Thursday, May 30, 2019
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FCC Releases 2019 Broadband Deployment Report
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FCC Broadband Report

The Federal Communications Commission is charged with “encourag[ing] the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans,” by removing barriers to infrastructure investment and by promoting competition in the telecommunications market. For the past two years, the FCC has taken up the mantle; it has made closing the digital divide between Americans with, and without, access to modern broadband networks its top priority. The FCC remains committed to ensuring that all Americans, including those in rural areas, Tribal lands, and disaster-affected areas, have the benefits of a high-speed broadband connection. As a result of those efforts, the digital divide has narrowed substantially, and more Americans than ever before have access to high-speed broadband.
In the time since the FCC’s last Broadband Deployment Report, the number of Americans lacking a connection of at least 25 Mbps/3 Mbps (the current benchmark) has dropped from 26.1 million Americans at the end of 2016 to 21.3 million Americans at the end of 2017, a decrease of more than 18%. Moreover, the majority of those gaining access to such connections, approximately 4.3 million, are located in rural America. Higher-speed services are being deployed at a rapid rate as well. For example, the number of Americans with access to at least 250 Mbps/25 Mbps broadband grew in 2017 by more than 36%, to 191.5 million. And the number of rural Americans with access to such broadband increased by 85.1% in 2017. 3. Other data beyond the data underlying the Broadband Data Report illustrates industry’s response to the FCC’s actions promoting broadband deployment. During 2018, for example, broadband providers, both small and large, deployed fiber networks to 5.9 million new homes, the largest number ever recorded. Also, capital expenditures by broadband providers increased in 2017, reversing declines that occurred in both 2015 and 2016.
With this evidence, the FCC finds, for a second consecutive year, that advanced telecommunications capability is being deployed on a reasonable and timely basis.

To be clear: according to our data collection, which has been rightfully criticized, approximately nine million Americans still lack access to even 10/1 Mbps service, and our finding here does not deny that point. However, our statutory mandate is not only to determine whether all Americans currently have access to advanced telecommunications capabilities, but also whether progress in deploying such services is proceeding at a reasonable and timely pace, and an affirmative response to the latter inquiry is completely consistent with the facts on the ground. I remain steadfast in my commitment to bringing access to those Americans currently without any broadband option at all and look forward to further actions by this Commission on this front, including, above all, the implementation of the Remote Areas Fund (RAF) auction in some form or fashion. At the same time, there is no doubt that rapid and robust progress in deployment, particularly in the wireless space, is evident according to the albeit imperfect data we have.
I remain dismayed by the report’s reliance on purported “insufficient evidence” as a basis for maintaining—for yet another year in a row—an outdated siloed approach to evaluating fixed and mobile broadband, rather than examining both markets as one. Data shows that fixed and mobile service are undoubtedly substitutable for many Americans and that fixed and mobile providers are in fierce competition with one another for customers.

This year’s Section 706 report contains more good news for American leadership in 5G. The FCC’s policies are working. Internet speeds in the U.S. have never been faster: they’re up nearly 40%. The digital divide— the percentage of Americans without access to high-speed Internet access—narrowed by nearly 20%. Providers built fiber broadband out to more homes last year than ever before. The U.S. now has the largest commercial deployment of 5G in the world, and we’re predicted to have more than two times the percentage of 5G connections as Asia. That is more broadband for more Americans. None of this is to say that our job at the FCC is done. As the Report makes clear, far too many Americans remain unable to access high-speed broadband, and we have much more work left to do. But the question Congress set out in Section 706 is “whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion.” The data show that it is.

