Tuesday, September 10, 2024
Headlines Daily Digest
Today: A BEAD Program Progress Report and much more
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Is Broadband Reaching All Americans?
Measuring the Digital Divide
Funding
Wireless
Antitrust
Devices
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Company News
Policymakers
Stories From Abroad
On September 6, 2024, the Federal Communications Commission launched its latest (and 18th overall, if you're scoring at home) inquiry into the state of broadband in the United States. In the Telecommunications Act of 1996, Congress instructed the FCC (also known as "the Commission" to friends) to annually conduct an inquiry “concerning the availability of advanced telecommunications capability to all Americans (including, in particular, elementary and secondary schools and classrooms)” as part of an effort to “determine whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion.” In August 2022, the FCC released the Report on the Future of the Universal Service Fund and adopted the "goals of universal deployment, affordability, adoption, availability, and equitable access to broadband throughout the United States as the Commission’s universal service goals for broadband." Earlier this year, the FCC found "that these universal service goals, which are not limited to the narrow question of physical deployment of service, are consistent with those adopted in the Report on the Future of the Universal Service Fund (Future of USF Report), and accurate indicators of whether [broadband] is universally available." The September 6 Notice of Inquiry marks the first proceeding after the FCC's findings on affordability, adoption, availability, and equitable access. Here we look at the questions the FCC is asking now about broadband availability.
In 2023, the National Telecommunications and Information Administration and the Census Bureau began an experimental project to study the feasibility of—and ultimately to produce—estimates of Internet adoption for small, sub-state areas during a single year to address this knowledge gap and better serve the policymaking process. Using techniques that have been successfully employed in other data products, Census Bureau experts are combining existing data from key household surveys with auxiliary data that are known to correlate with Internet adoption rates. By using a predictive model, the Census Bureau team can produce estimates for less populous geographies or groups that have both smaller margins of error than equivalent estimates based on survey data alone, and reduced risk that such estimates can be used to identify individual respondents. Those two features of small area modeling make it possible to publish more granular estimates than would otherwise be permissible or recommended for estimates generated entirely from survey data. NTIA invites all suggestions for improvements to the initial experimental model. The following questions serve as a non-exhaustive guide to some of the issues commenters may wish to address:
- Should NTIA be aware of any potential applications where Project LEIA (Local Estimates of Internet Adoption) could make a particularly substantial contribution to policy research or development? Would any future work on Project LEIA help improve or expand these contributions?
- In the feasibility report, the Census Bureau describes the methodology it used in the experimental model, and lists a number of potential predictor variables it tested before selecting the ones used in these initial estimates. Are there additional variables or data sources that should be considered to improve the model’s predictive power? Should we consider any methodological refinements or modifications to this model to improve its performance?
- While the current experimental model only produces estimates at the county level, the same principles can potentially be applied for other small geographies and populations. During the next phase of Project LEIA, NTIA and the Census Bureau intend to experiment with creating census tract-level estimates. Are there other small geographies or populations for which model-based estimates of Internet adoption might be beneficial? What relevant data sources at that level could be considered to help generate these estimates?
- In this first phase, we decided to analyze the percentage of households subscribed to wired Internet services. We did this because (a) the variable is useful for policymaking and (b) sufficient data were available to accurately fit a model. However, this is not the only metric that possibly could be modeled through future work. In addition to considering other variables from the ACS questions on computer and Internet use, we are also interested in applying small area modeling to more detailed questions from the NTIA Internet Use Survey. What metrics from either survey could we prioritize for future work under Project LEIA?
- Is there anything else NTIA should take into consideration when contemplating the further development of Project LEIA?
The Federal Communications Commission's Wireline Competition Bureau (WCB or Bureau) announced that certain Rural Digital Opportunity Fund (RDOF) census block groups (CBG) are now eligible for other funding programs. Specifically, Qwest Corporation and CenturyTel of Wyoming (collectively, Lumen) have notified the FCC of their decisions to withdraw from the RDOF support program in all of the CBGs covered by their authorized winning bids in New Mexico (Study Area Code (SAC) 495105), South Dakota (SAC 395145), and Wyoming (SAC 512299). In addition, Lumen has notified the FCC that it will not fulfill its commitment to offer voice and broadband service to certain CBGs within its RDOF-supported service area in Colorado (SAC 465102). Lumen will be subject to penalties for its defaults. The Bureau will also refer Lumen’s defaults to the Enforcement Bureau for further consideration.
