Monday, July 1, 2019
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Appropriations Bill With a Message for the FCC
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A $5 Billion Plan for Rural Broadband Buildout
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On June 26, the US House of Representatives passed the Financial Services and General Government Appropriations Act (H.R. 3351) -- an appropriations bill that provides fiscal year 2020 funding for a variety of departments and independent agencies, including the Federal Communications Commission. The massive bill passed with many amendments. It includes amendments that would: block Universal Service Fund changes, undo an FCC apartment-building broadband wiring item, compel the FCC to provide Congress with an update into its investigation of the sale of geolocation data by wireless carriers to third-party aggregators, and increase funding for rural broadband infrastructure. While the bill and its amendments could be tweaked or defeated in the Senate, or face a veto from President Donald Trump, the bill still sends a message to the FCC and Chairman Ajit Pai: we're not happy with the direction of the Pai FCC.
Decades after bringing electricity and telephone services to America’s rural households, cooperatives are tackling a new challenge: the rural digital divide. New updates to the Community Broadband Networks initiative’s report Cooperatives Fiberize Rural America: A Trusted Model for the Internet Era, originally published in 2017, illustrate the remarkable progress co-ops have made in deploying fiber optic Internet access across the country. The report features new maps showing overall growth in areas served by co-ops, as well as expanded information about state legislation that supports co-op investment in broadband networks. A few important takeaways:
- More than 140 co-ops across the country now offer residential gigabit Internet access to their members, reaching more than 300 communities.
- 70.8% of North Dakota and 47.7% of South Dakota landmass is served by co-ops, and residents enjoy some of the fastest Internet access speeds in the nation.
- Georgia and Mississippi have overturned state laws banning co-ops from offering Internet access, and other states, including Colorado, Maryland, North Carolina, and Texas, have implemented legislation that will further ease the way.
Senators Collins, Jones Introduce American Broadband Buildout Act, A $5 Billion Plan for Rural Broadband Buildout
Senators Susan Collins (R-ME) and Doug Jones (D-AL) introduced the American Broadband Buildout Act of 2019 (ABBA), a bipartisan bill to ensure that rural Americans have access to broadband services at speeds they need to fully participate in the modern society and economy by directing the Federal Communications Commission to provide up to $5 billion in matching grants to help states improve broadband infrastructure. The American Broadband Buildout Act of 2019 would:
- Require that projects that receive funding must be located in “unserved” areas, where broadband is unavailable at speeds that meet the FCC’s standard. Narrowing the focus to these areas will ensure that the money goes where it is needed most, and will also protect against “over-building” where broadband infrastructure is already in place.
- Require that this federal funding be matched through public-private partnerships between the broadband service provider and the state in which the infrastructure project will be built.
- Require that projects be designed to be “future proof,” meaning that the infrastructure installed must be capable of delivering higher-speeds as broadband accelerates in the future.
- Direct the FCC to prioritize the funding of projects in states that have traditionally lagged behind the national average in terms of broadband subscribers and are at risk of falling further behind as broadband speeds increase.
- Provide grants to states and state-designated entities for digital literacy and public awareness campaigns highlighting the benefits and possibilities of broadband service.
The death of federal network neutrality protections in the US didn’t only give Internet service providers license to penalize customers who don’t agree to buy their services. It also pointlessly mystified the process whereby consumers acquire the most basic, unsimplified details about their home internet’s price, speed, and capacity. Whereas the Open Internet Order—the now-repealed Federal Communications Commission rules that established net neutrality—required ISPs to offer consumers quick access to information in a format that’s easy to digest, the method devised by FCC Chairman Ajit Pai all but ensures that some consumers will never find it. "Not only did the FCC’s misguided net neutrality decision do away with efforts to give consumers easy-to-digest information about their broadband service, it left them with an ISP disclosure portal that relies on the agency’s abused and antiquated electronic comment filing system,” FCC Commissioner Jessica Rosenworcel.
As with most decisions over the past two years, Pai’s FCC apparently now aims mostly to help ISPs do the bare minimum to serve consumers; allowing them, for instance, to hide information from consumers might need to make an informed purchasing decision. Ultimately, this easy access to knowledge is just another casualty of the FCC’s war against a free and open internet. “[T]he FCC is telling consumers ‘you are on your own’ when it comes to learning more about just what their broadband service can deliver,” Commissioner Rosenworcel said. “It’s not right that the agency sells consumers short like this—they deserve better.”
