Daily Digest 11/30/2021 (Carrie P. Meek | Robert Lee Elder)

Benton Institute for Broadband & Society
Table of Contents

Broadband Infrastructure

CBO Scores Broadband Internet Connections for Rural America Act  |  Read below  |  Jon Sperl  |  Analysis  |  Congressional Budget Office
Benton Foundation
The Era of the Broadband Public-Private Partnership  |  Read below  |  Joanne Hovis, Ryland Sherman, Marc Schulhof  |  Op-Ed  |  Benton Institute for Broadband & Society
Infrastructure Investment and Jobs Act Supports Broadband Partnerships  |  Read below  |  Analysis  |  Keller and Heckman LLP
CAF Phase II Support Recipients Meeting Standards For Continuing With The Eligible Locations Adjustment Process  |  Federal Communications Commission
Charter to FCC: Pole-Attachment Issues Threaten Universal Service  |  Read below  |  John Eggerton  |  Multichannel News, telecompetitor

Broadband Service

The Absurdity of Broadband …the Official Speed Definition That Is  |  Read below  |  Bernie Arnason  |  Editorial  |  telecompetitor

Universal Service Fund

254 Organizations Call For USF Contributions Reform  |  Read below  |  Letter  |  Schools Health & Libraries Broadband Coalition

From the States

Beltway politics kept Kansas Republicans in Congress from backing broadband access for rural towns  |  Read below  |  Patrick Miller  |  Op-Ed  |  Topeka Capital-Journal
Alaska needs a broadband office, task force tells governor  |  Read below  |  Ryan Johnston  |  StateScoop

Labor

Assessing the State of Digital Skills in the US Economy  |  Read below  |  Stephen Ezell  |  Research  |  Information Technology & Innovation Foundation
Amazon Alabama Workers to Hold New Union Vote, Federal Labor Official Rules  |  Wall Street Journal

Ownership

FCC greenlights Consolidated’s investment deal with Searchlight  |  Read below  |  Diana Goovaerts  |  Fierce

Platforms/Social Media

Justice Department and Federal Trade Commission Meet with Fellow G7 Enforcement Partners on Competition in Digital Markets  |  Department of Justice
Congress is weighing changes to Section 230, again. Here are what bills stand a chance.  |  Washington Post
FTC Launches Inquiry into Supply Chain Disruptions  |  Federal Trade Commission
Google Play apps downloaded 300,000 times stole bank credentials  |  Ars Technica
Pinterest agrees to spend $50 million on reforms to resolve discrimination allegations.  |  New York Times
London School of Hygiene & Tropical Medicine researchers: It’s time to study the health impacts of TikTok  |  Vox
Exploring Negative Comments About Brands on Social Media and Its Impact on Organization-Public Relationships  |  University of Florida
How Steve Bannon Has Exploited Google Ads to Monetize Extremism  |  ProPublica

Policymakers

Telecommunications nominees spell out priorities on broadband, spectrum  |  Read below  |  Benjamin Din  |  Politico
Byron Allen Urges Senate To Confirm Gigi Sohn to FCC  |  Broadcasting&Cable

Company News

Twitter CTO Parag Agrawal will replace Jack Dorsey as CEO  |  CNBC
Who Is Parag Agrawal, Twitter’s New CEO?  |  New York Times

Stories From Abroad

Big Tech firms should pay ISPs to upgrade networks, telcos in Europe claim  |  Read below  |  Jon Brodkin  |  Ars Technica
UK's Competition and Markets Authority orders Facebook to sell Giphy  |  Financial Times

Disney’s Missing ‘Simpsons’ Episode in Hong Kong Raises Censorship Fears  |  Wall Street Journal

How We Live Now

Movie theaters must ‘urgently’ rethink the experience, a study says.  |  New York Times
Today's Top Stories

Broadband Infrastructure

CBO Scores Broadband Internet Connections for Rural America Act

Jon Sperl  |  Analysis  |  Congressional Budget Office

The Broadband Internet Connections for Rural America Act (HR 4374) would establish or reauthorize programs administered by the Department of Agriculture to increase broadband connectivity in rural areas and would authorize the appropriation of specific annual amounts over the 2022-2029 period. Because specific amounts are already authorized for most of the programs, this cost estimate accounts for the difference between the amounts specified in the bill and those authorized under current law. On net, H.R. 4374 would authorize the appropriation of about $42.3 billion. Using historical spending patterns for similar activities and information provided by USDA, CBO estimates that implementing H.R. 4374 would cost $9.0 billion over the 2022-2026 period, $33.5 billion over the 2022-2031 period and $7.0 billion after 2031, assuming appropriation of the authorized amounts. H.R. 4374 would authorize the appropriation of the following amounts over the 2022-2029 period:

