Daily Digest 2/7/2024 (ACP Freeze)

Benton Institute for Broadband & Society
Table of Contents

Affordable Connectivity Program

Reminder of February 8, 2024 Enrollment Freeze for the ACP  |  Read below  |  Public Notice  |  Federal Communications Commission
Benton Foundation
Who is About to Lose their ACP Discount?  |  Read below  |  Kevin Taglang, Drew Garner  |  Analysis  |  Benton Institute for Broadband & Society
FACT SHEET: As Affordable Connectivity Program Hits Milestone of Providing Affordable High-Speed Internet To 23 Million Households Nationwide, Biden-⁠Harris Administration Calls on Congress to Extend Its Funding  |  Read below  |  Press Release  |  White House
Protect Internet Access: Extend the Affordable Connectivity Program Today  |  Read below  |  Summer Strand  |  Editorial  |  Public Service Commission of Wisconsin

Broadband Funding

FCC Grants Waivers of ECF Service Delivery and Invoice Filing Deadlines  |  Read below  |  Public Notice  |  Federal Communications Commission

State/Local

Mapping State BEAD Challenge Processes  |  Read below  |  Jake Varn  |  Analysis  |  Pew Charitable Trusts
Equitable Participation in Today's Digital World: New Hampshire's Plan  |  Read below  |  Grace Tepper  |  Analysis  |  Benton Institute for Broadband and Society
Nebraska Broadband Director Aims to Speak Providers’ Language  |  Read below  |  Doug Adams  |  telecompetitor

TV

Netflix to Start Billing Florida Subscribers an Additional 5.07 Percent for State Communications Taxes  |  Read below  |  Daniel Frankel  |  Next TV
ESPN, Fox and Warner Team Up to Create Sports-Streaming Platform  |  Read below  |  Joe Flint, Isabella Simonetti  |  Wall Street Journal
YouTube TV Surpasses 8 Million Subscribers, Becomes No. 4 U.S. Pay TV Company  |  Next TV

Journalism

News companies reverse course on hard subscriptions  |  Read below  |  Sara Fischer  |  Axios
An internet media company launches a plan to cover the election for Gen Z  |  Read below  |  Taylor Lorenz  |  Washington Post

Artificial Intelligence

Meta Calls for Industry Effort to Label AI-Generated Content  |  Read below  |  Mike Isaac  |  New York Times
A chatbot helped more people access mental-health services  |  MIT Technology Review

Kids & Media

New partnership helps domains stop abuse  |  Axios
How to keep your kids safe online — without taking away their phone  |  Washington Post

Telecommunications

FCC Demands Entity Behind New Hampshire Robocalls Stop Illegal Effort  |  Federal Communications Commission

Transportation

Viral videos of Tesla drivers using VR headsets prompt US government alarm  |  Guardian, The

Industry/Company News

Is it Time for Rate Cuts?  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting
What’s behind the speculation about a Dish bankruptcy?  |  Read below  |  Linda Hardesty  |  Fierce
Spotify is starting to lose less money  |  Axios

Policymakers

Federal Communications Commissioner Gomez says connectivity and spectrum are her top priorities  |  Read below  |  Sue Marek  |  Fierce
Federal Communications Commissioner Simington Speaks to Silicon Flatirons  |  Read below  |  Speech  |  Federal Communications Commission

Stories From Abroad

Why is the UK so slow to regulate AI?  |  Guardian, The
Today's Top Stories

Affordable Connectivity Program

Reminder of February 8, 2024 Enrollment Freeze for the ACP

Public Notice  |  Federal Communications Commission

The Wireline Competition Bureau reminds providers, eligible households, and all other Affordable Connectivity Program (ACP) stakeholders of the upcoming enrollment freeze beginning Thursday, February 8, 2024. To receive the ACP benefit, eligible households must be enrolled in the program by February 7, 2024 at 11:59 pm ET. The ACP is the largest and most successful broadband affordability program in our nation’s history and helps more than 23 million low-income households, across rural, suburban, and urban America obtain the internet service they need to access health care, work, educational opportunities, and more. Even with news of the program’s projected end in around April 2024, the ACP has remained popular as more households continued to enroll in the program each month. 

Who is About to Lose their ACP Discount?

