Monday, September 27, 2021
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FCC Commits Over $1.2 Billion in First Emergency Connectivity Funding Wave
Treasury’s $10 Billion Capital Projects Fund Will Advance Digital Equity
Rural Counties with More Broadband Tended to Do Better in 2020 Census
Broadband Funding


Digital Inclusion

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Broadband Funding

The Federal Communications Commission is committing $1,203,107,496.88 for 3,040 schools, 260 libraries, and 24 consortia that applied for support from the $7.17 billion Emergency Connectivity Fund Program. This first wave of funding commitments will provide students, school staff and library patrons in all 50 states and Guam, Puerto Rico, and the District of Columbia access to the devices and broadband connectivity they need to support their off-campus education needs. The funding will support 3,081,131 devices and 774,115 broadband connections and help connect over 3.6 million students who, according to their schools, would otherwise lack devices, broadband access, or both. 3,678 applicants applied for funding. Of the $1.203 billion committed in the first application window, approximately $1.17 billion will support schools, $23.97 million will be directed to libraries, and $12.03 million will support consortia of schools and libraries. The FCC continues to review applications from the first application filing window and will announce future funding commitments in coming weeks.
More details about which schools and libraries will receive funding can be found here: https://docs.fcc.gov/public/attachments/DOC-376028A2.xlsx.

The US Department of the Treasury released its long-awaited guidance for how states, territories, freely associated states, and Tribal governments can spend the $10 billion allocated in Section 604 of the American Rescue Plan Act (ARPA) for Capital Projects. Not only can the funds be used for digital inclusion projects, but the guidance sets new (and exciting!) precedents for how governments should holistically address the digital divide by emphasizing the importance of simultaneously investing in expanding access to high-speed broadband and ways to increase its adoption and use. Here is the National Digital Inclusion Alliance (NDIA)'s interpretation of the guidance, and a few things that stood out to us. Local digital inclusion programs that need funding and can meet the eligible uses of this Capital Fund, should talk to their state broadband offices (Find yours here) and state elected officials. Who makes the decisions about using the Capital Projects Fund will vary by state – it could be your governor, state legislature, state broadband office, or some combination of all three. NDIA recommends starting with those you have relationships with, and then expanding from there. Applicants have a short window to submit applications (December 2021), so we recommend talking to your state leaders sooner rather than later. While complex, the guidance provides a roadmap for state, territories, and Tribal governments to holistically and simultaneously address all facets of the digital divide.
[Amy Huffman is Policy Director of the National Digital Inclusion Alliance.]

Although most of the nation’s rural counties lost population from 2010 to 2020, new Census data shows that rural counties with better broadband access tended to do better with population change than counties that lacked access. As more residents had access to broadband as defined by the Federal Communications Commission in 2011, the county population increased nine years later. Most counties did improve their broadband situation as the 2010s continued. Broadband access grew as the decade progressed for both kinds of counties – those that lost population and those that gained. But the importance of broadband access only continued to increase.
[Brian Whitacre is professor and Neustadt Chair in the Department of Agricultural Economics at Oklahoma State University. Roberto Gallardo is the director of the Purdue Center for Regional Development.]

The largest cable and wireline phone providers in the US – representing about 96% of the market – have added about 15,400,000 subscribers over the past five years (compared to about 14,600,000 net adds over the prior five years). Top broadband providers added 8,000,000 subscribers over the past two years, including about 4,330,000 net adds over the past year, and about 3,670,000 net adds over the prior year. Net broadband additions in the second quarter of 2021, 890,000, were the most in any second quarter in the past decade, except for 2Q 2020. Broadband additions in 2Q 2021 were 71% of those in 2Q 2020. The top cable companies added about 840,000 subscribers in 2Q 2021. The top wireline phone companies added about 50,000 total broadband subscribers in 2Q 2021 – compared to a net loss of about 140,000 subscribers in 2Q 2020.
Need and Importance of Reliable Internet Has Never Been So Critical as Speed and Consistency Drive Customer Satisfaction, J.D. Power Finds

