Daily Digest 10/21/2021 (Rural Digital Opportunity Fund)

Benton Institute for Broadband & Society
Table of Contents

Broadband Infrastructure

FCC Announces $554 Million From Rural Digital Opportunity Fund for Broadband in 19 States  |  Read below  |  Public Notice  |  Federal Communications Commission
Good News for Windstream, Bad News for LTD Broadband in Latest FCC RDOF Action  |  Read below  |  Joan Engebretson  |  telecompetitor
Land O’Lakes details how agriculture is transforming digitally  |  Read below  |  David Carr  |  VentureBeat
AT&T Invests in Louisiana Network Resiliency  |  Read below  |  Press Release  |  AT&T
Benton Foundation
Building Internet Resilience from the Ashes of the Holiday Farm Fire  |  Read below  |  Op-Ed  |  Benton Institute for Broadband & Society

Digital Inclusion

Connecting Philadelphia: 2021 Household Internet Assessment Survey  |  Read below  |  Research  |  City of Philadelphia
Broadband is Missing from Biden-Harris Equity Fact Sheet  |  Read below  |  John Eggerton  |  Multichannel News
NTCA Tells FCC Low-Income Consumers Need Affordable Voice Service  |  Read below  |  Michael Romano  |  Analysis  |  NTCA–The Rural Broadband Association
The ‘Broadband Gap’ Is Now a Housing Problem  |  Wired

Spectrum/Wireless

Regulation and innovation in 5G markets  |  Read below  |  Johannes Bauer, Erik Bohlin  |  Research  |  Telecommunications Policy
Stop putting Band-Aids on telecom shortfalls — jump ahead to 5G  |  Read below  |  Bryan Clark, Dan Patt  |  Op-Ed  |  Hill, The

Security

House of Representatives Passes Four Bipartisan Bills to Strengthen US Telecom Infrastructure  |  Read below  |  Press Release  |  House Commerce Committee
FCC Commissioner Carr Applauds House Passage of Secure Equipment Act  |  Federal Communications Commission

Ownership

Lawmakers Ask FCC to Act on National Security Risks from Foreign Telecom Companies  |  Read below  |  Sen Ron Wyden (D-OR)  |  Letter  |  US Senate

Platforms/Social Media

Donald Trump launching new social media platform, TRUTH Social  |  ABC
Sen Blumenthal asks Facebook CEO Mark Zuckerberg to testify about Instagram's impact on kids  |  Read below  |  Sen Richard Blumenthal (D-CT)  |  Letter  |  US Senate
Facebook doubles down on curated News Tab  |  Read below  |  Sara Fischer  |  Axios
World Doctors Alliance, the group that spread false Covid claims, doubled Facebook interactions in six months  |  Guardian, The
Facebook Can't Hide Its Problems Behind a New Name  |  Wired
Facebook will start downranking your Groups posts if you break its rules  |  Vox
FTC Data Spotlight on scammers impersonating Amazon: How businesses can reduce injury to consumers  |  Federal Trade Commission
Amazon offers up more data to tell third-party sellers which items will be popular  |  Vox
Amazon Employee Group Seeks Worker Vote on Unionization  |  Wall Street Journal
Amazon Missed French Deliveries Goal After Warehouse Closures  |  Bloomberg
Phishing campaign targets YouTube creators with cookie theft malware  |  Google
Path to Metaverse Expected to Go Through Videogames  |  Wall Street Journal
Tech companies learn that leaks are inevitable and operations to close them rarely work  |  Axios

Diversity/Media

The Inclusion Imperative: Why Media Representation Matters for Kids' Ethnic-Racial Development  |  Common Sense Media
Black Viewers Join Streaming Exodus | Pay TV penetration drops as options multiply  |  Multichannel News

Company News

Verizon reports strong third-quarter revenue growth momentum  |  Read below  |  Press Release  |  Verizon

Stories From Abroad

EU’s Ambitious New Tech Rules to Be Delayed Further Into 2022  |  Read below  |  Jillian Deutsch, Nikos Chrysoloras  |  Bloomberg
Facebook Fined $70 Million in UK Over Giphy Merger Breach  |  Wall Street Journal
Today's Top Stories

Broadband Infrastructure

FCC Announces $554 Million From Rural Digital Opportunity Fund for Broadband in 19 States

