Thursday, September 21, 2023
Headlines Daily Digest
Today's Events, Including the FCC Open Meeting
Don't Miss:
FCC Announces Almost $41 Million in Emergency Connectivity Funding
Net Neutrality Rules Face ‘Major Questions’ Buzzsaw at High Court
Billions to Connect Everyone to High-Speed Internet Could Still Fall Short
Broadband Funding
State and Local
Net Neutrality
Platforms/Social Media
Antitrust
AI
Company News
Broadband Funding
Under President Joe Biden, rural Americans could benefit from the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program to expand fast, affordable internet access across the country by 2030. However, the lack of broadband infrastructure is particularly problematic in rural areas, where internet service is often unavailable or limited. Attempts to get broadband to everyone are not new: The federal government has already pumped billions into efforts that have had mixed results. Biden administration officials have said the BEAD program, coupled with other federal and state funding, would be enough to finally reach everyone who lacked high-speed internet access. However, some state officials and industry analysts remain wary and have raised concerns about whether the funds will achieve all of the administration’s goals. In part, that’s because of the sheer cost of deploying broadband infrastructure in rural and sparsely populated areas. It can be expensive to lay fiber-optic cable when homes are spread far apart and terrain challenges make it difficult to dig in the ground. Labor shortages could further drive up construction costs and delay projects. Director of the National Telecommunications and Information Administration's (NTIA) BEAD Program, Evan Feinman said federal officials were confident that the federal and state funds would be enough to cover every unserved and underserved location. Still, he said some projects could take as much as five years to complete, and he anticipated construction would not start until late 2024. And though most locations would receive fiber connections, Feinman expected others would be covered by fixed wireless or satellite technology.
The Federal Communications Commission announced it is committing over $40.8 million in a new funding round through the Emergency Connectivity Fund Program, which provides digital tools and services to support students in communities across the country. The funding commitment supports applications from the third application window, benefitting approximately 110,000 students nationwide, including students in Georgia, Illinois, Massachusetts, Minnesota, New Jersey, Oklahoma, Utah, and Washington. Approximately $6.99 billion in funding commitments have been approved to date, approximately $4.14 billion is supporting applications from Window 1; $834 million from Window 2; and $2.02 billion from Window 3. To date, the funding has provided support to over 18 million students, 11,300 schools, 1,060 libraries, and 120 consortia, and provided nearly 13 million connected devices and over 8 million broadband connections.
Congress is veering toward a potential government shutdown with no sign that the ongoing partisan divide over the budget will end anytime soon. So now, without delay, we need to identify opportunities for collaboration that result in tangible benefits for the public. One such opportunity is the Affordable Connectivity Program (ACP). The ACP is a critical program that enjoys bipartisan support in Congress and among voters and offers lawmakers the chance to work across the aisle for the benefit of all Americans. Unfortunately, the program’s funding is projected to run out by the spring of 2024. However, according to a survey by the bipartisan non-governmental Digital Progress Institute, 78 percent of Americans support continued funding for the program. Though, despite its earned praise from many lawmakers in Washington and the states, there has been little movement on Capitol Hill toward ensuring the program’s survival. Saving the ACP is an opportunity for Congress to set aside partisan differences and secure the future of a program that countless Americans rely on every day and most of us take for granted: access to high-speed internet.
[Kathryn de Wit is a project director with The Pew Charitable Trusts’ broadband access initiative.]
According to the Federal Communications Commission (FCC), 8.3 million households lack access to high-speed broadband. Providing universal access to communications service—initially voice service and now broadband—has always been a challenge in the United States. Although connecting urban, populated areas is relatively easy, serving sparsely populated rural areas is difficult due to differences in terrain and population density. To address this digital divide, Congress has tasked multiple agencies—primarily the FCC, National Telecommunications and Information Administration (NTIA), and Department of Agriculture (USDA)—with providing financial support to aid the deployment of communications technology to unserved areas. According to the Government Accountability Office (GAO), there are more than 130 federal programs—administered by 15 agencies—that could be used to expand these services. The Sept 21 Communications and Technology Subcommittee hearing is an opportunity to examine the effectiveness of the federal funding programs and consider how they should operate in the future. Topics include: 1) the FCC's Universal Service Fund; 2) COVID-related programs including Covid-19 Telehealth, the Emergency Broadband Benefit/Affordable Connectivity Program, and Emergency Connectivity Fund; and 3) Infrastructure Investment and Jobs Act (IIJA) programs including the Broadband Infrastructure Deployment (BEAD) Program.
The Secretary of the Treasury issued an interim final rule to implement the amendments made by the Consolidated Appropriations Act, 2023 with respect to the Coronavirus State Fiscal Recovery Fund and the Coronavirus Local Fiscal Recovery Fund established under the American Rescue Plan Act. Since the launch of the SLFRF program, Treasury has disbursed 99.99 percent of SLFRF funds to approximately 30,000 state, local, and ribal governments, and these recipients have moved swiftly to deploy this funding in their communities. According to data reported to Treasury through March 31, 2023, states and the largest local governments have budgeted nearly 80 percent of their total available SLFRF funds—with over $26 billion budgeted for water, sewer, and broadband infrastructure projects.
