Monday, August 19, 2019
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Digital Divide Policy Enters the National Conversation
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Survey Says: Telehealth + Community Broadband = Local Economic Success
AEI's Daniel Lyons: Universal Service Fund budget cap promotes efficiency, sustainability
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The digital divide is a complicated technical and political policy issue in the U.S., with unique urban and rural challenges. Some 2020 candidates are recognizing the importance of the issue and spreading awareness. But if we’re seeking to bring affordable, high-capacity broadband to all people in the U.S., both access and adoption challenges need to be addressed. And policymakers must take into account the role competition must play in these two challenges. The path towards universal broadband includes expanding access by building out networks to more physical places while reducing other barriers like cost and digital literacy.
The National Digital Inclusion Alliance and the Brookings Institution’s Metropolitan Policy Program have partnered to create the Broadband Research Base, a searchable collection of reports, studies and journal articles that address the impact of broadband and digital inclusion on community and individual well-being. Has anybody studied the impact of broadband availability, speed or adoption on local economic growth? On K-12 education? On health care? On civic or social engagement? How important is digital literacy for local business and jobs, or for maintaining older citizens’ connection to friends and community?
The Broadband Research Base currently includes more than seventy references. You can search for an entry by title, by keyword, by broad category (e.g. “Economy”) or more specific subcategory (e.g. “Migration”), by geographic focus, or by one of several “digital inclusion tags” (broadband availability, broadband adoption, broadband speed, broadband affordability, digital literacy). Every reference includes a link to the publication itself.
[Content submissions welcome. Recommendations for edits to tags should be emailed to info@digitalinclusion.org]
The International Economic Development Council (IEDC) and I teamed up to survey the association’s members. The 2019 survey analysis report addresses: 1) the state of broadband, 2) broadband’s impact on local economies, 3) broadband-driven education and healthcare, and 4) community broadband money matters. There's a good deal of valuable data here. This report should generate a lot of questions to be asked and answered in your community.
[Craig Settles assists cities and co-ops with business planning for broadband and telehealth]
The Federal Communications Commission recently announced that it was authorizing nearly $5 million to invest in expanding rural broadband access across South Dakota. Federal Communications Commission Chairman Ajit Pai, who visited SD with me in 2017, said that he was “excited to see the benefits for rural residents who live all across the country.” According to the FCC’s recent broadband deployment reports, the number of Americans lacking access to a fixed broadband connection has continued to decline, but this issue will continue to be a priority for me until we’ve closed that gap entirely for everyone who wants access to broadband. As folks in SD know, rural America has a lot to offer, and with the potential for new and more efficient broadband infrastructure, there will be even more meaningful opportunities for advancements in health care, agriculture, education, economic development, and more.
[Senator John Thune (R-SD) is Chairman of the Senate Communications Subcommittee.]
Four different universal service initiatives, each aimed at solving a different problem, are funded by a single surcharge on interstate and international telecommunications revenue. Over the past two decades, each program has grown independently without much regard to cost, or to the activities of the fund’s other programs. As a result, the surcharge has risen from 3 percent in 1998 to a whopping 24.4 percent today. The Federal Communications Commission is currently considering whether to impose a hard cap on the Universal Service Fund (USF). While it has taken steps recently to rein in costs of each individual program, the fund-wide cap represents the agency’s first effort to assess universal service in a more holistic fashion. The proposed cap can improve universal service policy by promoting greater efficiency, encouraging coordination among USF programs, and ultimately assuring the long-term sustainability of the fund in the face of rising costs and a declining revenue base.
As a short-term fix, a hard budgetary cap will help promote efficiency and extend the life of the universal service program. But in the long run, America’s universal service needs will outgrow its existing programs, while the declining revenue base makes the current funding mechanism unsustainable. Ultimately, Congress must redesign its universal service program, breaking it out of its landline-telephone-era box and subjecting it to the same budgetary process and congressional oversight as most other safety net initiatives. A hard budget cap can help us get there by highlighting to Congress the flaws in the current design, while also helping the FCC set a more holistic universal service policy that yields results greater than the sum of its parts.
