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Advocates Seek Accountability in Expenditure of Broadband Stimulus Funds

WASHINGTON, March 24, 2009 – At the final day of a six-day public forum about the federal government’s $7.2 billion broadband stimulus funding on Tuesday morning, the discussion made a sharp turn toward a focus on oversight and post-award compliance.

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News | NTIA-RUS Forum | Day 6, Session 1

WASHINGTON, March 24, 2009 – At the final day of a six-day public forum about the federal government’s $7.2 billion broadband stimulus funding on Tuesday morning, the discussion made a sharp turn toward a focus on oversight and post-award compliance.

The forums, sponsored by the Commerce Department’s National Technology and Information Administration and the Agriculture Department’s Rural Utilities Service, addressed the parameters of the program being put in place at the two agencies because of the American Recovery and Reinvestment Act, the fiscal stimulus package.

Beth McConnell, executive director of the Media and Democracy Coalition, a coalition of public interest media advocacy groups in the states and in Washington, said there was need to “ensure grantees are accountable to the congressional intent in the Recovery Act” and that “grantees are complying with the rules and agreements.”

“To address both, we need clear and concrete objectives in grant contracts, strong rules to hold them to, and good data to evaluate,” she said. Companies should not be able to evade these conditions by selling their contracts, she said.

Additionally, said McConnell, all funded projects should contain a component that will measurably increase adoption. She also said that the NTIA and RUS “should require that all grantees report their network management practices.”

She also said both NTIA and RUS should require that grantees report the actual speeds delivered, prices paid by customers, and adoption of services.

McConnell also said that funds should not be awarded to any entity that purports to map broadband services yet withhold critical information. Instead, agencies should consider grantee reporting a critical opportunity to gather data to inform broadband data-collection and mapping, and that consideration should be given to robust post-grant assessment of the impact of projects.

Eli Noam, director, Columbia Institute for Tele-Information and professor of finance and economics at Columbia University’s business school, said the selection process must be rigorous, with classification of the applications into four baskets: rural, metropolitan, community development and innovation baskets.

“Each of these baskets will have somewhat different criteria,” said Noam. “Within each basket, projects would be graded and ranked. The rural basket should be evaluated jointly by NTIA and RUS. All baskets should be evaluated in parallel by their state Public Utility Commissions or internet boards,” he said.

Noam also called for thresholds to govern operational viability and speeds in the market, before applications could be evaluated on network efficiency and employment effect.

Selection criteria for performance, he said, “must be clear rather than fuzzy, because otherwise the monitoring will be fuzzy, and the accountability will be fuzzy.”

Transparency, independent performance evaluation and government accountability will be helpful too, he said.

Amina Fazlullah, counsel for Media and Telecommunications Reform at the U.S. Public Interest Research Group, asked that oversight be tailored for each program objective, with clear deliverables for grantees set at the beginning.

All participants, she said, should participate in oversight –  not just grantees. Interventions in the event of failures should be made early.

She also called for regional, quarterly, press briefings “to give the public information on grantee programs.”

Sunne Wright McPeak, president and CEO of California Emerging Technology Fund, called for the establishment of a framework and process before awards are made. She said there should be an agreement governing deliverables and outcomes beforehand.

Baselines should be established to guide supply, redeployment, demand and adoption across states.

She said immediate outcomes should be seen in jobs created and people connected, while long-term outcomes should be seen in an increase in deployment and adoption of broadband technology.

Chris Murray, senior counsel at Consumers Union, said judgment of the oversight process should be based on how many homes are served, what speeds are used up and down, and at what cost for the consumer.

He said the NTIA must be able to provide clear answers to the questions:

  • Who is the recipient of the grant?
  • What is the purpose of the grant?
  • What is the grant spent on (including specific equipment)?
  • What is the impact?

John Bunting, a Broadband Technology Opportunities Program Audit Manager in the Commerce Department’s Office of Inspector General, said his office would deploy dedicated staff, initiate targeted risk-based audit and expedited reporting, participate in departmental committee and working groups, and embark on fraud awareness training as well as timely response to citizen complaints.

Members of the public in attendance expressed concern over the need for rigorous compliance, comprehensive vetting prior to and during projects, clarification of performance criteria and generosity to all applicants, and an examination of financial capability before grant awards.

There was also concern for public life, health and property; the need for independent engineers at every stage; state-based solutions to existing and emerging needs as well as the need to increase resources for deployment in some parts of the country.

Digital Inclusion

NTIA Seeks Comment on How to Spend $2.5 Billion in Digital Equity Act

National Telecommunications and Information Administration is seeking comment on how to structure the programs.

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Photo of Veneeth Iyengar of ConnectLA

WASHINGTON, March 1, 2023 – The National Telecommunications and Information Administration announced Wednesday that it is seeking comment on how to structure the $2.5 billion that the Digital Equity Act provides to promote digital equity and inclusion. 

As part of the Infrastructure Investment and Jobs Act, the Digital Equity Act consists of two sub-programs, the State Digital Equity Capacity grant and the Digital Equity Competitive grant. Comments will guide how the NTIA will design, regulate, and evaluate criteria for both programs. 

“We need to hear directly from those who are most impacted by the systemic barriers that prevent some from fully utilizing the Internet,” Secretary of Commerce Gina Raimondo said Wednesday at the National Digital Inclusion Alliance’s Net Inclusion event in San Antonio. 

See Commerce Secretary Raimondo’s remarks at Net Inclusion:

The request for comment is part of NTIA’s strategy to hear diverse perspectives in implementing its goal to ensure every American has the skills and capacity needed to reap the benefits of the digital economy, stated a press release. 

The $1.44 billion State Digital Equity Capacity grant will fund implementation of state digital equity plans which will strategically plan how to overcome barriers faced by communities seeking to achieve digital equity.  