Kevin Taglang, Drew Garner  |  Analysis  |  Benton Institute for Broadband & Society

The Federal Communications Commission's Affordable Connectivity Program (ACP), established in the bipartisan Infrastructure Investment and Jobs Act, is expected to end this Spring if it does not receive additional funding from Congress soon. The funding situation is so dire that this week the FCC halted any new enrollments in the program. For millions of people eligible for the ACP, affordable broadband service is getting harder to obtain. And, as ACP funding dwindles, over 23 million households relying on the program for affordable broadband are facing a $30 per month increase in their internet access bills. For many, this will lead to hard decisions about choosing between staying connected and buying groceries or medical care. But who are the people who qualify for the ACP? Who are the people at risk of losing service if ACP is not refunded? In less than three years since the FCC launched the Emergency Broadband Benefit Program (the precursor to ACP), over 23 million households have enrolled in ACP. But over 50 million households are eligible for the benefit, meaning that more than half the households Congress intended to aid are not yet enjoying more affordable broadband service. Read on to understand who these people are and why the ACP is so valuable to them.

FACT SHEET: As Affordable Connectivity Program Hits Milestone of Providing Affordable High-Speed Internet To 23 Million Households Nationwide, Biden-⁠Harris Administration Calls on Congress to Extend Its Funding

Press Release  |  White House

As part of the President’s Investing in America agenda, the Biden-Harris Administration has made historic progress towards lowering costs—including internet costs—for American families across the country. The Affordable Connectivity Program, enacted under President Biden’s Bipartisan Infrastructure Law as the largest internet affordability program in our nation’s history, is now helping 23 million households—1 in 6 households across America—save $30-$75 on their monthly internet bills. However, without action from Congress, this program will sunset by May 2024 and millions of Americans may no longer be able to afford high-speed internet service. The Biden-Harris Administration continues to call on Congress to pass legislation that would extend free and discounted high-speed internet for eligible households through 2024. Key statistics on enrollment include the following:

  • Nearly half of the households benefitting from ACP are military families.
  • Four million seniors and 10 million Americans over the age of 50 benefit from this program every month.
  • 1-in-4 households participating in the Affordable Connectivity Program are African American and 1-in-4 households are Latino.
  • The Affordable Connectivity Program provides an enhanced monthly subsidy to 320,000 households on Tribal lands, where high-speed internet is generally more expensive.

Protect Internet Access: Extend the Affordable Connectivity Program Today

Summer Strand  |  Editorial  |  Public Service Commission of Wisconsin

High-speed internet is vital for all of us to live, work, and connect with one another. In recent years, we have come a long way toward improving internet access and affordability in Wisconsin. However, we are poised to take a major step backwards unless Congress acts to extend the Affordable Connectivity Program (ACP). As of January 2024, over 22 million households in the US are enrolled and receiving the ACP monthly benefit, including more than 420,000 Wisconsin households. This means that more families can connect to work and school, meet with a healthcare provider, and access other important information and services online. Research shows that broadband benefit programs for low-income households increase their earnings and employment rates. Broadband access also corresponds to improved health outcomes. These positive impacts help boost our economy, which benefits us all. The ACP is an effective resource for millions of families, but without action from Congress, it will end as early as this April. We must ensure internet service is also affordable so everyone can participate in our economy and society. The path to internet affordability starts by extending the ACP. 

Broadband Funding

FCC Grants Waivers of ECF Service Delivery and Invoice Filing Deadlines

Public Notice  |  Federal Communications Commission

The Federal Communications Commission addressed six requests for waiver filed by Emergency Connectivity Fund (ECF) program applicants (collectively, the Petitioners). Specifically, the FCC waived and extended the service delivery date and/or the invoice filing deadline for the Petitioners who applied for ECF support for equipment, non-recurring services, and recurring services during the first and second application filing windows, recognizing the emergency nature of the ECF program as well as the limited, one-time funding opportunity it presents. The FCC's Wireline Competition Bureau provided ECF first and second window applicants with additional time to receive services and complete the invoicing process in recognition of the evolving and emergent nature of the ECF program. Consistent with those actions, the FCC finds good cause exists to waive rules for the Petitioners, and direct the Universal Service Administrative Company to extend any necessary deadlines for the Petitioners’ first and second window ECF funding requests consistent with this Order.

State/Local

Mapping State BEAD Challenge Processes

Jake Varn  |  Analysis  |  Pew Charitable Trusts

Before implementing their BEAD programs, every state and territory broadband office will have one last chance to update the Federal Communications Commission’s (FCC) new broadband availability maps by running their own challenge process. This will be the final step in determining which areas are eligible for a BEAD-funded project. In a new publication, we have broken down the fundamentals of why these BEAD challenge processes matter, who can participate, and how it works. To go a bit further into the weeds here, we’ve taken a look at every state and territory’s Initial Proposal Volume 1 and mapped out what their process may look like (subject to NTIA’s approval). These challenge windows will be a critical step to allow broadband offices to correct gaps in the FCC's map and adapt to the eligibility of BEAD. I urge anyone interested in ensuring states are working off of accurate information before deploying $42 billion to look to their state broadband office for the precise details on how and when to participate.

