Daily Digest 11/22/2024 (Digital Equity)

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

Sen Cruz Tells NTIA to Halt "Unconstitutional" Digital Equity Competitive Grant Program  |  Read below  |  Sen Ted Cruz (R-TX)  |  Letter  |  Senate Commerce Committee
Biden-Harris Administration Approves and Recommends for Award Digital Equity Capacity Grant Applications Totaling More Than $100 Million  |  Read below  |  Press Release  |  National Telecommunications and Information Administration
Biden-Harris Administration Approves and Recommends for Award Vermont’s Digital Equity Capacity Grant Application for More Than $5 Million  |  Read below  |  Press Release  |  National Telecommunications and Information Administration
Is it Too Late to Change BEAD?  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting
Ajit Pai: Congress Should Fund the USF  |  Read below  |  Ari Bertenthal  |  BroadbandBreakfast

Infrastructure

Economic Benefits of Fiber Deployment  |  Read below  |  Paroma Sanyal, Coleman Bazelon, Yong Paek, Dan Beemon  |  Research  |  Brattle Group
New National Broadband Map Update v5, Data as of June 2024  |  Read below  |  Mike Conlow  |  Analysis  |  Mike's Newsletter

State/Local Initiatives

Millions in rural America lack reliable internet. How Massachusetts towns got online.  |  Read below  |  Cameron Pugh  |  Christian Science Monitor
Additional $8 Million Available for Vermont's Broadband Buildout  |  Read below  |  Press Release  |  Vermont Community Broadband Board
Benton Foundation
North Carolinians Vote for Broadband  |  Read below  |  Zoë Walker  |  Analysis  |  Benton Institute for Broadband & Society

Security

FCC Launches First Major Review of Submarine Cable Rules in Decades  |  Read below  |  Press Release  |  Federal Communications Commission
Sen Mark Warner calls Salt Typhoon ‘worst telecom hack in our nation’s history’  |  Washington Post
FCC Proposes Fine Against Chinese Video Doorbell Manufacturer  |  Federal Communications Commission

Wireless/Spectrum

FCC Adopts 'C-V2X' Auto Safety Spectrum Rules  |  Read below  |  Press Release  |  Federal Communications Commission
Elevating 5G with differentiated connectivity  |  Read below  |  Research  |  Ericsson

Journalism

Trump Tells Republicans to ‘Kill’ PRESS Act, Reporter Shield Bill Passed Unanimously by House  |  New York Times

Labor

Paul Krugman | How Hostility to Immigrants Will Hurt America’s Tech Sector  |  New York Times

Ownership

DirecTV to Scrap Merger With Rival Dish  |  Wall Street Journal

Platforms/Social Media/AI

Roblox is the latest target of state kids online safety bills  |  Vox
Meta gains steam in its push to make Apple, Google verify users’ ages  |  Washington Post
So You’re Thinking of Leaving X for Bluesky. How Does It Work?  |  New York Times
Op-ed | How to Regulate AI Without Stifling Innovation  |  Wall Street Journal

Policymakers

Could Musk’s DOGE actually threaten innovation?  |  Read below  |  Derek Robertson  |  Politico
Matt Gaetz Withdraws From Consideration for Attorney General  |  New York Times
Trump Picks Pam Bondi for Attorney General After Gaetz Withdraws  |  Read below  |  Sadie Gurman, Ryan Barber  |  Wall Street Journal
Pam Bondi, Trump’s pick for attorney general, is a longtime loyalist  |  Washington Post
Commissioner Gomez Statement on FCC Chair Departure  |  Read below  |  FCC Commissioner Anna Gomez  |  Press Release  |  Federal Communications Commission

Stories From Abroad

Bridging the digital divide: Analyzing subsidy allocation efficiency in telecommunications sector reforms  |  Read below  |  Abdul Kayum, Md Shahanawaz Abdin, Brajesh Mishra, Amaan Kayum  |  Research  |  Telecommunications Policy
EU Drops Probe of Apple’s Treatment of Rival Audiobook, Ebook Developers in App Store  |  Wall Street Journal
Today's Top Stories

Sen Cruz Tells NTIA to Halt "Unconstitutional" Digital Equity Competitive Grant Program

Sen Ted Cruz (R-TX)  |  Letter  |  Senate Commerce Committee

The National Telecommunications and Information Administration (NTIA) is expected to soon begin distributing $1.25 billion in grants to nonprofits under the “Digital Equity Competitive Grant Program” (Program) “to support efforts to achieve digital equity, promote digital inclusion activities, and spur greater adoption of broadband among Covered Populations.” The Program’s Notice of Funding Opportunity (NOFO) establishes that applicants must use the funding to serve members of “Covered Populations,” defined to include “individuals who are members of a racial or ethnic minority group.” This instruction makes clear that NTIA will consider the race of the Program’s beneficiaries when issuing grant awards, in violation of the Fifth Amendment to the Constitution. As the Ranking Member of the United States Senate Committee on Commerce, Science, and Transportation, which oversees NTIA, I urge you to withdraw the unlawful NOFO and halt issuing Program grants before you cause real harm. NTIA’s use of racial classifications, as set forth in the NOFO, does not serve a compelling governmental interest. The Supreme Court has “identified only two compelling interests that permit resort to race-based government action. One is remediating specific, identified instances of past discrimination that violated the Constitution or a statute. . . . The second is avoiding imminent and serious risks to human safety in prisons.” “A generalized assertion of past discrimination in a particular industry or region is not adequate” for the government to make this showing.

