Daily Digest 6/21/2023 (ACP Week of Action)

Benton Institute for Broadband & Society
Table of Contents

Digital Equity

How Successful Is the Affordable Connectivity Program?  |  Read below  |  Amina Fazlullah  |  Analysis  |  Common Sense Media
Juneteenth and the Digital Divide  |  Read below  |  Jovan Hicks  |  Editorial  |  EveryoneOn
Affordable Internet: Need and Opportunity Greater than Ever in 2023  |  Read below  |  Analysis  |  United Church of Christ’s Office of Communication

Broadband Funding

The government is helping Big Telecom squeeze out city-run broadband  |  Read below  |  Sean Hollister  |  Vox
Rethinking rural broadband  |  Read below  |  Rep Ken Calvert (R-CA)  |  Op-Ed  |  Hill, The
Tough Path for Challenge to FCC Broadband Fee Revenue  |  Read below  |  Ufonobong Umanah  |  Analysis  |  Bloomberg

Infrastructure

The US is covered in cable broadband  |  Read below  |  Mike Conlow  |  Analysis  |  Substack
The Benefits of Thinner Fiber  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting

AT&T CFO: We’re the Biggest US Fiber Provider and Adding More Than Anybody Else  |  telecompetitor

State/Local Initiatives

Benton Foundation
BEAM Mississippi Up With Broadband  |  Read below  |  Kevin Taglang  |  Analysis  |  Benton Institute for Broadband & Society
Around 100,000 Unserved Michigan Homes, Businesses to Connect to High-Speed Internet Through $238M in Initial Grant Recommendations  |  Read below  |  Press Release  |  Michigan High-Speed Internet Office
Advance Colorado Broadband Grant Program is Open  |  Read below  |  Press Release  |  Colorado Broadband Office
Indiana aims to keep local communities informed about BEAD  |  Read below  |  Masha Abarinova  |  Fierce
Willmar (MN) continues to pursue Open Access Fiber system for broadband  |  KWLM

Ownership

Building Publicly Owned Broadband Starts with a Low-Tech Approach: Community Buy-in  |  Read below  |  Carolyn Campbell  |  Daily Yonder

Health

FCC Explores Broadband Connectivity Role in Maternal Health Outcomes  |  Read below  |  Press Release  |  Federal Communications Commission
Digital Equity: A Key to Children’s Health & Racial Justice  |  Read below  |  Maddie Ribble, Gabriella Barbosa, Mayra Alvarez  |  Research  |  Children's Partnership
How climate vulnerability and the digital divide are linked  |  Read below  |  Colleen Hagerty  |  Analysis  |  MIT Technology Review

Education

Tech majors are booming, but rural students stuck in the digital divide  |  Read below  |  Lexi Lonas  |  Hill, The

Platforms/AI/Social Media

FTC Puts Online Marketplaces on Notice About Their Responsibilities Under the New INFORM Consumers Act  |  Read below  |  Press Release  |  Federal Trade Commission
NTIA Receives More Than 1,400 Comments on AI Accountability Policy  |  Summary at Benton.org  |  Press Release  |  National Telecommunications and Information Administration
From ChatGPT to executive orders: Inside the White House’s urgent push to regulate AI  |  CNN
Sens. Klobuchar, Grassley, Colleagues Introduce Bipartisan Legislation to Boost Competition and Rein in Big Tech  |  Read below  |  Senator Amy Klobuchar (D-MN), Senator Chuck Grassley (R-IA)  |  Press Release  |  US Senate
Julia Angwin: Encrypted Messaging, One of the Last Bastions of Digital Privacy, Is Under Threat  |  New York Times
Podcast: Social media and teens  |  Brookings

Consumer Protections

FCC Seeks Comment on "All-In" Pricing for Cable and Satellite TV  |  Read below  |  Public Notice  |  Federal Communications Commission
Statement from President Joe Biden on Proposed FCC All-in Pricing Rule  |  Read below  |  President Joseph Biden  |  Press Release  |  White House

Journalism

Gannett v. Google  |  Read below  |  Press Release  |  Gannett

Internet Traffic

New Broadband Trends  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting

Stories From Abroad

When the Media Gets It Wrong: The EU Parliament Actually Said No to Forcing Websites to Pay Broadband Providers  |  Read below  |  Barbara Van Schewick  |  Analysis  |  Stanford University
OpenAI Lobbied the EU to Water Down AI Regulation  |  Time
Global Chip Race Touches Off Spending Spree, Led by Intel’s $50-Billion Campaign  |  Bloomberg
Today's Top Stories

Digital Equity

How Successful Is the Affordable Connectivity Program?

