Daily Digest 1/24/2022 (Broadband Choice in Apartments)

Benton Institute for Broadband & Society
Table of Contents

Competition

FCC Chairwoman Rosenworcel Aims to Promote Broadband Choice in Apartments  |  Read below  |  Press Release  |  Federal Communications Commission
Municipal fiber in the United States: A financial assessment  |  Read below  |  Christopher Yoo, Jesse Lambert, Timothy Pfenninger  |  Research  |  Telecommunications Policy

Digital Inclusion

Kevin Frazier op-ed: Closing the digital divide requires meaningful internet access  |  Daily Californian

Infrastructure

Federal Financial Assistance Infrastructure Programs Subject to the Build America, Buy America Provisions of the Infrastructure  |  Department of the Treasury
Federal Financial Assistance Infrastructure Programs Subject to the Build America, Buy America Provisions of the Infrastructure  |  Department of Commerce

Spectrum/Wireless

How the U.S. Messed Up Its New 5G Rollout: ‘It Wasn’t Our Finest Hour’  |  Wall Street Journal
FAA's beef with 5G: What you need to know  |  C|Net
Tom Wheeler: Did the Federal Aviation Administration cry wolf on 5G?  |  Brookings
Dish, other 12 GHz backers see 5G prospects rise in C-band’s wake  |  Read below  |  Monica Alleven  |  Fierce

State/Local Efforts

Minnesota State Budget Invests $170 Million in Broadband Access in the State  |  Read below  |  Press Release  |  Minnesota Office of the Governor
Mediacom ends battle with West Des Moines, Iowa, over Google Fiber deal  |  Read below  |  Diana Goovaerts  |  Fierce
Chicago seeks firm to design and implement broadband equity program  |  City of Chicago

Platforms

Sen Warren's plan to break up Big Tech  |  New York Times
Google Seeks Dismissal of Ad Practices Suit  |  Wall Street Journal

Government Performance

Lumen reels in $1.2 billion contract to overhaul USDA’s legacy network  |  Read below  |  Diana Goovaerts  |  Fierce

Oversight

Hill oversight tightens amid coming broadband surge  |  Read below  |  John Hendel  |  Politico

Lobbying

Tech companies spent almost $70 million lobbying Washington in 2021 as Congress sought to rein in their power  |  Washington Post

Policymakers

How a delay in Gigi Sohn’s FCC confirmations allowed Republicans to build a new case against her  |  Read below  |  Andrew Wyrich  |  Daily Dot
Readout of President Biden’s Meeting with the President’s Council of Advisors on Science and Technology (PCAST)  |  White House
Next Century Cities' Lukas Pietrzak joining NTIA's Office of Internet Connectivity and Growth  |  Lukas Pietrzak

Stories From Abroad

Intelsat and Partners Bring Emergency Connectivity to Tonga  |  Intelsat
Elon Musk Offers Satellite Internet to Tsunami-Hit Tonga  |  Bloomberg
Daniel Byman: How Middle Eastern conflicts are playing out on social media  |  Brookings
Today's Top Stories

Competition

FCC Chairwoman Rosenworcel Aims to Promote Broadband Choice in Apartments

Press Release  |  Federal Communications Commission

Federal Communications Commission Chairwoman Jessica Rosenworcel shared a Report and Order and Declaratory Ruling that would promote competition and increase choice for broadband services for people living and working in multiple tenant environments (MTEs). The measures, if adopted, would halt practices that evade long-existing FCC rules intended to allow tenants to choose their own provider. To promote broadband competition and deployment in MTEs, the Order and Declaratory Ruling, if adopted by a vote of the full FCC, would:

  • Prohibit providers from entering into graduated revenue sharing agreements or exclusive revenue-sharing agreements with a building owner;
  • Require providers to disclose to tenants in plain language the existence of exclusive marketing arrangements that they have with building owners;
  • End a practice that circumvents the FCC’s cable inside wiring rules by clarifying that existing Commission rules prohibit sale-and-leaseback arrangements that effectively block access to alternative providers.

