Digital Divide

I’m pleased to announce that August will be Rural Broadband Month at the Federal Communications Commission. Our agenda for the open meeting on August 3 will feature several items that will help bridge the digital divide.

Leading off will be a Public Notice to initiate the pre-auction process for the Connect America Fund Phase II auction. This auction will award up to $2 billion over the next decade to broadband providers that commit to offer voice and broadband services to fixed locations in unserved high-cost areas in our country. To maximize the value the American people receive for the universal service dollars we spend, this will be the first auction to award ongoing high-cost universal service support through competitive bidding in a multiple-round, reverse auction. With this Public Notice, we are seeking comment on the procedures to be used during this auction. Moving forward now will put us on track to conduct the auction in 2018.

The FCC will also consider taking the next step in implementing Phase II of another key universal service program, the Mobility Fund. In February, the Commission adopted a Mobility Fund framework to allocate up to $4.53 billion over the next decade to advance 4G LTE service, primarily in rural areas that would not be served in the absence of government support. The proposed Order on the August agenda would establish a “challenge process”—that is, a process for resolving disputes over whether areas should be eligible for Mobility Fund subsidies. This measure will allow us to proceed to a reverse auction as soon as possible. It is critical that we use accurate data to determine which areas will be included in that reverse auction. Many have complained to the FCC that the data that we currently collect through our Form 477 isn’t good enough to serve as the basis for that decision. I agree. Therefore, I am proposing to collect new and more granular data that will serve as the starting point in deciding which areas will be included in the Mobility Fund Phase II auction.

Separately, we need to do a better job collecting data through the FCC’s Form 477.

Microsoft will harness the unused channels between television broadcasts, known as white spaces, to help get more of rural America online.

In an event at the Willard Hotel in Washington, where Alexander Graham Bell demonstrated a coast-to-coast telephone call a century ago, Microsoft plans to say that it will soon start a white-spaces broadband service in 12 states including Arizona, Kansas, New York and Virginia to connect two million rural Americans in the next five years who have limited or no access to high-speed internet. Microsoft’s president, Brad Smith, said white spaces were “the best solution for reaching over 80 percent of people in rural America who lack broadband today.” To support the white-spaces plan, Microsoft is appealing to federal and state regulators to guarantee the use of unused television channels and investments in promoting the technology in rural areas. But the company faces many hurdles with the technology.

Microsoft said its goal was not to become a telecom provider. It will work with local internet service providers like Mid-Atlantic Broadband Communities in Virginia and Axiom Technologies in Maine by investing in some of the capital costs and then sharing in revenue. It has also opened its patents on the technology and teamed with chip makers to make devices that work with white spaces cheaper.

[Commentary] The Government Accountability Office issued a blistering report on the Federal Communications Commission’s efforts to assist low-income families. The report criticized the agency for spending $1.7 billion annually without knowing — or caring — whether any of this money actually helps narrow the digital divide. I advocated that Congress eliminate the Universal Service Fund’s shady, self-funding off-budget funding mechanism and instead make it a line item in the federal budget. This would make the program more transparent and subject to greater congressional oversight, which would help reduce fraud and abuse and keep program expenses tied to a fixed budget. Overall, the GAO report points to the difficulties that the FCC has, and will continue to have, by deciding simply to extend a Reagan-era telephone subsidy to cover broadband access. Unquestionably, the government should offer assistance to low-income consumers at risk of falling on the wrong end of the digital divide. But that assistance should be designed from the ground up, tailored to the needs of the population it seeks to serve, with controls to protect against fraud and abuse. As we have argued before, Lifeline needs revolutionary, not evolutionary, change.

[Lyon is an associate professor at Boston College Law School]

When residents at San Francisco’s Hunters Point East and West low-income, federally-subsidized housing complex went online, many had access to free gigabit speed internet for the first time.

This isn’t wi-fi that’s shared throughout the building, but rather each individual unit is getting its own internet connection. Hunters Point is the first housing development to get the service, where nearly 300 people live across 212 units in 27 buildings. But by the end of 2018, more than 1,000 additional units of San Francisco income-subsidized housing will receive free gigabit internet, servicing nine more developments in the Tenderloin neighborhood and four more in the Bayview area. The internet provider behind the effort is local San Francisco outfit Monkeybrains, a company that specializes in fast internet transmitted through wireless antennas. Instead of breaking up a sidewalk to lay fiber or cables, Monkeybrains beams high-speed internet through antennas installed on rooftops. For the Hunters Point buildout, technicians are stringing cable from the rooftop antennas to connect every unit.

