Analysis

Regulating Hidden Fees

Big telecommunication companies (telcos) and almost every large cable company use what the industry calls "hidden fees." These fees are not mentioned when advertising for a service but are put onto customer bills. There is a class action lawsuit in California that shows why broadband providers are not worried about using hidden fees. In times past, when the big companies were regulated, they might have been ordered to make a 100% refund of a fee that regulators decided was questionable.

Economy-of-Scale for Broadband Providers

I’ve worked with a number of small communities that want to explore the idea of having a community-owned broadband provider. My advice to small communities is the same as with all clients – economy-of-scale really matters for providers. Economy-of-scale is the economic term for describing how businesses get more efficient as they get larger. A large percentage of the costs of operating a broadband provider is fixed or nearly fixed. Any fixed cost acts in the same manner as the general manager’s salary.

Defaulting on the Rural Digital Opportunity Fund

Starry has defaulted on all of its $269 million of Rural Digital Opportunity funding (RDOF). There have been other defaults of RDOF, but no others of this magnitude. Starry is not required to disclose why it’s defaulting. Though, in the many articles about the RDOF default, there was a lot of speculation that the company doesn’t have the needed funding to complete the required builds. Starry reported 77,400 customers at the end of the second quarter of 2022 – gaining 14,300 customers in the quarter. The company claimed that it now passes 5.7 million potential customers.

Dollars to Megabits, You May Be Paying 400 Times As Much As Your Neighbor for Internet Service

AT&T, Verizon, EarthLink, and CenturyLink disproportionately offered the worst internet deals to neighborhoods that were formerly redlined, whose residents are lower income and have a higher concentration of people of color than other parts of the city.

Rural America is Losing Patience

Local broadband advocates and politicians tell me that folks with little or no broadband are hounding them about when they are going to see a broadband solution. A large part of the frustration is that folks have heard that broadband is coming to rural America, but they aren’t seeing any local progress or improvement. A big part of the reason for this frustration is that folks aren’t being given realistic timeframes for when they might see a solution.

FCC's ACP Pilot Programs Coming Soon

The Federal Communications Commission set guidelines for two pilot programs aimed at increasing both awareness of and participation in the Affordable Connectivity Program, which provides a discount of up to $30 per month toward internet service for eligible households (and up to $75 per month for households on qualifying Tribal lands). On October 11, the FCC provided an update on the implementation of the pilot programs.

United States' Mobile and Fixed Broadband Internet Speeds Quarter 3 2022

A market analysis, based on Q3 2022 mobile data, which examined several categories, including upload speeds, multi-server latency, consistency, video score, 5G video score, 5G performance, 5G availability, and 5G consistency. See the following for the rankings of each mobile provider in each category:

Please Don’t Force Low Rates

The National Telecommunications and Information Administration (NTIA) conducted an annual broadband survey in 2021. The survey asked folks who didn’t have home broadband what they would be willing to pay, with the question, “At what monthly price, if any, would your household buy home Internet service?” The purpose of the survey was to understand the kind of price points that might be needed to get broadband to more of these households. Three-quarters of respondents said they would only get broadband if it was free. I find this result to be troubling for several reasons:

South Korea “Sender Pays” Is a Warning, Not a Model, or Why (Almost) Everyone Keeps Telling the EU This Is a VERY Bad Idea

Many telecommunications companies are reviving the idea of having content companies pay for last-mile network connections because of the profit it would generate. South Korea serves as a useful predictor of how the bad consequences of this idea play out in real-time. Back in 2016, South Korea adopted a new interconnection rule based on a long-standing telco compensation rule called “sending party network pays” (SPNP).

Michigan All-In on Closing the Digital Divide with American Rescue Plan Support

On October 6, 2022, the U.S. Department of the Treasury approved Michigan's plan to use its full Coronavirus Capital Projects Fund allocation to support broadband expansion in the state.

Virginia Taps Electric Companies to Help Expand Rural Broadband Access

Investor-owned utilities—usually large, publicly traded electricity providers that are regulated by state public utility commissions—can have a major impact in delivering broadband to rural communities and other underserved areas by allowing broadband providers to leverage existing utility infrastructure for new high-speed internet connections. Virginia is one of the first states to employ this strategy through its Utility Leverage Program, which aligns the state’s broadband goals with efforts to modernize its electrical infrastructure to successfully expand broadband service into areas tha

Massachusetts to Launch Broadband Infrastructure Gap Networks Grant Program with Capital Projects Fund Award

Broadband is critical to strengthening our economy, improving educational opportunities, and enhancing the delivery of health care, public safety and other government services. “If you can’t play in this space in the 21st century, you discover that your opportunities are limited,” said Governor Charlie Baker (R-MA).

