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Could Rural Digital Opportunity Fund make it harder to get FCC broadband funding?
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Land O’Lakes CEO: Rural America is the new inner city
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After deciding to shut New York and Alaska out of the new Rural Digital Opportunity Fund (RDOF), Federal Communications Commission Chairman Ajit Pai has made another change that could reduce or eliminate funding available for broadband providers in other US states. In an order adopted Jan 30, the FCC included a provision that bans funding for areas already receiving money from any similar federal or state broadband-subsidy program. The new provision is so vague and expansive that it could affect areas in dozens of states or exclude some states from receiving money entirely, according to FCC Commissioner Geoffrey Starks. The limit applies to Phase 1 of the program, which will distribute up to $16 billion of the $20.4 billion. The FCC says the first phase will "target those areas that current data confirm are wholly unserved," and the remaining money will be set aside for the future second phase.

On Dec 9, 48 senators wrote to Federal Communications Commission Chairman Ajit Pai to say that, as the FCC considers new rules in the Rural Digital Opportunity Fund (RDOF), it should emphasize the importance of sustainable networks that meet the needs of consumers now and in the future. On Dec 13, 54 reps also wrote to Chairman Pai, who agreed with the senators that any networks built through the universal service fund (USF) should be required to be capable of delivering speeds, latency, and usage capacity "according to what the FCC deems necessary to meet the needs of consumers over the next decade." Further, the Members of Congress said that in order to not waste USF resources, it is critical that any use of an auction to distribute USF support should include meaningful processes upfront to prequalify bidders.
On Jan 21, 2020, Chairman Pai responded by explaining the final rules the FCC would vote on Jan 30 to establish the RDOF. He agreed with the lawmakers on the importance of funding sustainable networks. "[T]he draft rules that I have presented to my colleagues would make three key departures from the [Connect America Fund] Phase II auction so that the RDOF supports networks that will stand the test of time. First, it would more than double the minimum speeds that bidders must commit to provide. Second, it would modify the weights that apply to bids to favor faster, lower latency networks. And third, as soon as the total price of all bids in the auction falls below the auction’s budget, support would be awarded to the bidder with the highest-performing network in each area. In other words, the auction would support the best network possible in each area given the available budget."
Regarding prequalifying bidders, Chairman Pai wrote, "under the draft rules the FCC would thoroughly vet the technical and financial capabilities of applicants before allowing them to participate in the RDOF auction. And once winning bidders start deploying their networks, they would be subject to the same rigorous performance testing procedures that the FCC adopted in Oct for all carriers receiving support through the CAF. These requirements would ensure that carriers remain accountable to consumers, taxpayers, and the FCC."

While the urban world is talking about the power and promise of 5G, much of rural America is still having trouble getting online. While the Federal Communications has launched the Rural Digital Opportunites Fund, Land O’Lakes Chief Executive Beth Ford said, “It’s not that that’s nothing. I mean, that’s real money. But it’s inadequate. And then I meet constantly with governors, and they’re putting something -- 10 million in the budget or 20 million... And it feels like we’re in the couch looking for the quarters and nickels. And that’s not going to get us there. It is going to make us uncompetitive as a nation. We cannot just leave these communities behind.”
Speaking of rural America she said, “What they’re looking for is an understanding that their communities and their families deserve and need investment. That’s why I say rural America is the new inner city, and no fresh food access, no medical access.. that is very problematic and we should all be concerned about that — not just people in rural areas,” she added.

On Dec 19, 2019, House Commerce Committee Chairman Frank Pallone, Jr. (D-NJ) and Ranking Member Greg Walden (R-OR), and Communications Subcommittee Chairman Mike Doyle (D-PA) and Ranking Member Bob Latta (R-OH) wrote to Federal Communications Commission Chairman Ajit Pai to raise concerns about the unreliable data collected for the Mobility Fund Phase II (MF II) coverage maps, and therefore concerns about the announcement that MF II will be replaced with a new 5G Fund. The wrote, "[T]he design and execution of any new fund must be carefully constructed to succeed where MF II failed." The lawmakers asked for additional information on the 5G fund, including information about ensuring areas eligible for support are based on reliable coverage data, performance benchmarks, and ensuring new services are sufficiently secure.
On Jan 24, 2020, Chairman Pai responded by announcing his intent to focus on 5G instead of 4G. "When the significant problems with the data in the Mobility Fund II proceeding came to light, it became clear to me that the FCC’s focus going forward should be on deploying next-generation technologies so that Americans in rural areas are on the same footing as those living in cities....And in my view, it doesn’t make sense for a multi-year support program to concentrate on funding a technology that is likely to be outpaced by 5G before the end of the program....I believe that focusing a 10-year high-cost support program on the deployment of 4G LTE would be akin to focusing our Rural Digital Opportunity fund on the deployment of 10/1 Mbps fixed broadband." He continued, "In your letter, you raise four important questions. Each of those issues, along with many other details of the 5G Fund, will need to be determined by the full Commission through a notice-and-comment rulemaking process. I intend to circulate a Notice of Proposed Rulemaking in the coming months for the FCC’s consideration, and I can assure you that each of the topics that you ask about will be discussed in that document. The FCC will then make decisions based on the record we compile."

