Wednesday, January 19, 2022
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Universal Service Monitoring Report 2021
Keys To Unlocking Universal Broadband Are in the Hands of Our Communities
Airlines Cancel Some Flights Citing Launch of AT&T, Verizon 5G Signals
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Universal Service
In response to the Telecommunications Act of 1996, the Federal Communications Commission established universal service mechanisms to help ensure that all Americans have access to affordable telecommunications service. Congress mandated that these programs be supported by contributions from every telecommunications carrier that provides interstate telecommunications, and other providers of telecommunications services if the FCC finds contributions from such providers to be in the public interest. using data received through September 2021, the Federal and State Staff for the Federal-State Joint Board on Universal Service examines revenues and contributions, Lifeline, the Connect America Fund, E-Rate, the Rural Health Care program, subscribership, and prices.
One of the most annoying aspects of the current federal broadband grants is the ability of incumbent internet service providers (ISPs) to challenge the validity of grant requests. In the typical challenge, the incumbents claim that they are offering fast broadband and that an applicant should not be able to overbuild them. The challenges put a burden on anybody filing for a grant since they must somehow prove that incumbent broadband speeds are slower than 25/3 Mbps. There are easy and obvious fixes to this; one simple fix would be that grants that ask to build fiber over existing DSL should be free from challenges. Another easy fix would be to stop talking about 25/3 Mbps as a meaningful definition of broadband. If these grants only allowed challenges for claims of 100/20 Mbps, then all of the challenges from telcos would be neutered. Unfortunately, the upcoming Broadband Equity, Access and Deployment (BEAD) grant rules include a challenge process, so we’re going to get to see this process repeated. If there were a huge number of challenges in prior grant programs, it’s hard to imagine what we’re going to see with the $42.5 billion BEAD grant program.
[Doug Dawson is President of CCG Consulting.]
Animated by hostility toward corporations and a belief that broadband should be a public utility, populists seek to overthrow the current system and replace it with one in which government provides broadband or tightly regulates it. Their campaign strategy is to convince policymakers and the public that US broadband is a failure so they can build support for policies to weaken corporate providers and strengthen non-corporate alternatives, including government-run networks. They allege broadband is too slow, coverage is too limited, service is too expensive, and providers are too profitable. But data shows these claims are wrong, vastly exaggerated, or irrelevant to the real issues policymakers should address. Policymakers should not be taken in by this radical campaign. To be sure, there are areas that need improvement, but abandoning the current structure of private, intermodal competition will reduce, not improve, US broadband performance. Policymakers, the media, and the public need to understand the true motivation for populists’ relentless attacks on the performance of the US broadband system.
[Robert D. Atkinson is the founder and president of ITIF]
The urgency for wider access to high-speed Internet has been palpable in the past year. The federal government has ramped up its focus on the issue, devoting billions in funding through the Coronavirus Aid, Relief and Economic Security (CARES) Act, the American Rescue Plan Act, and the Infrastructure Investment and Jobs Act. In turn, states are setting aside eye-popping amounts of money themselves. But is all that money enough to help everyone? While the unprecedented funding will lead to more widespread broadband infrastructure, cost remains a significant burden for everyday Americans, and government stipends for monthly Internet bills could decrease in value. “If the states spend it [federal money] responsibly, it should largely resolve the challenge of people not having a network at their home," said Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance. "As far as the term ‘digital divide’ is concerned, we will still have tens of millions of Americans who cannot afford it." More than ever, state and local governments grasp the significance of community engagement and agency coordination when it comes to overcoming the problem of inadequate broadband access. Public and private organizations are putting their best minds together to figure out how money can be well spent. Fresh ideas like electric cooperative networks, multi-town partnerships and open-access fiber are starting to take off to help populations that have been overlooked.
The Maine Connectivity Authority (MCA) will be allocating $10 million to ConnectMaine for the agency’s grant round in spring 2022 following approval from their Board of Directors on an MOU (Memorandum of Understanding) with ConnectMaine. Combined with existing bond funds available to ConnectMaine, $16 million will be granted to local communities and ISPs to expand broadband access — over four times more than ever before. In early January, the Maine State Legislature unanimously confirmed Andrew Butcher as president of the MCA, the new agency charged with expanding high-speed broadband access throughout the state. Butcher previously served as the director of the Maine Broadband Coalition, a diverse network working to improve broadband service throughout the state. Created through bipartisan legislation and signed into law by Governor Janet Mills in June 2021, the MCA has been budgeted more than $20 million through the Maine Jobs and Recovery Plan and nearly $130 million through federal American Rescue Plan funds to make universal high-speed internet service a reality in Maine.
For so many people living in rural or low-income city neighborhoods, access to high-speed fiber-fed broadband would be a game-changer. Jobs are going remote, school is taught at a distance, and broadband is opening the door to telemedicine, reducing the need for trips to the doctor, but many people across the country still have no access to these options. After the pandemic hit, local governments rushed to step in to broaden internet access in rural and less affluent city neighborhoods, but unfortunately, in 18 US states, legal restrictions still make establishing municipal broadband prohibitively difficult. Federal governments will have to update their broadband information with expert input before their grant money can start flowing, but for now, communities can access infrastructure money going directly to the state or the city. With it, they can bring in broadband experts and facilitate its rapid deployment by removing roadblocks. By taking opportunities to pursue creative partnerships, communities can make broadband happen without having to worry about building it out themselves. Here are some examples of communities that already have.
[Cheri Beranek is the CEO of Clearfield and a 2021 Minnesota Business Hall of Fame inductee.]
The city of Indio (CA) is planning to build its own fiber-based broadband network. In late October of 2021, the city launched its Fiber Master Plan project, with a goal of ascertaining whether the quality of life and real-world functionality of residents and businesses would be improved if the city could help provide them with high-quality, affordable and consistent broadband access. Kevin Snyder, Indio’s director of community development, is awaiting the results of a survey of Indio’s residents and businesses. “I would say that there are probably two major objectives,” Snyder said. “One is that fiber has become very important to the economic development of communities. So, in many ways, it’s become as important to economic development as having water services or good roads. … The other is the social activity aspect. During the pandemic, those communities that, as a whole, did not have good broadband access were challenged in (providing) access to the internet, and the services on the internet, whether it was for schooling, for business purposes, or for access to health information." Indio’s leadership intends for the city to be the first in the Coachella Valley to establish a secure broadband future for its population.
Several international airlines canceled some US-bound flights after American wireless operators and aviation officials were unable to fully resolve a months-long standoff over the launch of new 5G signals. AT&T and Verizon agreed to temporarily water down expansion plans for 5G wireless service to address air-safety regulators’ concerns about the network signals’ effect on aircraft instruments. Nonetheless, a handful of international airlines said they plan to suspend some US flights starting January 19, citing operational concerns stemming from the Federal Aviation Administration’s restrictions and Boeing’s guidance not to operate the 777 jet. Emirates Airline said it would suspend flights to nine US cities. Japan Airlines and All Nippon Airways said Boeing had advised them not to operate the 777 to the US in light of 5G deployment. Air India also announced the cancellation of some US-bound flights operated by 777 jets. AT&T agreed to temporarily defer the turning on of a limited number of towers around some airport runways but would launch 5G services “everywhere else as planned.” Verizon also committed to limit its 5G network around airports, adding that the new high-speed service will still cover more than 90 million Americans when it goes live January 19.
January marks the anniversary of a series of coordinated protests that led to the withdrawal of two proposed laws in the United States Congress: the Stop Online Piracy Act (SOPA) and the PROTECT IP Act (PIPA). SOPA-PIPA showed the power of collective action, rooted in shared values, to shape the future of the internet. In the decade since the SOPA fight, new issues have risen based on the development of new innovations in technology and the challenges that they create. While we still fight over network neutrality and how to share creative works online, technology has developed new tools for communicating and using data that we were only beginning to understand a decade ago. These challenges are clear, but the public is still struggling to organize around how to account for the mess that they bring to our society. Civil society groups are growing and multiplying to match growth in innovation, but we must align on our goals – even if not always their tactics – in order to fully realize the opportunity to build a better internet. If we fail to find the balance between the promise of innovation and the accountability for it, we will continue to see it create great harm in our society. Communication is that powerful.
[Chris Lewis is Chief Executive Officer at Public Knowledge.]