Public Notice  |  Federal Communications Commission

The Federal Communications Commission announced that it is ready to authorize $554,150,641 million in its third round of funding for new broadband deployments through the Rural Digital Opportunity Fund (RDOF). Together with two prior funding wave announcements, the FCC has now announced over $1 billion in funding to winning bidders for new deployments. In this funding wave, 11 broadband providers will bring fiber-to-the-home gigabit broadband service to over 180,000 locations in 19 states. The 19 states slated for funding are Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kentucky, Maine, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, New Mexico, Ohio, South Carolina, Texas, and Wisconsin. Michigan and Georgia received the most funding in this wave, $188 million and $149 million, respectively.  The FCC continues close review of the applications of other winning bidders that were previously announced to ensure they meet the program’s technical, financial, and legal requirements. These efforts continue the agency’s work to clean up the program to ensure that funding goes to unserved areas that need broadband.

Good News for Windstream, Bad News for LTD Broadband in Latest FCC RDOF Action

Joan Engebretson  |  telecompetitor

In the latest round of Rural Digital Opportunity Fund awards, the Federal Communications Commission said it is ready to authorize funding for Windstream and 11 other companies. Windstream winning bids fill more than 60 of the 80 total pages that comprise the list. The FCC said it is ready to authorize Windstream winning bids in Alabama, Arkansas, Georgia, Iowa, Kentucky, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, South Carolina and Ohio. LTD Broadband is not among them and the company got some bad RDOF news from the FCC. The commission said it would not extend the deadline for the company to receive eligible telecommunications carrier (ETC) status in North Dakota, Nebraska and Iowa. Winning bidders are required to have ETC designation in states for which they won funding and the deadline to obtain that designation was June 7, 2021. The FCC took issue with the fact that LTD didn’t file with the public service commissions (PSCs) in the three states until five months after being advised of its winning bids. LTD Broadband had requested a waiver in these states, saying that it understood that the PSCs could issue ETC approvals within 30 days and its ETC filings were made 30 days before the deadline.

Land O’Lakes details how agriculture is transforming digitally

David Carr  |  VentureBeat

The modern farmer operates in a business ecosystem that includes equipment manufacturers, chemical companies, food distributors, banks and insurance companies, employees, and government regulations. The success of a farming business, according to Land O'Lakes CTO Teddy Bekele, revolves around 40 “mega decisions” about what and when to plant, when and how to fertilize, feed, and harvest, and how to market and sell. These are all problems data and technology can help solve, Bekele said. However, the information technology innovators taking aim at improving harvests and making the business of farming more profitable have proliferated to such an extent that “market clutter” has become a problem of its own. One fundamental challenge is that even where solutions exist and farmers are eager to take advantage of them, the lack of broadband connectivity in rural areas gets in the way of tapping into the cloud. Bandwidth is often mediocre in the farmhouse and poor-to-nonexistent at the farm or out in the field, according to Bekele. One promising solution Land O’Lakes has been pursuing in cooperation with internet providers is working with the cooperative’s network of agricultural retailers in farming communities to erect more towers for cellular bandwidth.

AT&T Invests in Louisiana Network Resiliency

Press Release  |  AT&T

AT&T announced it is investing tens of millions of dollars to further harden its network in Louisiana against the impact of hurricanes and tropical storms by burying fiber-optic infrastructure previously deployed on poles across some of the hardest-hit areas during Hurricane Ida. Previous reporting indicated that AT&T plans to swap copper for fiber in significantly damaged areas.  The primary focus of the project is work in parts of the Bayou parishes and in and around the New Orleans area, including Jefferson, Lafourche, Orleans, St Charles, St James, and Terrebonne parishes. The fast-tracked project is targeted for completion in the first half of 2022 with a majority of the work scheduled for completion in 2021. As a result of decades of investment in Louisiana, AT&T's extensive fiber-optic network connects businesses and residents in communities across the state and provides critical backhaul for its wireless network. In the aftermath of Hurricane Ida, multiple cuts to key fiber-optic lines occurred in storm-impacted areas, and this new initiative will help enhance network resiliency in future storms.

Building Internet Resilience from the Ashes of the Holiday Farm Fire

Blue River, the hub of the McKenzie River Valley in rural Lane County, Oregon, is no stranger to natural disasters. In September 2020, this former mining and timber town burned to the ground in the Holiday Farm fire. However, despite the challenges, Blue River’s story is one of resilience. It’s the story of a town’s desire to not merely survive but thrive. Blue River is building back its internet infrastructure in a way that will make its community stronger, safer, and better connected than ever. Onward Eugene, a 501(c)3 nonprofit with expertise in creating inclusive economic prosperity, believes that communities thrive when all members are valued and engaged in solving the challenges of tomorrow. These values are shared by the McKenzie School District and a cutting-edge private-sector technology company,  Elevate Technology Group, the local organizations behind Project OVERCOME. Their goal is to expand internet connectivity in the McKenzie River Valley and help revitalize the Blue River community.