Equitable Participation in Today's Digital World: New Hampshire's Plan

Grace Tepper  |  Analysis  |  Benton Institute for Broadband and Society

The draft New Hampshire Digital Equity Plan was created with partnership and collaboration at its core, as a joint effort between the University of New Hampshire Cooperative Extension, the National Collaborative for Digital Equity (NCDE), and the Digital Equity Research Center at the Metropolitan New York Library Council. Within this plan, these organizations crafted a strategy for sustainable digital equity work in the state. Comments on New Hampshire's draft plan can be submitted until February 7, 2024. New Hampshire's vision is to empower residents to thrive by enabling access to resources, skills, and other supports needed to participate in today’s digital world. The draft plan's mission is to ensure New Hampshire residents, regardless of their location or circumstances, have access to the digital tools, resources, and opportunities essential for success in the 21st century.

Nebraska Broadband Director Aims to Speak Providers’ Language

Doug Adams  |  telecompetitor

Just about six months into his appointed role as broadband director for Nebraska, Patrick Haggerty is upbeat, positive, and taking on Nebraska’s BEAD deployment with a smile. Haggerty assumed his new duties under Governor Jim Pillen (R-NE) in mid-2023, shortly after the state created its first broadband office. Haggerty comes to his new role with more than three decades of telecommunications experience in the private sector, critical in a state that’s considered to be friendly toward providers. “It’s important that our office is able to be provider-friendly and speak the same language as ISPs,” Haggerty explained.  “There are no requirements in BEAD that providers engage and participate, so without them we’re sunk.” Haggerty said that everyone in the Nebraska Broadband Office is fully committed to his three tenets of transparency, accessibility, and being easy to work with. He expressed optimism that the state’s BEAD allocation of $405.3 million would be enough to reach the underserved and unserved of Nebraska.

TV

Netflix to Start Billing Florida Subscribers an Additional 5.07 Percent for State Communications Taxes

Daniel Frankel  |  Next TV

Netflix confirmed that it has notified its customers in Florida that it will begin on February 15 adding to their monthly bills "the state tax rate" for streaming services, which is 5.07% of their regular fees. Netflix referred to this page from the Florida Department of Revenue, which outlines fees charged by the state of Florida for pay TV and home internet service, landline and mobile phones, and video and music streaming. According to an August report from the website Accurate Tax. Florida, North Carolina, Pennsylvania and Washington are currently the only states that charge taxes on streaming services. But lawmakers in states including Missouri are currently fighting it out as to whether to impose similar taxes on their citizenry. 

ESPN, Fox and Warner Team Up to Create Sports-Streaming Platform

Joe Flint, Isabella Simonetti  |  Wall Street Journal

ESPN, Fox, and Warner are teaming up to create a supersize sports-streaming service that will offer content from all major leagues, a deal that will reshape the sports and media landscape. The as-yet-unnamed service will be offered directly to consumers, who would be able to stream a host of channels that are heavy in live sports, including ESPN, TNT, Fox, FS1 and ABC, the companies said in a statement. Each of the companies will have one-third ownership of the new service, which is expected to launch in the fall. The companies didn’t announce pricing. The chief executives of Fox, Warner Bros. Discovery and Disney—ESPN’s majority owner—said the new offering would increase choice for fans and give those who have cut the cord to traditional pay-TV a new sportscentric service.

Journalism

News companies reverse course on hard subscriptions

Sara Fischer  |  Axios

News companies are reversing course on hard subscriptions—once seen as a safer alternative to the volatile ad market—in favor of flexible paywalls, membership programs and more ads. A strategy focused mainly on subscriptions requires upfront spending on premium content. That takes time to pay off—and many publishers don't have the cushion for that in the current ad slowdown. At the same time, many outlets have learned that simply throwing a paywall up over your previously free content doesn't work either. It throttles ad revenue without capturing enough new subscribers. Several platforms, including Time, the Chicago Sun-Times, and the Atlantic, have abandoned the paywall model for ad-supported content or dynamic pricing. Even bigger entertainment companies like Netflix and Disney+ are now hedging against their subscription models to increase profitability, introducing cheaper, ad-supported options to retain customers. 

An internet media company launches a plan to cover the election for Gen Z

Taylor Lorenz  |  Washington Post

A company best known for its posts on Instagram announced that it will try to capitalize on young people’s growing use of social media for news by teaming with a well known TikTok creator for political coverage this year. The company, Betches, said it will partner with the creator Vitus “V” Spehar a.k.a. @underthedesknews on a political podcast called “American Fever Dream.” Spehar rose to prominence on TikTok after covering the January 6, 2021, attack on the US Capitol and now posts daily news to her over 3 million followers on the app. Betches was founded in 2011 by three college students, Sami Sage, Aleen Dreksler and Jordana Abraham. Over the past decade the brand has expanded into a multiplatform media company perhaps best known for its significant Instagram presence. The brand also hosts a robust podcast network with over a dozen podcasts covering pop culture, reality TV, true crime, dating and other topics. Betches co-founder Sage said the company intends to cover the US presidential election across its news channels, including a news-driven Instagram account with over 616,000 followers, a newsletter and potentially live events.

