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Senators Urge FCC to Reject USF Cap
Too uneducated to understand the importance of home Internet?
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Senator Markey Leads Colleagues in Urging FCC to Reject Plans that Imperil the Universal Service Fund
Sen Ed Markey (D-MA) and 29 other senators wrote a letter to the Federal Communications Commission requesting that the agency discard any plans for setting an overall cap for the Universal Service Fund (USF) programs. "Such a proposal would harm broadband deployment, rural health care opportunities, classroom learning, and life-long learning through public libraries by forcing them to compete in order to receive necessary funds. The USF programs have been key to moving the country toward the goal of universal connectivity throughout America and placing an overall cap on the USF programs would threaten this necessary progress." The senators concluded by writing, "We strongly urge the Commission to abide by its statutory commitment to students, health care providers, librarians, and those in rural communities."
The House Commerce Committee's telecom subcommittee will soon move to mark up legislation to improve the government’s mapping of broadband data, which lawmakers have long complained is riddled with errors. And the panel will likely use the Broadband DATA Act, H.R. 4229, from Rep. Dave Loebsack (D-Iowa), as the base. “I think the Loebsack bill will be the vehicle it runs through,” Subcommittee Chairman Mike Doyle (D-PA) said. “But I think we’re going to be taking bits and pieces of the other bills, too.”
“We can’t have a system at the [Federal Communications Commission] when it comes to mapping where it’s garbage in and garbage out, because that’s what it is,” Rep Loebsack said. Rep. Bob Latta (R-OH), the top Republican on Doyle’s panel and a backer of the Broadband DATA Act, said, “This is something we can get done.”
In their recent Op-Ed in the Washington Post, “Cities, not rural areas, are the real Internet deserts,” authors Blair Levin and Larry Downes argue that the digital divide in cities persists because uneducated people do not understand the importance, or “relevance,” of the internet in their everyday lives. The core argument, then, is that the digital divide, or what has been referred to as the gap between those with and those without access to the internet, is not a problem of access or cost but “a problem of education.” In other words, since “poorer, older, and less educated Americans” can access low-cost internet access through programs such as Comcast’s Internet Essentials, the affordability gap has already been bridged? Convincing these people that using the internet is beneficial, they argue, is the real challenge for digital inclusion policymakers. The authors are correct in half their argument. It is certainly true that, as they say, “the digital divide...is not exclusively or even most significantly a rural problem.” However, as we have previously written and as various academic studies on digital inequalities have shown, relying solely on survey data to examine reasons for broadband non-adoption -- and not the actual everyday experiences of low-income people -- misses the point.
[Colin Rhinesmith is an assistant professor in the Simmons University School of Library and Information Science. Bibi Reisdorf is an Assistant Professor in the Department of Communication Studies at the University of North Carolina at Charlotte.]
Comcast offered customers in Utah a "lifetime" price guarantee in order to compete against Google Fiber, then later violated the lifetime promise by raising those customers' prices, according to a lawsuit pending in a federal court. "In 2016, Comcast was under intense competitive pressure from Google's high speed fiber-optic data service," the lawsuit says. In Salt Lake City, "Comcast engaged extra sales staff to try to effectively beat the Google Fiber sales staff as they made their way up and down the streets of each neighborhood. To compete, Comcast sales staff began to offer 'lifetime' contracts to some of its customers and sold Comcast's broadband services by using door to door salespeople, especially in cities and neighborhoods where Google was aggressively offering its fiber-optic service." The lawsuit claims that "as many as 20% of Comcast's over 200,000 contracts in Utah may be 'lifetime' contracts." But some customers have had their bill unilaterally increased as much as $50 per month over the specified 'lifetime' rate.
Verizon Chairman and CEO Hans Vestberg said that the company is installing 1400 miles of fiber per month and that it will begin offering multi-access edge computing (MEC) in fourth quarter. Verizon fiber deployments are critical to supporting a mixture of services, Vestberg said. “One part of the whole intelligent edge network was that . . . all the way from the data center to the access point you have one unique network with a lot of redundancy and, in between, a lot of fiber to the access point and then you decide if it’s 3G, 5G, 4G or fiber to the home or fiber to the curb or fiber to the enterprise,” he explained. Verizon expects to continue to deploy about this amount of fiber on a monthly basis for another two to three year, Vestberg noted.
The Secure 5G and Beyond Act of 2019 (S. 893) would require the President, acting through the National Telecommunications and Information Administration (NTIA) and other federal agencies, to develop and submit to the Congress a strategy to ensure the security of 5G and future generations wireless communications systems and infrastructure owned by the US and its allies. Among various other requirements, the NTIA would have to assess potential security threats to American 5G systems and infrastructure and analyze how competitive American 5G manufacturers and suppliers are globally.
Using information from the NTIA, CBO estimates that implementing S 893 would cost $1 million for the interagency group to formulate the strategy. Such spending would be subject to the availability of appropriated funds. CBO expects that NTIA would coordinate the interagency group and complete the strategy in 2020. The Federal Communications Commission would incur insignificant costs to help formulate the strategy. However, because the FCC is authorized under current law to collect fees sufficient to offset the appropriated costs of its regulatory activities each year, CBO estimates that the net cost to the FCC would be negligible, assuming appropriation actions consistent with that authority. If the FCC increases annual fee collections to offset the costs of implementing provisions in the bill, S. 893 would increase the cost of an existing private-sector mandate on entities required to pay those fees. Using information from the FCC, CBO estimates that the incremental cost of the mandate would be small and would fall well below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($164 million in 2019, adjusted annually for inflation).
Based on growing signs that platforms are tipping toward monopoly in key market functions, it is very likely that antitrust is not enough of a solution without targeted regulation that opens markets to new competition. Perhaps the most important change we need is competition-expanding regulations that address the problems antitrust cannot solve. A new expert regulator equipped by Congress with the tools to promote entry and expansion in these markets could actually expand competition to benefit consumers, entrepreneurship, and innovation. The regulator’s goal of actively promoting competition, not simply maintaining existing competition, is a significant distinction. Given the economic constraints described above, digital platforms require an additional jolt from a regulator to promote new competition. There is not enough competition here for us to merely “maintain” it. Congress must equip the regulator with pro-competition tools such as interoperability, non-discrimination, and merger review. The regulator’s primary goal should be promoting competition.
[Gene Kimmelman is a Senior Fellow in Shorenstein's Digital Platforms and Democracy Project]
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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