[US Ignite is accelerating the smart community movement – and creating value for an entire ecosystem – by guiding communities into the connected future, creating a path for private sector growth, and advancing technology research that’s at the heart of smart city development.]

Digital Inclusion

Connecting Philadelphia: 2021 Household Internet Assessment Survey

Research  |  City of Philadelphia

This report explores broadband and computer connectivity in Philadelphia, with a special focus on connectivity since the COVID-19 pandemic. Notable findings include:

  • Home broadband adoption grew from 70 percent (according to the 2019 American Community Survey) to 84 percent in Philadelphia according to data released from a June-July 2021 survey of 2,500 Philadelphia city households.
  • More than half of growth is due to discount programs: Of the 14 percentage-point increase, more than half is attributable to households signing up for free or discount internet offers (e.g. Comcast Internet Essentials, T-Mobile Project10million, or the Emergency Broadband Benefit).
  • Post-pandemic connectivity gains are tenuous. 32 percent of all households are "subscription vulnerable" in that they would have a difficult time maintaining service without a discount offer or experienced service interruption in the pandemic due to difficulty in paying bills.
  • Awareness of free/discount programs: 13 percent of all households had heard of the EBB and 31 percent had heard of discount programs such as Internet Essentials.
  • Affordability is the chief barrier to not having service: 42 percent cite cost as the most important reason they lack home broadband, 22 percent say their smartphone is sufficient, 14 percent are not interested in service, and 12 percent lack "digital readiness" for using the internet.

[Benton Senior Fellow John B. Horrigan designed and analyzed the survey]

Broadband is Missing from Biden-Harris Equity Fact Sheet

John Eggerton  |  Multichannel News

The Biden Administration has released a fact sheet on its efforts to advance equity and opportunity, including educational opportunities for Black people. But neither in that pages-long email to reporters nor in a new executive order from President Biden on further advancing equity is broadband even mentioned in the equity equation. Both goals clearly implicate broadband access, whether it‘s used to start online businesses or to close the homework gap. The administration has succeeded in getting billions of dollars in subsidies for broadband and is trying to get tens of billions more, making a point of how important it is to close the digital diversity divide in part by making broadband more affordable. In the section on “Ensuring Equitable Educational Opportunity in K-12 Schools and Higher Education,“ the fact sheet cites investment in reopening schools for in-person instruction. It makes no mention, though, of the billions in emergency aid the administration is spending and the FCC is administering that could help close the homework gap that over-indexes for low-income rural and urban areas. Under improving health outcomes for Black communities, the administration makes no mention of the millions of dollars the FCC had to stand up quickly to help subsidize remote healthcare.

NTCA Tells FCC Low-Income Consumers Need Affordable Voice Service

Michael Romano  |  Analysis  |  NTCA–The Rural Broadband Association

In meetings with Federal Communications Commission staff, NTCA–The Rural Broadband Association reiterated its support for ensuring that lowincome consumers have affordable access to the voice service they need and therefore urged the Commission to retain the Lifeline subsidy for stand-alone voice service. Voice service remains critical for many low-income and older individuals who rely on such service as an affordable method of contacting health care providers, government agencies, and public safety. NTCA further stressed the urgent need for FCC action on the National Association of State Utility Consumer Advocates petition for reconsideration seeking to maintain Lifeline support for stand-alone voice service. Carriers all across the nation will very soon be required to inform low-income consumers of the loss of this critical subsidy if Lifeline support for standalone voice service is not retained – indeed, notices must be included in subscriber bills very soon in order to arrive by November 1. If the FCC elects to retain the voice-only discount after the required notices are provided and tariffs are amended, there is substantial likelihood for customer confusion.

Spectrum/Wireless

Regulation and innovation in 5G markets

Johannes Bauer, Erik Bohlin  |  Research  |  Telecommunications Policy

This article examines the roles and consequences of different approaches to 5G market design for innovation. The analysis is grounded in a conceptual framework that explicitly considers the complementarities among networks, applications, and services. Good policy arrangements align the legal and regulatory framework with the technical and economic characteristics of the sector and the broader, social visions for new technologies. Because the future development of 5G technology and markets is open-ended, policy has to be developed with incomplete knowledge and under conditions of uncertainty. These circumstances call for adaptive forms of policy and a focus on the creation of guardrails for market players, backed up by regulatory powers to intervene more directly if necessary. In the technologically dynamic 5G system, multiple stable policy constellations are feasible, but they likely will result in divergent outcomes and performance characteristics. Monitoring of the experience with different national and international developments will facilitate global learning and the incremental improvement of policy frameworks.

