Daily Digest 8/4/2023 (ACP in High-Cost Areas)

Benton Institute for Broadband & Society
Table of Contents

Digital Equity

FCC Adopts Order To Provide Up To $75 Monthly Broadband Subsidy For Consumers Living In Qualifying High-Cost Areas Through Affordable Connectivity Program  |  Read below  |  Press Release  |  Federal Communications Commission

Broadband Infrastructure

Nokia bows to Buy American rules with new US broadband plant  |  Read below  |  Diana Goovaerts  |  Fierce
Biden-⁠Harris Administration High-Speed Internet Investments Spur Made-in-America Manufacturing Boom  |  Read below  |  Press Release  |  White House
Remarks by Vice President Harris on Efforts to Invest in High-Speed Internet, Boost Domestic Manufacturing, and Create Jobs  |  Read below  |  Vice President Kamala Harris  |  Speech  |  White House
US Secretary of Commerce Gina Raimondo Announces Onshoring of Broadband Electronics Equipment  |  Read below  |  Press Release  |  Department of Commerce

State/Local Initiatives

Benton Foundation
Communities Know Communities Best: Michigan's Digital Equity Plan  |  Read below  |  Grace Tepper  |  Analysis  |  Benton Institute for Broadband & Society

Spectrum/Wireless

FCC Launches Technical Inquiry Into Spectrum Usage Data  |  Read below  |  Press Release  |  Federal Communications Commission
Pentagon, telecom industry’s battle over spectrum symptomatic of a troubled system  |  Read below  |  Mikayla Easley  |  DefenseScoop
Satellite operators poised for $9 billion payday after clearing C-band spectrum  |  Read below  |  Stephen Clark  |  Ars Technica
AT&T Safety System for K-12 Connects Schools to FirstNet  |  Read below  |  Aaron Gifford  |  Government Technology
AT&T to buy more spectrum across Oklahoma  |  Read below  |  Mike Dano  |  Light Reading
Can Smartphones Make Us Safer Drivers?  |  Read below  |  Emmet White  |  Analysis  |  Autoweek

Platforms/Social Media

Agence France-Presse news agency sues Elon Musk’s X for refusing to pay  |  Washington Post

Company News

Altice USA Reports Second Quarter 2023 Results  |  Read below  |  Press Release  |  Altice USA
Apple reports third quarter results  |  Apple
Amazon Announces Second Quarter Results  |  Amazon
Disney’s ESPN Plots Its Streaming Future, Seeking Tie-Ups With Leagues and Rivals  |  ESPN
Today's Top Stories

Digital Equity

FCC Adopts Order To Provide Up To $75 Monthly Broadband Subsidy For Consumers Living In Qualifying High-Cost Areas Through Affordable Connectivity Program

Press Release  |  Federal Communications Commission

The Federal Communications Commission adopted an order to provide an up-to-$75 monthly broadband benefit for subscribers living in qualifying high-cost areas through the Affordable Connectivity Program (ACP), as directed by the Infrastructure Investment and Jobs Act. The Infrastructure Act specified that the $75 monthly benefit would support providers that can demonstrate that the standard $30 monthly benefit would cause them to experience “particularized economic hardship” such that they would be unable to maintain part or all of their broadband network in a high-cost area. Congress separately directed the National Telecommunications and Information Administration (NTIA), in consultation with the Commission, to identify the high-cost areas that would be eligible for the enhanced ACP high-cost area benefit. The Report and Order is expected to incentivize providers to participate in the ACP or remain in the ACP in rural and insular areas, further narrowing the digital divide. The high-cost area benefit supports other federal initiatives, including those in the Infrastructure Act, to spur deployment and adoption in rural areas by strengthening the business case for providers to deploy broadband in rural and insular areas. The order:

  • Adopts rules to implement the up-to-$75 monthly ACP benefit in high-cost areas, as defined by NTIA and as required by the Infrastructure Act.
  • Defines “particularized economic hardship” and establishes the showing that ACP providers must make to demonstrate they are experiencing a particularized economic hardship in a high-cost area.
  • Sets the processes for reviewing and making determinations on providers’ economic hardship submissions, and appealing those determinations.
  • Creates a requirement for providers that are approved to offer the high-cost area benefit to annually resubmit an economic hardship showing to continue offering the high-cost area benefit.
  • Outlines the steps providers must take to provide advance notice and a transition path for ACP consumers if the provider no longer qualifies to offer the high-cost area benefit.

