Tuesday, April 5, 2022
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News From the FCC

The Federal Communications Commission announced that the FCC and Department of Justice (DOJ) have reached a $13.4 million settlement with TracFone Wireless in connection with violations of FCC Lifeline program rules. Specifically, the settlement resolves allegations that TracFone violated the False Claims Act by signing up more than 175,000 ineligible customers for the Lifeline program during 2012-2015 and that the false claims resulted from TracFone’s lax oversight and monitoring of its Lifeline program. A detailed investigation by the FCC Office of Inspector General revealed that TracFone did not have adequate internal controls and other Lifeline compliance measures in place over an extended period of time. As a result, TracFone failed to detect that for several years its contract sales agents in Florida were improperly targeting and marketing Lifeline services by exploiting a loophole in TracFone’s process for verifying Lifeline eligibility. The settlement resolves a qui tam action in the United States District Court for the Middle District of Florida, makes the Universal Service Fund whole, and provides damages to the Government for TracFone’s misconduct. Under the settlement, the Universal Service Fund will retain $10,927,372 in previously refunded overpayments and TracFone will pay an additional $2.5 million in damages to the Government. Further, TracFone has agreed to enter into a comprehensive, three-year compliance agreement to help ensure strict adherence to the FCC’s rules for the Lifeline program going forward.

The Federal Communications Commission announced that its Electronic Comment Filing System (ECFS) has undergone a system upgrade which will help enable expanded features and functions to be introduced into ECFS in the coming year. The update transitions ECFS to a cloud-based platform, which will make the system scalable and more agile. In addition, reCAPTCHA functionality has been added to the system. This first phase of the multi-phase ECFS upgrade effort will enable development of new functions that take advantage of the upgraded technology platform. To access the Electronic Comment Filing System, visit https://www.fcc.gov/ecfs/

Federal Communications Commission Chairwoman Rosenworcel sent letters to 29 House members in response to their letter on implementation of the Infrastructure Investment and Jobs Act provision requiring internet providers share details about their plans with consumers in an easy-to-read format. Chairwoman Rosenworcel said that on Jan. 27, 2022, the FCC adopted a Notice of Proposed Rulemaking (NPRM) on broadband information labels, and the FCC is holding public hearings on the importance of developing these labels.

Federal Communications Commission Chairwoman Rosenworcel sent a letter to Rep. Frank Mrvan (D-IN) in response to his letter on the efforts of the FCC to collect more precise and reliable broadband deployment data, and urging the FCC to include veterans in the FCC’s data collection and reporting. Chairwoman Rosenworcel said when the FCC completes its initial efforts to improve broadband data collection, veterans across the country will have better access to information about what services are available where they live.

Federal Communications Commission Chairwoman Jessica Rosenworcel announced additions to her leadership team. As of mid-April, Narda Jones will return to the FCC and assume the role of Chief of Staff. Priscilla Delgado Argeris will now serve as Chief Legal Advisor.
Narda Jones rejoins the Federal Communications Commission from the White House where she was the Director of Legislative Affairs for the Office of Science and Technology Policy. Prior to that, she was the Senior Technology Policy Advisor for the Democratic staff of the Senate Commerce Committee. Jones started working in the United States Senate for Senator Maria Cantwell of Washington in 2014, after spending over a decade in senior roles in the Federal Communications Commission’s Wireline and International Bureaus. Jones also previously worked at the Minnesota Attorney General’s Office and the Minneapolis City Attorney’s Office. In addition, she was part of the inaugural class of the AmeriCorps Legal Fellowship program and spent her fellowship time aiding homeless families secure housing and public benefits in St. Paul, Minnesota. Born and raised in Brooklyn, New York, Jones is a graduate of Wesleyan University and Brooklyn Law School.
Priscilla Delgado Argeris joins the Chairwoman’s office from Meta Platforms, Inc. (Facebook) where she has focused on spectrum policy issues for the company across the globe. From 2012-2015, she served as then-Commissioner Rosenworcel’s Legal Advisor and Senior Legal Advisor covering wireline and wireless issues for the office during her tenure. Prior to joining the FCC, Argeris worked at the law firm Wiley Rein, where she focused regulatory and litigation matters involving federal and state communications law. Ms. Argeris received her undergraduate degree from Princeton University and her law degree from New York University School of Law.