NTIA has not yet finalized a grant for any Digital Equity Competitive Grant Program funding to any applicants. Therefore, NTIA still has time to reverse course before it breaks the law. As the Ranking Member of the U.S. Senate Committee on Commerce, Science, and Transportation, we urge you to strike this unlawful Guidance now. No later than December 12, 2024, please provide a response to this letter, confirming that the NOFO is no longer in place and NTIA has halted the process of issuing grants under it, or otherwise setting forth, in detail, the reasons you believe the NOFO does not violate the United States Constitution. 

Biden-Harris Administration Approves and Recommends for Award Digital Equity Capacity Grant Applications Totaling More Than $100 Million

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has approved and recommended for award applications from Nebraska, New Hampshire, Oregon, South Carolina, South Dakota, Texas, and Wyoming, allowing them to request access to more than $100 million to implement their Digital Equity Plans. This funding comes from the $1.44 billion State Digital Equity Capacity Grant Program, one of three Digital Equity Act grant programs created by the Bipartisan Infrastructure Law. The states can request access to:

  • Nebraska: $6,500,627
  • New Hampshire: $4,942,018
  • Oregon: $9,947,586
  • South Carolina: $12,846,583
  • South Dakota: $5,010,234
  • Texas: $55,641,147
  • Wyoming: $5,251,485

Biden-Harris Administration Approves and Recommends for Award Vermont’s Digital Equity Capacity Grant Application for More Than $5 Million

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has approved and recommended for award an application from Vermont, allowing the state to request access to more than $5 million to implement its Digital Equity Plan. This funding comes from the $1.44 billion State Digital Equity Capacity Grant Program, one of three Digital Equity Act grant programs created by the Bipartisan Infrastructure Law.  Vermont will use the $5,299,150 in funding to implement key digital equity initiatives, including:  

  • A community-based digital skilling and technical support program with multiple parts to meet the needs of Vermonters;
  • Supporting access to devices through a program focused on procurement, refurbishment, and deployment of devices and assistive technology; and
  • Expanding workforce development programs to include digital literacy training.

Is it Too Late to Change BEAD?

Doug Dawson  |  Analysis  |  CCG Consulting

There has been a lot of speculation since the election that the Broadband Equity, Access, and Deployment (BEAD) grant program is going to get revamped. This raises the interesting question if it’s too late for a new administration to make major changes to the BEAD program. There is also the question of the process needed to change the BEAD rules. The BEAD rules were created by Congress, and it seems that Congress would have to act to change the rules. There are several ways the administration could give more funding for satellite. For example, they could pause work at the National Telecommunications and Information Administration (NTIA) until they figure out the path to do that. But if Congress has to go along with any major changes, this is not necessarily an easy path. Putting BEAD on hold would mean the administration would be delaying broadband implementation—something that Republican Senators have been complaining about the NTIA for the last year.

Ajit Pai: Congress Should Fund the USF

Ari Bertenthal  |  BroadbandBreakfast

Former Federal Communications Commission Chairman Ajit Pai said Congress should fund the $8.1 billion Universal Service Fund through annual appropriations. “I do think that the time has come for Congress to shift this to a general appropriation,” said Pai, FCC chairman from 2017 to 2021. “[If USF were funded by appropriation] we wouldn’t have this situation now where we’re essentially getting more and more money from a declining base of contributors.”

Economic Benefits of Fiber Deployment

Paroma Sanyal, Coleman Bazelon, Yong Paek, Dan Beemon  |  Research  |  Brattle Group

Fiber deployment has significant incremental economic benefits even in the presence of other high-speed broadband technologies. The report also argues that because private actors will not capture all the benefits of fiber deployment the marketplace will not deploy enough fiber on its own. Based on these findings we suggest a few policy takeaways:

  • Because the social return on investment is higher for fiber, directing more of the existing public funds towards fiber deployment will generate greater economic returns compared to investment in other high-speed broadband technologies such as hybrid fiber-coaxial (HFC). Thus, the various public programs, such as the Rural Digital Opportunity Fund (RDOF), the Broadband Equity, Access, and Deployment (BEAD) program, ReConnect, Capital Projects Fund and the federal Broadband Infrastructure Program (BIP), which are prioritizing fiber builds are on the right policy path.
  • Based on available data, our research implies that even if fiber is deployed as an overbuild to existing high-speed technologies, the incremental benefits are sizeable. Thus, when the federal or local governments are measuring the underserved population, one important metric may be using a fiber-unserved metric and not just a speed-based metric.
  • Federal and local governments that promote fiber deployment should be encouraged and expanded.
  • Fiber is a future-proof solution and when the benefits and costs are evaluated on a long-run horizon, fiber becomes the optimal choice for delivering fixed high-speed broadband.