AI

Meta Calls for Industry Effort to Label AI-Generated Content

Mike Isaac  |  New York Times

In January at the World Economic Forum, Nick Clegg, president of global affairs at Meta, called a nascent effort to detect artificially generated content “the most urgent task” facing the tech industry today. Now, Mr. Clegg has proposed a solution. Meta said it would promote technological standards that companies across the industry could use to recognize markers in photo, video and audio material that would signal that the content was generated using artificial intelligence. The standards could allow social media companies to quickly identify content generated with AI that has been posted to their platforms and allow them to add a label to that material. If adopted widely, the standards could help identify AI-generated content from companies like Google, OpenAI and Microsoft, Adobe, Midjourney and others that offer tools that allow people to quickly and easily create artificial posts.

Industry News

Is it Time for Rate Cuts?

Doug Dawson  |  Analysis  |  CCG Consulting

Comcast and Charter broadband customer growth has stagnated, and all of the cable companies are now slowly losing customers. There are a lot of reasons for the stagnation and customer losses. One of the factors that put cable companies at such a competitive disadvantage is broadband prices. The cable companies have been regularly raising rates annually for years to levels that are far higher than all of their competitors. The high rates were sustainable in markets where the cable companies held a virtual monopoly, but an increasing number of their markets now see competition from fiber and fixed wireless access. Cable companies are under tremendous pressure from Wall Street to increase earnings, and that’s extremely challenging in an industry where they are losing customers to multiple aggressive competitors. But if companies are losing customers, is it time to cut rates?

What’s behind the speculation about a Dish bankruptcy?

Linda Hardesty  |  Fierce

There’s a lot of talk in the financial world, speculating that Dish Network will file for bankruptcy. The talk seems to be stemming from the fact that Dish has made some complicated corporate and financial maneuvers in the last few months. In late 2023, EchoStar Corporation acquired Dish Network. Previously Dish was the parent company and EchoStar was a subsidiary of Dish. Kicking off 2024, EchoStar has filed a flurry of press releases and SEC statements that are so complicated, only wizards of Wall Street are likely to comprehend them. To be clear, Dish Network has not filed for bankruptcy. There is simply speculation that it might file for bankruptcy because it’s terribly short on cash, heavily loaded with higher-interest debt and coming up on a deadline of April 1, 2024 to either pay T-Mobile approximately $3.5 billion for 800 MHz spectrum or forego purchasing that spectrum. Bankruptcy could potentially allow Dish to reorganize its finances so that it can emerge in a sustainable fashion. 

Policymakers

Federal Communications Commissioner Gomez says connectivity and spectrum are her top priorities

Sue Marek  |  Fierce

Federal Communications Commissioner Anna Gomez, who joined the agency in September 2023, said that her top priorities for the FCC include setting the stage for vibrant competition and promoting connectivity for every consumer. Key to that connectivity is making spectrum available, which the Commissioner said is an area of top importance. Commissioner Gomez outlined her key priorities during a wide-ranging Fireside Chat with Brad Bernthal, executive director of the University of Colorado’s Silicon Flatirons conference. She touted the White House’s National Spectrum Strategy, which was released in November 2023 in coordination with the National Telecommunications and Information Administration and the FCC. The goal is to identify more spectrum that could be available for new uses and requires input from other agencies. Another area of particular concern for Commissioner Gomez is the potential end of the Affordable Connectivity Program, which offers a $30 per month broadband subsidy to around 23 million U.S. consumers. The program is slated to run out of money in April, which is likely to result in a wave of disconnects.

Federal Communications Commissioner Simington Speaks to Silicon Flatirons

I’m excited to talk to you about what I think will be an unsettling future reality: the accelerating move from a single Internet and technology market toward one fragmented along national borders due to concerns about digital sovereignty. There was a lot of heady idealism in the early days of the Internet. The internet was a universal, open network where people from around the world could exchange services and ideas basically without restriction. Today, the Internet is fragmenting as governments institute different restrictions on content and websites. If the European Union wants to ban what it perceives as hate speech, but a US social media network adopts a strong free speech stance, what is Europe to do? There are no great options, but it is hard to see how a single, open internet can survive these pressures. 

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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), Grace Tepper (grace AT benton DOT org), and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.


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Kevin Taglang

Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
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