In the coming years, 5G wireless Internet stands poised to remake the online world, its unprecedented speed enabling advances in everything from public safety to virtual reality. Within this progress, however, there exists another near-certainty — segments of the population will be left out of the advantages. Indeed, as small-cell networks enable blazing-fast Internet across the country, stakeholders in the government technology and innovation space say 5G will also exacerbate digital inequities. Angela Siefer, the executive director of National Digital Inclusion Alliance, said it’s important to understand here that the digital divide — meaning the split between individuals benefiting from new tech and those struggling in its wake — is made up of many smaller divides.
“I do think it’s going to worsen the digital divide,” Siefer said. “5G is yet another divide, and it adds to existing problems.” Siefer said there is nothing about 5G that will make it a better option for communities already lacking affordable access to fast Internet. In addition, there is a distinct possibility that in order to access mobile 5G Internet, users will need a newer and more expensive device built for the increased speeds. This all speaks to a larger ongoing issue in the country, which is that government and society at times still views broadband as a commodity, rather than a utility needed to foster equitable outcomes in education, healthcare, employment and other vital segments of daily life.

Sixty-one percent of the US population had low-priced wired broadband available to them in the fourth quarter of 2019, according to new broadband affordability research from BroadbandNow. Researchers defined low-priced service to include offerings priced at $60 or less. This was a substantial increase from the third quarter of 2019, when 52% of the US population had low-priced service available. They cautioned, however, that increased availability of low-priced broadband may be temporary because it may have been related to holiday shopping season deals. In fourth quarter, there were 16 states where at least 70% of the population had access to a low-cost plan, including three states where more than 80% of the population could get a low-cost plan. At the other end of the spectrum, there were five states in which no more than 9% of the population had access to a low-cost plan
The percentage of Americans that had non-satellite fixed service at speeds at or above 25/3 Mbps increased slightly between the third and fourth quarter of 2019 – from 94.5% to 94.8%. The percentage of Americans that had non-satellite fixed service at speeds at or above 25/3 Mbps increased slightly between the third and fourth quarter of 2019 – from 94.5% to 94.8%.

On Jan 31, 2020, Federal Communications Commission Chairman Ajit Pai wrote the following to various Members of Congress:
"I am writing to follow up on my letter of December 3, 2019 regarding the status of the FCC’s investigation into the disclosure of consumers’ real-time location data. Fulfilling the commitment I made in that letter, I wish to inform you that the FCC’s Enforcement Bureau has completed its extensive investigation and that it has concluded that one or more wireless carriers apparently violated federal law. I am committed to ensuring that all entities subject to our jurisdiction comply with the Communications Act and the FCC’s rules, including those that protect consumers’ sensitive information, such as real-time location data. Accordingly, in the coming days, I intend to circulate to my fellow Commissioners for their consideration one or more Notice(s) of Apparent Liability for Forfeiture in connection with the apparent violation(s). Please let me know if I can be of any further assistance."

For more than a year, the [Federal Communications Commission] was silent after news reports alerted us that for just a few hundred dollars, shady middlemen could sell your location within a few hundred meters based on your wireless phone data. It’s chilling to consider what a black market could do with this data. It puts the safety and privacy of every American with a wireless phone at risk. Today this agency finally announced that this was a violation of the law. Millions and millions of Americans use a wireless device every day and didn’t sign up for or consent to this surveillance. It’s a shame that it took so long for the FCC to reach a conclusion that was so obvious.

The Schools, Health & Libraries Broadband (SHLB) Coalition released its 2020 Policy Roadmap, outlining the path forward for community anchor institution (CAI) broadband. Schools, libraries, healthcare providers, and other CAIs rely on high-quality broadband to provide essential services to their communities. It is imperative that policymakers, industry, and anchor institutions collaborate to connect all CAIs to affordable, gigabit broadband – a key step in closing the digital divide. The SHLB Coalition will pursue the following policy priorities in 2020:
- Increase funding and improve administration of the Federal Communications Commission’s Rural Health Care Program. SHLB will work with the FCC and Congress to provide sufficient funding and improve administrative processes to encourage more health clinics to participate in the program, thereby improving the quality of healthcare in rural America.
- Strengthen the E-rate Program. E-rate must adapt to embrace new technologies such as Wi-Fi on school buses and cybersecurity services necessary to protect school and library networks.
- Fund broadband infrastructure for anchor institutions. Commercial and non-commercial broadband providers are valuable partners for connecting all CAIs to gigabit broadband. However, they need government funding to connect anchors in areas that are too costly to reach.
- Increase competition through licensed and unlicensed spectrum. Making more spectrum available gives anchors the flexibility to choose the best connectivity solution for their unique situations.
- Simplify and strengthen the Universal Service Fund. Rural students, veterans, low-income residents, and communities of color are just some of the people who obtain connectivity through USF programs. The USF now faces challenges that broadband policymakers must address, such as developing a future-proof funding mechanism and simplifying the application process.
- Include anchors in broadband availability maps. As the FCC and Congress improve broadband maps with more accurate and granular data, they must include information about anchors. These maps should not be used to create barriers to competitors offering lower prices to anchor institutions.
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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