Thursday, June 24, 2021
Headlines Daily Digest
Today's Events include Learning at Home While Under-Connected
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Infrastructure Negotiators Agree to Framework for Package
Broadband Funding
Broadband Affordability
Broadband and Labor
Platforms/Social Media
Digital Inclusion
Wireless
Policymakers
Company News
Stories From Abroad
Broadband Funding
Members of a bipartisan group negotiating a roughly $1 trillion infrastructure proposal said they had crafted a framework for an agreement, and lawmakers plan to meet with President Biden on June 24 to try to complete a deal. The Democrats and Republicans emerged from a meeting with top White House officials saying work would continue on some unresolved details. Recent talks have focused on how to finance the package, which drafts showed would spend $579 billion above expected federal levels for a total of $973 billion over five years and $1.2 trillion if continued over eight years. People familiar with the agreement said that the funding in the framework resembled levels in the drafts, with some putting the five-year new-spending proposal at $559 billion, because $20 billion in broadband funding would be repurposed from Covid-19 relief. The package is expected to include funding for improvements to roads, bridges, transit, airports and enhanced infrastructure for broadband, water and electric vehicles, but exclude large investments in housing, home care, and workforce development.
Ranking member of the Senate Committee on Commerce, Science and Transportation Roger Wicker (R-MS) sent letters to the Department of Education, Department of Agriculture, and Department of Treasury requesting the agencies to report on the disbursement of funds received for broadband deployment, adoption, or other connectivity initiatives. The funding initiatives in question include the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, Consolidated Appropriations Act of 2021, and American Rescue Plan Act of 2021. “The COVID-19 pandemic underscored the importance of broadband connectivity,” said Wicker. “To address this issue, Congress has spent billions of dollars to fund multiple programs across the federal government that support the expansion of broadband connectivity and services to unserved and underserved locations. It is critical that both Congress and the agencies ensure that these funds are distributed in a way that avoids overbuilding, duplication of funding, and wasteful spending.”
Federal funding for broadband expansion is spread out over a number of different initiatives, which may make it difficult to decide on a funding strategy. Here are CTC Technology and Energy's points to consider when weighing your options for federal broadband funding:
- The Coronavirus State and Local Fiscal Recovery Fund is likely the most unrestricted opportunity you will have when it comes to broadband infrastructure investments.
- So far, State and Local Fiscal Recovery Fund is the only opportunity to potentially offset bad Rural Digital Opportunity Fund outcomes for most projects.
- The Coronavirus Capital Projects Fund may be a good alternative, but it depends on how your state government decides to administer the funds.
- Upcoming infrastructure and stimulus funding bills targeting broadband expansion may have restrictions so onerous that they practically exclude most desired initiatives.
- The Broadband Infrastructure Program released interim final rules, and it may have restrictions that severely limit what projects are deemed eligible. The recommended, but not required, 10 percent match is a welcome low bar and does not require cash commitments from strained local government budgets
- United States Department of Agriculture’s ReConnect program will have more strings attached in enabling legislation than other grant programs.
- The Economic Development Administration has more flexibility and generous funding, but it requires documentation on economic impact and has strongly preferred projects that extend to businesses rather than residential buildings.
The National Telecommunications and Information Administration's Notice of Funding (NOFO) for their new Broadband Infrastructure Progam provides a complicated definition for eligible service areas. Here is our analysis of the NOFO protocols on data usage and mapping for program proposals:
- NTIA consults the National Broadband Availability Map (NBAM) when considering proposals, adding state-provided data and speed test data to the old 477 maps.
- NBAM maps are not public, although you can access them if your state is an NBAM participant. To see if your state is participating in NBAM, click here.
- The proposed service areas can be part of census blocks and do not have to be contiguous. Middle-mile infrastructure is eligible for funding, so the boundaries for the proposed funding service areas drawn by you and your partner(s) can consist of clusters if they’re connected by middle-mile.
