Friday, February 21, 2020
Headlines Daily Digest
Field Hearing on Resilient Communications Networks in Puerto Rico
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White House Touts Benefits of Internet Deregulation
FCC: New Data Shows Digital Divide Closing & Broadband Competition Rising
The FCC’s New Initiative Punishes States That Have Tried to Close the Digital Divide
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Overturning the Federal Communications Commission’s opt-in privacy rule resulted in lower prices for wired and wireless Internet service. Both these declines are about $40 per subscriber over the life of the subscription, which is similar to independent estimates of the per-subscriber cost of obtaining personal data consent from retail customers that are the basis for our quantitative analysis. By removing vertical pricing regulations, the Trump Administration’s “Restoring Internet Freedom” order will increase real incomes by more than $50 billion per year and consumer welfare by almost $40 billion per year.

The Federal Communications Commission’s Office of Economics and Analytics (OEA) released updated data showing that from December 2016 to December 2018, the number of Americans without any options for at least 250/25 Mbps fixed terrestrial broadband service plummeted by 74%, from 181.7 million to 47 million. And during that same time period, the number of Americans with no options for at least 25/3 Mbps fixed terrestrial broadband service fell by 30%, from 26.1 million to 18.3 million. The data also showed an increase in competition from December 2016 to December 2018, with the number of Americans enjoying more than two options for 25/3 Mbps fixed terrestrial broadband service increasing by 52%, from 45.9 million to 69.8 million. Moreover, the number of rural Americans with two or more options for 25/3 Mbps fixed terrestrial broadband service increased by 52%, from 14.4 million to 22 million.
The updated data includes fixed and mobile broadband deployment and speeds as of December 31, 2018. The data can be accessed from the Commission’s website at: https://www.fcc.gov/reports-research/reports/consolidated-communications...

In a surprise move, between the publication of the draft Rural Digital Opportunity Fund Report and Order and the Federal Communications Commission’s final vote on the Report and Order, the FCC added the line stating that census blocks receiving “funding through other similar federal or state broadband subsidy programs” would be ineligible for Phase I RDOF funds. In doing so, the FCC has likely impacted the ability of numerous states and millions of Americans residing in large rural census blocks to benefit from RDOF. According to a PEW Report from December 2019, 25 states have established their own broadband funds. According to research undertaken by FCC Commissioner Geoffrey Starks, nearly 30 states may find their eligibility for RDOF funds reduced or eliminated. However, it is difficult to estimate the true effect of this language, because how it will be implemented is maddeningly unclear. First, it is unclear how the FCC will gather information to know which census blocks have an internet service provider that is a state grant recipient. It’s also unclear how much funding disqualifies an ISP, and therefore the census block. And it’s unclear if the FCC will have a challenge process for blocks declared ineligible on the basis of receiving state funding in the same way it has a challenge process for deeming blocks ineligible due to existing coverage. This makes it impossible to assess the impact of the FCC’s last-minute decision. However, this language does not allow all ISPs to use both state and federal funding to deploy broadband. The FCC should, and traditionally has, encouraged states to promote broadband deployment.

Sprint and T-Mobile have agreed on new terms for their merger, as the wireless carriers race to close the deal. The parties will improve the exchange ratio in the all-stock deal for T-Mobile’s parent, Deutsche Telekom AG. Originally, 9.75 Sprint shares were to be exchanged for each T-Mobile share. Under the revised deal, SoftBank Group, which owns more than 80% of Sprint’s common stock, will exchange the equivalent of 11 of its shares for each T-Mobile share. Sprint’s other shareholders will continue to get the original exchange ratio. Deutsche Telekom is to own about 43% of the combined company now, up from just below 42% when the deal was first announced. SoftBank’s percentage will drop to approximately 24% from 27%. The remaining 33% is to be held by the public, up from 31%. To effect the changes, SoftBank has agreed to surrender 48.8 million T-Mobile shares to the new company, to be called T-Mobile. Those shares could be reissued to SoftBank if T-Mobile’s stock price reaches certain milestones beginning two years after the deal closes.

The Federal Communications Commission announces the launch of the National Lifeline Eligibility Verifier for all new enrollments in Florida, Illinois, Minnesota, Ohio, and Wisconsin. Starting on March 24, 2020, eligible telecommunications carriers (ETCs) in these five states will be required to use the National Verifier’s eligibility determination process for all consumers applying for Lifeline service and must cease using legacy eligibility processes for prospective Lifeline subscribers. As of March 24, 2020, consumers in Florida, Illinois, Minnesota, Ohio, and Wisconsin can begin to check their eligibility for Lifeline service directly by using the National Verifier consumer portal available at CheckLifeline.org. The consumer portal is available in both English and Spanish language versions. Consumers, as well as service providers, will also be able to mail Lifeline program forms and documentation to USAC for manual review.
Emergency Communications
Reps Pallone and McNerney Introduce RESILIENT Networks Act, a bill to improve network resiliency in times of emergency

House Commerce Committee Chairman Frank Pallone, Jr. (D-NJ) and Communications and Technology Subcommittee member Rep. Jerry McNerney (D-CA) introduced the Reinforcing and Evaluating Service Integrity, Local Infrastructure, and Emergency Notification for Today’s Networks Act (H.R. 5926), or the RESILIENT Networks Act, a bill to improve network resiliency in times of emergency. The RESILIENT Networks Act requires pre-planned coordination among providers of advanced communications service to take effect during times of emergency, including roaming and mutual aid arrangements. It improves coordination between communications providers, 9-1-1 operators and public safety entities. The legislation also includes mechanisms to ensure first responders are provided network outage data to help guide disaster response.
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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