The National Telecommunications and Information Administration (NTIA) issued a clarification of its intentions for the Broadband Equity, Access, and Deployment (BEAD) Buy America rules, stating that it still plans to take a strict approach to enforcing Buy America. In practical terms, that means that NTIA intends to only seek minor waivers from the Buy America rules. The NTIA is proposing that 90% of the materials used to construct BEAD projects—especially manufactured products like fiber-optic communications technologies that are strategically important to American network data—are made domestically. However, the NTIA recognizes that some of the chips needed might not be manufactured here in time to support BEAD grant implementation so there may be a limited waiver for them. The good news is manufacturing plants for fiber equipment are being built in the US by companies like Nokia, Adtran, Corning, CommScope, Prysmian, and Superior Essex. Overall, the Build America requirements don’t appear to be the big bottleneck that was feared in 2020 or 2021, but it remains to be seen if the new domestic manufacturing will be able to keep up with the demand from BEAD.
State and Local
New Mexico Broadband Office Announces Final Set of Awards Funded by the Connect New Mexico Pilot Program
The New Mexico Office of Broadband Access and Expansion (OBAE) grants awards to 11 projects to deliver high-speed Internet to unserved and underserved communities across New Mexico. The projects involve budgets amounting to $106.3 million, which includes grant funding of $66.8 million and leveraged by cash and in-kind matching contributions of $39.5 million, yielding a match percentage of 37%. These funds will support the deployment of 803 miles of fiber to serve over 10,300 residential premises, businesses, and community institutions. The projects span over 23 communities and utilize fiber to create a future-proof network to serve future generations. Networks will be able to offer speeds reaching at least gigabit-level service. OBAE followed guidelines issued by the Treasury, which noted that states should prioritize fiber-optic infrastructure where feasible, as such advanced networks can better support future needs. These projects are funded by the Connect New Mexico Pilot Program, which is funded by the American Rescue Plan Act's (ARPA) Coronavirus Capital Projects Fund (CPF), which is administered by the Department of Treasury.
The Illinois Broadband Lab launched a statewide cohort of digital navigator fellows to plan and coordinate digital equity programs at the local level. Through a community-of-practice approach, fellows will provide on-the-ground support for digital skills and computer training; raise awareness and participation in the federal Affordable Connectivity Program (ACP); support the efforts of local governments, collaborators, and community organizations to identify local digital equity barriers; launch programs and services that address unique local needs; and ensure Illinoisans of all incomes and backgrounds can access the benefits of high-speed internet. At least one digital navigator fellow will be hired for a one-year term to work alongside existing Broadband Regional Engagement for Adoption + Digital Equity (READY) teams in each of the Illinois Department of Commerce and Opportunity’s 10 regions.
The Tanana Chiefs Conference (TCC) was awarded a $35 million grant to install affordable, reliable high-speed fiber broadband in the three underserved TCC village communities of Venetie, Chalkyitsik, and Circle (AK). The project is part of the Alaska FiberOptic Project, which is a larger collaboration between Calista Corporation; Doyon, Limited; Gana-A ‘Yoo Limited; Tanana Chiefs Conference; and Alaska Communications to connect more than 20 communities in the Yukon and Kuskokwim regions, beginning in Fairbanks and extending to the Bering Sea Coast. The terrestrial fiber network will begin in Fort Yukon and extend to Venetie. Submarine fiber cable will be placed in the Yukon River to connect Fort Yukon and Circle. Residents and businesses will receive gigabit speeds through a fiber-to-the-home connection. The five companies recognize that access to high-speed internet puts access to resources in the hands of rural Alaskans. The Alaska Fiber-Optic Project will bridge the digital divide for many rural communities, providing access to virtual meetings, online classes, telehealth, and online jobs, putting access to resources in the hands of rural Alaskans—all without having to compromise their village way of life.
The Federal Communications Commission appears poised to again consider how broadband internet access service should be regulated to ensure “net neutrality” so all consumers can enjoy free and unimpeded access to lawful internet content. However, the key question is who decides how to translate that goal into law. The FCC wants to take that responsibility for itself, treating broadband as though it were a traditional common carrier service under Title II of the Communications Act and subjecting it to the same intrusive regulatory regime that has historically governed basic telephone service and public utilities like water, gas, and electricity. That would be a serious mistake. Congress should enact legislation to resolve this issue once and for all, or, if Congress won’t act, the FCC could use its finite resources to pursue more legally defensible policy initiatives, such as adopting light-touch net neutrality rules under Section 706 of the Telecommunications Act.
[Donald Verrilli is the founding partner of the DC office of Munger, Tolles & Olson. He served as Solicitor General of the United States from 2011 to 2016. Ian Gershengorn is the chair of the appellate and Supreme Court practice at Jenner & Block and was the Acting Solicitor General of the United States under President Barack Obama. Over the course of our careers, we have represented the federal government and broadband providers on issues relevant to this topic, and we gratefully acknowledge the support of USTelecom–The Broadband Association and NCTA–The Internet & Television Association—in funding our analysis.]
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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