- Including some served locations in your proposal should not be a problem. NTIA’s criteria for an unserved area is that at least one address in a census block is unserved, but a higher number of unserved addresses, as well as a high unserved-to-served ratio, will positively impact the project’s score.
- Fixed wireless coverage counts for BIP could potentially eliminate a census block from funding since physical inspection is difficult and field testing is unreliable. If you have independent speed test or survey data to document no service, below-average broadband speeds, and/or unreliable service, your project will be less vulnerable to exaggerated fixed wireless provider claims.
- Prior federal or state broadband funding in a census block does not necessarily preclude an area from consideration but must be disclosed in the grant application. A census block that has been previously funded with state or federal funds such as the Connect America Fund II would not—if there are still unserved households—preclude an applicant from including such an area, but it could weaken the overall score of the project and could potentially exclude it.
The National Science Foundation (NSF) and the US Department of Agriculture are spending $8 million to build a rural broadband testing site in Ames, Iowa, that both industry engineers and researchers from Iowa State University plan to use for developing wireless technologies and piloting rural connectivity strategies. The program will create a “blanket” of experimental broadband coverage across nearly 600 square miles of central Iowa—including six school districts—in its efforts to research 5G use cases, pilot emerging connectivity technologies, and assess how high-speed wireless access can enhance agricultural practices. This testbed is the first of its kind in the Midwest, though the NSF has already launched three other similar sites in Salt Lake City, New York City and Raleigh (NC). All of the sites have similar missions in experimenting with new communications technology, though the one in Iowa will be the first focused on rural service.
President Joe Biden’s American Jobs Plan prioritizes “building ‘future proof’ broadband infrastructure in unserved and underserved areas so that we finally reach 100 percent high-speed broadband coverage.” Many considered this an imperative to spend the funds on fiber-to-the-home connections. Yet is fiber—and more precisely, fiber-optic "last mile" connections into residences—really future proof? As the amount of devices and data generated have multiplied, fixed connections to them have diminished. The future of connectivity in the last mile is increasingly wireless, and for the most part, mobile. Why be tied to a wire when not necessary, even if it is arguably even more efficient? Perhaps policymakers should exhibit some humility and acknowledge that the rhetoric about future proof fiber does not reflect the industry’s realities and current evolution.
[Bronwyn Howell is an adjunct scholar at the American Enterprise Institute.]
Altice is slashing its cable Internet upload speeds by up to 86 percent starting on July 12. Altice's Optimum Online plans that currently have advertised upload speeds of 35Mbps will be reduced to uploads of either 5Mbps, 10Mbps, or 20Mbps, depending on the plan. The company did not announce any immediate price changes on the plans that are getting upload-speed cuts. While the change will not affect existing customers as long as they stay on their current service plans, new customers will have to accept the lower upload speeds and existing customers would have to take the lower upload speeds whenever they upgrade, downgrade, or change service. Altice claimed that its cable network isn't having any trouble offering its current advertised speeds, stating, "Our network continues to perform very well despite the significant data usage increases during the pandemic and the speed tiers we offer." The upload speed change is apparently being implemented not to solve any network problem but to match the slower upload speeds offered by other cable internet service providers.
With broadband affordability especially high on the agenda following the pandemic, it could seem that Europe has all the answers. Yet Europe has its own struggles with digital divide, and it hasn't cracked the affordability problem across the board. Europe has been able to spur more affordable prices thanks to a regulated market environment that promotes competition; open access infrastructure--which in the case of broadband means a physical network that different service providers can all make use of--has allowed multiple companies to compete for customers at a service level, forcing them to offer more competitive prices. Putting too much focus on prices, however, also has the potential to obscure the complicated reality of affordability. A direct dollars-for-dollars comparison with monthly European and US costs for broadband packages doesn't take into account the disparity in average income between the different countries involved. Ultimately there's a tapestry of problems including speed, rural access, income disparity and regulations that are inextricably linked with price that keep people disconnected worldwide.
