Daily Digest 4/18/2023 (Opportunity Fund Fellows)

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

USDA Offers New Funding to Promote the Expansion of High-Speed Internet in Rural Areas  |  Read below  |  Press Release  |  Department of Agriculture
States, NTIA say municipal broadband laws won’t delay BEAD funding  |  Read below  |  Diana Goovaerts  |  Fierce
Cost of 100% Fiber in Closing the US Digital Divide will Exceed Funds Available by 5X  |  Read below  |  Research  |  Tarana Wireless
How much will shipping costs impact rural broadband builds?  |  Read below  |  Karen Fischer  |  Fierce
FCC Chairwoman Rosenworcel and Boston Mayor Wu Partner to Promote Affordable Connectivity Program  |  Federal Communications Commission

State/Local Initiatives

States Must Be the Truth Arbiters of Broadband Coverage, Say Experts  |  Read below  |  Teralyn Whipple  |  Broadband Breakfast
Benton Foundation
Will Maryland be the Tesla or the Solyndra of the BEAD Program?  |  Read below  |  Blair Levin  |  Speech  |  Benton Institute for Broadband & Society
Washington Bill Tests Limits of State BEAD Authority  |  Read below  |  Joan Engebretson  |  telecompetitor

Spectrum/Wireless

How Much Licensed Spectrum is Needed to Meet Future Demands for Network Capacity?  |  Read below  |  Coleman Bazelon, Paroma Sanyal  |  Research  |  CTIA - The Wireless Association

Platforms/Social Media/AI

Congress sees a rare window of opportunity to regulate Big Tech  |  NBC
Nine Additional States Join Justice Department’s Suit Against Google for Monopolizing Digital Advertising Technologies  |  Department of Justice
Microsoft Could Inflate Google’s Mobile Search Toll  |  Wall Street Journal
ChatGPT and Advanced AI Face New Regulatory Push in Europe  |  Wall Street Journal
Google CEO Warns Against Rush to Deploy AI Without Oversight  |  Bloomberg
Elon Musk says he wants to invent AI that ‘is unlikely to annihilate humans’  |  Washington Post
Advertisers are reportedly concerned about Twitter CEO Elon Musk's behavior and where he's taking the platform. They should be.  |  Media Matters for America
How Substack, YouTube, Jack Dorsey and more plan to pick Twitter’s bones  |  Guardian, The
Canada's public broadcaster pauses Twitter after 'government-funded media' label  |  Associated Press
What Was Twitter, Anyway?  |  New York Times

Health

Planned Curbs on Telehealth Prescriptions Spark Backlash  |  Wall Street Journal

Industry/Company News

Businesses Rely on Broadband  |  Summary at Benton.org  |  Doug Dawson  |  Analysis  |  CCG Consulting
BEAD could boost the enterprise value of top US telecoms by $17 billion  |  Read below  |  Jeff Baumgartner  |  Light Reading
Sticking with the US market pays off for Deutsche Telekom  |  Financial Times

Policymakers

Benton Foundation
Benton Institute Announces Inaugural Cohort of Opportunity Fund Fellows  |  Read below  |  Press Release  |  Benton Institute for Broadband & Society
Public Knowledge Bolsters Advocacy and Communications Teams To Expand Outreach  |  Read below  |  Shiva Stella  |  Press Release  |  Public Knowledge
Today's Top Stories

Broadband Funding

USDA Offers New Funding to Promote the Expansion of High-Speed Internet in Rural Areas

Press Release  |  Department of Agriculture

The US Department of Agriculture (USDA) announced the availability of $20 million to deliver broadband technical assistance resources for rural communities and to support the development and expansion of broadband cooperatives. USDA is offering funding under the new Broadband Technical Assistance Program. The program supports technical assistance projects such as conducting feasibility studies, completing network designs, and developing broadband financial assistance applications. Funding is also available to help organizations access federal resources, and to conduct data collection and reporting. The USDA encourages applicants to consider projects that will advance the following key priorities: 

  • Assisting rural communities recover economically through more and better market opportunities and through improved infrastructure;  
  • Ensuring all rural residents have equitable access to USDA Rural Development (RD) programs and benefits from RD-funded projects; and  
  • Reducing climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities.