Amina Fazlullah  |  Analysis  |  Common Sense Media

Across the country, states are making critical decisions about how to leverage $80 billion in federal broadband infrastructure funding from the Infrastructure Investment and Jobs Act (IIJA) and the American Rescue Plan Act (ARPA). With the right planning, these funds could ensure that high-speed internet service will finally reach every single home and business in the country, which has been one of Common Sense Media's top priorities for years. However, careful planning and community outreach are essential to using these funds effectively, as is the Affordable Connectivity Program (ACP)—the most successful program the country has ever enacted to help struggling families afford high-speed internet. Here are five facts about the impact the ACP is having on families across the country:

  • Roughly 50 million households qualify for the subsidy. That's nearly 40% of the country.
  • Over 18.5 million households are currently enrolled. That's more than 14% of the country.
  • In 2023, ACP enrollment grew by over half a million every month, or at a rate of 3.5% per month.
  • Majorities in both parties support the ACP: Sixty-four percent of Republicans and 95% of Democrats.
  • The ACP's success is bipartisan. Forty-six percent of enrollees live in Republican congressional districts, and 50% live in Democratic congressional districts.

The benefit of the ACP also reaches well beyond eligible households. Our research found that connecting families has a significant positive impact on education, health care, government services, and even workforce development. When more households are connected to high-speed internet, outcomes can improve in each of these sectors. For example, when students remain unconnected, our research found an estimated loss of $33 billion dollars in GDP annually. By connecting students, the country could avoid this loss. To close the digital divide once and for all, we need to continue funding a robust ACP.

Juneteenth and the Digital Divide

Jovan Hicks  |  Editorial  |  EveryoneOn

For me, Juneteenth has always lived at the intersection of joy and sorrow. It highlights a systemized violation of human rights in our country. Throughout history, access to information has always been used as a tool of oppression, with the knowledge that it can also liberate. A modern form of institutional oppression is digital inequity. Under-resourced communities, often comprised of people of color, don't always have the same access to affordable internet, devices and digital proficiency as in more affluent communities, thus limiting employment opportunities, healthcare, banking, education and social connections. The parallels between digital inequity and Juneteenth are undeniable. As we work toward digital access for all - access to technology along with the skills to use it to our benefit - we take the chains off opportunity and open up the world for individuals, families and communities. 

Affordable Internet: Need and Opportunity Greater than Ever in 2023

Oh, the internet — today so many people are online almost constantly. And yet so many people in the US still have a tenuous connection to the internet. But here is the good news. The United Church of Christ Media Justice Ministry, along with a huge number of allies from the civil rights and public interest communities, successfully persuaded Congress to adopt a new program. The Affordable Connectivity Program (ACP) is a federal program designed to help low-income households pay for broadband internet service. Since the adoption of a 1997 General Synod resolution, the United Church of Christ has formally recognized the need to ensure that our society does not become divided between those who are “information rich” and those who are “information poor,” leaving struggling people without the tools they need to succeed in today’s society. In 2023, we will vote again as a national denomination to commit ourselves to equitable and affordable high-quality access to communications for everyone.

Broadband Funding

The government is helping Big Telecom squeeze out city-run broadband

Sean Hollister  |  Vox

In Ammon, Idaho, every home has access to a fiber optic connection with 1 gigabit per second download and upload speeds. It costs roughly $30 per month. And it’s not controlled by a single big company. Nine different providers can offer you that connection. If you wanted, each of the four ethernet ports in your home gateway could deliver service from a different broadband provider. It’s all thanks to one simple idea picking up steam in pockets of the US: the internet should be treated like a public street. That means providers have to compete, unlike many parts of the US where people are lucky to have even two real choices of providers and subsequently pay some of the highest rates in the world. However, the US is about to deploy $41.6 billion to expand high-speed internet access across all 50 states and every major US territory through a program called Broadband Equity, Access and Deployment (BEAD). It’s the largest public investment in US broadband ever, and the Comcasts of the country will try their damndest to make sure that public money winds up in private hands. But in many states, the fight will be over before it even begins — because of lobbyists. Over the past three decades, hundreds of US cities and towns have tried to launch municipal broadband services in one form or another. But the deck has always been stacked in favor of incumbents.

Rethinking rural broadband

Rep Ken Calvert (R-CA)  |  Op-Ed  |  Hill, The

Typical of the bureaucratic nature of the federal government, rural broadband investments remain with traditional infrastructure, such as fiber-optic, cable modem, and DSL. While these technologies are important and economically viable in dense urban areas, we must recognize that new technologies are now available that will bring down costs and actually achieve the goal of total connectivity across the US. To address our challenges, a combination of traditional broadband infrastructure and satellite broadband technology is a more practical approach to ensure internet access for all Americans now and in the future. Several companies in the United States have already deployed thousands of satellites to provide broadband services, with increasing reliability and access expected in the coming years. Rather than trying to lay cable to the last house, let’s open the aperture of how to achieve rural connectivity by allowing satellite providers to compete. This would achieve the goal of finally providing adequate internet service to underserved areas while bringing the costs down dramatically. By embracing this opportunity, we can improve access to the internet, empower individuals and communities, promote economic development, and solidify our leadership in the global technological landscape.

Tough Path for Challenge to FCC Broadband Fee Revenue

Ufonobong Umanah  |  Analysis  |  Bloomberg

The Federal Communications Commission's Universal Service Fund (USF) faces its third recent challenge June 14 in oral arguments before the Eleventh Circuit over Congress’ delegation authority. The lawsuits from Consumers’ Research seek to clarify limits on Congress’ authority to delegate power to executive agencies, and what powers agencies can leave to private actors. In 2022, the USF approved nearly $7.5 billion in non-COVID spending on accessible broadband service, funded by its increasing contribution factor. If it’s struck down as unconstitutional, that funding could be at risk. However, the Eleventh Circuit wrote in United States v. Ambert that “the Supreme Court has not struck down a single statute” as an improper delegation since 1935. Congress needs to reach a higher bar to delegate its revenue-raising authority, argues conservative non-profit Consumers’ Research. For it, the principles of universal service expressed in the Telecommunications Act of 1996 say nothing about how much money the FCC can raise from carriers, and giving the private non-profit Universal Service Administrative Company (USAC) the ability to set rates violates the private non-delegation doctrine. But in a bipartisan amici brief, members of Congress—including Sens. John Thune (R-SD) and Amy Klobuchar (D-MN)—said that “an evolving USF system is consistent with Congress’s explicit direction.” Supporters of the fund, like Andrew Jay Schwartzman, Senior Counselor for the Benton Institute for Broadband & Society, say that while the contribution factor isn’t a tax.

Infrastructure

The US is covered in cable broadband

Mike Conlow  |  Analysis  |  Substack

The US is a country covered in cable broadband. More than 86% of the country has access to at least one cable or fiber broadband service according to Federal Communications Commission maps. Only 5% of locations among the 50 states and DC have access to three or more cable or fiber (I’ll call them wired) internet service providers (ISP). Thirty-two percent of locations have access to two wired offerings. And 49% have access to only one wired offering. Importantly, 13.5% of locations have access to zero wired offerings. That’s 14 million locations nationally without a cable or fiber ISPs that serves their location. This number is slightly different from the Unserved and Underserved locations that will be eligible for funding in the National Telecommunications and Information Administration's (NTIA) Broadband Equity, Access, and Deployment (BEAD) program. It’s an unpopular opinion in my demographic, but I think the cable and fiber ISP filings are probably generally representative and fair at this point. After a full round of challenges, I think we’d know about serious over-reporting of coverage. And I believe most cable ISPs can provide 100 Mbps download and 20 Mbps upload to the router, despite what speed tests may say. I’ve long argued that in many states there is enough money to reach all the Unserved and Underserved with fiber-to-the-home. One way we could fail to reach that goal is if we spend much more per location than we need to. Another way to is to include locations in grant programs that don’t legitimately need broadband upgrades. The money is limited, let’s choose only the locations that most need the upgrades.

The Benefits of Thinner Fiber

Doug Dawson  |  Analysis  |  CCG Consulting

Fiber manufacturers are always trying to make it easier to deploy fiber. One of the most interesting trends is the increasing migration from 250-micron fiber to 200-micron fiber. For those not familiar with the metric system, a micron is one-thousands of a millimeter. A 250-micron fiber has a diameter of 0.25 millimeters, while a 200-micron fiber has a diameter of 0.2 millimeters. That may not sound like a big difference, but when each fiber is thinner, the overall size of a fiber bundle is smaller. A larger fiber bundle of 200-micron fiber can be 20-30% smaller than the equivalent bundle of 250-micron fiber. There are big benefits of using smaller fiber. The smaller size means smaller fiber bundles that are far easier to use during the construction process. There is the added benefit of getting a lot more of the thinner fiber on a reel, meaning fewer changes of reels. One of the more interesting benefits is to use a bendable version of the thinner fiber (Bending Inflexible Fiber). Bendable fiber is more tolerant of bending during the construction process, leading to less damage and stress on the fiber. Thinner fibers make it easier to install indoor fiber in places with a lot of 90-degree bends. Perhaps the ultimate benefit is that smaller diameter fiber makes it easier to use microduct conduits. This opens up the possibility of installing huge numbers of fiber along a street in those situations where it’s needed.

States/Local

BEAM Mississippi Up With Broadband

Kevin Taglang  |  Analysis  |  Benton Institute for Broadband & Society

When it comes to wiring Mississippi, the state is betting on co-ops and small telecommunications companies. In 2019, then-Lieutenant Governor Tate Reeves (R-MS) worked with House Speaker Philip Gunn (R-MS) to pass the Mississippi Broadband Enabling Act, which allowed the state’s electric cooperatives to offer affordable broadband to rural areas. At the time, proponents said large cable and telecommunications companies were failing to expand service into rural areas because it wasn’t profitable enough. In his first Mississippi State of the State Address as governor, Tate reiterated his commitment to universal broadband, saying, "[W]e cannot forget the next great generational infrastructure issue: internet access. We must continue to find innovative ways to allow all of Mississippi to connect. No one should be left behind." In 2022, Gov. Reeves signed the Broadband Expansion and Accessibility of Mississippi Act, creating the Office of Broadband Expansion and Accessibility of Mississippi (BEAM) to coordinate and streamline broadband policy in the state. Located within the Department of Finance and Administration, BEAM administers federal grant programs to provide broadband service in unserved and underserved areas.

Around 100,000 Unserved Michigan Homes, Businesses to Connect to High-Speed Internet Through $238M in Initial Grant Recommendations

The Michigan High-Speed Internet Office (MIHI) announced its initial recommendations for the Realizing Opportunity with Broadband Infrastructure Networks (ROBIN) grant program, which will provide $238 million in federal funding through the Coronavirus Capital Projects Fund (CPF) to support the deployment of high-speed internet to approximately 100,000 unserved locations throughout the state. Project proposals were submitted through a competitive application process and reviewed by MIHI’s ROBIN Steering Committee, a group of representatives from across state government responsible for guiding the development of administrative procedures for the ROBIN Program, scoring applications, reviewing challenges and making relevant decisions and recommendations on programmatic needs. Out of 154 applications submitted by 40 unique applicants, 24 projects submitted by 11 applicants were selected for the initial grant recommendations and would connect nearly 106,000 homes, businesses and institutions throughout the state to high-speed internet access. More than $311 million of matching funds have also been committed by the 11 applicants to support the 24 projects which total $578 million. All project proposals were examined and scored on categories including experience, financial wherewithal, long-term viability of the project; readiness to build, operate and maintain the project; economic impact; locations passed; and digital equity and inclusion. Initial grant recommendations were made based on the final application score following review by the ROBIN Steering Committee.  Not all initial grant recommendations are expected to be funded or receive their full funding pending the outcome of a 45-day comment and objection window, where anyone may file a comment or objection to one or more of the recommendations. The comment and objection window will be open from June 16 through July 31, 2023. 

Advance Colorado Broadband Grant Program is Open

Press Release  |  Colorado Broadband Office

The Colorado Broadband Office announced the opening of the Advance Colorado Broadband grant program. The program began accepting applications for the Capital Projects Fund (CPF). Guidelines, resources, training, documents and access to the application portal are now available on the Advance-CPF website. Send questions about the Advance Colorado Broadband grant program to Advance_CBO@state.co.us.

Indiana aims to keep local communities informed about BEAD

Masha Abarinova  |  Fierce

All states are tackling broadband accessibility in some way, but each is taking its own approach. What Indiana’s focusing on, according to Deputy Broadband Director Earnie Holtrey, is getting everyone on the same page about the broadband landscape, particularly with the Broadband, Equity, Access and Deployment (BEAD) program. Holtrey said in his office’s community engagement sessions with counties “one of the questions right away that we ask is who’s heard of BEAD, and usually it’s 25% to 50% of the room.” “That’s a pretty small percentage, I think, given that we are inviting leaders from schools, hospitals, libraries, community foundations, chambers of commerce, local elected officials,” Holtrey went on to say. He noted communication has to be done on the “micro level” with each individual city, town or county that lacks broadband connectivity, so that they can prepare for the BEAD funds that will roll in 2024. 

Ownership

Building Publicly Owned Broadband Starts with a Low-Tech Approach: Community Buy-in

Carolyn Campbell  |  Daily Yonder

Ten years ago, long before the unprecedented amounts of federal funding in rural Internet infrastructure, Roger Heinen watched Islesboro’s population drop precipitously. In 2014, Heinen formed a small volunteer coalition to come up with a solution for the island of under 600 year-round residents. In 2016, voters approved a $3.8 million bond to fund the construction of a fiber-to-the-premises infrastructure capable of speeds of 1 gigabit per second. By 2018, Islesboro Municipal Broadband construction was complete and service was installed for all home and business subscribers. It’s been nearly five years since Islesboro’s Municipal Broadband connected those first subscribers. Now, as unprecedented federal and state funding is funneled into high-speed broadband access, increasing numbers of coalitions are attempting to build publicly owned networks. Since 2021, numerous attempts in rural Maine have failed. Lack of financial resources is often cited as a factor. Some say campaigns by large telecommunications companies to undermine broadband utilities are another reason. Heinen says another issue is the most important barrier to getting municipal broadband off the ground. Heinen says another issue is the most important barrier to getting municipal broadband off the ground. “What’s most critical is the ability to create strong social capital. There is money out there. There are technical and financial consultants out there. Social capital building, though, that must come from the inside.”

Health

FCC Explores Broadband Connectivity Role in Maternal Health Outcomes

Press Release  |  Federal Communications Commission

The Federal Communications Commission announced an important update to its Mapping Broadband Health in America platform to incorporate maternal health data, enabling policymakers, public health experts, clinicians, researchers, innovators, and other public and private stakeholders to better explore the intersection of broadband and maternal health. This tool is the latest step in the FCC’s efforts to explore the role of broadband connectivity in improving maternal health. The US is the only developed country with increasing maternal mortality and severe maternal morbidity rates, and research from the Centers for Disease Control and Prevention (CDC) suggests that many of these deaths and complications are preventable. Furthermore, this nationwide crisis disproportionately impacts Non-Hispanic Black and American Indian/Alaska Native pregnant women at almost two to three times the rate of Non-Hispanic white pregnant women. Similarly, pregnant women living in rural areas without access to appropriate health care providers are 60% more likely to die than women living in non-rural areas. Through this latest broadband health data effort, the Mapping Broadband Health in America platform allows users to generate customized maps and view the intersection of broadband connectivity, maternal health outcomes, and selected risk factors in a number of ways. Specifically, the public can use this platform to:

  • Intersect broadband data and maternal mortality or severe maternal morbidity rates at the state level.
  • Determine how connectivity and access to obstetric care coincide at the county level, revealing “double burden” counties with high health need and lower connectivity resources.
  • View connectivity metrics (e.g., internet adoption, download speed) and maternal health data filtered by rurality, race/ethnicity, and maternal age to visualize patterns, possible disparities, and areas where broadband-enabled interventions could create the greatest impact.
  • Visualize the intersection of broadband and mental health provider shortages, given the association between mental health and poor maternal health outcomes.

Digital Equity: A Key to Children’s Health & Racial Justice

Maddie Ribble, Gabriella Barbosa, Mayra Alvarez  |  Research  |  Children's Partnership

Digital equity is a core social driver of health. Digital equity refers to the condition in which all individuals and communities have the information technology capacity needed for full participation in our society, democracy and economy. Digital equity is necessary for health, civic and cultural participation, employment, lifelong learning and access to essential services. However, as a result of persistent structural racism, Black, Indigenous, Latinx, Pacific Islander, Asian American, and mixed-race (BIPOC) communities have been disproportionately impacted by digital inequities, contributing to worse health outcomes compared to their white peers. The systems crucial to the well-being of our families are increasingly dependent upon digital infrastructure: schools and learning, doctor visits and health care services, skills training, housing and job applications, workforce development resources and more. The three core pillars of digital equity are: reliable, affordable broadband; adequate devices; and digital literacy skills and support. When families have equitable access to the pillars of digital equity, opportunities and services that support good health are unlocked. Thus, it is crucial that we consider opportunities to disrupt oppressive systems, defer to community leadership, and demand bold changes that put the well-being of our children first.

How climate vulnerability and the digital divide are linked

Colleen Hagerty  |  Analysis  |  MIT Technology Review

The Wi-Fi signal is weak outside the Frederick Douglass National Historic Site in Anacostia, a historic African-American section of Washington, DC. It is one of Monica Sanders’s final stops on an overcast December afternoon. Sanders, an adjunct professor of law at Georgetown University, isn’t just checking Wi-Fi speeds. She’s drawing connections between a host of indicators at the intersection of internet availability, environmental risk, and historical racial inequity. The findings will be added to a report that Sanders and her colleagues are assembling for the Undivide Project, a nonprofit she launched in 2022. The organization conducts research pro bono for communities to help them document evidence of the digital divide—the gap between areas with and without adequate internet access—as well as the root causes and linked effects of this discrepancy.  So far, her findings in Anacostia fit a pattern Sanders has noticed walking around low-income majority-minority neighborhoods throughout the US: a lack of internet access mirrors other inequities. In neighborhoods shaped by racism and insufficient infrastructure investment, among other structural choices, residents can face disproportionate risk from climate change, affecting everything from flood vulnerability to the ability to get disaster warnings.

Education

Tech majors are booming, but rural students stuck in the digital divide

Lexi Lonas  |  Hill, The

Colleges are seeing a surge in technology majors, but rural students are lagging behind on opportunities to take advantage of the growing, high-paying fields. From 2018 to 2022, Computer and Information Sciences and Support Services majors increased 23 percent, according to the National Student Clearinghouse Research Center, from 423,315 to 518,844. Rural students, however, face two pressing issues: the digital divide of internet reliability and technology access and education opportunities. The National Center for Education Statistics said that in 2019, around 76 percent of rural students had fixed broadband internet access at home, lower than those in towns at 79 percent, cities at 80 percent and suburban areas at 87 percent. A pressing issue for a majority of rural students is they don’t have the technology education available to them that others do. Also, rural students are already less likely than the rest of the population to go to college, with only 21.1 percent of the rural population having earned a college degree in 2021, according to o the US Census and the US Department of Agriculture’s (USDA) Economic Research Service, compared to 35.7 percent in non-rural areas. Further, once a rural student does go to college, the likelihood of them pursuing or sticking with a technology major is also lower than others.

Platforms

FTC Puts Online Marketplaces on Notice About Their Responsibilities Under the New INFORM Consumers Act

Press Release  |  Federal Trade Commission

The Federal Trade Commission (FTC) sent letters to 50 online marketplaces nationwide notifying them about their obligation to comply with the new Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act – or the INFORM Consumers Act – as soon as it takes effect on June 27, 2023. “The INFORM Consumers Act requires online marketplaces to protect consumers from counterfeit, unsafe, and stolen goods by verifying their high-volume third-party sellers’ identities, and making it easier for consumers to report suspicious marketplace activity,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. The letters enclose a copy of the act, highlight the responsibilities the act places on online marketplaces, and urge that businesses carefully review the statute and take all steps necessary to fully comply by June 27. In the letters, FTC staff also urge online marketplaces to communicate with their third-party sellers about the information the act requires to be collected, verified, and disclosed. Finally, the letters emphasize that a violation of the act may be treated as a violation of an FTC rule, and thus noncompliant online marketplaces may face enforcement that could result in civil penalties of $50,120 per violation.

Sens. Klobuchar, Grassley, Colleagues Introduce Bipartisan Legislation to Boost Competition and Rein in Big Tech

Senator Amy Klobuchar (D-MN), Senator Chuck Grassley (R-IA)  |  Press Release  |  US Senate

Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA)—as well as Senators Dick Durbin (D-IL), Lindsey Graham (R-SC), Richard Blumenthal (D-CT), Josh Hawley (R-MO), Mazie Hirono (D-HI), Mark Warner (D-VA), and Cory Booker (D-NJ)—reintroduced the American Innovation and Choice Online Act. This bipartisan legislation would restore competition online by establishing common sense rules of the road for dominant digital platforms to prevent them from abusing their market power to hurt competition, online businesses, and consumers. The American Innovation and Choice Online Act will:

  • Set clear, effective rules to protect competition and users doing business on dominant online platforms, including:
    • Prohibiting dominant platforms from abusing their gatekeeper power by favoring their own products or services, disadvantaging rivals, or discriminating among businesses that use their platforms in a manner that would materially harm competition on the platform; and
    • Prohibiting specific forms of conduct that are harmful to small businesses, entrepreneurs, and consumers, but that do not have any pro-competitive benefit, including:
      • Preventing another business’s product or service from interoperating with the dominant platform or another business;
      • Requiring a business to buy a dominant platform’s goods or services for preferred placement on its platform;
      • Misusing a business’s data to compete against them; and 
      • Biasing search results in favor of the dominant firm.
  • Give antitrust enforcers strong, flexible tools to deter violations and hold dominant platforms accountable when they cross the line into illegal behavior, including significant civil penalties, authority to seek broad injunctions, emergency interim relief, and potential forfeiture of executive compensation.
  • Prevent self-preferencing and discriminatory conduct by the most economically significant online platforms with large US user bases which function as “critical trading partners” for online businesses. For such platforms, the rules target harmful conduct, allowing the platforms to innovate, do business, and engage in pro-consumer conduct, including protecting user privacy and safety, preventing unlawful behavior, and maintaining a secure online experience for users.

Consumer Protections

FCC Seeks Comment on "All-In" Pricing for Cable and Satellite TV

Public Notice  |  Federal Communications Commission

Access to clear, easy-to-understand, and accurate information about the pricing of video services helps consumers make informed choices and encourages competition in the market. It does so by empowering consumers with information to comparison shop and to find the video programming services that best meets their needs and matches their budget. Consumers who choose a video service based on an advertised monthly price may be surprised by unexpected fees related to the cost of video programming that raise the amount of the bill significantly. These fees, with names like broadcast TV fee, or regional sports programming surcharge, are listed in the fine print as “fees” or “taxes and surcharges,” separate from the top-line listed service price and can result in a bill that is substantially more than the advertised price. In this Notice of Proposed Rulemaking (NPRM), the FCC proposes to enhance pricing transparency by requiring cable operators and direct broadcast satellite (DBS) providers to specify the “all-in” price for service in their promotional materials and on subscribers’ bills. This proposal would require cable operators and DBS providers to clearly and prominently display the total cost of video programming service. This all-in pricing proposal is intended to give consumers a transparent and accurate reflection of their subscription payment obligations and eliminate unexpected fees. It also seeks to provide consumers with the ability to comparison shop among competing cable operators and DBS providers, and to compare programming costs against alternative programming providers, including streaming services. The FCC also seeks comment on whether it should consider expanding the requirements of this proceeding to other types of multichannel video programming providers (MVPDs) and on our authority to do so.