This report on the connection between access to broadband and labor force participation across all US metro areas finds that:
- Regional levels of broadband subscription, computer access, and poverty are highly correlated.
- Geography matters: Metro areas with low household broadband subscription and computer access were primarily located in the Southeast and Southwest, while high-connectivity regions were concentrated in the Northeast and West Coast.
- Across US metros, prime-age workers (people aged 25–54) with a broadband-enabled computer participate in the labor force at a much higher rate than prime-age workers without such access.
This study is part of their Research in Action Lab dedicated to expanding broadband infrastructure to unserved residents, increasing broadband subscription in low and moderate-income communities, and developing digital literacy among workers to bridge the digital divide.
Platforms/Social Media
Google, Facebook Pressure Falls Short as Antitrust Measures Advance in House Committee
The House Judiciary Committee approved far-reaching legislation to curb the market dominance of tech giants, including Google and Facebook, but much of the effort faced intensive lobbying by affected firms that slowed the committee’s work and foreshadowed a pitched battle in the Senate. The centerpiece of the six-bill package, a measure to bar big tech companies from favoring their own products in a range of circumstances on their platforms, was approved by a vote of 24 to 20. Known as the American Choice and Innovation Online Act, the legislation would prohibit big platforms from engaging in conduct that advantages their own products or services, or disadvantages other business users, or discriminates among similarly situated business users. Another approved measure requires that the largest internet platforms make it easier for users to transport their data to other platforms and even communicate with users on other platforms. The bill—known as the Augmenting Compatibility and Competition by Enabling Service Switching, or Access, Act—would give the Federal Trade Commission extensive new powers to set individualized standards for the tech giants. It passed, 25-19. Two other less-controversial bills also were adopted, one raising federal fees on corporate merger reviews and another aiding state attorneys general in procedural battles in antitrust court cases. The bills must still pass the full House, where the timetable for bringing them to the floor for final votes remains unclear.
Chicago Public high school graduates would be guaranteed three more months of free, high-speed internet service — and those going on to City Colleges would get the perk for up to three years — thanks to an extension of “Chicago Connected,” a groundbreaking program bankrolled in part by Illinois’ richest man, Ken Griffin. Chicago Connected has reached 64,000 students across 42,000 households, bridging “nearly two-thirds” of the digital divide, according to City Hall. The proposed expansion aims to do even more:
- Internet service for Chicago Public Schools high school graduates continues through Oct. 31, instead of ending the last day of school.
- Graduating seniors attending City Colleges this fall will get free internet service for up to three years or until they complete their City Colleges degrees, whichever comes first. The mayor’s office called it a “first step toward expanding Chicago Connected to public university students.” City Colleges expects to enroll anywhere from 600 to 1,000 CPS students this year who will be eligible for the offer of free high-speed internet.
- Chicago Connected participants now can build test and computer skills, thanks to a new digital learning platform that includes free access to online portals with classroom curricula, training materials and thousands of assessments.
Ranking member of the Senate Armed Services Committee Jim Inhofe (R-OK), Tammy Duckworth (D-IL), and Mike Rounds (R-SD) introduced the Recognizing and Ensuring Taxpayer Access to Infrastructure Necessary for GPS and Satellite Communications (RETAIN GPS) Act (S.2166). The April 2020 Ligado Order from the Federal Communications Commission recognized the likelihood of interference to GPS signals and requires Ligado Networks to pay the federal government the costs for repairs. However, 99 percent of the more than 900 million GPS devices found in the United States are used by the private sector, consumers, as well as state and local governments; under the Ligado Order, they would have to bear the costs. The bipartisan RETAIN GPS Act will require Ligado Networks to cover the cost for correcting any interference their operations create for the public or private sector and specifically outlines all the areas of potential costs that must be borne by Ligado Networks, including but not limited to engineering, construction, site acquisition, research, personnel or contracting staff, and labor costs.
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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