Daily Digest 8/11/2022 (LTD, Starlink)

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

FCC Rejects LTD Broadband and Starlink Bids for Broadband Subsidies  |  Read below  |  Public Notice  |  Federal Communications Commission
Many telecom stakeholders want the Universal Service Fund ‘paused’ for now  |  Read below  |  Linda Hardesty  |  Fierce
FCC Announces Nearly $68 Million in Emergency Connectivity Funding  |  Read below  |  Press Release  |  Federal Communications Commission
SHLB Asks FCC to Extend E-rate Service Delivery Deadline  |  Schools Health & Libraries Broadband Coalition

Broadband Infrastructure

Sens Cantwell and Capito Propose Broadband Buildout Along America’s Electricity Grid  |  Read below  |  Sen Shelley Moore Capito (R-WV)  |  Press Release  |  US Senate

Digital Inclusion

Benton Foundation FCC Works to Increase Broadband Subscribership in Federal Housing  |  Read below  |  Kevin Taglang  |  Analysis  |  Benton Institute for Broadband & Society
Diana Goovaerts: I tried to help a friend sign up for the Affordable Connectivity Program--it was hard  |  Fierce

Broadband Service

Man who built an internet service provider instead of paying Comcast $50,000 expands to hundreds of homes  |  Read below  |  Jon Brodkin  |  Ars Technica
Who is the Fastest Internet Service Provider?  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting
Roger Entner: Cable leads in mobile, mobile leads in broadband  |  Fierce

State/Local Initiatives

Wilmington, North Carolina, considers $2.5 million to fund digital job training for underserved communities  |  Read below  |  Amy Passaretti  |  Port City Daily
Le Sueur County, Minnesota, renews broadband push following change in state policy  |  Le Sueur County News

Privacy

Federal Trade Commission Expected to Launch Effort to Expand Online Privacy Protection  |  Read below  |  John McKinnon  |  Wall Street Journal

Wireless

One of 5G’s Biggest Features Is a Security Minefield  |  Wired
Report: 2022 Mobile Security Index  |  Verizon
Segra has connected 500 towers with fiber for Dish Wireless  |  Fierce
NEC exec: Open Radio Access Networks is moving quite fast compared to prior tech shifts  |  Fierce

Platforms/Social Media

Report: Facebook Profits from White Supremacist Groups  |  Tech Transparency Project
Social media posts warn people not to call 988. Here's what you need to know  |  National Public Radio

Kids & Media

Report: Teens, Social Media and Technology 2022  |  Pew Research Center

Security

Tech, Cyber Companies Launch Security Standard to Monitor Hacking Attempts  |  Wall Street Journal

Industry/Company News

Google Fiber Announces Network Expansion in Five States  |  Google
Small Rural Telecom Companies Increased Network Investment in 2021  |  Read below  |  Joan Engebretson  |  telecompetitor
Frontier CFO: We’re Rebuilding Trust to Help Achieve Fiber Goals  |  Read below  |  Bernie Arnason  |  telecompetitor
Brightspeed Plans to Reach Over 40,000 Arkansas Customers With Fiber Network by End of 2023  |  Brightspeed
Astound Upgrades Network System Wide, Will Offer 1.2 Gbps Service  |  telecompetitor
Disney Streaming Subscribers Surpass Netflix  |  New York Times

Policymakers

FCC Consumer Advisory Committee Solicits Round of Nominations for Membership  |  Read below  |  Public Notice  |  Federal Communications Commission

Stories From Abroad

Will Europe Force a Facebook Blackout?  |  Wired
Today's Top Stories

Broadband Funding

FCC Rejects LTD Broadband and Starlink Bids for Broadband Subsidies

Public Notice  |  Federal Communications Commission

The Federal Communications Commission rejected the long-form applications of LTD Broadband and Starlink to receive support through the Rural Digital Opportunity Fund (RDOF) program. The FCC determined that these applications failed to demonstrate that the providers could deliver the promised service. Funding these vast proposed networks would not be the best use of limited Universal Service Fund dollars to bring broadband to unserved areas across the United States, the FCC concluded. In the initial auction results announced December 7, 2020, LTD Broadband won $1,320,920,718.60, and SpaceX (Starlink) won $885,509,638.40. Although LTD was a relatively small fixed wireless provider before the auction, it was the largest winning bidder in the auction, submitting winning bids in 15 states. Subsequently, it failed to timely receive eligible telecommunications carrier status in seven states, rendering it ineligible in those states for support. Ultimately, the FCC review concluded that LTD was not reasonably capable of deploying a network of the scope, scale, and size required by LTD’s extensive winning bids. The FCC separately announced that is ready to authorize $21,112,263 in broadband funding to three companies to deploy gigabit service to almost 15,000 locations in four states Tennessee, Texas, Utah, and Wyoming. 

Many telecom stakeholders want the Universal Service Fund ‘paused’ for now

Linda Hardesty  |  Fierce

The Federal Communications Commission will soon issue a report to Congress on the options for the troubled Universal Service Fund (USF). When it issued a Notice of Inquiry in December 2021, the FCC asked for input because the cost to consumers who support the USF has been increasing. The FCC also noted that the new Infrastructure Investment & Jobs Act (IIJA) is about to start dispensing billions of federal dollars to fund fiber deployments to many of the same rural areas that are supported by USF. Since December, there have been hundreds of comments filed with the FCC regarding the matter. They mainly relate to the “high-cost” aspect of USF, which helps service providers to deploy telecommunications infrastructure in high-cost areas — such as rural locales. Of all the comments, three solutions seem to rise to the top: make “Big Tech” contribute to USF; make broadband providers contribute to USF; or pause the program entirely while the effects of IIJA play out.

FCC Announces Nearly $68 Million in Emergency Connectivity Funding

Press Release  |  Federal Communications Commission

The Federal Communications Commission announced it is committing nearly $68 million in two new funding rounds through the Emergency Connectivity Program, which provides digital services for students in communities across the US. These funding commitments support applications from all three
application windows, benefiting over 100,000 students across the country, including California, Florida, North Carolina, Nebraska, Pennsylvania, and West Virginia. To date, the FCC has committed over $5.7 billion to schools and libraries across the country as part of the Emergency Connectivity Program, which launched in 2021. The program has provided schools and libraries with three different “application windows,” for schools and libraries to apply for support. This announcement includes over $24 million from the first and second application windows providing support in the upcoming school year for one
school, three libraries, and one consortium. For the third application window, the FCC is committing nearly $44 million that will support over 200 schools, seven libraries, and one consortium. 

Infrastructure

Sens Cantwell and Capito Propose Broadband Buildout Along America’s Electricity Grid

Sen Shelley Moore Capito (R-WV)  |  Press Release  |  US Senate

Sens Shelley Moore Capito (R-WV) and Maria Cantwell (D-WA) introduced the Grant to Rapidly Invest and Deploy (GRID) Broadband Act, a pioneering proposal that would provide a robust new federal cost-share to spur investment in a nationwide middle mile backbone along the nation’s existing electricity grid. The goal of this bipartisan initiative is to help provide affordable high-speed Internet options to the 120 million American households that lack connectivity and enhance the resiliency, diversity, and security of America’s electrical grid. This investment will create thousands of skilled jobs, while enhancing the capacity and resilience of our critical networks, reducing costs to providers and consumers, and setting the stage for sustained long-term economic growth. Under the GRID Broadband Act, the National Telecommunications and Information Administration (NTIA) is charged with issuing competitive cost-shared federal grants to encourage the rapid development of a secure, nationwide broadband backbone on existing electric grid infrastructure. Recipients of GRID Broadband awards must use funding to improve cybersecurity and smart grid technology on their electrical grid infrastructure, as well as increase middle-mile broadband capacity. Grant recipients must cover at least half of project costs, except for a qualifying not-for-profit utility or Native entity that is providing access to underserved or unserved communities.

Digital Inclusion

FCC Works to Increase Broadband Subscribership in Federal Housing

Kevin Taglang  |  Analysis  |  Benton Institute for Broadband & Society

Over 10 million people living in 5.2 million households rely on some form of federal rental assistance. Every household that receives federal public housing assistance is eligible to participate in the Federal Communications Commission's Lifeline program and, by extension, the FCC's Affordable Connectivity Program (ACP). But as of July 1, just over 518,000 ACP-enrolled households indicated they were eligible because they participate in federal public housing assistance. To improve awareness of and enrollment in the Affordable Connectivity Program by people receiving federal public housing assistance, the FCC is launching a new pilot program called Your Home, Your Internet. The FCC is setting aside $10 million for Your Home, Your Internet, including: 1) $5 million for grants to up to 20 pilot participants, which may include government entities and third-party organizations serving federal housing assistance recipients, from across the country and 2) $5 million for the FCC's own outreach activities and potential collaboration with the US Department of Housing and Urban Development (HUD) and other federal agency partners that work directly with federal housing assistance recipients. The goal is to reach and connect the households living in approximately 5 million available housing units subsidized by federal housing assistance.

