Digital Divide

In response to the impact of the ongoing COVID-19 pandemic in the United States, the Federal Communications Commission's Wireline Competition Bureau has waived certain Lifeline program rules in ten previous Orders to provide necessary relief for low-income households. The effects of the COVID-19 pandemic continue to be felt by many Americans. The importance of access to affordable communications services for low-income consumers has been underscored by the pandemic and its long-lasting impact.

Deputy Secretary of Commerce Don Graves joined Sen Roger Wicker (R-MS) in Jackson (MS) to announce the details of a $32.7 million broadband infrastructure grant coming to the state to help close the digital divide and expand access to high-speed internet. Deputy Secretary Graves and Sen Wicker shared that these grants, provided by the National Telecommunications and Information Administration (NTIA), will fund 10 projects across rural Mississippi that will serve 12,487 underserved households, 256 businesses, and 26 anchor institutions that include schools and libraries.

The Federal Communications Commission announced that it is ready to authorize more than $313 million through the Rural Digital Opportunity Fund to fund new broadband deployments in 19 states bringing service to over 130,000 locations. This is the eighth round of funding in the program, which to date has provided over $5 billion in funding for new deployments in 47 states to bring broadband to over 2.8 million locations.

The big monopoly incumbent providers are aiming their lobbying efforts to influence state lawmakers as states funnel federal funds into state broadband grant programs. In January 2022, Illinois State Senator Patrick Joyce (D-IL) introduced legislation in the Illinois General Assembly known as the Illinois Broadband Deployment, Equity, Access, and Affordability Act of 2022 (SB 3683).

For many years there have been people extolling the huge benefits of public-private partnership for broadband. For all of that talk, there is not a big number of partnerships, but there are some successful examples around the country. Communities that are looking for broadband solutions might want to consider public-public partnerships and non-profit partnerships. I’m seeing public-public partnerships develop that are similar to the more traditional public-private partnership. Existing municipal internet service providers (ISPs) are reaching out to help neighboring communities.

The Federal Communications Commission announced that it is opening a third application filing window to award at least $1 billion in Emergency Connectivity Fund support. The third application filing window will open on April 28, 2022 and close on May 13, 2022. During this third application filing window, eligible schools and libraries can submit requests for funding to purchase eligible equipment and services between July 1, 2022, and December 31, 2023.

Windstream announced that it has received authorizations from the Federal Communications Commission to receive a total of $523 million from the Rural Digital Opportunity Fund (RDOF), which the carrier sees as a springboard for growing through public-private partnerships (PPPs). The funding will help Windstream extend broadband to approximately 193 thousand locations across 18 states. RDOF is an FCC program offering funding to help cover the cost of expanding broadband to the unserved, and eventually, the underserved.

Consumer advocacy group Public Knowledge took issue with the idea that AT&T’s copper retirement plan could leave customers without a wireline replacement, arguing wireless options may be insufficient to meet modern speed needs. Analyst firm New Street Research separately warned states seeking to close the digital divide might not look kindly on such a move. “The problem is not retiring copper in and of itself. The problem is retiring copper without a suitable replacement that is as good or better than the copper,” said Jenna Leventoff, Public Knowledge’s senior policy counsel.

Casey Lide of Keller & Heckman wrote a recent blog that warns that federal grant funding might be considered as taxable income by the Internal Revenue Service (IRS). This would be a dreadful outcome for any taxable entity that receives the grant funding since it would create a huge tax liability that would have to somehow be covered outside of the grant funding.