Simply making investments in broadband builds is not enough, said Veneeth Iyengar, executive director of ConnectLA, speaking at a Brookings Insitution event in December. Bringing digital equity means “driving adoption, digital skills, and doing the kinds of things that we need to do to tackle the digital divide.” 

The $1.25 billion Digital Equity Competitive grant program will fund anchor institutions, such as schools, libraries, and nonprofits, in offering digital inclusion activities that promote internet adoption. 

“Community-anchor institutions have been and are the connective tissue that make delivering high-speed internet access possible,” said Alan Davidson, head of the NTIA at AnchorNets 2022 conference. 

This announcement follows dissent on the definition of digital discrimination. Commenters to the Federal Communications Commission disagree on whether the intent of a provider should be considered when determining if the provider participated in digital discrimination. There has been no response from the FCC. 

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5G

Innovation Fund’s Global Approach May Improve O-RAN Deployment: Commenters

The $1.5 billion Innovation Fund should be used to promote global adoption, say commenters.

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Illustration about intelligent edge computing from Deloitte Insights

WASHINGTON, February 2, 2023 – A global approach to funding open radio access networks will improve its success in the United States, say commenters to the National Telecommunications and Information Administration.

The NTIA is seeking comment on how to implement the $1.5 billion appropriated to the Public Wireless Supply Chain Innovation Fund as directed by the CHIPS and Science Act of 2022. The grant program is primarily responsible for supporting the promotion and deployment of open, interoperable, and standards-based radio access networks. 

Radio access networks provide critical technology to connect users to the mobile network over radio waves. O-RAN would create a more open ecosystem of network equipment that would otherwise be reliant on proprietary technology from a handful of companies.  

Global RAN

Commenters to the NTIA argue that in order for O-RAN to be successful, it must be global. The Administration must take a “global approach” when funding projects by awarding money to those companies that are non-U.S.-based, said mobile provider Verizon in its comments.  

To date, new entrants into the RAN market have been the center for O-RAN development, claimed wireless service provider, US Cellular. The company encouraged the NTIA to “invest in proven RAN vendors from allied nations, rather than focusing its efforts on new entrants and smaller players that lack operational expertise and experience.” 

Korean-based Samsung Electrontics added that by allowing trusted entities with a significant U.S. presence to compete for project funding and partner on those projects, the NTIA will support standardizing interoperability “evolution by advancing a diverse global market of trusted suppliers in the U.S.” 

O-RAN must be globally standardized and globally interoperable, Verizon said. Funding from the Public Wireless Innovation Fund will help the RAN ecosystem mature as it desperately needs, it added.  

Research and development

O-RAN continues to lack the maturity that is needed for commercial deployment, agreed US Cellular in its comments. The company indicated that the complexity and costliness of system integration results from there being multiple vendors that would need to integrate but are not ready for full integration. 

Additionally, interoperability with existing RAN infrastructure requires bi-lateral agreements, customized integration, and significant testing prior to deployment, the comment read. The complicated process would result in O-RAN increasing the cost of vendor and infrastructure deployment, claimed US Cellular, directly contrary to the goals of O-RAN. 

Several commenters urged the NTIA to focus funding projects on research and development rather than subsidizing commercial deployments.  

The NTIA is already fully engaged in broadband deployment in unserved and underserved areas through its Broadband Equity, Access and Deployment program, said Verizon. The Innovation Fund will better advance its goals by funding projects that accelerate the solving of remaining O-RAN technical challenges that continue to delay its deployment, it continued. 

US Cellular argued that the NTIA should “spur deployment of additional independent testing and certification lab facilities… where an independent third party can perform end to end testing, conformance, and certification.” 

The Innovation Fund should be used to focus on technology development and solving practical challenges, added wireless trade association, CTIA. Research can focus on interoperability, promotion of equipment that meets O-RAN specifications, and projects that support hardware design and energy efficiency, it said. 

Furthermore, CTIA recommended that the Administration avoid interfering in how providers design their networks to encourage providers to adopt O-RAN in an appropriate manner for their company. Allowing a flexible, risk-based approach to O-RAN deployments will “help ensure network security and stability,” it wrote. 

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Funding

CES 2023: NTIA to Address Broadband, Spectrum, and Privacy, Says Alan Davidson

Alan Davidson asserted that marginalized communities are harmed disproportionately by privacy violations.

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Photo of NTIA Adminstrator Alan Davidson

LAS VEGAS, January 7, 2023 – The National Telecommunications and Information Administration’s 2023 priorities will include the funding and facilitation of states’ broadband deployment programs, the development of a national spectrum policy, and actions to protect the privacy of marginalized groups, said Administrator Alan Davidson at the Consumer Electronics Show on Saturday.

The NTIA’s most high-profile task is to oversee the operations of the Broadband Equity, Access, and Deployment program, a $42.45 billion slush fund for broadband-infrastructure deployments which will be divided among the governments of states and U.S. territories. Those governments will administer final distribution of the BEAD funds in accordance with the NTIA’s guidelines.

“This is our generation’s big infrastructure moment,” Davidson said. “This is our chance to connect everybody in the country with what they need to thrive in the modern digital economy, and we are going to do it.”

Davidson reiterated his agency’s stated intention to develop a comprehensive national spectrum strategy to facilitate the various spectrum interests of government and private industry. To allocate spectrum in a manner that fulfills federal needs and stimulates the growth of innovators, largely in the sector of 5G, the NTIA – the administrator of federally used spectrum – must coordinate with the Federal Communications Commission – the administrator of other spectrum.

Calling for a national privacy law, Davidson asserted that marginalized communities are harmed disproportionately by privacy violations. He stated that the NTIA will, possibly within weeks, request public comment on “civil rights and privacy.”

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