[Kevin Taglang is executive editor at the Benton Institute for Broadband & Society.]

Service

Man who built an internet service provider instead of paying Comcast $50,000 expands to hundreds of homes

Jon Brodkin  |  Ars Technica

Jared Mauch, the Michigan man who built a fiber-to-the-home Internet provider because he couldn't get good broadband service from AT&T or Comcast, is expanding with the help of $2.6 million in government money. In January 2021, Mauch was providing service to about 30 rural homes including his own with his internet service provider (ISP), Washtenaw Fiber Properties LLC. Mauch now has about 70 customers and will extend his network to nearly 600 more properties with money from the American Rescue Plan's Coronavirus State and Local Fiscal Recovery Funds. The US government allocated Washtenaw County (MI) $71 million for a variety of infrastructure projects, and the county devoted a portion to broadband. When the federal government money became available, the county issued a request for proposals (RFP) seeking contractors to wire up addresses "that were known to be unserved or underserved based on the existing survey," Mauch said. "They had this gap-filling RFP, and in my own wild stupidity or brilliance, I'm not sure which yet, I bid on the whole project [in my area] and managed to win through that competitive bidding process." Mauch's ISP is one of four selected by Washtenaw County to wire up different areas. Under the contract terms, Mauch will provide 100Mbps symmetrical Internet with unlimited data for $55 a month and 1Gbps with unlimited data for $79 a month. Mauch said his installation fees are typically $199. Unlike many larger ISPs, Mauch provides simple bills that contain a single line item for Internet service and no extra fees.

Who is the Fastest Internet Service Provider?

Doug Dawson  |  Analysis  |  CCG Consulting

I regularly run across articles that ask which major internet service provider (ISP) is the fastest. Most of these articles get their speed data from Ookla, which publishes comparative median broadband speeds for mobile and landline ISPs each quarter, like in this report for the second quarter of 2022. Americans love a horse race – we like to rank things, and articles that rank ISPs grab readers. But we have to take articles based upon the Ookla rankings with a grain of salt. Ookla doesn’t make any claims about its numbers – it just presents the data. There are a few things to note about the Ookla numbers. First, the results come from the many speed tests reported to Ookla. We know that a significant number of speed tests aren’t perfect due to issues at the customer end, such as an old WiFi router or taking the speed test at the far end of the house away from the WiFi router. Most importantly, Ookla reports median speeds – meaning half of all speed tests for a given ISP are faster, and half are slower than the value shown. Median speeds don’t seem to be a great metric for comparing ISPs. I like ranking as much as anybody, but I am unable to draw too many conclusions from the Ookla numbers. Perhaps the most you can say is that both fiber and cable companies are delivering decent download speeds – at least to the top 50 percent of customers. But these numbers are another example of the paltry upload speeds being delivered by the cable companies.

[Doug Dawson is president of CCG Consulting.]

State/Local

Wilmington, North Carolina, considers $2.5 million to fund digital job training for underserved communities

Amy Passaretti  |  Port City Daily

Wilmington (NC) is looking to launch an initiative that would build out a hometown workforce connecting residents to jobs. Specifically geared toward local employers’ needs, the nonprofit program would “bridge the digital divide” by offering computer literacy training to low-income individuals. Matthew Bauer, vice president for Connected Communities WRC, presented an overview of the proposed strategy to the Wilmington city council at its August 1 agenda briefing. Connected Communities — in collaboration with local partners StepUp Wilmington, Cape Fear Collective, Live Oak Bank and city staff — would implement its DigitalBridge platform, first initiated in Wake Forest (NC) in April 2023. Council members agreed the program is needed and could be beneficial to the city and its residents. Connected Communities is a branch of Wireless Research Center, a nonprofit formed in 2010, headquartered in Raleigh (NC) with offices in Colorado. It’s designed to enforce digital equity and helps underserved communities gain technical skills and access to higher-paying jobs. DigitalBridge offers a proprietary learning platform that assesses skill level and guides clients on a career path for which they may not have otherwise been qualified. Individuals are matched with local, regional and national employers with on-site or remote opportunities. The program is free to those who qualify, which in Wilmington is roughly 70,000 people based on average median income and education.

