CCG Consulting

I’ve been tracking the number of claimed broadband customers at the largest telephone and cable companies for years. When I was looking at the statistics for the first quarter of 2023, it struck me that the biggest cable companies are now making up for the loss of cable TV customers by increasing broadband rates. For the last decade, the big cable companies have been thriving financially through big annual increases in broadband customers.

Growth in neighborhoods and cities means that there is a lot of stress on the existing utilities. As you might expect, the over-taxed utilities are showing the strain. Our telecom networks are not immune from growth problems. The Charter cable network clearly has occasional problems. It’s not hard to imagine that there are neighborhoods where the cable network is overloaded due to growth.

Anybody who is intimately familiar with the Federal Communications Commission's National Broadband Map knows that there is a lot of fiction buried in the reporting. There is one huge flaw in the FCC mapping system that has carried over from the previous FCC mapping regime—internet service providers (ISP) self-report the speeds they can deliver. Per the FCC mapping rules, ISPs can claim broadband marketing speeds rather than some approximation of actual speeds.

I guess it’s inevitable that a $42.5 billion grant program would attract a lot of legislative action trying to set some parameters on how to spend the money. Recent hearings conducted by the House Commerce Committee’s Subcommittee on Communications and Technology looked at issues that would expedite the deployment of broadband infrastructure. The subcommittee is considering 32 bills related to broadband infrastructure, many of the bills still in draft form. Following are just a few bills that show the breadth of House legislation being considered:

Charter CEO Chris Winfrey said that the company is the “largest rural provider today.” Charter was the largest winner of the Rural Digital Opportunity Fund (RDOF) reverse auction in terms of passings and is slated to bring broadband to over 1 million rural homes and businesses. The company says it is ahead of schedule and has already built 40% of those passings.

The Public Switched Telephone Network (PSTN) network has been used for interconnection to the local incumbent offices and tandem switches, for connecting to 911 centers, for connecting to operator services, for connecting to cellular carriers, or for connecting to other neighboring carriers. We are finally starting to see that network being shut down, route by route and piece by piece. But like everything related to operating in the regulated legacy world, it’s not easy to disconnect the PSTN connections called trunks.

Some counties have a bigger cellular coverage problem than they do a broadband problem. There are often a much larger number of homes in a county that don’t have adequate cellular coverage than those that can’t buy broadband. I always knew that the cellular coverage maps published by the big cellular carriers were overstated; now I know that they are pure garbage. Before the pandemic, the Federal Communications Commission came up with a plan to spend $9 billion from the Universal Service Fund to build and equip new rural cellular towers—using a reverse auction method.

The clock is ticking on the Affordable Connectivity Program (ACP). Current estimates show the program may run out of funding as soon as the end of the first quarter in 2024. The only solution for keeping ACP operating is for Congress to refill the ACP funding bucket somehow. Angela Siefer of the National Digital Inclusion Alliance said that reauthorizing ACP was one of the biggest broadband issues on the plate for Congress. She talked about the many gains that have been made in getting broadband to low-income homes.

The Florida Legislature recently passed a bill that brings poles under state jurisdiction for any electric cooperative that elects to enter the broadband business.

Senator Richard Blumenthal (D-CT) introduced the Junk Fee Prevention Act  (S.916), which takes aim at eliminating fees that are not advertised for a product but that get added on after a customer buys a product or service. These fees were attacked this year by President Biden in the State of the Union Address. Telecommunications companies, particularly cable companies, are among the worst in having hidden junk fees that are not included in advertising but are added to a customer’s first bill.