Applicants must choose one of the following funding categories: 

  • Technical Assistance Providers: Applicants must propose to deliver broadband technical assistance that will benefit rural communities. Up to $7.5 million is available. The minimum award is $50,000. The maximum is $1 million.  
  • Technical Assistance Recipients: Applicants must be the recipients of broadband technical assistance. Up to $7.5 million is available. The minimum award is $50,000. The maximum is $250,000. 
  • Projects Supporting Cooperatives: Applicants must propose projects that support the establishment or growth of broadband cooperatives that will benefit rural communities.  Up to $5 million is available. The minimum award is $50,000. The maximum is $1 million. 

States, NTIA say municipal broadband laws won’t delay BEAD funding

Diana Goovaerts  |  Fierce

State and federal government officials said that state laws restricting municipal broadband deployments aren’t expected to delay the distribution of funding from the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program. BEAD support is expected to be divvied up among all 50 states in the coming months, but, as BroadbandNow noted, rules for BEAD stipulate that states with laws that either restrict or prohibit municipal broadband must disclose whether or not they plan to waive such laws. BroadbandNow argued that in theory, nothing would prevent the National Telecommunications and Information Administration (NTIA) from withholding money from states that decline to dispense with these laws. An NTIA representative said, "There is nothing in our rules that any state’s or territory’s BEAD allocation would be delayed or reduced due to a state’s restriction on pre-existing public eligibility to compete for BEAD grants."

Cost of 100% Fiber in Closing the US Digital Divide will Exceed Funds Available by 5X

Research  |  Tarana Wireless

Understanding clearly the costs of fiber and other technologies is critical for policymakers, to ensure that policy objectives can be met with available funds. Unfortunately, gaining that understanding is


challenging, given wide variations in fiber deployment methods, local circumstances, and hence real-world costs. The Tarana team has recently worked to solve this problem by tapping detailed public-domain data from 132 divide projects funded by state-level broadband offices since early 2019, in a set of 5 states (Alabama, California, Michigan, Nebraska, and Virginia) chosen specifically to represent fully the wide range of fiber deployment conditions and challenges across the US. The deployments examined were designed to serve a total of 52.7k homes at an aggregate cost of $733.5 million (on average a taxpayer-shocking $13.9k per household served). We used this data to model the likely cost of fulfilling the intent of the broadband element of the Infrastructure Investment and Jobs Act, with its stated goal of reaching 100% of America’s households with fast, affordable internet service. Extrapolation from the projects sample indicates that a fiber-only approach would cost over $200 billion to serve the 16 million families currently identified as un- or underserved by the Federal Communications Commission. Obviously this far exceeds the $42.45 billion available in the Broadband Equity, Access, and Deployment program (BEAD). This finding clearly indicates the need for additional technology approaches to the problem and naturally Tarana recommends our unique next-generation fixed wireless platform (ngFWA).

How much will shipping costs impact rural broadband builds?

Karen Fischer  |  Fierce

Operators across the board have already flagged rising deployment costs related to inflation, geopolitical issues, and labor shortages. And it’s no secret that shipping delays of all stripes have plagued construction projects across the nation since the COVID-19 pandemic began. Between international shipping container delays, shortages of truckers, the steady climb of the price of diesel, and rising interest rates from the Federal Reserve, it would seem that telecom is slated to take a serious hit in costs in the near term. According to Christian Riddle, a Project Manager with Incab, most cable shipping on the national scale occurs via truck, though very occasionally products are moved via air or sea freight. Those applications are more costly, with trucks being the cheapest method followed by sea and air.