Although there has been great progress extending broadband’s reach to more and more Americans, there remain too many households and communities that are not enjoying the benefits of broadband. Research shows, for example, that families earning under $25,000 a year are about half as likely to have the Internet at home as families that are the most well-off. The Federal Communications Commission’s Lifeline program brings the many benefits of reliable, robust Internet access to low-income households. That means better access to job listings and workforce training, to education and healthcare, and allows people to fully engage in today’s society. In 2016, the FCC outlined plans for a Lifeline National Eligibility Verifier that would relieve from carriers the responsibility of checking on households’ Lifeline eligibility. We urge the FCC to move swiftly to implement those plans and ensure the program’s financial health.

The Lifeline program gives affordable access to broadband and telephone services in rural and urban areas alike. It provides a lifeline for working families to employment opportunities, elderly people to health care, veterans to critical services, children to education and everyone to 911. Low-income households across the country should not be punished for recently discovered discrepancies that do not reflect the behavior of the vast majority of program participants. The following are statements from advocates in support of the Lifeline program

10 findings about smartphones:

1) About three-quarters of U.S. adults (77%) say they own a smartphone, up from 35% in 2011.
2) Half of younger adults live in a household with three or more smartphones.
3) Mobile devices aren’t just for calling or texting. Americans are using their phones for a variety of nontraditional phone activities, such as looking for a job, finding a date or reading a book.
4) The smartphone is becoming an important tool for shoppers.
5) Growing shares of Americans – especially those who are lower-income – rely on smartphones to access the internet. Overall, 12% of U.S. adults were “smartphone-only” internet users in 2016 – meaning they owned a smartphone but did not have broadband internet at home. This represents an increase from 8% in 2013.
6) More than half of smartphone owners say they get news alerts on their phones, but few get these alerts frequently.
7) While smartphones are becoming more integrated into our lives, many users aren’t taking the necessary steps to secure their devices.
8) Smartphone ownership is climbing in developing nations, but the digital divide remains. Median smartphone adoption in developing nations rose to 37% in 2015, up from 21% in 2013, according to a Pew Research Center survey of 21 emerging and developing nations conducted in 2015. But with a median of 68%, advanced economies still have considerably higher rates of smartphone adoption, with the highest rates among surveyed countries found in South Korea, Australia, Israel, the U.S. and Spain.
9) Americans have different views about where it is and isn’t appropriate to use a cellphone.
10) The smartphone is essential for many owners, but a slight majority says it’s not always needed. Some 46% of smartphone owners said their smartphone is something “they couldn’t live without,” compared with 54% who said in a 2014 Pew Research Center survey that their phone is “not always needed.”

California faces a growing class of “under-connected” households that rely only on smartphones for online access, a trend that may worsen the state’s economic inequality, according to a report released by UC Berkeley Institute of Governmental Studies. In 2017, more Californians — 87 percent of the state’s households — had broadband Internet connectivity at home. But of those, 18 percent had smartphones as their only computing devices, more than double the 8 percent just two years earlier.

While smartphones provide a cheaper, more portable way to get online, their limited computing power hinders the development of basic computing skills, leaving smartphone-only households much less likely to be integrated into California’s booming tech economy, experts said. Thirty-four percent of those without broadband at home cited the expense. They also acknowledged they felt disadvantaged in developing new career skills or taking classes, according to the poll, which surveyed more than 1,600 adults in six different languages.

In job ads, some employers have begun listing “digital native” as a requirement for the position. The term, many say, is a “code word” for young workers who have grown up with technology and will be able to use new systems with ease. This term plays into stereotypes that “digital immigrants” — usually older workers who came of age before the Internet — will be slow to adapt to technology, reluctant to learn and costly to train.

Older workers are sometimes labeled as “technophobic,” said Sara Czaja, director of the Center for Research and Education on Aging and Technology Enhancement. But contrary to stereotypes, research does not show a correlation between age and work performance. If tasks are based on speed and accuracy, Czaja conceded that age may play a factor in an employee’s productivity. A 2010 study of adults aged 65-85 found that the majority of participants had a positive attitude toward using technology.

The United States is ahead of the global curve when it comes to delivering “broadband for all.” But we too face challenges. First, a quick snapshot: 93% of Americans have access to fixed broadband with a speed of at least 25 Mbps down. An estimated 73% of Americans subscribe to fixed broadband at home. And approximately 80% of Americans use smartphones. When you dig deeper into those numbers, however, you begin to see some real divides. In urban areas, 98% of Americans have access to high-speed fixed service. In rural areas, it’s only 72%. 93% of Americans earning more than $75,000 have home broadband service, compared to only 53% of those making less than $30,000. Too many identify with the lines in One of Us, in which ABBA sang: “One of us is lonely / One of us is only / Waiting for a call.”

Every American who wants to participate in our digital economy should be able to do so. Access to online opportunity shouldn’t depend on who you are or where you’re from. I’m pleased to say that since my first days as Chairman, the Federal Communications Commission has taken significant actions to make that a reality.