It is simply not credible for the Federal Communications Commission to clap its hands and pronounce our broadband job done—and yet that is exactly what it does in this report today. By determining that under the law broadband deployment is reasonable and timely for all Americans, we not only fall short of our statutory responsibility, we show a cruel disregard for those who the digital age has left behind.... This report deserves a failing grade. It concludes that broadband deployment is reasonable and timely throughout the United States. This will come as news to millions and millions of Americans who lack access to high-speed service at home. It will come as news to communities across the country that are struggling to secure the broadband they need for economic revitalization and growth. It will come as news to rural households and tribal areas that fear without change they will forever be consigned to the wrong side of the digital divide. It will come as news to urban areas where redlining has led to broadband deserts. It also will come as news to millions of students who fall into the homework gap because they lack the internet access needed for nightly schoolwork. Moreover, it will come as news to governors, mayors, and legislators across the country working overtime to extend high-speed service to those outside its reach. It will come as news to members of Congress who in hearing after hearing have chided this agency for its inability to deliver the promise of broadband to communities they represent. Is it infrastructure week yet? Because there is no conversation in Washington regarding infrastructure that does not give prominent place to the work we have yet to do to reach everyone, everywhere with high-speed service. Instead of this report, we should be issuing a candid appraisal of the work we have to do to bring broadband everywhere. This requires three things:
- We need to stop relying on data we know is wrong
- We need high standards -- it is time for the FCC to adopt a 100 Megabits per second standard and set Gigabit speeds in our sight
- We need to be honest about the state of what we have found. Moreover, we need to be thoughtful about how impediments to adoption, like affordability, are an important part of the digital equity equation and our national broadband challenge.

The 2019 Broadband Deployment Report reaches the wrong conclusion. According to the report, the digital divide has narrowed substantially over the past two years and broadband is being deployed on a reasonable and timely basis. The rosy picture the report paints about the status of broadband deployment is fundamentally at odds with reality. While I would like to be able to celebrate along with the FCC’s majority, our broadband deployment mission is not yet accomplished. If you are 10 steps away from your goal and you move a step-and-a-half forward, you don’t have a victory party when your work isn’t done. You give yourself a pat on the back and put your head down to achieve the remaining eight-and-a-half steps. And that’s where we are – with over 21 million Americans without access to quality, affordable broadband, we are about eight-and-a-half steps behind and we must get back to work. The report masks the urgent need for continued and renewed action to address inequities in internet access in rural, tribal, and urban areas of the country. The fundamental disconnect between the report and reality is reason enough for my dissent.

In 2012, the Federal Communications Commission released its eighth Broadband Deployment Report (the "706 report") and found that approximately 19 million Americans at the end of 2011 lacked access to high-speed internet access. The FCC concluded that "broadband is not yet being deployed in a reasonable and timely fashion." On May 29, 2019, the FCC distributed a press release summarizing findings from its revised 2019 Broadband Deployment Report and stated that at the end of 2017, 21.3 million Americans lacked access to broadband networks. However, the FCC now concludes that this gap in broadband deployment meant that broadband is being deployed in a reasonable and timely fashion. How can 19 million people without broadband be a problem in 2012 but some 21 million without broadband not be a problem in 2019? Politics is an obvious answer. The 706 report can prompt calls for policy intervention and the 2012 FCC was more disposed to action to address issues in the broadband market than today's FCC is. But FCC Chairman Ajit Pai’s press release points to two other aspects of the 706 report that deserve attention:
- The shaky metrics it rests on, and;
- Its constricted view of the digital divide.
[John B. Horrigan is Senior Fellow at the Technology Policy Institute.]

There is an old joke about a drunk man searching for his keys under a streetlight and when asked if that’s where he lost them, he answers, ‘No, but this is where the light is.’ Unfortunately, we can’t make light of the FCC’s latest broadband report which arrives at a crucial conclusion using, by its own admission, flawed data. Many may argue that the FCC came to the wrong conclusion; others will say that it is correct. But the point is: How can the FCC come to any conclusion when it knows the information it is basing its decision on is flawed?
Recently, the FCC majority has engaged in legal gymnastics to change the standard the FCC uses to comply with its annual obligation to report to Congress on the state of broadband deployment in the U.S. Perhaps we should ask Chairman Ajit Pai and Commissioners Michael O’Rielly and Brendon Carr these simple questions: Do you live in a home that cannot access broadband? If you did, would you still agree that broadband is being deployed on a reasonable and timely basis? That is the conclusion these commissioners are asking 21.3 million Americans to come to. That is unacceptable. Let's stop making decisions in the dark.