As so many residential internet customers have needed to rely more heavily on their internet service provider to stay connected for work, school and entertainment, two-thirds (66%) of customer satisfaction is driven by the quality and speed of their internet connection and how the customer perceives the value of that connection, according to the JD Power 2021 US Residential Internet Service Provider Satisfaction Study. Verizon ranks highest in the East region with a score of 758 (on a 1,000-point scale), followed by Xfinity (725). AT&T ranks highest in the North Central region with a score of 732, followed by WOW! (730) and Xfinity (716). AT&T ranks highest in the South region with a score of 753, followed by Xfinity (740). Midcontinent ranks highest in the West region with a score of 754, followed by AT&T (728) and Xfinity (723).
“While overall satisfaction had been increasing since 2018, it has declined since last year, showing that as the necessity of internet service has increased, so have the expectations of customers,” said Ian Greenblatt, managing director at JDPower.
Spectrum/Wireless
Plan to Modernize and Automate the Infrastructure of NTIA Related to Managing Federal Spectrum Use

Section 9203 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (NDAA 21) calls for the Assistant Secretary of Commerce for Communications and Information to submit a report to Congress containing a plan for the modernization and automation of the NTIA infrastructure relating to managing federal spectrum use by covered agencies, to more efficiently manage such use. This provides the modernization plan and addresses the topics called out in the NDAA 21. This modernization report creates the necessary foundation for future enhancements to current legacy systems and a foundation to support future advanced technological capabilities.

In early 2019, AT&T announced it would phase out 3G wireless service in February 2022, meaning that devices designed to communicate using 3G technology would no longer have a connection after that date. Security systems companies were replacing the older gear when the pandemic lockdown began in March 2020. By early 2021, Covid-19 concerns had eased and people were more willing to let her workers into their homes. But then chip shortages hit the alarm industry, so replacement equipment became harder to come by. Covid and chip shortages have meant hassles and higher costs for businesses whose products and services depend on wireless technology, from emergency alert pendants and home medical devices to crash-prevention systems in cars and ankle bracelets that monitor felons. But the more critical concern is that if they cannot make equipment upgrades before the 3G sunset, some life safety and emergency alert services will stop working. In recent weeks, the Federal Communications Commission has received numerous filings expressing concern about the AT&T sunset plan, from businesses and from public interest advocates and groups representing rural communities and retirees. The FCC said it was “thoroughly investigating” the questions raised about AT&T’s sunset timetable, soliciting public comments and seeking further information from the carriers and others. A delay, AT&T says, would slow the nation’s move to 5G, a technology of the future. “The victims,” the company said, would be “tens of millions of ordinary customers.”

Ajit Pai led the Federal Communications Commission as chairman during the Trump administration, after earlier serving as a commissioner during the Obama administration and as a member of the agency’s staff. Trained as a lawyer, in April 2021 he became a partner with Searchlight Capital Partners, where he helps guide the private-equity firm’s digital infrastructure investments. According to Mr. Pai, private capital can play a vital role in providing broadband internet access to the many areas of the US that still have slow service or none at all. As an example, he cites an investment that Searchlight recently made in broadband provider Virginia Everywhere LLC. The Leesburg-based company, which does business as All Points Broadband, serves about 25,000 users across parts of Virginia and Kentucky through partnerships with utilities and local governments. Here, Mr. Pai speaks to the Wall Street Journal about his shift to private equity after a long career in government as well as how fund sponsors can realize investment gains by helping to close the nation’s digital divide.

T-Mobile has made rural America a clear aim, with a push on brand recognition alongside deployments, retail stores, and initiatives like its Hometown Grant program. The company announced 25 small town winners that are part of its five-year commitment to provide $25 million in grants for community projects, alongside earlier stated plans to hire 7,500 new employees in small towns and rural areas. Winning projects span a range of community development initiatives, from renovating a town-owned home as a safe home for abused women and their children, revitalizing and creating a full-time performing arts center, creating and enhancing greenspaces like city parks, playgrounds and dog parks, completing a baseball complex, to converting an undeveloped city lot into an outdoor accessible classroom with public Wi-Fi. The project is in partnership with Main Street America and Smart Growth America. Winners are chosen and awarded on a quarterly basis and towns with populations of less than 50,000 are eligible to apply.
States that had winners include Alabama (Atmore and Wedowee), Arkansas (Clarksville), California (Mammoth Lakes), Illinois (Dixon), Indiana (Batesville), Idaho (Fruitland), Kansas (Fort Scott), Michigan (Lake Orion), Mississippi (Oxford), North Carolina (Laurinburg, Robersonville, and Boiling Springs), New Mexico (Raton), Ohio (Bowling Green), Oregon (Aumsville, Talent, and Toledo), Pennsylvania (Phoneixville, Pittston, and South Fayette Township), Tennessee (Erwin), Texas (Elgin), Utah (Helper City), and Washington (Moses Lake).

