. It acknowledges that the two technologies have different technical characteristics and limitations, and that broadband providers choose to market their fixed and mobile products in different ways. As Commissioner Clyburn notes in her concurring statement, fixed and mobile services are complements, not substitutes.

While some press accounts suggested that the FCC reached a tentative conclusion to equate the two technologies, it only sought comment on this question. The FCC also sought comment on how the markets for fixed and mobile services differ, and it did not say that mobile broadband access is a replacement for fixed broadband. To be clear, the SHLB Coalition does not believe fixed and mobile services are substitutes. Students cannot complete homework and seniors cannot apply for government services with just smartphones. While smartphones can help bridge the digital divide for individuals, they do not replace the gigabit speeds provided by fiber or fixed wireless technologies that anchor institutions need.

Discourse and interest in the digital divide research community is steadily shifting beyond access and adoption to utilization, impact, and outcomes of information and communications technologies (ICTs), particularly the internet. In the United States, studies and surveys conducted by the National Telecommunications and Information Administration (NTIA) indicate increase in internet use in every corner of the country over the last two decades. However, recent surveys on ICT use indicate significant disparities in dimensions of internet use. For example Americans’ use of the internet to pursue e-education, e-health, e-commerce, e-entertainment, and telecommuting has varied significantly – longitudinally as well as geographically. Additionally, internet use habits are rapidly expanding, providing new insights into the emerging internet of things, wearable technologies, and new forms of social media usage. As novel technologies and lifestyles emerge, analysis of new disparities and dimensions of the “usage digital divide” stemming from social, economic, societal, and environmental factors becomes important. This research examines spatial clusters, geographic disparities, and socio-economic dimensions of existing and emerging dimensions of internet use among the 50 U.S. states.

CenturyLink said in its semiannual report to the Federal Communications Commission that 53% of urban-area customers in the former Qwest territory can get speeds of 40 Mbps or higher. However, the number of customers that can get higher speeds in rural areas is far lower, showing again the divide between these markets. While the telecommunication company has seen some improvement over the past year, only 24.1% of its rural-area Qwest customers can get access to a 40 Mbps connection. A key contributing factor to this disparity is the challenge of deploying copper-based broadband.

[Commentary] Twelve senators wrote to the Federal Communications Commission expressing concern regarding the agency’s latest Notice of Inquiry. The senators’ letter echoes many arguments pressed by various interest groups which seem misguided, or at least premature, given that the agency is simply asking questions to get better information about the state of the industry. But congressional opposition to the Notice of Inquiry is especially odd, given that the proceeding is, well, required by Congress. They are concerned that the agency might conclude that some Americans access internet-based services on mobile networks rather than fixed broadband networks. And while this would give the agency a more complete view of how Americans access “advanced telecommunications capability,” their unstated concern is that it might also show that fewer of us are internet-impoverished, which undermines the case for regulation.

Sept 8, three research papers using National Telecommunications & Information Administration's Digital Nation survey data will be presented at the 45th Research Conference on Communications, Information and Internet Policy (TPRC) an annual conference attended by researchers, policymakers, and advocates from the public, academic, and private sectors. The papers serve as instructive examples of how researchers can take NTIA's survey data beyond the basic metrics to offer unique and valuable insights into Internet use in America. Policy staff from NTIA will present one of the papers, which examines the connection between digital and financial inclusion. Another paper - a TPRC Student Paper Contest winner - comes from a student from Oklahoma State University Stillwater who wrote about the behavioral relationships behind the increases in mobile-only households. And researchers from the University of Redlands School of Business used NTIA data to examine geographic patterns of Internet use in U.S. states.