July 2014

Closing the Wi-Fi Gap by connecting all schools and libraries is a laudable goal, but how do the numbers add up over a five-year period? We are on track to free $2 billion in reserves that we are prepared to spend over the next two funding years.

Funds for the following three years would come from two significant changes. First, we would phase down support for non-broadband services, like pagers, email and, over a multi-year period, voice service. Those funds -- nearly $1.2 billion in the E-rate program -- would be repurposed to support Wi-Fi. Second, we would achieve significant cost savings in the program within the new “category two” Wi-Fi bucket (see recent announcement with GSA for example), and for the priority one (proposed to be called “category one”) services we continue to fund through improved pricing transparency and facilitating increased use of consortia-enabled bulk purchasing.

Is anything being done to address non-Wi-Fi connectivity needs in the Chairman’s proposal? Yes. In addition to closing the Wi-Fi gap, the proposal would make E-rate rules fairer so funding for internal connections is available to the vast majority of schools and libraries, rather than just a few. In addition, the proposal would streamline the program and institute reforms to ensure current funds are maximized.

What will this plan mean for rural schools and libraries? The Chairman’s modernization proposal, if adopted, would significantly expand access to Wi-Fi funding in rural areas. The proposal would close the Wi-Fi gap that currently exists in the program -- a change that would enable at least an additional 6 million children, disproportionately in rural areas, to access Wi-Fi and the 21st Century educational tools it enables during the 2015 funding year alone.

What will the effect of this plan be on urban districts? Urban schools will benefit significantly under the Chairman’s proposal.
Does the proposal make E-Rate funding more equitable? Yes. The Chairman’s proposal maintains the basic structure of the E-rate program -- discounts on the services each applicant actually needs, based on their circumstances. The difference is it would require a common sense budget for Wi-Fi spending, which would keep a few big spenders at the front of the line from using all the funding.

[Sohn is Special Counsel for FCC External Affairs, Office of the Chairman; Halley is Associate Chief, FCC Wireline Competition Bureau]

The Pueblo of Acoma is located in Cibola County (NM), where nearly half of residents (45%) don’t even have access to 3 Mbps broadband, which is less than what’s recommended to stream HD video without problems. Barely 10 % have access to 10 Mbps broadband. We must do better.

In communities like Acoma with low broadband access rates, the local library is often a digital lifeline for area residents. The Federal Communications Commission’s E-Rate program has supported basic Internet access for the Acoma Learning Center. But it could be doing more.

That’s why E-Rate modernization is so important. The Commission will consider a proposal to update and improve the program, making E-Rate dollars go farther, and streamlining the program to make it faster, simpler, and more efficient.

The proposal would also close the gap for Wi-Fi support that currently exists in the program -- a change that would enable an additional 6 million children, disproportionately in rural areas, to access Wi-Fi and the 21st Century educational tools it enables during the 2015 funding year.

One of the key benefits of the E-rate order under consideration is that it will significantly expand access to Wi-Fi funding available for rural areas like Cibola County. Historically urban areas have received nearly 60% of internal connections support despite serving under 30% of all students, while rural applicants are crowded out. With improved rules, over the next 5 years Wi-Fi funding for rural schools would be increased by 75 %. Urban schools will also do better, seeing an increase in support of 60%.

Our E-Rate modernization proposal also commits to enhance the Commission’s Tribal consultation, training, and outreach to better inform and empower Tribal schools to effectively access E-rate funding. Through this effort we seek to gain a better understanding of the current state of connectivity among Tribal schools and libraries to enable the Commission to take steps that will reduce the digital divide and promote high-speed broadband connectivity to Tribal lands.

A US solar panel manufacturer whose business secrets were allegedly stolen by Chinese computer hackers has asked the US government to investigate the matter, setting in motion a process that could see the United States impose trade penalties for the first time in response to state-sponsored cyber-espionage against an American company.

In a filing with the Commerce Department on July 1, the US subsidiary of German company SolarWorld, which builds solar panels and equipment, asked officials to investigate allegations contained in a recent criminal indictment accusing five members of the People's Liberation Army with hacking the company's computers and stealing proprietary information.

Prosecutors say that the hackers took SolarWorld's price lists, product designs, and communications between the company and its lawyers in a series of computer incursions that began in 2012. SolarWorld wants Commerce Department officials to question Chinese officials and request documents about Beijing's alleged cyberspying.

One Billion. That’s how many World Cup-related posts, comments, and likes 220 million people on Facebook have made in the course of conversation since the tournament began on June 12.

Engagement on Facebook around the knockout matches pushed the overall interactions number over the 1 billion mark. Facebook generally sees a large amount of conversation around sporting events, but the World Cup has proven to be a unique moment.

Facebook’s data editors have never measured an event -- sports or otherwise — that has topped a billion interactions.