Since 2004, Federal Communications Commission rulemakings on net neutrality have been caught in a vicious cycle. They have been passed, fought in court, and returned to the FCC with minor (and sometimes major) revisions. In the last few years there have also been numerous attempts to pass legislation, cementing net neutrality once and for all, but nothing has succeeded in Congress. Recognizing the importance of finding a sustainable solution, the Internet Society proposed a collaborative process to help experts find common ground on this complex policy issue. Starting in June 2018, the Internet Society convened an ideologically diverse group of experts to create a baseline set of principles for an open Internet. The group was able to create a consensus-driven set of bipartisan principles for an open Internet in the United States.
I. Government has a role to play in protecting the open Internet and ensuring that Internet users are able to access the content they want, when they want.
II. To address the uncertainty in the United States regarding open Internet rules, there should be a legislative framework for net neutrality that clearly and explicitly protects the interests of Internet users while fostering an environment that encourages investment and innovation.
III. The Internet should follow the Powell Principles: users should have the freedom to access and convey content, freedom to use applications, freedom to attach personal devices, and freedom to obtain service plan information.
IV. Above all, the purpose of any regulation should be to promote user choice over their broadband Internet access service consistent with applicable law.
V. Nothing in the rules should restrict BIAS providers from protecting the needs of public safety, national security interests, law enforcement, and copyright infringement.
VI. Any legislation should preserve the FCC’s authority to address universal service, public safety, accessibility for individuals with disabilities, pole attachments and access to rights of way, and state and local barriers to broadband deployment with respect to BIAS.
[see more]

The first statistical evidence on the effects on labor market outcomes of municipal broadband systems. Using data obtained from the US Census Bureau’s American Community Survey, we apply the Difference-in-Differences estimator, augmented with Coarsened Exact Matching and the wild bootstrap, to quantify the economic impact, if any, of the county-wide government-owned network (“GON”) in Chattanooga (TN) on labor market outcomes. Across a variety of empirical models, we find no payoffs in the labor market from the city’s broadband investments. An automotive plant built in the area is, however, found to substantially increase automobile manufacturing employment. Since Chattanooga’s system is an overbuild of multiple private providers, we stress that our findings may not be generalized to areas where broadband services are not available absent the municipal system. Also, our results cannot speak to the benefits of high-speed Internet services generally, since broadband Internet service was and remains available in Chattanooga absent the municipal system.

Apparently, top Justice Department officials want T-Mobile US and Sprint to lay the groundwork for a new wireless carrier -- with its own network -- as a condition to clearing their $26.5 billion merger. But the idea of spinning off a full-fledged national competitor would be a high bar for T-Mobile and Sprint to meet. T-Mobile and Sprint, the two smallest national wireless carriers, have to weigh whether the remedies offered to gain approval are too onerous. The challenge: make enough concessions to assure antitrust enforcers that competition will thrive as the industry shrinks from four rivals to three -- without eliminating the benefits of merging the two companies.
Setting up a fourth competitor is possible, but could be unpalatable to the companies, said Blair Levin, an analyst with New Street Research and a former FCC chief of staff. “It can be done, but the question is whether there’s a solution that would satisfy the companies and the Justice Department and the states,” he said. “That’s hard.”

Some businesses are pushing back against a regulatory proposal that would allow phone companies to block unwanted robocalls. Representatives for trade bodies that lobby on behalf of debt collectors, banks, health-care providers and other businesses met with Federal Communications Commission officials recently, urging them to delay a planned June 6 vote on the matter and instead seek public comment, apparently. Banks, collection agencies and merchants say automated calls are crucial, even though some consumers find them annoying. Representatives for ACA International, a trade body for debt and collections companies, the American Association of Healthcare Administrative Management, the Credit Union National Association and the American Bankers Association were among those who met with FCC Commissioner Michael O’Rielly and a member of his staff, as well as a member of FCC Commissioner Brendan Carr’s staff.
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