Competition/Antitrust

As much as 38 percent of rural locations in census blocks reported to have broadband available to them may actually lack broadband, according to USTelecom. The organization, which represents broadband providers, undertook a pilot test earlier in 2019 aimed at addressing problems with Federal Communications Commission broadband availability data as depicted on the National Broadband Map. The results of the USTelecom broadband map pilot have now been filed with the FCC. 

Hillsboro’s (OR) publicly supported internet project aims to undercut its rivals on pricing and substantially outpace them in speed. The city council has set pricing for its forthcoming service, called HiLight, offering superfast gigabit service for $55 a month. That’s about half what Comcast charges for the same speeds. Hillsboro says it will offer speeds up to 4 gigabits for $300 a month, the same price as Comcast’s 2 gig plan. The first homes will be online early in 2020, according to the city, about a year behind the initial schedule.

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 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?

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.

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 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.

Gov J.B. Pritzker (D-IL) launched Connect Illinois, a $420 million statewide broadband expansion project included in the Rebuild Illinois capital plan. Rebuild Illinois dedicated $400 million to partnering with Internet service providers and $20 million to the Illinois Century Network, which currently services K-12 schools, higher education, public libraries, museums, state and local governments, and the health-care community. To oversee the broadband initiative, Gov Pritzker appointed 25 people from the private and public sectors to a broadband advisory council.

The top 16 US high-speed internet providers, covering 96% of the market, added 370,000 customers in the second quarter, off from the 480,000 added on a pro forma basis in the same period of 2018, according to new research from Leichtman Research Group. The dip is an anomaly for now—customers growth metrics were up for landline broadband suppliers in the first quarter. Cable operators added 532,211 high-speed internet users in Q2, LRG said, about 90% of what they added in the same period of 2018.

Senator and presidential candidate Elizabeth Warren (D-MA) has a plan for rural America. All of America should be concerned, because it reflects a fundamental misunderstanding of economics and business.I’ll focus on the rural broadband plan. The overarching theme is that private businesses cannot be trusted, and neither can consumers (except maybe when they are voting for Senator Warren), so government officials should take control. Other takeaways: