Doug Dawson

The Birth of the Digital Divide

I define the digital divide as a technology gap where good broadband is available in some places, but not everywhere. The technology divide can be as large as an entire county that doesn’t have broadband or as small as a pocket of homes or apartment buildings in cities that got bypassed. Until late in the 1990s, the only way for most people to get onto the Internet was by the use of dial-up access through phone lines.  At first, dial-up technology was only available to people who lived in places where an ISP had established local dial-up telephone numbers.

Right to Place Telecommunication Infrastructure

A legal decision in New York State found that the Village of Flower Hill reserved the right to deny ExteNet, an agent of Verizon Wireless, from placing small cell sites within the Village. The decision raises interesting legal and other issues about telecommunications infrastructure. ExteNet was hired by Verizon Wireless to place 66 small cells site in and around the Village, including 18 within the Village, for the stated purpose of strengthening the existing 4GLTE network.

Cable Companies Tout Speed Increases

The NCTA—The Internet and Television Association, an industry trade and lobbying association for large cable companies, recently touted big increases in broadband speeds since the start of the pandemic. Specifically, NCTA states that the average U.S. download speed has grown from 138 Mbps in March 2020, the first month of the pandemic, to 226 Mbps in June 2022. Obviously, the cable companies are taking credit for much of the speed increase, and to some extent, that’s true.

Big Telecom Companies and the Broadband Equity, Access and Deployment Program Grants

We’re finally starting to gain a picture of how the big telecommunication companies (telecos) are preparing to leverage the upcoming Broadband Equity, Access and Deployment (BEAD) grants. Chiefly, large telecos all say they will be building rural fiber with grant funding – which is what rural America most desires. But a lot of rural folks blame the big telcos for the current miserable state of rural broadband. There are several big fears that I hear voiced about the big telcos winning the grant funding.

Is 75% Grant Funding Enough?

It seemed like a really big deal when the ReConnect program and the new Broadband Equity, Access, and Deployment (BEAD) grants upped the amount of federal grants to 75% of funding. But, I still see a lot of situations where a 75% grant is not enough assistance to create a viable ongoing business plan. It is the interplay of many variables that determine the percentage of grant funding that is needed for any particular broadband provider in a given market.

Traditional Big Broadband Providers Stagnate

In the first quarter of 2022, the big cable companies added 482,000 customers while telecommunications companies (telecos) added over 50,000 customers. In what is a surprise to the industry, that growth has disappeared in the second quarter, and all of the big broadband providers collectively lost almost 150,000 customers.

The CHIPS Act and Wireless

The recently enacted CHIPS and Science Act of 2022 is providing a lot of funding to bring more chip manufacturing back to the US. This funding fills a big hole in the US supply chain. Specifically, the CHIPS legislation: Appropriates $1.5 billion for the Public Wireless Supply Chain Innovation Fund, to spur movement towards open-architecture, software-based wireless technologies, funding innovative, ‘leap-ahead’ technologies in the US mobile broadband market.

The New Open-Access

In the open-access network model, an entity owns a fiber network and allows other broadband providers to use the network to compete for customers.

FCC Maps and Professional Engineers

When the Federal Communications Commission first adopted the new broadband data collection and mapping rules, the FCC had a requirement that broadband providers must get FCC mapping data certified by a professional engineer or by a corporate officer that meets specific qualifications to make the certification. The genesis of this ruling was fairly clear – the FCC has taken a lot of flak about broadband providers that have been submitting clearly inaccurate data about broadband coverage. To some degree, this was the FCC’s fault because the agency never reviewed what broadband providers submi

Who Should Report to the FCC Mapping?

I think there are a lot of broadband providers that are not participating in the Federal Communications Commission's data collection effort that the industry refers to as the broadband maps. I often run across small regional wireless service providers (WISPs) and occasionally across fiber overbuilders that are not listed in the database. These broadband providers generally have a website that lists broadband rates and coverage areas – but for whatever reason, these broadband providers do not participate in the FCC mapping database. My guess in most cases is that these small broadband provid

Who is the Fastest Internet Service Provider?

I regularly run across articles that ask which major internet service provider (ISP) is the fastest. Most of these articles get their speed data from Ookla, which publishes comparative median broadband speeds for mobile and landline ISPs each quarter, like in this report for the second quarter of 2022. Americans love a horse race – we like to rank things, and articles that rank ISPs grab readers. But we have to take articles based upon the Ookla rankings with a grain of salt.

Comcast and Charter Losing Broadband Customers

It’s big news that both Comcast and Charter lost broadband customers in the second quarter of 2022. Both companies have steadily gained customers every quarter over the last decade. Comcast blames the customer loss on two factors.

Always Online Customers

Recent Ookla analysis has revealed some interesting trends in mobile broadband usage that I think have implications for internet service providers (ISPs). The percentage of consumers who describe themselves as always online grew from 30 percent to 69 percent during the pandemic, and Ookla delves into some of the reasons why. By 2021, users who identified as always online were twice as likely to have reported an issue to customer service. About one-third of cellular customers are unhappy with customer service.

