Upcoming policy issue

Telephone companies may want to ditch copper and focus on the next best thing (i.e., fiber). But states aren’t about to let them off the hook. According to New Street Research, ILECs seeking to end their carrier of last resort (COLR) obligations are getting pushback from states because consumers might not have another option for internet access—including wireless. A COLR is a telecommunications service provider that’s required to serve upon request all customers within its designated service areas.

In a series of orders beginning in 2005, the Federal Communications Commission has acted to promote the widespread deployment of broadband networks that are open, affordable, and accessible to all. Four of these previous orders have been reviewed by the D.C. Circuit; the challenge to a fifth order is currently pending (but in abeyance) there as well.  The D.C. Circuit has approved aspects of the FCC’s orders but disagreed with others—on several occasions remanding to the FCC for further action or additional deliberation. Thus, for more than a decade, the D.C.

The press is suddenly full of articles talking about how some internet service providers (ISPs) are offering affordable rates to low-income homes now that the Affordable Connectivity Program (ACP) monthly subsidy has died. Some ISPs are extending the $30 discount for a limited time, while others are offering more affordable broadband plans than in the past. Other ISPs are only making a nod towards affordable broadband and some aren’t giving any discounts to low-income households.

This paper hypothesizes that Affordable Connectivity Program (ACP) enrollment decisions are not solely individual, but also influenced by community-wide considerations, such as housing costs, share of occupied houses, presence of anchor institutions such as public libraries, and population density (i.e., whether a place is urban or rural). The paper develops a regression model that predicts ACP enrollment rates among eligible households at the 5-digit zip code geography as a function of the variables discussed above.

A fair reading of Dr. John Horrigan’s work would start by adopting his insight that the Affordable Connectivity Program (ACP) is part of a three-legged stool that during the pandemic helped increase broadband adoption and sustain it for low-income households.

The Affordable Connectivity Program (ACP) came to a close at the start of June, due to a lack of funding and a failed effort in Congress to pass extended appropriations in time. But the program is not entirely dead yet. A couple of potential paths forward have reemerged in Congress.

By connecting more people to the internet via the Affordable Connectivity Program, the savings from reductions in the cost of Medicaid alone could result in a net gain to the government.  And that does not incorporate savings from Medicare, the Veterans Administration, and other government-funded healthcare programs.  Further, there are other savings related to other government programs.  For lower-income individuals, adopting in-home broadband increases their likelihood of employment by 14%, with 62% of those newly connected households citing the connection as having helped them or a 

The Federal Communications Commission proposed action to help protect America’s communications networks against cyberattacks by improving internet routing security. The proposal would require broadband providers to create confidential reports on the steps they have taken, and plan to undertake, to mitigate vulnerabilities in the Border Gateway Protocol (BGP), the technical protocol used to route information across the internet. The nation’s largest broadband providers would also be required to file specific public data on a quarterly basis demonstrating their BGP risk mitigation progress.

The Federal Communications Commission adopted a three-year, $200 million Schools and Libraries Cybersecurity Pilot Program.  This program will allow the FCC to obtain actionable data about which cybersecurity services and equipment would best help K-12 schools and libraries address the growing cyber threats and attacks against their broadband networks. From this program, the FCC aims to learn how to improve school and library defenses against sophisticated ransomware and cyberattacks that put students at risk and impede their learning.

The Federal Communications Commission proposed updated rules to offer greater flexibility in supporting providers’ deployment of high-speed internet services in high-cost, rural communities. FCC broadband deployment programs target communities where the high cost of deployment makes it difficult for private funding alone to make deployment cost-effective.