Statement from President Joe Biden on Proposed FCC All-in Pricing Rule

President Joseph Biden  |  Press Release  |  White House

My Administration’s top priority is lowering the cost of living for the middle class, and that includes cracking down on companies’ use of junk fees to hide true costs from families, who end up paying more as a result. The Federal Communications Commission (FCC), under the leadership of Chairwoman Jessica Rosenworcel, proposed a new rule that would require cable and satellite TV providers to give consumers the all-in price for the service they’re offering up front. Too often, these companies hide additional junk fees on customer bills disguised as “broadcast TV” or “regional sports” fees that in reality pay for no additional services. These fees really add up: according to one report, they increase customer bills by nearly 25% of the price of base service. The FCC all-in pricing proposal would help consumers comparison shop between providers and increase competition for viewers. This is only the latest action taken by my Administration to crack down on junk fees in order to increase transparency, and bring down costs for hard working Americans. Junk fees may not matter much for the wealthy, but they hit working families hard, costing them hundreds of dollars that could be used to help pay their bills. 

Journalism

Gannett v. Google

Press Release  |  Gannett

Gannett, the largest publisher in the US, filed a federal lawsuit in US District Court for the Southern District of New York against Google for monopolization of advertising technology markets and deceptive commercial practices. The lawsuit seeks to restore competition in the digital advertising marketplace and end Google’s monopoly, which will encourage investment in newsrooms and news content throughout the country. Google’s practices have depressed revenue and impacted local newsrooms adversely by monopolizing the markets for important software and technology products that publishers and advertisers use to buy and sell ad space. Google controls 90% of the market for “publisher ad servers,” which publishers use to offer ad space for sale. Google also controls over 60% of the market for “ad exchanges,” which run auctions among advertisers bidding for ad space on publishers’ websites. Google controls the largest source of advertisers bidding on exchanges. For Gannett, 60% of all buyers come through Google. The result is Google unfairly controlling selling, buying, and the exchange that matches sellers and buyers – and manipulating all aspects of online advertising transactions.

Traffic

New Broadband Trends

Doug Dawson  |  Analysis  |  CCG Consulting

The latest Broadband Insights Report is out from OpenVault providing statistics on average broadband usage at the end of the first quarter of 2023. In looking over the latest statistics I’m starting to see some interesting trends. The average household used 560.5 gigabytes of broadband per month by the end of the quarter. That is the combination of 524.8.2 gigabytes of download and 35.7 gigabytes of upload. I also looked back over past years, and I think a new trend of broadband growth is emerging. 2020 growth was crazy due to the pandemic, and that level of growth is likely never going to be seen again absent some other similar catastrophic event. Since then, growth has slowed a bit year after year. We’re settling into a pattern where the average household is using approximately 50 gigabytes more per month than the year before. Most of the software we use is now in the cloud. The devices in our house are often connected to the cloud.This is starting to feel like a new trend. We used to have a paradigm that broadband usage doubled every 3-4 years. The other trend is that people have wholeheartedly decided that they want faster broadband speeds. The percentage of homes that are subscribed to 200 Mbps or faster has skyrocketed in one year from 69% of homes to 81% of homes. Some of this increase comes from broadband providers arbitrarily increasing speeds for customers, but a lot of the growth comes from people deciding to upgrade. This is clearly now a major trend.

Stories From Abroad

When the Media Gets It Wrong: The EU Parliament Actually Said No to Forcing Websites to Pay Broadband Providers

Barbara Van Schewick  |  Analysis  |  Stanford University

On June 13, 2023, the European Parliament voted to adopt its annual competition policy report. The report includes a late-added provision appearing to endorse the idea that websites and apps should pay internet service providers for delivering the movies, websites and data that Europeans customers request. Press reports, including from Euractiv and Politico, claim that through this vote the Parliament endorsed the radical proposal by Europe’s largest telecoms to force some of the largest websites to pay fees to every European broadband provider. If true, that would have put the Parliament in opposition to Europe’s top telecom regulator BEREC and the majority of EU member states, which have rejected the proposal. However, those press reports are wrong. The Parliament voted to reject the providers’ proposal. That’s because the Parliament voted to amend the original recommendation by adding the phrase “without prejudice to net neutrality.” By making clear that any proposal can’t violate net neutrality, this language directly forecloses providers’ plans to require some of the largest online services to pay them. In future, journalists should pay close attention to the European Parliament’s clear directive not to violate net neutrality.

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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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Kevin Taglang

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