New National Broadband Map Update v5, Data as of June 2024

Mike Conlow  |  Analysis  |  Mike's Newsletter

The Federal Communications Commission (FCC) recently released the 5th version of the National Broadband Map, with data as of June 2024. At a high level, the trend continues of fewer and fewer unserved and underserved locations: in the previous version, 8.8 million locations were unserved or unserved. Now, with six months more data, we’re down to 7.5 million locations needing better broadband service. That’s an 15 percent decrease over one six-month period. And a 3 percent decrease from the first BDC broadband map 18 months ago. Here’s another way to think about it: when the National Telecommunications and Information Administration made the formal allocations for the Broadband Equity, Access, and Service program, there were 11.9 million unserved locations. That was $3,341 per location. On the basis of less eligible locations alone, since the available funding stays the same, now there’s $5,662 per location—a 69 percent increase.

Millions in rural America lack reliable internet. How Massachusetts towns got online.

Cameron Pugh  |  Christian Science Monitor

Otis, Massachusetts, isn’t the sort of place you expect to spend a lot of time online. For Kirsten Paulson, who lives part time in Otis, that’s all a selling point. Another major one: Her internet service is better here than at her home outside Washington (DC). That’s because the town of 1,500 people built its own network to fill in the gaps left by private providers, which don’t offer high-speed internet in Otis. Now, after decades of slow and unreliable service, nearly every house in town is connected to a state-of-the-art fiber-optic network. Versions of that story repeat themselves across western Massachusetts, where dozens of rural communities have used state, federal, and municipal funds to get their residents online. Some, like Otis, have built their own networks, treating internet access like a public utility. Others, like neighboring Sandisfield, have formed public-private partnerships to entice companies to provide service. The Massachusetts Broadband Institute, a state agency tasked with making affordable internet widely available, says that 99% of the commonwealth now has high-speed internet

Additional $8 Million Available for Vermont's Broadband Buildout

Press Release  |  Vermont Community Broadband Board

Vermont Community Broadband Board (VCBB) is pleased to announce the availability of $8 million in additional funds for the state’s broadband buildout. The money is interest earned on initial American Rescue Plan Act (ARPA) money that the General Assembly entrusted to the Vermont Community Broadband Fund. VCBB will be developing proposals on the best use of the $8 million for the Board's consideration in the near future. These funds come shortly after VCBB has awarded nearly all of the state’s ARPA Capital Projects Fund (CPF) funds to Vermont Communications Union Districts (CUDs) and internet service providers. $241 million has now been granted to fulfill Universal Service Plans and ensure that every Vermonter has access to broadband

North Carolinians Vote for Broadband

Zoë Walker  |  Analysis  |  Benton Institute for Broadband & Society

On November 5 North Carolinians continued a trend of ticket splitting during the 2024 elections. Although Donald Trump won in the state with nearly 51 percent of the vote, state Democrats were successful down-ticket, and broke a Republican supermajority in the state legislature. Back in September, I wrote about how broadband was on the ballot this year. As I noted, outgoing Roy Cooper (D-NC) has set achievable broadband goals for North Carolina. Here’s a look at the team of elected officials who will work to further the goals.

Could Musk’s DOGE actually threaten innovation?

Derek Robertson  |  Politico

At first, Elon Musk’s “Department of Government Efficiency” looks like the most Silicon Valley-style project one could imagine. But now that they’ve laid out their plans for the “department” (actually an advisory commission outside government) in a Wall Street Journal op-ed, concern is bubbling up—even in the tech world—that the project might suffer from a couple other very Silicon Valley qualities: ego and overpromising. It’s not clear to many experts that the pair’s plans, as detailed as they sound, are a serious toolkit for tackling the DC bureaucracy. There’s even concern they could backfire, and that two self-proclaimed innovators could end up tearing down much of the essential infrastructure that ushers along American innovation. “They’re making very large promises upon which it’s not clear how they can deliver,” said American Enterprise Institute Senior Fellow Kevin Kosar.