Examines reverse auction designed by the Federal Communications Commission to fund deployment of broadband infrastructure in high-cost, mainly rural areas. We assess the effectiveness of the auction's three main objectives: 1) To attract new providers that are willing to provide broadband service in unserved areas; 2) To expand the acceptable service speed and latency levels to achieve public interest objectives; 3) To lower costs of providing service through competitive bidding. We will show using summary data from the auctions and an econometric model that captures the effects of auction characteristics that the auction achieves all three objectives. We also suggest future uses for reverse auctions.
[Victor Glass is a Professor of Professional Practice and Director of the Center for Research in Regulated Industries at Rutgers Business School. Timothy Tardiff is associated with Advanced Analytical Consulting Group]
This is the paradox of 5G, the collection of technologies behind next-generation wireless networks: They require a gargantuan quantity of wires. This is because 5G requires many more small towers, all of which must be wired to the internet. The consequences of this unavoidable reality are myriad. The 5G build-out, which could take more than a decade, could disrupt our commutes, festoon nearly every city block with antennas, limit what cities can charge for renting spots on their infrastructure to carriers on which to place their antennas, and result in an unequal distribution of access to high-speed wireless, at least at first.
Of course, it’s also a bonanza for the companies that supply this fiber-optic cable. But buying the fiber is the easy part for the carriers. “The secret nobody likes to talk about is when you’re deploying a network, the equipment—fiber, cable—is actually a small cost compared to the cost of digging holes,” says Claudio Mazzali, senior vice president of technology at Corning Optical Communications, a subsidiary of Corning. That high cost also includes getting city permits, striking deals with landowners and installing the antennas themselves.
Telecommunications
FCC Adopts Telecommunications Relay Services Rates for the 2019-2020 TRS Fund Year
The Federal Communications Commission adopted an Order setting compensation rates for telecommunications relay services that are supported by the Interstate Telecommunications Relay Services Fund for the Fund Year 2019-2020. In a statement, FCC Chairman Ajit Pai said:
Through its oversight of the Interstate Telecommunications Relay Services Fund, the FCC continues to improve the quality and availability of telecommunications relay services, which have had a profoundly positive impact on the lives of many Americans who are deaf, hard of hearing, or deaf-blind, or have speech disabilities. I’m pleased that as a result of the Commission’s 2018 reforms, the FCC—and with it, American taxpayers—will save nearly $409 million for the 2019-2020 Fund Year in providing IP captioned telephone service, which allows individuals with hearing loss to both read captions and use their residual hearing to understand a phone conversation. And underscoring the Commission’s excellent fiscal stewardship of the Fund, I’m also encouraged that for the first time since 2014, overall spending in the Interstate Telecommunications Relay Services Fund is expected to decline— even as overall TRS minutes increase. Thanks to the Consumer and Governmental Affairs Bureau for successfully implementing the Commission’s vision for improved services with significant cost savings.
President Donald Trump and Chinese President Xi Jinping agreed to a cease-fire on trade that will remove some curbs on Huawei buying high-tech equipment from the US, for the moment lifting one cloud over the global economy. Under the cease-fire, the US agreed to put off additional tariffs on Chinese goods indefinitely. In response, China will start buying large amounts of American farm products, President Trump said. Until the two leaders sat down for an 80-minute lunch meeting on the sidelines of a Group of 20 meeting, the US was poised to hit China with tariffs on the roughly $300 billion in goods that aren’t currently covered by 25% tariffs. Afterward, President Trump said the sides were ready to start talking again. “We’re going to work with China on where we left off to see if we can make a deal,” he said. “I’m not rushed,” he said, calling the talks “intricate.” President Trump said he was leaving the Huawei issue until the end of negotiations, but for now, the Chinese telecommunications giant looks to gain a significant reprieve. The president said American firms could ship goods to Huawei, which parts of the US government have called a national-security risk.
President Trump jokes with Russian President Putin about Russian election meddling and getting “rid” of journalists
President Donald Trump joked with Russian President Vladimir Putin about meddling in the US elections. After the two leaders met on the sidelines of the G20 summit, a reporter shouted a question at President Trump about whether he’d warned President Putin not to interfere in US democracy. The US president replied, “Yes, of course I will.” He then turned to Putin, with a slight smirk, and told him: “Don’t meddle in the election, President.” He then pointed toward the Russian delegation and repeated, “Don’t meddle in the election.” In addition to his comedic riff about election meddling, President Trump joked with President Putin about the threat of “fake news.” President Trump commiserated with President Putin about journalists, telling him: “Get rid of them.” “Fake news is a great term, isn’t it? You don’t have this problem in Russia, but we do.” “We also have,” Putin answered, in English. “It’s the same.”
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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