Analysis

Updated ACP Enrollment Performance Tool Includes ACP Risk Score

Today we are releasing our latest version of the Affordable Connectivity Program (ACP) Enrollment Performance Tool, which updates data through February 2024. We introduce a new feature in this version—the ACP Risk Score for each zip code included in the tool. This score indicates the degree to which households in a given zip code are at risk of losing or reducing internet connectivity should the ACP benefit lapse.

The BEAD Subsidy of Utilities

When internet service providers are asked about the impediments they encounter for building new fiber networks, they almost always list pole issues at or near to the top of the list. Why are poles of such big concern? Building aerial fiber means putting the fiber on poles. Most poles are owned by electric utilities, although some belong to telephone companies or municipalities. Invariably, some poles have to be replaced in order to add a new fiber line. This mostly occurs when there is not enough space for the nationally required distance between wires.

Competition in Multi Dwelling Units

Federal Communications Commission Chairwoman Jessica Rosenworcel announced plans to introduce a Notice of Proposed Rulemaking (NPRM) that would expand customer choice in apartments, condos, public housing, and other multi-tenant buildings. The NPRM would allow tenants to opt out of bulk billing arrangements where landlords build broadband or cable TV into the price of rent.

Guam's Journey to Digital Inafa'maolek

Guam's Office of Infrastructure Policy and Development (OIPD) has released its draft Digital Equity Plan. In the vastness of the Pacific Ocean, the island of Guam, an unincorporated territory of the United States, emerges as a testament to resilience, unity, and evolution. Its history is a rich tapestry of cultures, forged by the perseverance of its indigenous people and the influences of various settlers and conquerors throughout the millennia. The journey of Guam has been one of transformation.

Telecom Regulation: Stuck in the 90's

Elon Musk recently blasted the federal government’s decision to deny a nearly billion-dollar subsidy for rural connectivity that had been previously awarded to his satellite broadband company, Starlink. No matter what you think about him, Musk’s outburst points to an uncomfortable reality: new technologies are rendering America’s policy for promoting and subsidizing broadband telecommunications outdated and counterproductive.

Over 100 Years After Electrification: Will California Lead the Way to Internet as a Public Utility?

The Affordable Connectivity Program is ending and California has a monumental, once-in-a-generation opportunity to lead our communities into a new era of equitable affordable connectivity, not unlike the electrification of the United States in the early-to-mid 1900s. Internet affordability in California, like much of the country, relies on the goodwill of profit-driven Internet Service Providers (ISPs) and family enrollment in the federal Affordable Connectivity Program (ACP), a subsidy program whose

What Factors Drive Broadband Affordability for Middle-Class Families?

This brief examines how place-based factors—such as education levels, social vulnerability, regional economic strength, and measures of income inequality—influence broadband affordability. These measures reinforce that income is not the only factor policymakers should consider when seeking to understand broadband affordability and adoption challenges.

BEAD Pressure on Broadband Rates

State Broadband Offices and the BEAD grant process have designed grant rules that put pressure on internet service providers to provide inexpensive rural broadband. But in doing so, I’m not sure that they understand the high prices that rural folks are paying for broadband today. In rural areas I've looked at, most households are paying over $100 a month for broadband. There are state BEAD rules that are trying to force rates down to rates between $50 and $75 per month for gigabit speeds. I find several faults with these rate-setting efforts:

Public officials can be held liable for blocking critics on social media

The Supreme Court ruled that public officials who post about topics relating to their work on their personal social media accounts are acting on behalf of the government, and therefore can be held liable for violating the First Amendment when they block their critics, only when they have the power to speak on behalf of the state and are actually exercising that power. The court’s decisions came in a pair of cases, involving local officials in California and Michigan who blocked constituents who made repetitive and critical comments on their personal social media accounts.

What's in the Budget for Broadband?

This week, the Biden-Harris Administration announced its proposed 2025 fiscal year (FY) budget. According to the White House, President Biden's top economic priority in the FY 2025 budget is to lower costs for American consumers–reducing junk fees, lowering healthcare costs, and the prices of everyday goods and services.

Broadband Provisions in the Consolidated Appropriations Act, 2024

On March 9, 2024, President Joe Biden signed the Consolidated Appropriations Act, 2024 (H.R. 4366) legislation that funds, through September 30, departments and agencies of the Federal Government covered by six appropriations bills. Here we look at broadband-related funding for the U.S. Department of Agriculture (USDA) and the U.S. Department of Commerce's National Telecommunications and Information Administration (NTIA). 

How the FCC Got to 100/20

In its 2024 Broadband Deployment Report, the Federal Communications Commission raised its fixed speed benchmark for broadband to 100 megabits per second (Mbps) download and 20 Mbps upload. The FCC last updated these benchmark speeds in 2015 when it set the speeds at 25/3 Mbps. There is an obvious, short answer to how the FCC reached its 100/20 determination: Congress.