Is a Fiber Roll-up Coming?

When I look at all of the new market entrants into the broadband industry and the frenetic pace that internet service providers (ISPs) of all sizes are building fiber, one of the first thoughts that come to my mind is this is an industry that is headed for a roll-up. There has already been some consolidation of last-mile fiber networks, but the handful of networks that have been purchased will pale against the big roll-ups that I think will be coming in a few years. The industry will be ripe for roll-ups for several reasons.

Licensed Spectrum and Broadband Mapping

Broadband Equity, Access and Deployment (BEAD) Program grants in a given location could go sideways because of the National Telecommunications and Information Administration (NTIA)’s decision to declare facility-based wireless technologies that use licensed spectrum to be considered as a reliable technology that is eligible for BEAD grants. I can foresee two different problems that might result from this decision.

Reusing Existing Easements

Keller & Heckman recently highlighted an issue that anybody building fiber on utility poles should be aware of. In some cases, an easement obtained for using private land to bring electric service might not automatically allow an easement for bringing fiber. There is a subtle difference between easements and rights-of-of way. An easement allows somebody to carry out an activity on private land.

Should Grant Networks Allow High Prices?

Should higher-than-market rates be allowed on a broadband network that is being subsidized with public funding? Should an agency that awards grants or other broadband subsidies somehow insist that broadband rates are somehow tied to market rates? That’s a lot harder question to answer than you might think because the question implies that these agencies have the power to regulate or cap broadband prices in grant areas. The Ajit Pai Federal Communications Commission voluntarily gave away the right for the FCC to regulate broadband rates when it gave up Title II authority.

Please Make Broadband Grant Applications Public

Most broadband grant programs do not publish open grant applications for the public to see. But we are in a time when a broadband provider that is awarded funding for bringing a new broadband network is likely to become the near-monopoly provider in a rural area for a decade or two to come. The public ought to get to see who is proposing to bring them broadband so that these decisions are not made behind closed doors. It turns out that the Nebraska Public Service Commission posts grant applications online.

Small Broadband Providers and the Affordable Connectivity Program

Several small broadband providers are having trouble navigating the Federal Communications Commission’s Affordable Care Program (ACP). They are wondering if they should drop their participation. There is no one major specific complaint about the administration of the program but a string of problems. The ACP rules are overly complex. There doesn’t seem to be any training available to providers joining the program. The ACP system returns unhelpful error messages when something doesn’t work. Why are these kinds of issues problematic for smaller providers?

Planning for Churn

One of the factors that need to be considered in any business plan or forecast is churn – which is when customers drop service. I often see internet service providers (ISPs) build business plans that don’t acknowledge churn, which can be a costly oversight. There is a maxim among last-mile fiber networks that nobody ever leaves fiber to go back to a cable company network. That’s not entirely true, but it’s a recognition that churn tends to be lower on a last-mile fiber network than with other technologies. I wrote a recent blog that asked if broadband is recession-proof.

The FCC Tackles Pole Replacements

In March 2022, the Federal Communications Commission issued a Second Further Notice of Proposed Rulemaking (FCC 22-20) that asks if the rules should change for allocating the costs of a pole replacement that occurs when a new carrier asks to add a new wire or device onto an existing pole. The timing of this docket is in anticipation of a huge amount of rural fiber construction that will be coming as a result of the tsunami of state and federal broadband grants. The current rules push the full cost of replacing a pole onto the entity that is asking to get onto the pole.

Unlicensed Spectrum and Broadband Equity, Access and Deployment Program Grants

There is a growing controversy brewing about the National Telecommunications and Information Administration (NTIA)’s decision to declare that fixed wireless technology using only unlicensed spectrum is unreliable and not worthy of funding for the Broadband Equity, Access and Deployment (BEAD) Program grants. The Wireless Internet Service Providers' Association (WISPA), the lobbying arm for the fixed wireless industry, recently stated that the NTIA has made a big mistake in excluding WISPs that use only unlicensed spectrum.

A New Definition of Broadband?

Federal Communications Commission Chairman Jessica Rosenworcel has circulated a draft Notice of Inquiry inside the FCC to kick off the required annual report to Congress on the state of US broadband. As part of preparing that report, she is recommending that the FCC adopt a new definition of broadband of 100/20 Mbps and establish gigabit broadband as a longer-term goal. First, the FCC is late to the game since Congress has already set a speed of 100/20 Mbps for the Broadband Equity, Access and Deployment (BEAD) Program and other federal grant programs.

Improving Network Resiliency

The Federal Communications Commission is requiring changes that it hopes will improve the reliability and resiliency of cellular networks to be better prepared for and respond better to emergencies. The FCC's order cites recent emergencies like Hurricane Ida, the earthquakes in Puerto Rico, severe winter storms in Texas, and worsening hurricane and wildfire seasons. This makes me wonder if we might someday see similar requirements for internet service providers (ISPs) and broadband networks.