When notified of a default, the FCC's Broadband Deployment Alignment Plan (BDAP) procedures provide for taking immediate action to coordinate with other federal and state agencies to minimize the impact on consumers and the geographic areas to which the defaulting carriers committed. BDAP is part of the Rural Broadband Accountability Plan which seeks to ensure that high-cost funds are properly invested and produce new broadband services to consumers lacking connectivity. First, the Bureau ensures that the carrier has notified the relevant state broadband offices about the carrier’s inability to deploy broadband infrastructure to the defaulted locations. Second, the Bureau notifies the National Telecommunications and Information Administration (NTIA) to begin a similar dialogue about the locations. These notifications allow the state and NTIA to promptly consider the implications for the ongoing BEAD Program and other, similar programs. Third, where feasible, the Bureau discusses with both the relevant state broadband office and the carrier whether there is another entity that may be interested in serving the area and assuming the defaulting carrier’s RDOF obligations. Finally, if another carrier does not assume the obligation, the Bureau notifies NTIA, the Rural Utility Service of the US Department of Agriculture (RUS), and the US Department of Treasury of the circumstances so that the defaulted area can be given priority consideration in other federal broadband funding programs, in accordance with agreed-upon best practices. The Bureau also makes enforcement referrals where appropriate.
$50 Million ‘Build to Scale’ Funding Opportunity Aims to Boost Technology Entrepreneur Ecosystems Across the Nation
The U.S. Economic Development Administration is accepting applications for its FY24 $50 million Build to Scale program to support organizations that strengthen entrepreneurial ecosystems to support entrepreneurs as they build and scale technology-driven businesses—and the employees in the new, good jobs they create—to make and deliver new technology products and services. Build to Scale (B2S) grants fund programs that support innovators, entrepreneurs, and startups transforming ideas into the critical, emerging technologies of the future. The B2S program aims to:
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build capacity for entrepreneurs and innovators to invent, improve, and bring to market new technology products and services;
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accelerate the growth of regional economies focused on industries of the future;
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empower communities to enable technology innovators and entrepreneurs to pilot and test their products and services; and
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equitably and inclusively increase access to capital for technology-enabled entrepreneurs.
The three-year anniversary of the Infrastructure Investment and Jobs Act (IIJA) is fast approaching. Zero households have been connected through the Broadband Equity Access and Deployment (BEAD) program, IIJA’s signature $42.5B broadband program that aims to bring universal internet service to all Americans. While all infrastructure programs take years to implement, BEAD’s pace has led to increased congressional scrutiny of the program. Whether or not the BEAD program is off track is a point of contention amongst stakeholders. The National Telecommunications and Information Administration (NTIA) posits that they are right on schedule with a program that was always intended to unfold over a 10-year timeline. But the American public has grown accustomed to seeing a headline about grant dollars for broadband and observing those grant dollars put to work in their community to address internet service gaps. It will not be easy to convince everyone that we need to return to the days of taking 6-10 years from passage of legislation to connect a home.
[Jade Piros de Carvalho is Vice President of Broadband Advocacy and Partnerships at Bonfire Infrastructure Group. From June 2022 to June 2024, she was Director of the Kansas Office of Broadband Development.]
Brightspeed is on a big mission to deploy more fiber, currently passing about 90,000 new premises per month with fiber. But it is also retiring copper on a home-by-home basis for customers who are experiencing service problems. Sometimes it moves these customers to fiber, but other times it moves them to a unique wireless service. Tom Maguire, CEO of Brightspeed, said that there are two approaches to copper retirement: proactive and reactive. The proactive approach Maguire mentioned would be what AT&T is attempting to do in California and some other states, where it petitions the Federal Communications Commission (FCC) and state agencies to retire copper in large areas. But Brightspeed isn’t taking that approach to copper retirement. Instead, it is overbuilding its copper plant as fast as it can.
How will the elections determine how the stock markets react? Traditional wisdom says internet service providers (ISPs) will do better in policy terms under Republicans than under Democrats as Democrats are more likely to take regulatory action that hurts ISPs. This may have been true in the past, but it’s now wrong, according to NewStreet Research Policy Advisor Blair Levin. “There are discrete issues on which ISPs favor the Republican approach. However, in terms of impacting revenues, margins and opportunities, Democratic control is likely to prove more benign,” says Levin in a client note. He believes the most important policy issue impacting carrier competition will be spectrum allocation. There is a small inventory of spectrum to be reallocated for commercial use, which suggests there’d be no new spectrum for the next few years “that materially changes the current spectrum positions,” notes Levin.
The recent Georgia school shooting was every parent’s worst nightmare, and one that highlights potential downsides to efforts among states, school districts, and federal lawmakers to ban or restrict access to cellphones in classrooms. The moves to restrict phone use in schools have been driven by concerns about the impact screen time has on children’s mental health and complaints from teachers that cellphones have become a constant distraction in the classroom. But those opposed to the bans say they cut off a lifeline parents have to make sure their children are safe during school shootings or other emergencies.
It’s been a heated summer for school cell phone bans. Worried politicians and school districts in several states have been swarming to limit cell phone use during class time. In all, seven states have banned or restricted cellphone use in schools, and fourteen have introduced bills doing the same. Among the bills underway is California’s Phone-Free Schools Act, which cleared the state legislature in August and is expecting the governor’s signature. It would mandate every school district to develop a policy to curb smartphone use. As states start the school year, the challenge of actually applying and upholding these restrictions looms large. Complicating the matter, a recent school shooting in Georgia renewed a common worry among opponents—that depending on how they’re implemented, these policies might leave kids unable to contact their parents during an emergency.
Verizon's $20 billion move to acquire Frontier Communications as part of an effort to expand and scale its convergence strategy is considered a compliment at Comcast. "That's validation of what we're doing. People are coming our way," Comcast CFO Jason Armstrong said. While it's true that Comcast and other cable operators have had their share of fits and starts getting into the mobile business, the operator's latest approach—an MVNO deal with Verizon paired with the deployment of a large Wi-Fi network and targeted CBRS spectrum rollouts—has been successful with respect to adding heaps of mobile lines. Armstrong also held that Comcast, with 63 million homes passed by its wireline networks and DOCSIS 4.0 upgrades in motion, continues to maintain a sizable network coverage advantage compared to the current, combined fiber footprints of AT&T, T-Mobile and Verizon, even when factoring in the proposed Frontier acquisition.
Race Communications secured more than $500 million in additional capital to accelerate the expansion of its fiber network across the state. This capital raise includes $375 million in equity from Oak Hill Capital, the existing majority investor, and its limited partners. The funding also features incremental debt financing from existing lender AB Private Credit Investors, who will also be participating in the equity round. This significant infusion of capital will support Race’s ambitious plan to extend its fiber-to-the-home (FTTH) network to as many as 1 million locations throughout California over the next several years.
Kara Frederick, the Heritage Foundation’s director of tech policy, on her sweeping vision for re-imagining how conservatives relate to tech, including low earth orbit satellites (LEOs), Smart Cities, and generative artificial intelligence. She spoke about what the government could be doing but isn't, saying "Having a national data protection framework is also, to me, an extremely common-sense measure. Limit the amount of and types of data that these tech companies can collect, store and share, and severely hinder the commercial surveillance apparatus that the American people overwhelmingly dislike."
FarrPoint's International Digital Connectivity Readiness Index (DCRI) measures performance in both digital infrastructure and digital adoption. Overall, the United States ranks joint 2nd in the G7 for Digital Connectivity Readiness. The US ranks 6th in digital infrastructure, leading in 4G and 5G but struggling with broadband and Gigabit coverage. On adoption, it ranks 3rd, excelling in the Digital Economy, innovation and public services but facing challenges with Digital Skills, Security, and affordability. However, the US faces challenges in other aspects of digital adoption. The country performs weaker in Digital Skills, impacting the overall effectiveness of its digital initiatives and hindering some segments of the population from fully leveraging digital opportunities. Concerns about Online Security and Wellbeing also pose barriers to broader digital engagement. Moreover, affordability remains a significant obstacle, as many households struggle with the cost of digital services.
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), Grace Tepper (grace AT benton DOT org), and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.
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