The Universal Service Administrative Company (USAC) will utilize a new process to confirm existing subscribers’ Lifeline program eligibility if there is reason to believe that a subscriber is no longer eligible for their Lifeline service. USAC will reach out to the subscriber and direct them to the National Verifier to verify their eligibility through a continued eligibility application. The National Verifier supports the continued eligibility process by streamlining, automating, and tracking subscriber outreach and response, a process that was previously manual and ad hoc in nature. This new process functions similarly to the Death Master File (DMF) monthly process. In response to USAC’s outreach, consumers are able to confirm their eligibility using the National Verifier consumer portal, National Verifier service provider portal, Eligibility Check API, or via mail. USAC will de-enroll subscribers who do not complete a qualified continued eligibility application five business days after the end of their 30-day resolution window. Service providers can access the Continued Eligibility Subscriber Status Report in NLAD in order to see which of their subscribers are going through the process. The report provides detail for each subscriber, including the contact information, Application ID, expiration date, and errors to be resolved. Subscriber de-enrollment information is also listed (if applicable). The Continued Eligibility Subscriber Status Report updates daily, based on data received from the National Verifier. This new process does not impact the recently extended Lifeline COVID-19 Waivers, and USAC will implement this process in accordance with those waivers.

Several core recommendations emerge from this history of broadband policymaking:
- Rely on evidence from a long history of telecommunications policies and regulations, admitting what we know and what we do not yet know about the effects and effectiveness of subsidies.
- Acknowledge trade-offs. Some goals may be inconsistent with others.
- Create a coherent weighting system to compare proposals. Ideally, weights are based on how much consumers value various aspects of broadband.
- Rely on state procurement expertise. Like other state procurements, use competitive bidding for broadband services in order to require suppliers to compete against each other for contracts.
- Build evaluation into any program. The key to program evaluation is transparency, such as making all proposals public whether they are funded or not.
- Work together. Avoid duplicative efforts across states, and seek economies of scale from joint efforts with other states, federal agencies, and the private sector.
Broadband Infrastructure
Consolidated Communications building big fiber-optic internet network in Maine

Consolidated Communications is building the biggest fiber-optic internet network in Maine and said it plans to offer connections to tens of thousands of homes and businesses by the end of 2022. It is building networks in Portland, Biddeford-Saco, the Augusta area, Rockland, Waterville, Falmouth, and Bangor. The goal is a comprehensive network covering nearly all the customers in the communities Consolidated has targeted. The Consolidated expansion will be a major shakeup in Maine’s internet market, said Peggy Schaffer, executive director of ConnectMaine, a government agency dedicated to universal broadband in the state. Many of the areas Consolidated has targeted are already served by high-speed internet and therefore not eligible to use state or federal money to expand fiber-optic service, Schaffer said. Despite being able to access high-speed internet, reliability and affordability remain concerns, and there is pent-up consumer demand for fiber to the home. “In many of these markets they are head-to-head with competitors, including the cable companies,” Schaffer said. “The fiber connections they are putting in are high quality, with low latency. Competition will help drive down costs.” Consolidated – formerly named FairPoint Communications – is the state’s largest telecommunications company and has an existing network of landline telephone lines, she said. That means the company can rapidly install new fiber-optic lines. “They have a cost advantage and a time advantage because they own the poles, and they are on them already,” Schaffer said. The expansion is privately funded, although Consolidated is a partner in a federal grant to install fiber internet in Rangeley, Farmington and Blue Hill. Maine has set aside about $250 million to bring broadband service to underserved parts of the state.