Stop putting Band-Aids on telecom shortfalls — jump ahead to 5G

Bryan Clark, Dan Patt  |  Op-Ed  |  Hill, The

Across America, 5G mobile networks are going up, which eventually will supplant the internet backbone we use for nearly all communications. With minor changes, the Pentagon’s ongoing 5G demonstrations, 2020's appropriations to replace Chinese network equipment, and the proposed Infrastructure and Jobs Act could combine to spur deployment of open 5G architectures that would create a market for US telecommunications equipment builders and installers. Analysts have noted today’s 5G networks generally provide only modest improvements over 4G LTE systems. Open radio access networks, or O-RAN, would allow easier installation of better hardware over time compared to integrated proprietary networks. More importantly, O-RAN would allow hardware to be virtualized, or replaced by software, which would improve performance and allow the introduction of features such as machine learning and edge processing needed for applications such as traffic control or remote surgery. The Federal Communications Commission, Congress and the Department of Defense should not miss this rare opportunity to apply billions of dollars toward the next generation in communications technology. Rather than putting Band-Aids on today’s security and broadband coverage shortfalls, the shift to 5G O-RAN will help revive the US telecommunications industry and enable long-term economic growth.

[Bryan Clark is a senior fellow at the Hudson Institute and director of the Hudson Center for Defense Concepts and Technology. Dan Patt is a senior fellow at the Hudson Center for Defense Concepts and Technology.]

Security

House of Representatives Passes Four Bipartisan Bills to Strengthen US Telecom Infrastructure

Press Release  |  House Commerce Committee

The House of Representatives passed four bipartisan communications and technology bills on October 20:

  • H.R. 4067, the “Communications Security Advisory Act of 2021,” would direct the Federal Communications Commission to make permanent a recently recharted council to make recommendations on ways to increase the security, reliability, and interoperability of communications networks.
  • H.R. 3919, the “Secure Equipment Act of 2021,” would prohibit the FCC from reviewing or approving any authorization for wireless equipment from a provider that is on the list of those that pose an unacceptable risk to national security.
  • H.R. 4032, the “Open RAN Outreach Act,” would require the Assistant Secretary of Commerce for Communications and Information, acting through the head of the Office of Internet Connectivity and Growth, to conduct outreach and provide technical assistance to small communications network providers to raise awareness of the benefits, uses, and challenges of Open Radio Access Network (RAN) networks and other open network architectures. The legislation also requires the Assistant Secretary to raise awareness about, and participation in, the Wireless Supply Chain Innovation Grant Program.
  • H.R. 4028, the “Information and Communication Technology Strategy Act,” would require the Secretary of Commerce to report on and develop a whole-of-government strategy with respect to the economic competitiveness of the information and communication technology supply chain, and for other purposes.

Ownership

Lawmakers Ask FCC to Act on National Security Risks from Foreign Telecom Companies

Sen Ron Wyden (D-OR)  |  Letter  |  US Senate

Sens Ron Wyden (D-OR), Chris Van Hollen (D-MD), Richard Blumenthal (D-CT), Dick Durbin (D-IL), and Edward J Markey (D-MA) wrote a letter urging the Federal Communications Commission to take action in response to national security risks posed by foreign companies that manage and service US wireless phone networks. Although the US government has responded forcefully to risks from Chinese hardware manufacturers, including Huawei and ZTE, it has not yet accounted for risks from foreign companies that operate or maintain US networks. Indeed, there is not even a comprehensive accounting of how many foreign companies provide such services to US networks. Many foreign service providers are subject to foreign surveillance laws, and as such, could be forced to abuse their access to US networks to help foreign intelligence services spy on American subscribers. In addition to the threat of compelled surveillance assistance, the senators are also concerned by media reports suggesting that managed service providers may be partnering with for-profit surveillance companies, creating the possibility that these companies could provide their authoritarian clients with trusted access to US telecommunications networks. The senators asked the FCC to identify foreign managed service providers and work with the Office of the Director of National Intelligence and other agencies to identify high-risk firms that could threaten US national security.