  • $4.5 billion annually for grants and loans under the ReConnect Rural Broadband Program. Under current law, $350 million is authorized to be appropriated annually for 2022 and 2023.
  • $300 million annually for grants and loans to expand rural “middle mile” broadband infrastructure. Under current law, $10 million is authorized to be appropriated annually for 2022 and 2023.
  • $300 million annually for grants and loans under the Innovative Broadband Advancement Program. Under current law, $10 million is authorized to be appropriated annually for 2022 and 2023.
  • $150 million annually for grants under the Community Connect Program. Under current law, $50 million is authorized to be appropriated annually for 2022 and 2023.
  • $150 million annually for grants and loans under the Distance Learning and Telemedicine Program. The program received supplemental appropriations of $531 million in 2021. Because CBO estimates budgetary effects under continuing resolutions on an annualized basis, in 2022 CBO assumes that the same amount will be available under the current continuing resolution (Public Law 117-43). Therefore, CBO estimates that H.R. 4374 would not increase net authorizations in that year relative to amounts already assumed in the baseline. Under current law, $82 million is authorized to be appropriated for 2023. The annual incremental increase that year is $68 million—the difference between the $150 million annual authorization under the bill and the current-law authorization of $82 million for that year.
  • $25 million annually for USDA to provide technical assistance to rural communities under the Broadband Connectors Program.

The Era of the Broadband Public-Private Partnership

Joanne Hovis, Ryland Sherman, Marc Schulhof  |  Op-Ed  |  Benton Institute for Broadband & Society

A remarkable wave of public-private collaboration in broadband is underway—a wave that began in the early months of the COVID-19 pandemic and will likely reach a crest in the next few years as many tens of billions of dollars of public and private capital are invested in next-generation broadband. COVID-19 demonstrated to American policymakers the absolute need for plentiful connectivity and the crises faced by those who don’t have it—and simultaneously demonstrated to private investors the economic potential of best-in-class, future-proof broadband. Public-private collaboration creates new patterns for flow of both public and private broadband dollars. The wave of collaboration is shifting the traditional dynamic of where public and private capital flow—and attracting private capital to communities that had not previously been of interest to private investors. The potential for public-private collaboration attracts private investment to areas where return is low or nonexistent but can be improved through collaboration with the local community. And the potential for collaboration unlocks local public investment in already-served communities where policymakers want better broadband but prefer to do so in partnership with the private sector.

[Joanne Hovis is president of CTC Technology & Energy, where she heads the firm’s work in public broadband strategy, network business planning, market analysis, and policy. She is also on the boards of Consumer Reports, the Fiber Broadband Association, and the Benton Institute for Broadband & Society. Ryland Sherman, a broadband economics and policy researcher at CTC Technology & Energy, focuses on federal and state broadband strategy and policy frameworks; mapping and funding programs; and digital equity initiatives. Prior to joining CTC, he provided significant research support for the development of the Benton Institute for Broadband & Society’s comprehensive broadband agenda, Broadband for America NowMarc Schulhof is a principal analyst and director of editorial services at CTC Technology & Energy, where he collaborates on the development of broadband strategy, market analysis, partnership approaches, grant funding options, and network business models for local and state government clients. This report was commissioned by the Communications Workers of America, prepared by CTC Technology & Energy in the summer and fall of 2021, and published by the Benton Institute for Broadband & Society in November 2021.]

Infrastructure Investment and Jobs Act Supports Broadband Partnerships

Analysis  |  Keller and Heckman LLP

A growing number of initiatives across America have sought to facilitate affordable access to broadband by working with willing incumbents, partnering with new entrants, establishing their own communications networks, or developing creative new alternatives. For many, broadband partnerships have emerged as their most attractive option; for some, partnerships may be their only feasible option. Depending on the circumstances, partnerships can significantly improve a broadband project’s prospects for success. Among other things, they can facilitate the pooling of resources available to the partners, enable each partner to perform the tasks for which it is best suited, and allow for asymmetric allocation of benefits. For example, a well-crafted partnership can take advantage of a public or cooperative entity’s ability to invest “patient capital” in projects that provide long-term benefits for the community and, at the same time, accommodate a private entity’s need to earn more immediate profits. In some cases, partnerships can also enable the parties to comply with State restrictions on purely public broadband initiatives. Recognizing the attractiveness of broadband partnerships, Congress and several states have sought to encourage them to help accelerate broadband deployment, adoption, and use. The Infrastructure Investment and Jobs Act does not just favor partnerships in broadband matters. It also does so for transportation and cybersecurity.