State/Local

States Must Be the Truth Arbiters of Broadband Coverage, Say Experts

Teralyn Whipple  |  Broadband Breakfast

States must be the arbiter of coverage disputes for the allocation of coming federal funds, said broadband experts. The $42.5 billion Broadband Equity Access and Deployment (BEAD) program directs states to design their own grant programs. To successfully implement these state grant programs, states must “be the source of truth for challenges,” said Peggy Schaffer of mapping software company VETRO. It is the responsibility of states to determine truth by sifting through many sources of coverage claims, said Schaffer. In this way, states will become arbiters of truth that can be trusted to effectively manage federal grant money and narrow the digital divide in its communities. In response to concerns that states are not equipped to effectively audit broadband providers, Schaffer simply stated that they “will have to be prepared.” 

Will Maryland be the Tesla or the Solyndra of the BEAD Program?

Blair Levin  |  Speech  |  Benton Institute for Broadband & Society

History always renders a powerful and positive verdict for any group that understands that there are some things that cannot be allowed to divide a nation. And then acts to close that divide. I don’t want claim that the achieving universal broadband connectivity has the same moral imperative as ending slavery or drastically reducing poverty. But it is no small thing. And sometimes things that are not front-page news, overtime have enormous impacts. The point for today is this: everyone here must recognize the reality that there will be a state that becomes the Solyndra of the Congressional mandate to close the digital divide. And it is our job here to act in ways so that Maryland is not that state. What can we do to make sure that Maryland is the Tesla—the success story--and not the Solyndra of this effort? I am happy to say that Maryland is off to an excellent start. For one thing, according to data I have seen, Maryland is the second best positioned state—just behind Rhode Island—to have enough funding to connect all unserved and underserved locations to fiber. For another, it has a head start in funding broadband deployment projects. Since Maryland created the state broadband office in 2017, it has invested more than $270 million into broadband infrastructure and programs. Third, as you’ve seen in the morning sessions, you are lucky to have a skilled broadband expert, Rick Gordon, heading up the effort.  And he has assembled a great team. There are, however, also pitfalls ahead.

[Blair Levin  is currently a policy advisor to New Street Research, an equity research firm, a Non-Resident Fellow at the Brookings Institute Metropolitan Policy Project. Blair Levin oversaw the development of the FCC’s 2010 National Broadband Plan.]

Washington Bill Tests Limits of State BEAD Authority

Joan Engebretson  |  telecompetitor

Service providers in the state of Washington are concerned about legislation pending in the state’s House of Representatives. Included in the 425-page budget bill is wording that would only allow funding from the federal Broadband Equity Access and Deployment (BEAD) program to be used to build open-access networks. “Our member companies, even those with open access networks, don’t support that mandate,” said David Ducharme, director of the Broadband Communications Association of Washington (BCAW). According to the budget bill that passed through committee in the Washington House, state broadband offices “may only award federal or other state funding to a project that will result in the construction or improvement of open-access broadband infrastructure that remains open access for the useful life of the subsidized project." The bill goes on to define open access as meaning an arrangement in which the network owner “offers nondiscriminatory access to and use of its network on a wholesale basis to other providers seeking to provide broadband service to end-user locations, at rates that include a discount from the provider’s retail rates reflecting the costs that the subgrantee avoids by not providing retail service to the end user location.” BCAW members include some of the nation’s largest cable companies, and, according to Ducharme, those companies won’t pursue funding for deployments in unserved areas of the state if the open access requirement remains in place.

Spectrum/Wireless

How Much Licensed Spectrum is Needed to Meet Future Demands for Network Capacity?

Coleman Bazelon, Paroma Sanyal  |  Research  |  CTIA - The Wireless Association

Mobile data demand is exploding, with aggregate data downloaded quadrupling in the last seven years. New and innovative uses enabled by 5G, as well as the prospect of 6G applications, point towards further increases in expected demand for mobile network capacity. Unfortunately, the US spectrum landscape appears to be stalled, with no clear prospects for significant spectrum reallocations in 2023 and insufficient bands under consideration for reallocation in the coming years. This lack of a spectrum pipeline, coupled with the lapse of the Federal Communications Commission auction authority, has raised the prospect of significant capacity constraints in the terrestrial wireless space, and concern that this may limit the US’s ability to be a leader in this area. Extrapolating from historical trends, we project that data traffic on the macro network is expected to increase by over 250% in the next 5 years and by over 500% in the next 10 years. If no new spectrum bands are allocated for wireless use in the next 5-10 years, we estimate that by 2027, the U.S. could face a spectrum deficit of approximately 400 megahertz, and by 2032, this deficit will have more than tripled to over 1,400 megahertz, normalized to lower mid-band equivalent spectrum, licensed at full power.