Privacy

Federal Trade Commission Expected to Launch Effort to Expand Online Privacy Protection

John McKinnon  |  Wall Street Journal

Apparently, the Federal Trade Commission is expected to begin writing federal rules to expand online privacy protections as soon as August 11. If adopted, the rules could impose significant new responsibilities on businesses that handle consumer data, including potentially barring certain kinds of data collection practices. The new FTC rules could take years to enact, and the commission could follow several different paths. One option would be to declare certain data collection practices unfair or deceptive, using its authority to police such conduct. The agency could also tap a less-used legal authority that empowers it to go after what it considers unfair methods of competition, perhaps by viewing certain businesses’ data-collection practices as exclusionary. A third option could focus on addressing privacy protection for children, with the FTC updating its rules under the 1998 Children’s Online Privacy Protection Act. And it could use its enforcement powers to target individual companies, as some privacy advocates urge.

Industry News

Small Rural Telecom Companies Increased Network Investment in 2021

Joan Engebretson  |  telecompetitor

Small independent telecom companies increased rural network investment “slightly” in 2021, according to a new report from accounting firm FORVIS. This was true for companies with annual revenues below $2.5 million and those with revenues exceeding $25 million and for all companies in between. The average rural network investment per line for 2021 was $17,400 per access line for the 168 small rural telecom companies that responded to the 2022 FORVIS Rural Telecommunications Benchmark Study. Rural network investment may have increased, at least in part, because of broadband grants, which were received by 69 of the respondents. In total, the 69 rural telecom companies received $336 million in federal, state and local government broadband grants. Through 2022, the average broadband grant award was $2.5 million, but 11 companies received grants totaling over $10 million each.

Frontier CFO: We’re Rebuilding Trust to Help Achieve Fiber Goals

Bernie Arnason  |  telecompetitor

Frontier has ambitious fiber goals, which include about 3 to 4 million homes that will probably require government subsidy to reach. CFO Scott Beasley said Frontier intends to be active with government funding programs to do just that. “We want to compete for subsidies on all of that 3 to 4 million homes and if you take a step back and think about our purpose which is build gigabit America, I mean that’s why we’re excited to build,” he said. Of course, Frontier is no stranger to government funding programs for broadband. The company has participated in past programs, including the Connect America Fund (CAF) II, the predecessor to the Rural Digital Opportunity Fund (RDOF). Marc Bianchi of Cowen pointed out that Frontier does not have the best reputation with some of these government-funded programs. Frontier for example, missed CAF II deployment milestones in the past and has been accused of “subpar” network builds. “We’ve had to rebuild trust with investors, with equity holders, debt holders, regulators, government officials, and we’ve seen a lot of success there,” said Beasley about the company's past issues. “Regulators and state officials want us to build as much fiber as possible…yes there are some scars from the past, but I think we’re well on our way to repairing those.”

Policymakers

FCC Consumer Advisory Committee Solicits Round of Nominations for Membership

Public Notice  |  Federal Communications Commission

The Federal Communications Commission is soliciting nominations for membership on the Consumer Advisory Committee (CAC). Nominations for membership are due September 21, 2022. The FCC seeks nominations from interested nonprofit organizations, corporations, trade associations, government agencies, or other entities from both the public and private sectors, who wish to be considered for CAC membership for a two-year term of service. Selections will be made based on factors such as expertise and diversity of viewpoints that are necessary to effectively address the topics before the CAC. Individuals may also apply for membership in their individual capacities rather than as representatives. All organizational and all individual members appointed to the CAC or its working groups are subject to an ethics review by the FCC's Office of General Counsel. After the FCC has reviewed nominations, it will notify all nominees in writing concerning the disposition of their applications, and it will release a Public Notice announcing appointment of the CAC members and the date of the Committee’s first meeting.

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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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Kevin Taglang

Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
1041 Ridge Rd, Unit 214
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