Charter to FCC: Pole-Attachment Issues Threaten Universal Service

John Eggerton  |  Multichannel News, telecompetitor

Cable broadband provider Charter told the Federal Communications Commission that discriminatory access to utility poles threatens the ability of broadband providers to close the digital divide, one of the Biden Administration's goals and one it has promised the new infrastructure bill's broadband subsidy billions will make a reality. "Timely and non-discriminatory access to utility poles is critical to broadband providers’ ability to provide high-speed internet access to millions of unserved Americans across the country as quickly as possible, particularly those living in rural areas," Charter told staffers for FCC Chairwoman Jessica Rosenworcel and Commissioner Geoffrey Starks. Charter execs told the staffers that not getting access in reasonable timelines and terms could delay Rural Digital Opportunity Fund (RDOF) projects and other buildouts to unserved areas.

Broadband Service

The Absurdity of Broadband …the Official Speed Definition That Is

Bernie Arnason  |  Editorial  |  telecompetitor

In the midst of this historic time, I sometimes lose sight of the fact that the official broadband speed definition, at least according to the Federal Communications Commission, remains at 25/3 Mbps. I’m not sure there is anything more absurd in the broadband industry than this outdated definition. Some would argue it was already outdated when it was established back in 2015, as a benchmark to measure national broadband progress. The FCC has consistently used the benchmark as a requirement for much of its legacy universal service program. That meant carriers receiving funding through various FCC sponsored rural broadband programs had to deliver service of at least 25/3 Mbps. Although exceptions were made, with some programs allowing even slower 10/1 Mbps. The much-heralded RDOF program directs funding to areas that currently lack 25/3 Mbps coverage. Many argue this relegates much of rural America to second-class broadband service. Just about everyone in the industry knows this benchmark is absurd. It’s pretty clear that the industry has moved on from this outdated benchmark. There is already considerable debate regarding what broadband should be defined as. Maybe there will never be consensus on that. But clearly there’s consensus that 25/3 Mbps isn’t it.

Universal Service Fund

254 Organizations Call For USF Contributions Reform

254 organizations are calling on broadband policymakers to repair the Universal Service Fund (USF) contribution mechanism. The USF is one of our nation’s most important tools for addressing the digital divide, but its outdated funding mechanism puts the program in danger of collapse and inequitably burdens the consumers who most often end up contributing. The public interest groups, consumer organizations, anchor institutions, trade associations, and broadband service providers are asking policymakers to immediately reform and stabilize the funding mechanism, and to make contribution obligations more equitable, by adding broadband internet access services (BIAS) to the list of services that pay into the USF.

From the States

Beltway politics kept Kansas Republicans in Congress from backing broadband access for rural towns

Patrick Miller  |  Op-Ed  |  Topeka Capital-Journal

Despite opposition from most of our Kansas congressional delegation, new federal dollars are coming to Kansas to expand broadband access. President Joe Biden recently signed a $1.2 trillion infrastructure bill, fulfilling a 2020 campaign promise. The bill had moderate bipartisan support, though every Republican in Congress from Kansas opposed it. The only Kansan to support it was Rep Sharice Davids (D-KS). Kansas will receive about $4 billion from the bill, including about $100 million to expand broadband infrastructure and money to help 669,000 working class Kansans get discounted internet through the Affordable Connectivity Program. The infrastructure bill has odd politics considering that several provisions — like broadband — disproportionately help Republican-leaning rural communities. Why would our elected Republicans oppose it? Even if our Republican lawmakers secretly supported the infrastructure bill and broadband money for Kansas, politics prevented them from being open about it. Maybe they feared ending their political careers in a primary. But rural Kansans getting internet via dial-up or a slow mobile hotspot with limited data probably don’t care which president’s signature helps bring them broadband.

[Patrick R. Miller is an associate professor of political science at the University of Kansas]

Alaska needs a broadband office, task force tells governor

Ryan Johnston  |  StateScoop

To understand what’s “likely the most unreliable,” level of broadband coverage in the country, Alaska should open a statewide broadband office and prioritize data-driven infrastructure spending, a task force of state legislators, agency executives, rural officials and tribal leaders concluded. The task force, which has met monthly since July, concluded the state can improve by opening a dedicated broadband-deployment office to oversee internet-connectivity efforts, especially those related to health care, education, and tribal communities. The 14-member group also recommended the proposed office be overseen by a statewide advisory board, as well as regional planning committees to represent local interests. Any future broadband expansion projects should be data-driven and focus on equity and affordability. Alaska doesn’t keep broadband coverage maps of its own and the task force recommended that any new broadband office do so.

Labor

Assessing the State of Digital Skills in the US Economy

Stephen Ezell  |  Research  |  Information Technology & Innovation Foundation

The global economy is increasingly digitalized. Countries that wish to successfully compete in the global digital economy must cultivate workforces possessing the requisite digital skills so that industries, enterprises, and even individuals can thrive in the digital environment. This report explores the state of digital skills across the US economy, examining what they are, why they matter, the current extent of workforce digitalization, and how the United States fares in international digital skills comparisons. It concludes by providing a brief overview of some of the best practices and programs being introduced by nonprofit, academic, and corporate organizations to deepen the US digital skills base and suggesting policy recommendations to further foster US digital skills development.