One unexpected casualty of the disruptions wrought by the long pandemic: Federal Communications Commission commissioners haven’t testified before Congress in more than a year. It’s a gap that comes at an immensely consequential time for policymakers, as they seek to close the digital divide, and for the FCC itself, as it administers multiple Covid relief programs involving north of $10 billion. Why is the FCC MIA? Logistical challenges around the virus have sometimes meant fewer committee hearings generally (although Congress still managed to secure Senate and House testimony from the FTC in 2021). And lawmakers have generally fixated on bigger legislative vehicles, like the last pandemic relief package, the bipartisan infrastructure bill, and Democrats’ massive spending plan. President Joe Biden also hasn’t named his permanent FCC chair, so Democrats may be reluctant to summon FCC officials in the interim.
Lawmakers haven’t had a chance to directly pepper acting FCC Chair Jessica Rosenworcel and her fellow commissioners with questions about how the pandemic aid programs and other big-ticket items are going. The FCC is holding a 5G airwaves auction in October, for instance, and is finally opening a subsidy program to help small wireless carriers ditch gear from Chinese companies Huawei and ZTE. And the agency's critics have raged over its messy rollout of the Rural Digital Opportunity Fund subsidy program. Republicans, for their part, have clamored for months to get Chairwoman Rosenworcel in front of their panels this year, saying they have questions on broadband mapping and the aid programs.

A group of over two dozen senators is urging President Joe Biden to designate Acting Federal Communications Commission Chairwoman Chairman Jessica Rosenworcel to a permanent position, making her the first woman to hold the office. The chairmanship of the commission has been in limbo since President Biden was sworn into office on Jan. 20, 2021, with Chairwoman Rosenworcel operating in acting capacity. Some of the group of Democratic Senators (and one Independent, Angus King of Maine) noted that they had voiced their support in a similar letter to Biden after he was declared winner of the 2020 election and said having a permanent chair is important, in light of Congressional efforts to provide funding for expanded broadband access nationwide as well as address the impacts of the 18+ month pandemic, part of the “Infrastructure Investment and Jobs Act of 2021,” now being considered by the House.
Singing the letter: Sens Joe Manchin (D-WV), Angus King (I-ME), Brian Schatz (D-HI), Richard Blumenthal (D-CT), Jeanne Shaheen (D-NH), Maggie Hassan (D-NH), Catherine Cortez Masto (D-NV), Richard Durbin (D-IL), Tammy Duckworth (D-IL), Benjamin Cardin (D-MD), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Tammy Baldwin (D-WI), Amy Klobuchar (D-MN), Ben Ray Lujan (D-NM), Christopher Murphy (D-CT), Patty Murray (D-WA), Ron Wyden (D-OR), Kyrsten Sinema (D-AZ), Jon Tester (D-MT), Martin Heinrich (D-NM), Gary Peters (D-MI), and Chris Van Hollen (D-MD).
Stories From Abroad
Willingness to pay and pricing for broadband across the rural/urban divide in Canada

Efforts to close the rural/urban digital divide in Canada have reached new heights in the wake of the ongoing COVID-19 pandemic and “stay-at-home” policies. Yet the extent to which the rural/urban digital divide extends to pricing and demand for broadband services is not well understood. Using a dataset of more than 4700 residential survey responses from southern Ontario, Canada, we assess the disparity in pricing and willingness to pay for broadband across rural and urban households. Our results suggest that rural users face higher installation and monthly fees while receiving a significantly inferior quality of service than their urban counterparts. Demand among rural users for improved broadband access is also higher than for urban users. These results may strengthen the business case for expanding broadband services into rural areas and/or supporting justification for public subsidization. Our analysis also suggests higher economic net benefits from prioritizing majority access at current federal service objectives rather than investing in a small number of users to receive higher quality broadband.
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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