Infrastructure

Nokia bows to Buy American rules with new US broadband plant

Diana Goovaerts  |  Fierce

Nokia is teaming with longtime manufacturing partner Sanmina to bring production of fiber network electronics to Wisconsin, hoping the move will help it bring in the cheese when money starts flowing from the $42.5 billion Broadband Equity, Access and Deployment (BEAD) Program. The decision will notably allow it to meet Buy American rules associated with the grant program, which require awardees to source materials with a high percentage of domestic content. Lori Adams, VP of Broadband Policy and Funding Strategy at Nokia, said it plans to build four products at Sanmina’s plant in Kenosha, Wisconsin: optical line termination (OLT) cards for modular access nodes, a small form-factor OLT, OLT optical modules and a hardened optical network terminal (ONT). Production is expected to begin in 2024, with products ready for shipment by the middle of 2024. The US Department of Commerce is in conversation with nearly a dozen other broadband vendors about bringing their manufacturing stateside.

Biden-⁠Harris Administration High-Speed Internet Investments Spur Made-in-America Manufacturing Boom

Press Release  |  White House

In Wisconsin, Vice President Kamala Harris visited the Nokia and Sanmina Corporation in Pleasant Prairie, Kenosha County, Wisconsin to highlight the Biden-Harris Administration’s efforts to invest in high-speed internet, boost domestic manufacturing, and create good jobs. Vice President Harris’ visit coincides with Nokia announcing the manufacturing of broadband network electronics products for the Broadband Equity, Access, and Deployment (BEAD) program in the US that will add up to 200 new jobs at Sanmina Corporation’s state-of-the-art manufacturing facility in Pleasant Prairie, Kenosha County, Wisconsin. The announcement will make Nokia the first telecommunications company to begin manufacturing broadband electronics products in the US in 2024. The Vice President was joined by Commerce Secretary Gina Raimondo and Senator Tammy Baldwin (D-WI). The announcement is the latest in a string of domestic manufacturing announcements that have been spurred by the Biden-Harris Administration’s high-speed internet investments and Made-in-America policies, part of the President’s Investing in America agenda and a clear sign that Bidenomics is working. Across the high-speed internet industry, most electronics products are not currently manufactured in the US, but Buy America provisions in the Infrastructure Investment and Jobs Act (IIJA) are driving the onshoring of new manufacturing, particularly ahead of implementation of the $42.45 billion BEAD program.

Remarks by Vice President Harris on Efforts to Invest in High-Speed Internet, Boost Domestic Manufacturing, and Create Jobs

Vice President Kamala Harris  |  Speech  |  White House

Senator [Tammy] Baldwin (D-WI) and I served together in the United States Senate. And it is, indeed, with her help, all across Wisconsin, that President Joe Biden and I have been able to create jobs, expand opportunity, and strengthen American manufacturing. We are here to discuss our continuation of that work. Take, for example, our work on high-speed Internet. In America in the 21st century, high-speed Internet is not a luxury. It is a basic necessity. We invested $65 billion to lower the cost of high-speed Internet plans and to build thousands of miles of fiber-optic cable so that every family in America can afford to have access to high-speed Internet. And when we made this investment, we knew that there would then be an increased demand for fiber-optic cable and for other products that connect people to the Internet. We knew that the demand would skyrocket. We knew companies would increase production and hire more workers. And whereas in the past, many of those jobs would have been created overseas, President Biden and I required that the materials and products used in these projects, from steel to electronics to fiber-optic cable, must be made in America by workers in America. And we are determined to create jobs in America and keep jobs in America. I am proud to announce that Nokia, a company based in Finland, will expand this factory here in Kenosha (WI) and hire up to 200 new employees. They will build the parts that are needed to connect people with high-speed Internet. Wisconsin, together, we are rebuilding America. Through Bidenomics, we are showing that when we invest in workers and families, when we create jobs and opportunity, when we roll up our sleeves and get to work, there is no limit to what we can achieve for Kenosha, for Wisconsin, and for our nation.