Ownership

FCC greenlights Consolidated’s investment deal with Searchlight

Diana Goovaerts  |  Fierce

Consolidated Communications, an US broadband and business communications provider headquartered in Mattoon (IL), secured a key approval for a multi-million investment deal it struck with private equity firm Searchlight Capital Partners, as the Federal Communications Commission signed off on the transaction, conditioned on terms laid out in a Letter of Agreement Consolidated signed with the Department of Justice. Under these terms, Consolidated must designate a US law enforcement contact who will have access to its records; appoint and maintain a security officer with a US government security clearance to address any security concerns identified; prepare a cybersecurity plan and a system security plan following guidelines laid out by the National Institute of Standards and Technology; comply with lawful interception statutes; provide notice of any security breaches within 48 hours of their discovery; submit a list of what network equipment it uses for approval; and provide notice of any changes to its business model, corporate structure or service offerings within 30 days. The FCC was required to weigh in because the deal would transfer more than 25% ownership of the company to a foreign entity. Specifically, the agency noted that following phase two of the deal, Searchlight would own “34.55% of Consolidated’s common voting stock and all of the non-voting Preferred Stock, which together would represent approximately 49.21% of the company’s total equity.”

Policymakers

Telecommunications nominees spell out priorities on broadband, spectrum

Benjamin Din  |  Politico

Broadband and spectrum issues are top of mind for Gigi Sohn and Alan Davidson, President Joe Biden’s picks for the Federal Communications Commission and the National Telecommunications Information Administration, respectively. Ahead of their confirmation hearings before the Senate Commerce Committee on Dec 1 (where there’s expected to be plenty of fireworks), they shared with lawmakers what they view are the top challenges facing their agencies:

“The FCC’s top challenge is ensuring that every household in the [US] has affordable and robust broadband Internet access,” Sohn wrote in her questionnaire. She said the agency should play a leading role in developing and executing an “all-hands-on-deck” approach to expanding broadband access, corralling the support of the public, private and philanthropic sectors. Other challenges will include shoring up the resiliency and security of the nation’s communications networks, particularly against weather-related challenges and cyberattacks, such as the Colonial Pipeline and SolarWinds hacks. “The interconnected broadband networks that underpin our digital economy are among our most vulnerable attack conduits,” she wrote, suggesting the development of “an oversight regime that requires network providers to determine best practices, subject to regulatory oversight.” (That could be a reference to reclassifying broadband as a telecom service, as the FCC did in 2015 with its net neutrality rules, which would give the agency more regulatory authority over broadband.) Sohn added that the FCC will need to coordinate closely with other government agencies to develop spectrum policy that balances 5G mobile broadband service and unlicensed uses, such as Wi-Fi.

Davidson homed in on broadband access and affordability as his “top priority in the coming years,” according to his questionnaire. That agency has been tasked with doling out tens of billions of dollars in broadband funds as part of the infrastructure package President Biden recently signed into law. Davidson also said that the NTIA has an important role to play in the spectrum battles that have arisen in Washington, calling for a “broad coordinated, national approach to spectrum use and planning.” In his response, Davidson also argued for building a stronger internet by "bolstering cybersecurity, protecting privacy, and pressing for America's view of a free and open Internet around the world" — something that he has advocated for in his roles at Google and Mozilla, as well as at various advocacy groups and the Obama-era Commerce Department.

Stories From Abroad

Big Tech firms should pay ISPs to upgrade networks, telcos in Europe claim

Jon Brodkin  |  Ars Technica

The CEOs of 13 large European telecommunications companies called on tech giants—presumably including Netflix and other big US companies—to pay for a portion of the Internet service providers' network upgrade costs. In a "joint CEO statement," the companies described their proposal as a "renewed effort to rebalance the relationship between global technology giants and the European digital ecosystem." The letter makes an argument similar to one that AT&T and other US-based ISPs have made at times over the past 15 years, that tech companies delivering content over the Internet get a "free" ride and should subsidize the cost of building last-mile networks that connect homes to broadband access. These arguments generally don't mention the fact that tech giants already pay for their own Internet bandwidth costs and that Netflix and others have built their own content-delivery networks to help deliver the traffic that home-Internet customers choose to receive. The letter from European ISPs was signed by the CEOs of A1 Telekom Austria Group, Vivacom, Proximus Group, Telenor Group, KPN, Altice Portugal, Deutsche Telekom, BT Group, Telia Company, Telefónica, Vodafone Group, Orange Group, and Swisscom.

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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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Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
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