Municipal fiber in the United States: A financial assessment

Christopher Yoo, Jesse Lambert, Timothy Pfenninger  |  Research  |  Telecommunications Policy

Despite growing interest in broadband provided by municipally-owned and operated fiber-to-the-home networks, the academic literature has yet to undertake a systematic assessment of these projects' financial performance. To fill this gap, we utilize municipalities' official reports to offer an empirical evaluation of the financial performance of every municipal fiber project in the US operating in 2010 through 2019. An analysis of the actual performance of the resulting fifteen-project panel dataset reveals that none of the projects generated sufficient nominal cash flow in the short run to maintain solvency without infusions of additional cash from outside sources or debt relief. Similarly, 87 percent have not actually generated sufficient nominal cash flow to put them on track to achieve long-run solvency. In addition, 73 percent generated negative nominal cash flow over the past three fiscal years, leaving them poorly positioned to make up their deficits and causing them to fall farther into debt. An assessment based on the net present value of these projects' operating cash flow indicates that 53 percent of projects would not be on track to breakeven even assuming the theoretical best-case performance in terms of capital expenditures and debt service. Close analysis of these projects’ performance reveals that revenue generation likely plays a more important role in generating cash flow than efficiency in construction costs or operating efficiency.

Spectrum/Wireless

Dish, other 12 GHz backers see 5G prospects rise in C-band’s wake

Monica Alleven  |  Fierce

Remember the bit about the 12 GHz band that 5G proponents were using to advance their argument at the Federal Communications Commission? The one about “no federal encumbrances”? That seems to be rising to the top in the wake of all the recent problems associated with C-band spectrum. Granted, the 12 GHz band has its own set of challenges for the 5G for 12 GHz Coalition, which represents Dish Network, among others. In 2021 the coalition pointed out the advantages of the 12 GHz band while commending the FCC for making 100 MHz available in the 3.45 GHz band. One of their biggest challenges is Starlink, the satellite service being deployed by SpaceX founder Elon Musk. Plus, there are other issues, such as whether an auction should be held to give players other than Dish a stab at the 12 GHz band for 5G.  Still, the 5G for 12 GHz Coalition pointed out that the 12 GHz band is the “only remaining unencumbered 5G spectrum” between 6 and 24 GHz that can meet the demand for mobile broadband. It represents the greatest opportunity to propel the US into “global telecom leadership,” providing more capacity for Wi-Fi and spectrum sharing along the way. With 500 MHz in the band, it’s five times the spectrum that was offered in the 3.45 GHz auction.

State/Local

Minnesota State Budget Invests $170 Million in Broadband Access in the State

Press Release  |  Minnesota Office of the Governor

Gov Tim Walz (D-MN) and Lieutenant Gov Peggy Flanagan (D-MN) announced a series of proposals to expand economic opportunity in Minnesota as part of the Walz-Flanagan Budget to Move Minnesota Forward. The Walz-Flanagan budget invests $170 million to finish the job of bringing border-to-border broadband access to all Minnesotans. Over the past two years, the need for high-speed, high-quality broadband has grown dramatically. Through the past several years of the state’s border-to-border broadband program, about 93 percent of Minnesota households have reliable broadband. The Governor and Lieutenant Governor’s investment, which would remain a competitive matching fund grant program, would finally pave the way for achieving the state’s goal of providing every Minnesotan with reliable broadband. “The Minnesota Rural Broadband Coalition is very pleased that Gov Walz has proposed this historic investment in broadband funding,” said Jay Trusty, Chair of the Rural Broadband Coalition. “Closing the digital divide is one of the most pressing issues of our time and this investment help will level the playing field for rural communities across the state.”

Mediacom ends battle with West Des Moines, Iowa, over Google Fiber deal

Diana Goovaerts  |  Fierce

Mediacom struck a settlement agreement with the city of West Des Moines (IA) to end a more than year-long scuffle over what the operator claimed was an illegal deal between the municipality and Google Fiber. The exact terms of the settlement were not disclosed, but the deal will allow the municipality to move ahead with the construction of a $50 million city-wide conduit network. Mediacom’s Senior Vice President of government and public relations Thomas Larsen said it will allow the operator to tap into that conduit infrastructure “where we need it” and overlash aerial assets in other spots to accelerate its 10G network upgrade there. Mediacom’s dispute with the city dates back to 2020 when city officials struck a deal to bring Google Fiber on as the first tenant on the aforementioned conduit network. That arrangement was announced in July that year. Mediacom filed a lawsuit against the city the following December, claiming the deal with Google Fiber was illegal. It asked a district court to order the city to put the conduit project on hold. A trial was scheduled to begin in April of 2022. In May 2021, Mediacom took the matter to the Federal Communications Commission asking the agency to review the arrangement between the city and Google Fiber. The settlement deal must still be approved by a judge, but if it is accepted Larsen confirmed it will resolve the lawsuit and Mediacom will withdraw its FCC petition.

