Industry lawyers and consultants predict the recently enacted $1 trillion infrastructure measure is likely to create more investment opportunities for private-equity firms in areas they already favor, such as telecommunications, while doing little to expand their presence in the government-dominated transportation sector. The Infrastructure Investment and Jobs Act, which President Biden signed in November 2021, designates $550 billion for such things as roads and bridges, the power grid and broadband internet systems (with $65 billion of this allocated to broadband specifically). The funding can enhance the attractiveness of investment opportunities that previously appeared uneconomical, said Mike Parker, Americas infrastructure leader at consulting firm Ernst & Young. He cited as an example the expansion of broadband internet in low-income and rural areas. “The bill is providing funding that allows for the last mile for certain households that would not otherwise be able to afford the service,” Parker said. “This is going to create the opportunity both for private capital to serve them as customers and for broader investments in fiber and data centers.” But the new law is less likely to create many more opportunities for private-equity firms in projects, such as building roads and bridges, that traditionally have been financed with public capital, said Kent Rowey, a partner at law firm Allen & Overy LLP who works in its global projects, energy, natural resources and infrastructure practice.

The Federal Communications Commission released draft rules for the Affordable Connectivity Program. If adopted, the released Report and Order would finalize rules for the Affordable Connectivity Program, which builds upon the Emergency Broadband Benefit Program (EBB Program), and will offer eligible low-income households discounts off the cost of broadband service and connected devices. In the Infrastructure Investment and Jobs Act, Congress extended and made several changes to the EBB Program to transform it from an emergency program designed to respond to a public health crisis to a longer-term broadband affordability program, and appropriated to the FCC an additional $14.2 billion to implement those changes. FCC staff, in coordination with the Universal Service Administrative Company (USAC), the administrator of the EBB Program, prepared for the transition from the EBB Program to the Affordable Connectivity Program, and began accepting applications and enrollments for the Affordable Connectivity Program on December 31, 2021. To date, approximately 90,000 households have enrolled in the Affordable Connectivity Program and more than 9 million EBB Program households transitioned to the Affordable Connectivity Program and will continue to receive affordable broadband through this newly launched program.

A factsheet and copy of the draft Report and Order can be found at https://docs.fcc.gov/public/attachments/DOC-378999A1.pdf 

Governor Kathy Hochul (D-NY) announced the ConnectALL initiative, the largest ever investment in New York's 21st-century infrastructure. Under the new initiative, New York State will use over $1 billion in public and private investments to connect New Yorkers in rural and urban areas statewide to broadband. This includes:

• Broadband Assessment Program and Interactive Map: The Broadband Assessment Program will provide New York with the first-ever, in-depth interactive broadband map.
• Grant Programs: The ConnectALL initiative will establish three broadband infrastructure grant programs focused on local connectivity planning and 21st-century municipal infrastructure, rural broadband, and connectivity innovation.
• $30-a-month Affordability Subsidy: The Department of Public Service will ensure every eligible New Yorker can take advantage of the IIJA's $14 billion Affordability Program.
• Affordable Housing Connectivity Program: New York Homes and Community Renewal will expand the affordability of broadband by working with Empire State Development to fund the retrofitting of all affordable housing projects with broadband.
• Digital Equity Program: The ConnectALL initiative will develop a Statewide Digital Equity Plan, establish a Digital Equity Grant Program, and appoint a Digital Equity Director to spearhead these efforts.
• Removing Fees, Outdated Regulatory Hurdles and Leveraging State Assets: This includes a build-free initiative for rural broadband deployment, streamlining make-ready processes, standardizing right-of-way access for cellular and fiber deployments, and more.

The Federal Aviation Administration picked dozens of airports that would get buffer zones to help avoid expected flight disruptions once a new 5G wireless service goes live in Jan 2022. The 50 airports include hubs for major US passenger airlines such as Chicago’s O’Hare International and Dallas Love Field. They also include airports prone to fog and clouds, like San Francisco International and Seattle-Tacoma International. The FAA, which manages U.S. civilian airspace, also has been preparing to issue flight restrictions to address its concerns that the new 5G service slated to go live Jan. 19 could possibly interfere with aircraft safety systems near airports. The flight limits could lead to some cancellations and delays in bad weather. The buffer-zone locations are also slated for cargo hubs like airports in Indianapolis. Northern New Jersey’s Teterboro, a hub for private jets, made the cut, in addition to the major New York City airports. In selecting airports, the agency considered factors such as their traffic volumes, locations and number of days with low visibility. The agency continues to work with aerospace manufacturers and wireless companies “to make sure 5G is safely deployed and to limit the risk of flight disruptions at all airports.”

Parks Associates announced new industry and consumer research on consumer attitudes, usage, and adoption of connected devices and services from its quarterly surveys of 10,000 US broadband households. The research quantifies the impact of the pandemic, reveals key insights on the type and brand of devices in use, and identifies preferred devices for different use cases in the home. The firm’s latest survey reveals US broadband households have an average of 14.5 connected devices, with future purchase intentions still high as consumers continue to embrace entertainment technology:

• 41 percent of US broadband households have a streaming media player
• 38 percent US broadband households have a gaming console
• 36 percent of US broadband households subscribe to or are trialing a video gaming service
• 31 percent of US broadband households or 30+ million households use free ad-based OTT services
• 50 percent of Cord-Cutters cite the high cost of traditional pay-TV services as the reason to cancel the service