The Demand for Middle-Mile Fiber

The deadline for the National Telecommunications and Information Administration (NTIA)'s middle-mile grant program just closed, and the NTIA said that it received 235 applications totaling $5.5 billion in grant requests for a $1 billion grant program. I was surprised when the Infrastructure Investment and Jobs Act (IIJA) legislation allocated only $1 billion to middle-mile fiber. That works out to only $20 million per state. It will be interesting to see how the NTIA spreads the funding.

Wisconsin Broadband Infrastructure Projects Get a Boost from American Rescue Plan

Some 8,000 households and businesses in Wisconsin will be connected to high-speed internet access due to the American Rescue Plan Act’s Coronavirus Capital Projects Fund. In his January 2021 State of the State Address, Governor Tony Evers (D-WI) declared 2021 “the year of broadband access" in Wisconsin.

Analysis Shows Offline Households Are Willing to Pay $10-a-Month on Average for Home Internet Service

Our analysis shows affordability as a driving factor around why some households continue to remain offline, confirming that the cost of service is an essential part of increasing Internet adoption. We asked households not using the Internet from home: “At what monthly price if any, would your household buy home Internet service?” Answers to the new question showed that the mean price offline households wanted to pay was approximately $10 per month, though it’s worth noting that three in four households gave $0 or “none” as their answer. Interestingly, households citing expense as their main

Switched Off: Why Are One in Five US Households Not Online?

According to Internet Use Survey Data, which tracks disparities around Internet adoption,  a majority – 58% – of the 24 million offline households express no interest or need to be online. There is also a large proportion who say they can’t afford home Internet service (18%).  Regardless of their stated reasons for non-use, offline households have significantly lower incomes than their online counterparts.

Resounding Silence: The Need for Local Insights in Federal Broadband Policymaking

In the past, the Federal Communication Commission has made sweeping changes that have impacted communities without local input. The federal government is now poised to do the same again. This paper examines the public comment process at the FCC and whether municipal filers ultimately influence the Commission’s decisions. This paper suggests that the FCC must improve its community outreach efforts, specifically through the following suggestions: 

MDUs: The Numbers Look Good, But It’s Too Soon to Tell

Construction of apartments in large, multiple-dwelling-unit (MDU) buildings by nongovernmental builders could set another record this year. Builders received more than 18,000 permits for MDUs with five dwelling units or more in 2021. The properties would contain 552,000 dwelling units, up from 532,000 in 2020.

Starlink and the Rural Digital Opportunity Fund

In August 2022, the Federal Communications Commission denied the SpaceX (Starlink) bid to receive $885 million over ten years through the Rural Digital Opportunity Fund (RDOF). The FCC went on to say in the order that there were several technical reasons for the Starlink rejection. Starlink appealed the FCC ruling. Current federal grant rules don’t allow federal subsidies to be given to any area that is slated to get another federal broadband subsidy. This has meant that the RDOF areas have been off-limits to other federal grants since the end of 2020.

Five Model Practices for Partnerships in Smart City Projects

 US Ignite curates the best practices in designing and delivering smart city projects with leading-edge municipalities. These five practices on handling partnerships can help any smart city service, project, or application – at any phase – find success:

The cost of running fiber in rural America: $200,000 per passing

A US Department of Agriculture (USDA) release of the latest grant winners for the ReConnect broadband deployment program was the cost of deploying fiber in rural America. Looking at rural Alaska as an example, the Alaska Telephone Company, which won a $33 million grant, is planning to run fiber to 211 homes and five businesses at a staggering cost of nearly $204,000 per passing. In addition to the grant, the operator said it plans to invest $11 million of its own money in the project.

Lobbying the Broadband Equity, Access, and Deployment (BEAD) Rules

Thirteen Republican Senators sent a letter to the National Telecommunications and Information Administration (NTIA) asking the agency to change its approach to administering some of the provisions of the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) grants. The letter specifically asked for changes related to rate regulation, technology preference, provider preference, workforce requirements, middle mile deployments, and the application review process (You can read the letter here). It’s

The Critical Role of Web Accessibility in Health Information Access, Understanding, and Use

Older adults and people with disabilities cannot equitably access the same health information and care as people without disabilities when hospital websites are not accessible. The American Health Information Management Association (AHIMA) found the following key insights relating to digital accessibility and its importance to older Americans:

  • Hospitals and health care systems in the U.S. need continuing education on the role of web accessibility in American Disability Act (ADA) compliance given the significance of newly issued federal guidance.

Faster Speeds for Comcast

Comcast recently announced it is introducing a 2-gigabit download broadband product. Along with faster download speeds, Comcast is claiming new upload speeds of as much as 200 Mbps – at least for the 2 Gbps plan. The company made it sound like all upload speeds would be increased by five to ten times the existing speeds. Interestingly, the same announcement said that Comcast would be introducing DOCSIS 4.0 in 2023, at least for some business customers. That’s an announcement that has me scratching my head. Comcast just announced a successful test for DOCSIS 4.0 in January of 2022.