[Daniel Lyons is a visiting fellow at the American Enterprise Institute and a professor at Boston College Law School, where he teaches telecommunications, administrative, and cyber law, among other courses.]
Central Alabama Electric Cooperative (CAEC) will join the increasing number of electric cooperatives that provide broadband access. CAEC plans to construct the network, named CAEC Access, with a phased approach. Phase 1 will connect the co-op’s 24 electrical substations and six main offices with a 365-mile fiber ring. Then, homes and businesses within 4,000 feet of this fiber ring will be able to request an Internet connection from the co-op. CAEC is still working on establishing rates and speed tiers but has determined that Internet access will be about $59.99 for 200 Megabits per second (Mbps). Gigabit connectivity for residents and business owners will also be available. All tiers will be symmetrical.
Common Networks, a Silicon Valley startup founded by former executives from payment company Square, announced the next stage in its fixed wireless broadband strategy with the launch of a symmetric 300 Megabits per second (Mbps) service for $49 per month. Common Networks is roughly three and a half years old, and said its fixed wireless broadband is made possible through the use of proprietary software built on open 5G technology, millimeter wave (mmWave) radio and its own software stack. The company currently covers 100,000 people in the Bay Area with its 802.11ac/ad wireless network running in the unlicensed 5GHz and 60GHz bands. The company’s aim is to provide fast broadband using wireless technology in dense urban areas, relying on homes in a single community as distributed infrastructure.
Senate Antitrust Subcommittee Ranking Member Amy Klobuchar (D-MN) and seven other Democratic Sens called on the Federal Communications Commission to issue a public notice and seek public comment on the proposed merger between T-Mobile and Sprint in light of the Proposed Final Judgment and a Stipulation and Order (Consent Decree) recently filed by the Department of Justice. “We remain concerned about the lack of transparency in the FCC’s merger review process and the lack of certainty on whether this merger will protect competition and consumers," the Senators wrote. "The public should be able to trust that the FCC’s process is fair, transparent, and based on a thorough examination of all of the relevant evidence.” Klobuchar was joined on this letter by Sens Ed Markey (D-MA), Tammy Baldwin (D-WI), Tom Udall (D-NM), Cory Booker (D-NJ), Richard Blumenthal (D-CT), Elizabeth Warren (D-MA), and Kirsten Gillibrand (D-NY).
The Florida League of Cities and three communities filed a renewed constitutional challenge to a state law that is expected to help telecommunications companies install wireless technology on city-owned utility poles and in public rights of way. The league and the FL cities of Fort Walton Beach, Naples, and Port Orange filed the lawsuit Aug 12 in Leon County circuit court, about three months after filing a similar challenge to a 2017 state law. The new case incorporates changes the Legislature made in 2019 to the law, which involves the installation of antennas and other equipment that telecommunications companies need for new 5G technology. The revised case, in part, targets a change that lawmakers made in 2019 that could open cities to lawsuits in state or federal courts — including being required to pay costs and attorney fees — if they violate the wireless-technology law. Attorneys for the cities contend that the change violates the constitutional separation of powers. Other parts of the new case are similar to the earlier lawsuit, including challenging the constitutionality of a limit on how much cities can charge for telecommunications companies to install equipment on publicly owned poles. The lawsuit contends that the limit, $150 per pole per year, is an unconstitutional taking of property because it is below the market rate for use of the poles.
The backlash against giant tech companies is stressing the public institutions tasked with examining their power, as participants, observers and critics question whether regulators have the skill, will and authority to check corporate forces. The machinery of antitrust regulation will process the broader conversation about tech's role in society through the mill of American politics and law — and some wonder whether it's up to the task.
The Federal Trade Commission’s investigations into alleged privacy violations at Facebook and YouTube have raised questions about whether it has the authority it needs to police privacy in the era of aggressive online data collection. Some legislators and observers criticized the FTC’s proposed settlement with Facebook in July for multiple consumer privacy issues as weak, given the scale of Facebook’s revenues. Broad reviews at the FTC and Dept of Justice of the market power of major tech platforms like Facebook, Google, Amazon and Apple may put to the test the agencies’ ability to rein in alleged monopolies using decades-old legal doctrine and century-old laws. The DOJ’s decision to approve T-Mobile’s merger with Sprint, as long as Dish created a fourth-major wireless carrier, was seen by critics as inadequate to protect competition in the wireless sector.