US Secretary of Commerce Gina Raimondo Announces Onshoring of Broadband Electronics Equipment

Press Release  |  Department of Commerce

Vice President Kamala Harris and US Secretary of Commerce Gina Raimondo traveled to Kenosha, WI, to celebrate the announcement of new electronics equipment production in the US made possible by the Biden-Harris Administration’s “Investing in America” agenda. The Infrastructure Investment and Jobs Act (IIJA) requires the use of Made-in-America materials and products for federally funded infrastructure projects, including high-speed Internet service deployment under the Administration’s “Internet for All” initiative. As a result, Nokia is partnering with Sanmina Corporation at their Kenosha facility to manufacture key electronics equipment used in high-speed Internet networks, bringing hundreds of new jobs to the US. “President Biden promised to bring high-speed internet to every corner of America, and to do it with American workers and American-made equipment. This announcement is proof that he's delivering on that promise,” said Secretary of Commerce Raimondo. “When we invest in American manufacturing and American jobs, there's no limit to what we can achieve. Thanks to the President's leadership, we’re going to connect everyone in America and create a strong and equitable economy that’s built for the future.” The announcement will result in the onshoring of network electronics equipment as states across the country prepare to receive billions of dollars in federal funding from the Infrastructure Investment and Job Act’s $42.45 billion Broadband Equity, Access and Deployment (BEAD) program, administered by the Commerce Department’s National Telecommunications and Information Administration (NTIA). Nokia will move the manufacturing of multiple fiber broadband electronics products to the United States, including Optical Line Terminals (OLTs), OLT line cards, and Optical Network Terminals (ONTs). According to Nokia, they expect to deliver these products by mid-2024, with production scaling with demand. NTIA will release a draft of its Build America, Buy America requirements for the BEAD program later this year.

State/Local

Communities Know Communities Best: Michigan's Digital Equity Plan

Grace Tepper  |  Analysis  |  Benton Institute for Broadband & Society

In July 2023, the Michigan High-Speed Internet (MIHI) Office released the state's draft Digital Equity Plan. The state outlines how it will work to bring broadband to its residents–and the opportunities that come with high-speed internet access. Michigan reminds us that there will never be a one-size-fits-all solution to digital equity and that grassroots organizing, community-led conversations, and state action must be done in tandem to close the digital divide. Michaigan envisions a connected and inclusive state where every resident has an affordable high-speed internet connection available to them regardless of where they live, how much money they make, or what they look like.

Spectrum/Wireless

FCC Launches Technical Inquiry Into Spectrum Usage Data

Press Release  |  Federal Communications Commission

The Federal Communications Commission voted to launch a proceeding designed to advance its understanding of non-federal spectrum usage and take advantage of new data sources, methods, and technologies to do so in a cost-effective, accurate, scalable, and actionable manner. This Notice of Inquiry will explore how these new tools can promote effective spectrum management and identify new opportunities for innovation. This proceeding will explore the feasibility, benefits, and limitations of techniques to understand non-Federal spectrum usage. The Notice seeks comment on best practices, operational considerations, and technical parameters, along with band-specific and service-specific considerations. It also seeks comment on the practical, technical, and legal considerations associated with any potential study of spectrum usage.

Pentagon, telecom industry’s battle over spectrum symptomatic of a troubled system

Mikayla Easley  |  DefenseScoop

For decades, the Department of Defense (DoD) has had relatively unquestioned access to a large portion of the electromagnetic spectrum — a critical resource that enables capabilities like radars, satellite communications, and navigation systems. However, a number of leaders at the Pentagon are concerned that access may soon be taken away. There has been a years-long battle between the DoD and the commercial telecommunications industry over access to the 3.1-3.45 GHz S-band. That portion of spectrum has been solely designated to the DoD for decades. But telecommunications companies are arguing that obtaining access to it is crucial for them to meet the rising demand for 5G wireless technology. The National Telecommunications and Information Administration (NTIA) is on the cusp of releasing a highly anticipated congressionally mandated study — which the Pentagon participated in — discussing potential impacts to the DoD if it had to give up parts of the spectrum to commercial companies. The study is also examining the feasibility of both 5G providers and the DoD sharing the spectrum, requiring additional technical and scheduling agreements between both parties. However, experts told DefenseScoop the conflict is symptomatic of an outdated spectrum management system plagued by policy, legal and technological guardrails. At the same time, freeing up spectrum for commercial use could be considered a national security interest.