Platforms/Social Media

Sen Blumenthal asks Facebook CEO Mark Zuckerberg to testify about Instagram's impact on kids

Sen Richard Blumenthal (D-CT)  |  Letter  |  US Senate

Sen Richard Blumenthal (D-CT) urged Facebook CEO Mark Zuckerberg to participate in a Congressional hearing on Instagram and its impact on kids in a letter October 20. The Chair of the Senate Commerce Subcommittee on Consumer Protection, Product Safety and Data Security cited the testimony of Facebook whistleblower Frances Haugen and the Wall Street Journal's reports on Facebook as cause for the CEO's appearance before his subcommittee. "These revelations all paint a picture of a powerful corporation that has failed to act to protect teens because it prioritized its financial bottom line over safety," Blumenthal stated. "I am disappointed that Facebook has been unwilling to be fully transparent with me, other members of Congress, and the public, and appears to have concealed vital information from us about teen mental health and addiction." The senator also left open the option for Zuckerberg to send Instagram chief Adam Mosseri instead. "It is urgent and necessary for you or Mr. Adam Mosseri to testify to set the record straight and provide members of Congress and parents with a plan on how you are going to protect our kids," said Blumenthal.

Facebook doubles down on curated News Tab

Sara Fischer  |  Axios

Facebook is looking to introduce more news products for its News Tab in the coming months, including more curated collections around big events and breaking news. The News Tab, a separate destination for news on Facebook from publishers selected by the tech giant, has helped the company address regulatory scrutiny that it doesn't do enough to combat misinformation. It is currently live in the US, UK, Australia and Germany, with other English-speaking countries in consideration. Facebook says the News Tab now contributes to over 30 percent of overall Facebook news link referral traffic for US, UK and German publishers included in the tab. Publishers have said Facebook's News Tab has so far been a more reliable source of traffic than the News Feed. For years the company was hesitant to lean into news curation, with its chief operating officer Sheryl Sandberg saying in 2017 "we don't hire journalists." But today, the company leans on people with editorial backgrounds to curate products in its News Tab in addition to using algorithms. Soon it will begin including content from its Bulletin newsletter program writers into its news products within the News Tab.

Company News

Verizon reports strong third-quarter revenue growth momentum

Press Release  |  Verizon

Verizon Communications reported third-quarter earnings highlighted by revenue and customer growth as more than one in four Consumer wireless phone customers now have a 5G-capable device. For third-quarter 2021, Verizon reported earnings per share (EPS) of $1.55, compared with $1.05 in third-quarter 2020, a 47.6 percent increase year over year. On an adjusted basis, third-quarter 2021 EPS, excluding special items, was $1.41, compared with adjusted EPS of $1.25 in third-quarter 2020, a 12.8 percent increase year over year.  "We had a strong third quarter, delivering on our strategy and growing in multiple areas," said Verizon Chairman and CEO Hans Vestberg. "Our disciplined strategy execution demonstrated growth in 5G adoption, broadband subscribers and business applications. We are increasing our 2021 guidance, and we continue to expand our 4G LTE and 5G network leadership. We fully expect to have a strong finish to the year as we accelerate deployment of 5G to our customers across the country." Verizon included detailed consolidated, consumer, and business results as well as its outlook and financial guidance for full-year 2021 in its report.

Stories From Abroad

EU’s Ambitious New Tech Rules to Be Delayed Further Into 2022

Jillian Deutsch, Nikos Chrysoloras  |  Bloomberg

European Union countries will delay a key target of finalizing new rules hitting tech platforms by the spring of 2022, now saying they aim to reach a deal “as soon as possible” ahead of a leaders’ summit on October 21. The EU’s Digital Markets Act and Digital Services Act are two heavily debated pieces of legislation unveiled in 2020 by the European Commission that seek to curb the power of Big Tech. The Digital Markets Act seeks to curb anti-competitive behavior, while the Digital Services Act would regulate online content. The Commission set an ambitious goal of reaching a deal with EU countries and the European Parliament in 2022. It can take years though for the EU to finalize legislation once it’s been approved by the commission, as member states and the parliament have to agree. EU countries are also planning to push for heavier legislation to protect against increasing cyberattacks as part of the EU’s “unwavering commitment to pursuing democratic values, both online and offline.” Countries also stressed the importance of “secured space-based connectivity,” although this line might be taken out of the European Council conclusions approved later this week, as talk about space based connectivity is early and those efforts could be expensive.

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Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Grace Tepper (grace AT benton DOT org) — we welcome your comments.


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Kevin Taglang

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Benton Institute
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