Repeating Telecommunications History

I believe we can’t ignore the history of our industry if we want to avoid the worst of it from happening again. There are a variety of factors that led to the rural mess that created the need for BEAD and other broadband grant programs. I think the downward trajectory started with the divestiture of AT&T into AT&T as a long-distance company and large regional telephone companies. The newly-formed company lobbied hard to be able to make profits over and above the low, but steady profits that could be earned by a regulated utility.

Low-Cost Internet Plan Model

In the absence of the Affordable Connectivity Program, the National Digital Inclusion Alliance (NDIA) encourages ISPs to offer a low-cost plan and/or a discount to qualifying households. NDIA is creating a good-better-best rating system to evaluate the affordability and quality of low-cost internet plans. The rating system will be featured on the Free & Low-Cost Internet Plans webpage to help consumers understand their low-cost options.

John Deere and Starlink

In a recent press release, John Deere announced an agreement with Starlink to provide broadband for smart farm equipment in areas where cellular coverage is not strong enough. Anybody familiar with rural America understands that there are gigantic holes in cellular coverage, so this arrangement puts Starlink in a strong position with farmers. The decision means that John Deer will include a Starlink receiver in smart farm equipment along with a 4G LTE receiver.

The Advantages of Equity Funding

A large majority of internet service providers seeking BEAD grants will be financing matching funds using loans. Matching funds are the contributions expected from providers—a 75 percent grant means 25 percent in matching funds. Very few providers carry enough cash on hand to consider using equity to pay for broadband expansion. This contrasts significantly with large telephone and cable companies that will be pursuing BEAD grants, most of whom will finance grants using equity. When it comes to financing using equity vs using loans, equity is the clear winner for the provider.

How is the FCC Working to Protect Broadband Consumers?

The Biden Administration has launched a new effort to lower costs and promote competition for US consumers. The Strike Force on Unfair and Illegal Pricing––co-chaired by the Department of Justice (DOJ) and the Federal Trade Commission (FTC)––aims to strengthen interagency efforts to root out and stop illegal corporate behavior that hikes prices on consumers through anti-competitive, unfair, deceptive, or fraudulent business practices.

Danger Of Forcing Low Rates

Some State Broadband Offices are taking a stab at social engineering by trying to force BEAD grant winners to offer low broadband rates. I understand the sentiment behind this because everybody in the industry involved with digital equity issues hears stories about homes that can’t afford broadband even when it is available. I know this feels like a broadband office is doing something good, but there are a number of reasons why this is a terrible idea.

Update on Dish Cellular

I recently checked on the status of Dish, which is trying to become the fourth major cellular company in the country. Dish entered the cellular business in 2020 as a consequence of the merger of Sprint and T-Mobile. Dish was already under pressure at the time from the FCC to use its spectrum portfolio, and the FCC gave Dish until June 2023 to cover 70% of the U.S. population with cellular facilities.

Avoid Sunk Costs By Funding The Affordable Connectivity Program

With the Affordable Connectivity Program (ACP) on the brink of exhausting its funding and congressional action to secure its future still uncertain, it’s time we have the hard conversation about sunk costs. For ACP, that includes:

Gaming the BEAD Maps

From all over the country, I’m hearing stories about internet service providers who are gaming the Federal Communications Commission (FCC) broadband maps in order to block areas from being eligible for the BEAD grants. It’s relatively easy for a provider to do this. All that’s needed is to declare the capability to deliver a speed of 100/20 Mbps in the FCC maps. Providers can largely do this with impunity. The archaic FCC rules allow providers to claim ‘up-to’ marketing speeds in the maps.

The Sudden Mad Rush of BEAD

From an internet service provider perspective, the BEAD grant program has progressed at a glacial scale. The BEAD grants were signed into law on November 15, 2021, as part of the Infrastructure Investment and Jobs Act. Folks in the industry assumed that BEAD would follow a timeline similar to the earlier grants that were awarded using federal CARES and ARPA funding, and vendors certainly thought that grant awards would start in 2023 with construction underway by 2024. And then nothing happened. The BEAD process got bogged down in paperwork and bureaucracy.

23,269,550 ACP Households

23,269,550. This was the number of households participating in the Affordable Connectivity Program (ACP) when enrollment closed on February 8th, 2024. It is more than one out of every six households in the United States. But 23,269,550 is also a very high precipice from which to fall. If the ACP ends, all enrollees will experience some combination of bill shock, disconnections, financial sacrifice, service downgrades, and/or household debt.

Wireless Carrier Aggregation

T-Mobile recently announced that it was able to aggregate six channels of spectrum into one bandwidth signal to a customer. The ability to wed channels together was one of the promises of the original 5G specification. The test combined two channels of 2.5 GHz, two channels of PCS spectrum, and two channels of AWS spectrum, creating an effective 245 MHz of aggregated channels. T-Mobile worked with Ericsson and Qualcomm to make this work and was able to create a single 3.6 Gbps connection from a cell tower.