Wednesday, December 18, 2019
Headlines Daily Digest
How State Policy Shapes Broadband Deployment
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States are playing a crucial role in efforts to expand broadband to the 21 million to 163 million Americans who still lack access to this critical service, encouraging broadband investment and helping to bring more of their residents online. To close gaps in access, almost every state has established broadband task forces or offices to centralize their efforts and many have set up dedicated funds aimed at reducing the number of state residents who lack broadband access. And by passing laws governing broadband construction and service, state legislatures have shaped how state agencies, local governments, internet service providers, and community anchor institutions—including hospitals, schools, and libraries—can boost connectivity. Through the policies they adopt, states can:
- Shape how broadband is deployed. Legislatures do this by defining what broadband is; establishing which government entities have authority over broadband deployment; setting goals for deployment programs; requiring data collection about broadband access in the state; and providing guidance to state agencies and/or third parties on expanding access.
- Clarify how stakeholders conduct and engage in deployment efforts. State laws can help internet service providers, community organizations, researchers, and other government officials understand who may provide broadband service, establish available incentives, and create rules under which local governments may invest in expansion efforts.
There Are Kentuckians Who Still Don’t Have Broadband Because the Former Governor Chose an Investment Bank Over Experts
Former Gov Steve Beshear’s (D-KY) administration repeatedly ignored expert advice before embarking on KentuckyWired, the massively over budget statewide broadband project that will leave rural residents waiting months, if not years, for the improved internet access they were promised, a new state audit says. The report, released Dec 16 by state Auditor Mike Harmon, says consultants and outside lawyers warned KY officials more than four years ago that negotiations with the Australian investment bank Macquarie Capital could lead to a higher price tag and fewer protections for the state.
KentuckyWired, the state’s ambitious plan for providing enhanced internet connectivity to rural residents, has been plagued by delays and cost overruns since the project began. It is now two years behind schedule and could cost taxpayers $1.5 billion over the next 30 years, according to the state’s auditor. The auditor’s report suggested such problems could have been mitigated had state officials heeded expert warnings from July 2014 to Sept 2015, the period between when they first sought bids for the project and when they reached a final agreement with Macquarie. It also confirms a joint Courier Journal-ProPublica investigation that revealed a flawed bidding process and projections that oversold the amount of federal funds available for the project. Jim Baller, a telecommunications attorney, was one of the experts who told the state it should be more cautious in negotiations with Macquarie, a company known for organizing big infrastructure projects around the globe.
20.5 million US homes are now connected to fiber broadband service, according to new research conducted by RVA for the Fiber Broadband Association. That’s a substantial increase since 2018, when a similar FBA report found 18.4 million US fiber broadband homes. Fiber broadband has been making gains against DSL and fiber-to-the-neighborhood (FTTN). According to the researchers, 2019 was the first year when more US homes received broadband service via fiber than via DSL or FTTN. That milestone makes fiber broadband the second most popular choice after cable modem service. Network operators have passed nearly 40% of US homes with fiber broadband, the researchers said.
More than 110 rural electric co-ops have embarked on fiber optic projects to increase Internet access for their members, a number that is growing rapidly from just a handful in 2012. The vast majority (72.7 percent) of the fiber service available in rural areas is provided by rural cooperatives. Personal anecdotes from Michigan, Virginia, Minnesota, and Missouri residents attest to the far-reaching benefits of cooperatives’ expansion into Internet service. A new map shows where rural cooperatives are planning to expand fiber Internet service. Co-ops have proven that this is a model that works. With increased support from federal and state governments, they will continue to connect rural Americans to economic and educational opportunities otherwise denied to them.
AT&T has set an ambitious agenda to gain 50% market share within three years in the regions where it has launched fiber-to-the-home (FTTH) service. “We have proof of how we do this historically,” said Jeffrey McElfresh. “As you look at the fiber that we built out in the ground in 2016, at the three-year mark, we roughly approach about a 50% share gain in that territory. And so for 2020, with the bulk of our investments behind us in this fiber plan, our tactics are to drive penetration with the fiber that we’ve built.” Despite AT&T’s having lost 123,000 wireline broadband customers in the third quarter, McElfresh said “the economic performance of our broadband business is very strong, setting aside subscriber losses in the lower speed DSL segment in the copper network.”
Smartphone data addicts shouldn't hold their breath for speeds of 10 gigabits per second. To provide the kind of 5G coverage consumers will expect, carriers will need to install as many as 20 access points per square kilometer, an expensive endeavor that will take years. Until then, we'll have to accept that 5G is here, but it's unevenly distributed. Here are some places to watch for it in the (nearish) future. 1) The folks who are gunning to make cars drive themselves are itching for 5G connectivity. Why? The faster you can get data into and out of a rolling robot, the better the experience. 2) Surgery goes wireless. 3) A new kind of assembly line may someday put many humans out of a job. Virtual reality may become the new reality.
US technology companies have rebuffed a Trump administration request that they pledge to stop sourcing supplies from some Chinese companies, amid concerns that such a policy could break competition laws. The state department asked telecoms carriers and chipmakers to sign up to a set of principles which would have in effect shut out Huawei, and possibly others, according to three people briefed on the proposals. The initiative, led by Keith Krach, under-secretary of state for economic growth, energy and the environment, and a former tech industry executive who oversees its Office of Global Partnerships, was aimed at securing support for what the department called a Global Digital Trust Standard.
The Network Security Information Sharing Act (HR 4461) would require the Department of Homeland Security (DHS) to mitigate cybersecurity threats to suppliers of telecommunications services and equipment. Under the bill, the DHS would establish a program office to share information with trusted participants in the telecommunications industry about efforts by adversaries to embed malicious software into communications equipment purchased by American companies.
Using information from DHS about similar programs, CBO expects that implementing the provision would require, on average, 15 cybersecurity advisors in each year beginning in 2020, at an average annual rate of about $150,000 per employee. CBO also estimates that the annual operating expenses of the program office would cost $1 million. In total, CBO estimates that implementing HR 4461 would cost $17 million over the 2020-2024 period; such spending would be subject to the availability of appropriations.
With the first year of the 116th Congress coming to a close, House Commerce Committee Chairman Frank Pallone, Jr. (D-NJ) and Communications Subcommittee Chairman Mike Doyle (D-PA) highlighted the Subcommittee’s work to restore network neutrality, combat the robocall epidemic, secure America’s telecommunications supply chain, fix faulty broadband maps, and more. The Subcommittee held 12 hearings, three markups, and passed 11 bills in 2019. Accomplishments listed include:
- Passed through the Subcommittee and Full Committee the Save the Internet Act (HR 1644), which was then passed by the House on April 10 by a vote of 232-190.
- Passed through the Subcommittee and Full Committee six bills to ensure our nation’s continued dominance in wireless communication, including the Secure and Trusted Communications Networks Act (HR 4998), a bill to secure our telecommunications supply chain. HR 4998 passed the House by voice vote Dec 16.
- Passed through the Subcommittee and Full Committee two bipartisan bills to ensure the reliability of our nation’s broadband maps. The House passed both bills by voice vote Dec 16.
- Put forth a comprehensive infrastructure package that expands access to broadband internet through the introduction of the LIFT America Act. The Full Committee held a legislative hearing on the bill, which seeks to expand access for communities nationwide and bring broadband to 98 percent of the country by investing $40 billion for the deployment of secure and resilient high-speed broadband internet service.
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 Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.
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