[This report was prepared by The Brattle Group for CTIA]

Industry News

BEAD could boost the enterprise value of top US telecoms by $17 billion

Jeff Baumgartner  |  Light Reading

There are still lots of unanswered questions about the true benefit the $42 billion Broadband Equity, Access, and Deployment (BEAD) program will bestow upon some of the nation's top broadband providers. But a "rough, preliminary estimate" from New Street Research indicates the BEAD opportunity stands to beef up their combined enterprise values by billions of dollars. New Street Research employed a multi-step model to calculate the number of served and unserved homes that can qualify for BEAD subsidies. Based on its model, New Street Research believes that BEAD could boost the enterprise value of AT&T, Consolidated Communications, Frontier Communications, Lumen+Brightspeed, and Verizon by a combined $17 billion, or 7%. Boiled down further, New Street Research estimates that those companies will be worth about $263 billion when they complete their current self-funded upgrades, and that this value could climb to $279 billion when the eligible BEAD markets are added.

Policymakers

Benton Institute Announces Inaugural Cohort of Opportunity Fund Fellows

The Benton Institute for Broadband and Society introduced its inaugural Marjorie & Charles Benton Opportunity Fund Fellows. The six broadband practitioners, advocates, and researchers are leading efforts to close the digital divide and realize a stronger, more equitable, and more just America.

  1. Pierrette Renee Dagg will investigate the role community champions play in community connectivity solutions and what factors allow these leaders to succeed.
  2. The New York City Department of Housing Preservation and Development (HPD) is launching a pilot hybrid fiber-mesh network that is expected to connect up to 50 affordable housing developments in the Bronx and Upper Manhattan. HPDChief Digital Equity Officer Dave Seliger will document the learnings from this initiative to share with other municipalities, public housing authorities, and affordable housing organizations across the country.
  3. EveryoneOn CEO Norma Fernandez  is researching the barriers to adoption, particularly for low-income women of color. In order to ensure that digital equity planning efforts and broadband policy center the voices of underrepresented and marginalized groups, her qualitative research with income-insecure Latinas and African American/Black women will explore their journeys to broadband adoption, computer ownership, and digital skill development.
  4. Dr. Jorge A. Rodriguez, a clinician-investigator at Brigham and Women’s Hospital and Harvard Medical School, will look at digital inclusion work in healthcare settings.
  5. Dr. Erezi Ogbo, Assistant Professor at North Carolina Central University, will study the impact of subsidized broadband on historically marginalized communities.
  6. Greta Byrum's work will focus on online safety, privacy, and well-being, developing strategic guidance for how state digital equity plans can help new and  historically marginalized  users navigate the internet safely.

Public Knowledge Bolsters Advocacy and Communications Teams To Expand Outreach

Shiva Stella  |  Press Release  |  Public Knowledge

Public Knowledge announced two additions and one change to its team. Public Knowledge welcomed Cedric Watkins, Government Affairs Policy Advocate, and Will McBride, Digital Content Manager. Both will support the organization’s advocacy efforts across the full breadth of issues Public Knowledge leads on. Prior to joining Public Knowledge, Watkins served as a legislative assistant and press secretary on Capitol Hill. Afterward, he worked as a US Department of Energy research analyst. McBride worked as a Marketing and Media Specialist for media houses, nonprofits, and film production companies. He received his B.A. from Johns Hopkins University in Film and Media Studies. Additionally, Meredith Whipple, formerly the organization’s Digital Outreach Director, is now Chief of Staff. In this role, Whipple’s duties will include development, Board of Directors management, as well as managing PKTrains, the organization’s fellowship and internship programs.

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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 David L. Clay II (dclay AT benton DOT org) — we welcome your comments.


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