FCC Launches First Major Review of Submarine Cable Rules in Decades

Press Release  |  Federal Communications Commission

The Federal Communications Commission voted to launch a major, comprehensive review and update of licensing rules for submarine cables that transmit information between continents and fuel economic activity. Since the agency’s last review in 2001, the technology, economics, and national security environments surrounding these systems have greatly changed. In the Notice of Proposed Rulemaking, the FCC seeks comment on how best to improve and streamline the submarine cable rules to facilitate efficient deployment of submarine cables while ensuring the security, resilience, and protection of this critical infrastructure. Security review of license applications often involves numerous federal partners through the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector and with a critical role for the State Department.

FCC Adopts 'C-V2X' Auto Safety Spectrum Rules

Press Release  |  Federal Communications Commission

The Federal Communications Commission has adopted final rules for cellular-vehicle-to-everything (C-V2X) technology. These rules will improve transportation safety and permit more efficient mobility as this advanced communications technology is integrated into vehicles and infrastructure. C-V2X technology provides direct communications between vehicles, roadside infrastructure, and other road users such as cyclists, pedestrians, and road workers to facilitate, among other things, non-line-ofsight awareness, notice of changing driving conditions, and automated driving. These new rules will accelerate the automotive industry and state and federal government plans for transitioning from dated technology to the more advanced C-V2X automobile safety technology.

Elevating 5G with differentiated connectivity

Research  |  Ericsson

5G users report higher performance satisfaction than 4G users, but face issues in high-traffic locations, meaning that 4 in 10 users are no longer willing to accept best-effort 5G performance. Further, 35 percent of surveyed 5G users show a growing appetite for elevated connectivity beyond standard 5G performance, signaling a strong willingness to adopt and pay extra for differentiated connectivity. So, what can differentiated connectivity do for them? Today, 5G users are looking for performance assurance on core services such as video calls and streaming, while generative artificial intelligence (GenAI) users are going a step further and are already willing to pay a premium that is 35 percent higher than these core services. This signals a growing demand for enhanced, performance-assured connectivity that goes beyond traditional application expectations.

Trump Picks Pam Bondi for Attorney General After Gaetz Withdraws

Sadie Gurman, Ryan Barber  |  Wall Street Journal

Donald Trump has chosen former Florida Attorney General Pam Bondi to run the Justice Department, announcing his pick hours after Matt Gaetz withdrew from consideration. Bondi, a 59-year-old Republican who worked for years as a prosecutor, is a more conventional pick than Gaetz. She has had a close relationship with Trump for years and served on his legal team during his first impeachment. She has led the legal arm of the Trump-tied America First Policy Institute and worked as a partner at Ballard Partners, the lobbying firm that once employed Trump’s incoming chief of staff, Susie Wiles. Bondi frequently appears on Fox News, including as a guest host for “The Five.” Trump told Bondi she was his choice for attorney general at his Mar-a-Lago home. If confirmed, Bondi would become the third woman in the role. Bondi immediately drew praise from Senate Republicans. With the selection of Bondi, Trump puts a less divisive loyalist in position to lead the agency. Bondi appeared frequently as a surrogate during Trump’s latest campaign, and spoke at one of his final rallies earlier this month. She emerged as a critic of the criminal cases against Trump and the prosecutors behind them, accusing them of weaponizing the legal system. 

Commissioner Gomez Statement on FCC Chair Departure

FCC Commissioner Anna Gomez  |  Press Release  |  Federal Communications Commission

I want to thank Chairwoman Rosenworcel for her astute leadership on critical issues not only as the first woman ever to be confirmed by the Senate to lead the Federal Communications Commission but also as Commissioner. The list of issues is long. She focused on consumers, especially those that have been historically left behind and those that are in vulnerable situations, on economic priorities such as the space economy and our digital future, and on national security. Her impact will be felt by many. I also want to thank her for her support and friendship. Her commitment to good government and shrewd management of our agency, which is a special place, helped make my transition to Commissioner seamless.

Bridging the digital divide: Analyzing subsidy allocation efficiency in telecommunications sector reforms

Abdul Kayum, Md Shahanawaz Abdin, Brajesh Mishra, Amaan Kayum  |  Research  |  Telecommunications Policy

This paper aims to introduce the 'Subsidy Allocation Efficiencies' (SAE) metric as a practical tool for policymakers to evaluate subsidy programs for universal service provisioning. Using a qualitative case study approach, the paper investigates various subsidy allocation methods adopted by the Universal Service Fund, comparing them in terms of SAE. The SAE metric is validated by applying the ‘similarity index’ to Milgrom's optimal auction design. The study finds that subsidy allocations can be as efficient as 95 percent and as inefficient as −16 percent, generally identifying them as restrictive and prone to cartelization. However, ease of participation was found to reduce cartelization and improve efficiency. Focusing on India's Universal Service Fund, this study critically assesses subsidy allocation methods to provide policymakers with insights for optimizing public-funded infrastructure projects. 

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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), Grace Tepper (grace AT benton DOT org), and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.


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