Government Performance

Lumen reels in $1.2 billion contract to overhaul USDA’s legacy network

Diana Goovaerts  |  Fierce

Lumen Technologies landed a massive $1.2 billion contract with the US Department of Agriculture (USDA), setting it up to give one of the biggest government agency networks a major makeover. Zain Ahmed, Senior Vice President of Lumen public sector, said the 11-year task order represents entirely new business for the company. Under the contract, Ahmed said Lumen will “completely transform” the USDA’s network covering 9,500 locations across the country. It will provide a range of services, including SD-WAN, managed trusted internet protocol, zero-trust networking, edge computing, remote access, virtual private networking, cloud connectivity, unified communications and collaboration, contact center, voice-over-internet protocol, ethernet transport, optical wavelength, and equipment and engineering. In addition to allowing the USDA to provide a better quality of service, Ahmed said the upgrade is also expected to save the agency money. He also said the USDA has “aggressive” timeline targets and Lumen is in the process of working with the agency on planning. Most transformations of this nature take around two to three years to complete, he added.

Oversight

Hill oversight tightens amid coming broadband surge

John Hendel  |  Politico

With billions of dollars set to flow to internet connectivity, lawmakers are questioning how the Biden administration plans to coordinate spending them. In January 20 hearing before the House Agriculture Committee, Agriculture Secretary Tom Vilsack fielded several questions from lawmakers of both parties about how the department has set up its latest round of $1.15 billion in broadband loan and grant funding through its ReConnect program, which will accept applications through February 22. The infrastructure law President Joe Biden signed in November 2021 slated an additional $2 billion for ReConnect. Some House lawmakers peppered Vilsack with questions about USDA’s new points system for prioritizing applicants. Others worried about USDA’s changes to what counts as an “underserved” eligible population, which now means any area lacking 100 Megabits/second download over 20 upload speeds, well above the FCC broadband definition of 25/3 Mbps. The agriculture secretary vigorously defended his department’s points set-up as balanced, reflecting a mix of priorities. “There is a need for additional capacity, which we’ve learned during the course of the pandemic,” he told one lawmaker of higher favored speeds. “It’s equipping rural America to basically have the kind of broadband access that is meaningful and can actually make a difference.” 25/3 Mbps won’t be enough for future precision agriculture and distance learning needs, he added, noting points awarded for serving rural and economically struggling areas and vulnerable populations like seniors can “offset” an applicant’s perceived disadvantages and keep steering dollars toward the neediest communities. “This is an ongoing, iterative process and we learn,” Vilsack told lawmakers, saying criteria could evolve in future funding rounds.

Policymakers

How a delay in Gigi Sohn’s FCC confirmations allowed Republicans to build a new case against her

Andrew Wyrich  |  Daily Dot

It remains an open question as to when the Senate Commerce Committee will schedule a vote on Gigi Sohn [Senior Fellow and Public Advocate at the Benton Institute for Broadband & Society], the long-time public interest advocate and net neutrality supporter picked by President Joe Biden to fill out the Federal Communications Commission. There have been plenty of attempts from her detractors to try and derail her nomination; Republicans have tried to paint her as an extreme partisan—a characterization she vigorously defended herself against during her confirmation hearing—with the clear goal of mucking up the confirmation process. While Republicans in Congress have gone after Sohn, she’s received support from numerous right-wing TV networks like Newsmax and OAN. The latest attempt to derail the process comes from Sen Roger Wicker (R-MS), the ranking member of the Senate Commerce Committee who has blocked numerous attempts to force a vote on net neutrality bills. But the timing of Wicker’s concern over Sohn’s ethics—a vote on her confirmation has been expected to happen in the next few weeks—has been lambasted by internet rights organizations as “dubious” and a “cynical” ploy to keep the FCC in a 2-2 partisan deadlock, thus stopping it from moving forward on net neutrality. Besides re-nominating Sohn in January 2022, Biden hasn’t addressed the slow movement of her confirmation process or the Republican pushback against her nomination.

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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

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