Ownership
Justice Department and Federal Trade Commission Seek to Strengthen Enforcement Against Illegal Mergers
The Justice Department’s Antitrust Division and Federal Trade Commission (FTC) launched a joint public inquiry aimed at strengthening enforcement against illegal mergers. Recent evidence indicates that many industries across the economy are becoming more concentrated and less competitive, and that these problems are likely to persist or worsen due to an ongoing merger surge that has more than doubled merger filings from 2020 to 2021. To address mounting concerns, the agencies are soliciting public input on ways to modernize federal merger guidelines to better detect and prevent illegal, anti-competitive deals in today’s modern markets. Some of the specific areas of inquiry on which the agencies are seeking public input and information include:
- The purpose and scope of merger review guidelines;
- Presumptions that certain transactions are anti-competitive;
- The use of market definition in analyzing competitive effects;
- Threats to potential and nascent competition;
- The impact of monopsony power, including in labor markets; and
- The unique characteristics of digital markets.
On January 11, the Senate confirmed Google and Mozilla alum Alan Davidson as director of the National Telecommunications and Information Administration (NTIA). The agency will steer $48 billion in federal funding for broadband deployment, a massive sum that will test its capacity. Former NTIA chiefs David Redl and Larry Irving highlighted what they see as the biggest hurdles for Davidson and the agency’s upcoming agenda. With NTIA receiving a massive cash infusion for broadband grants, scrutiny from lawmakers on Capitol Hill about how that money is dolled out is likely to reach new heights. That’s particularly true given that most of the grants NTIA will oversee will be for projects at the state level, where lawmakers may have their own constituents in mind, according to Redl. To make high-speed Internet “affordable and available everywhere,” as President Biden pledged, federal officials will need to determine which areas across the country are most in need of grants. But the federal government’s aging maps on Internet connectivity will pose a major obstacle. Irving called the current mapping situation “a disaster” and said that updating the Federal Communications Commission’s maps must be done “well and quickly” to avoid wasting funds. While the broadband build-out will be NTIA’s biggest task, lawmakers and advocates have also been pushing for the agency to take a more active role on data privacy and cybersecurity. That could test the agency’s ability to juggle different priorities.
Senate Commerce’s top Republican, Sen Roger Wicker (R-MS), is calling for a new hearing on Federal Communications Commission nominee Gigi Sohn [Senior Fellow and Public Advocate at the Benton Institute for Broadband & Society]. He wants to dig into ethics questions after obtaining and reviewing the terms of the confidential $32 million settlement that broadcasters struck with shuttered TV streaming service Locast in 2021 (Sohn was on the board of the Sports Fan Coalition nonprofit, which ran Locast). “The possibility of the nominee’s future financial liability to a number of companies regulated by the FCC, and the timing of this settlement in relation to her nomination, demands a full discussion by the committee to ensure that there is a clear understanding of the ability for this nominee to act without any cloud of ethical doubt,” Wicker said. The White House has dismissed such doubts as meritless. According to a lawyer for the Sports Fan Coalition, federal ethics officials already reviewed the document and it’s unclear how it would trigger additional recusal requirements. Greg Guice, who directs government affairs for advocacy group Public Knowledge (which Sohn co-founded), blasted Wicker’s statement as a delay tactic aimed at postponing the formation of a Democratic FCC majority. He argued that Wicker could have sought a copy of the settlement from litigants weeks earlier. Senate Commerce Chair Maria Cantwell (D-WA) hopes to hold a committee vote on Sohn’s nomination at the end of January.
The Italian government buckled down on broadband, launching a new multi-billion euro fund that aims to provide enough support to help operators push gigabit services to nearly 7 million locations in the coming years. Dubbed Italia a 1Giga (or “Italy to 1 Gig”), the funding initiative is set to provide a total of €3.65 billion (approximately $4.14 billion) in grants to fuel deployments across 15 regions in Italy. Operators will be permitted to submit bids for the grants through March 16, and will be able to win funding in a maximum of eight regions. Winning bidders will be required to deliver broadband service offering speeds of 1 Gbps downstream and 200 Mbps upstream by June 30, 2026. The grants may be used to cover up to 70 percent of the operators’ project costs. Bids will be judged on economic considerations, the characteristics of the planned network, the quality of recruitment and training plans for personnel, and the commitments made to ensure diversity and support for disadvantaged groups. According to a timeline included in the “Towards a Gigabit Society” strategy issued in May 2021, awards are scheduled to be made sometime before the end of Q2 2022.
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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