2020 Democratic presidential candidate Beto O’Rourke announced a sweeping policy plan to counter hate speech and gun violence in America that specifically proposes changes to Section 230 of the Communications Decency Act, one of the tech industry’s most pivotal legal protections. Outside of proposing a nationwide gun licensing system/registry and requiring universal background checks, O’Rourke laid out a plan aimed at making social media companies like Facebook, Twitter, and YouTube more responsible for hateful content on their platforms. In the proposal, O’Rourke says that he supports amending Section 230 to “remove legal immunity from lawsuits for large social media platforms” that refuse to be proactive in removing hate speech and terrorist content. The proposal calls on tech companies to more aggressively enforce policies against hate speech — with the potential withdrawal of 230 protections if they don’t — which may raise legal issues if implemented. Historically, bills requiring companies to moderate against legal speech have faced significant constitutional challenges under the First Amendment. Under O’Rourke’s proposal, companies like Facebook could be sued for not adopting terms of service requirements banning users from posting hateful content that “incite[s] or engage[s] in violence, intimidation, harassment, threats, or defamation” against others based on demographics like race, religion, immigration status, and gender identity.
Recent revelations about Facebook’s collection of user audio data are fueling talk in Washington (DC) that company CEO Mark Zuckerberg may have misled Congress about the firm’s privacy practices during a Senate hearing in 2018. Zuckerberg at the time dismissed a question about whether the company used “audio obtained from mobile devices to enrich personal information about its users," calling it a “conspiracy theory.” But recent reporting that the company until just recently paid contractors to transcribe some users’ audio is raising eyebrows about his remarks on the Hill. Sen Gary Peters (D-MI) pressed Zuckerberg on the exchange in a letter Aug 15, suggesting the tech mogul’s testimony was “at best, incomplete.” Sen Ted Cruz (R-TX) said, “If the latest reports are true…then Mark Zuckerberg and Facebook Inc. may well have perjured themselves under 18 USC s1621” of the federal penal code, and “should be held to account if they violated the law.” Sen Cruz added: "Big Tech cannot lie to the American people any longer."
It’s likely that a robust antitrust enforcement regime, in tandem with a suite of economic policies could create a market more amenable to sustaining journalism. But in the absence of that, and the uncertainty as to whether the market is fundamentally able to provide the necessary journalistic coverage to inform and serve a functioning democracy and civic life, it’s worth considering what no Democrat has dared advocate for 50-some years: a renewed and robust public investment in media. Yet the fate of (public) media has gotten surprisingly little attention in the 2020 cycle. Despite a number of policies being introduced that might work as a market corrective to rein in some of the monopoly players at the various levels of the media ecosystem (and a proposal from Elizabeth Warren to curtail private equity), the question of public-sector journalism has gone largely ignored. The return to a public option in media would not only be popular; it would dovetail readily with a spate of small-d democratic reforms like automatic voter registration and campaign finance reform, both of which were hallmarks of the 2018 House bill HB-1. And it could even prove politically expedient in the general election against President Donald Trump: “There’s a real opening,” noted Free Press President and CEO Craig Aaron, “for presidential candidates to actually get at this loss of journalism going against Trump, who spent all this time with fake news.”
Stories From Abroad
Canada's telecommunications regulator lowers wholesale broadband rates to boost competition among providers
The Canadian Radio-television and Telecommunications Commission (CRTC), Canada's telecommunications regulator, says it has lowered the rates for wholesale broadband access as it looks to increase competition among internet providers. The lower rates announced by the CRTC means it will be cheaper for smaller internet providers to buy broadband capacity on the networks owned by the big telecom providers. The CRTC requires that the large cable and telephone companies make available parts of their network, at rates set by the regulator, to improve competition and lower prices. In 2016, the CRTC set interim wholesale rates after it decided the rates proposed by the telecom companies were not "just and reasonable." It says the final rates are 15 to 43 percent lower than the interim rates for monthly capacity, and three to 77 percent lower for access rates.
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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