Satellite operators poised for $9 billion payday after clearing C-band spectrum

Stephen Clark  |  Ars Technica

A SpaceX Falcon 9 rocket launched early with the last of a dozen new C-band video relay satellites purchased by Intelsat and SES to help clear spectrum for the rollout of 5G wireless services in the US. Intelsat and SES, two of the world's largest geostationary communications satellites operators, are on track to receive nearly $9 billion in incentive payments from 5G cell network operators by the end of 2024. The payments are due after Intelsat and SES clear the lower 300 MHz of C-band spectrum, which is being transitioned from satellite services to terrestrial 5G under the supervision of the Federal Communications Commission. The FCC auctioned the C-band spectrum for the rollout of 5G services in 2020. Verizon and AT&T took the lion's share of the $80 billion auction. In order to enable the 5G transition, Intelsat and SES purchased new satellites in 2020 designed to operate in a different portion of the C-band spectrum. Although the communications satellite industry is shifting to focus on Internet connectivity—a trend highlighted by new mega-constellations like SpaceX's Starlink—there's still a substantial market for traditional C-band services, primarily for cable television and video distribution that reach more than 100 million homes and businesses across North America.

AT&T Safety System for K-12 Connects Schools to FirstNet

Aaron Gifford  |  Government Technology

AT&T is giving schools access to a new security alert system through FirstNet, the company's dedicated telecommunications network for first responders. The school safety system will be available fall 2023, and entail a FirstNet-certified mobile app, wearable panic button and online portal designed by the telecommunications company Intrado. Intended for wear by school administrators, teachers, bus drivers, coaches, club advisers, or other staff members, the panic button delivers a haptic vibration when notifying 911 dispatchers and other school personnel. The subscription-based service also has a secure two-way faculty chat function, and will integrate with school information systems that account for all students in emergency situations.

AT&T to buy more spectrum across Oklahoma

Mike Dano  |  Light Reading

AT&T appears to be in the early stages of improving its 5G network across parts of Oklahoma, based on the company's latest filings with the Federal Communications Commission. AT&T told the FCC that it reached an agreement with Pioneer Telephone Cooperative to acquire some of that company's 700MHz and PCS spectrum licenses in Oklahoma. "By acquiring control of the ... licenses, AT&T will be able to augment its network capacity and improve the quality of services it offers in the affected market," the operator wrote. An AT&T official declined to comment beyond the FCC filings. The move doesn't come as a total surprise, as Pioneer Cellular disclosed earlier in 2023 that it would shut down its cellular operations. According to AT&T's filing with the FCC, Pioneer counts around 37,000 mobile customers, including 147 prepaid customers, 86 Lifeline customers, and 732 fixed wireless customers. Pioneer is working to move those customers onto other networks.

Can Smartphones Make Us Safer Drivers?

Emmet White  |  Analysis  |  Autoweek

Distracted driving has become a pressing problem in the 21st century, with a world of connection sitting in our pockets or on the dash as we drive along. And modern cars aren't necessarily helping eliminate these distractions, as manufacturers push for increasingly larger infotainment screens. Distracted driving accounts for around 9% of annual traffic fatalities in the US and, with the proliferation of smartphones, it's not hard to understand why. As federal regulators grapple with how to appropriately integrate connectivity into vehicles, the Insurance Institute for Highway Safety says smartphones can serve a genuine safety purpose. "Regulators and safety advocates are beginning to engage with tech companies the way IIHS has always engaged with automakers—pushing manufacturers to make numerous improvements well before they’re required by law," a report from the IIHS reads. "Along with IIHS and several other nonprofits, government authorities, and academic institutions, Google is a member of the steering committee of the National Distracted Driving Coalition, which recently showcased technologies with the potential to combat distraction, while several smaller tech firms are involved in the group." From speed limit alerts to forward collision-warning systems, using smartphones to fill in the safety gaps on older vehicles and fast-track technology rollouts could be the next frontier.

Company News

Altice USA Reports Second Quarter 2023 Results

Press Release  |  Altice USA

Altice USA reported its results for the second quarter ended June 30, 2023. Total Revenue declined 5.6 percent year over year in Q2 2023 to $2.32 billion. Quarterly broadband net losses were 37,000 in Q2 2023, compared to 39,000 broadband net losses in Q2 2022. Quarterly fiber-to-the-home (FTTH) broadband net additions were 40,000 in Q2 2023, the company's best quarter for fiber net adds. Fiber broadband net adds were driven by both higher fiber gross additions and increased migrations of existing customers. Total fiber broadband customers reached 250,000 as of the end of Q2 2023. Additionally, Optimum Mobile has approximately 264,000 mobile lines as of the end of Q2 2023, adding 16,000 mobile net additions in Q2 2023, reaching 5.8 percent penetration of the Company's total broadband customer base.

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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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