Steven Berry, CEO of the Competitive Carriers Association, said smaller carriers are happy, along with everyone else, that billions of dollars of government funding will be poured into closing the digital divide. But he stressed that bringing fiber to rural areas is not the same as bringing mobile. “Fiber to the home is not mobile,” said Berry. “The Biden administration is going to spend $42.5 billion on fiber to the home. Great. But putting fiber to the farmhouse does not give coverage to the back 40 or the feedlot. If you’re running a tractor on the back 40 and want to control it autonomously, you don’t have enough throughput to do that if you’re not on a robust 5G network.” Berry and the CCA are big proponents of taking some of the government funds for broadband and putting them toward 5G. CCA commissioned a study by CostQuest, that was released in December 2021, to determine the initial investment needed to deploy ubiquitous 5G service to structures, roads and land currently unserved nationwide by 5G. CostQuest determine it would cost about $36 billion to do ubiquitous 5G around the US.

Amazon is stepping up plans for its proposed fleet of internet satellites that would compete with a service operated by Elon Musk’s SpaceX, buying dozens of space launches from three rocket companies. Amazon’s Project Kuiper said it secured up to 83 planned launches that would ferry satellites to orbit over a five-year stretch. The Amazon unit hasn’t sent up any satellites yet, though it has said it will have two prototypes launched in 2022. Project Kuiper and SpaceX, whose formal name is Space Exploration Technologies Corp., are among the businesses and government agencies racing to send broadband satellites into low-Earth orbit, in some cases and markets betting they can compete with traditional broadband providers. Amazon’s new planned launches depend on larger rockets still under development that must show they can fly as expected. The launch companies hired to take Project Kuiper’s satellites into orbit, including Blue Origin LLC, have faced delays in developing those rockets.
About one-third of smart city projects fail and around 80 percent of prototypes don’t scale and reach their desired scope.(1) Poorly implemented smart city investments undercut civic trust and can have far-reaching economic and social consequences. US Ignite’s Fostering Civic Trust guide purports an ecosystem of trust that places people at the core of the smart city movement by focusing on five policy domains: (i) Data Governance; (ii) Cybersecurity; (iii) Privacy; (iv) Community Engagement; and (v) Equity. The connected community in the Discovery Park District (DPD) is partnering with US Ignite and XQ Message to develop governance models and policies to govern its digital environment to foster digital trust. The effort will build on the trust framework introduced in US Ignite’s Fostering Civic Trust Guide by adding the sixth policy domain—sustainability—to understand how DPD can meet its economic, social, and environmental needs now and into the future.

Brightspeed is looking to blanket more than three million locations with fiber over the coming years once parent Apollo’s acquisition of assets in 20 states from Lumen Technologies closes. But the company is not planning to use your father’s network architecture. The company has enlisted the help of several major vendors, including fiber supplier Corning, cloud platform provider Calix, and construction company Dycom. Most of the nearly 7 million passings Brightspeed expects to inherit from Lumen are currently served with copper, meaning the company has the chance to build a new fiber network its own way. A traditional fiber network uses a setup that relies on a centralized spilt. So, a feeder cable runs out from a central office location to a fiber distribution hub (FDH), and from there multiple distribution cables branch out to different neighborhood terminals where the line is split again to run drop cables to customers’ homes. Technicians will use fiber jumpers to connect the feeder and distribution cables when a customer requests service. Brightspeed’s architecture, however, will eliminate the FDH from the equation. The strategy will save money, eliminate the work usually required to deploy an FDH and allow it to roll out its new network faster and therefore start generating revenue sooner.

Infrastructure company 3Red8 has a plan to build a new open access dark fiber network by 2027 that, like the interstate highway system, will crisscross the U.S. and allow a free flow of traffic from coast to coast and border to border. While 3Red8 itself plans to operate using a wholesale business model, the company eis hoping to partner with internet service providers (ISPs), co-operatives, and municipalities to use their fiber backbone to help close the digital divide. The company is currently planning to run fiber all the way from Los Angeles, California, in the west to Myrtle Beach, South Carolina, in the east, with a north-south route from Pembina, North Dakota, to Texas City, Texas, pretty much evenly bisecting the country. All told, it’s looking to deploy more than 70,000 route miles of fiber across 18 states, with edge data centers stationed about every 50 miles along the way. Partners on the project include Quanta Telecom, Schneider Electric, Dentons, EDJX, and Deloitte.
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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