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Broadband Plan Commentary: The Transmission Project

The Transmission Project congratulates the Federal Communications Commission on its formal release of a National Broadband Plan. We honor the Commission for its planning approach, making sure that voices inside and outside of Washington, D.C., were included in the process using a range of media, including in-person conversation.

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Editor’s Note: This is one of a series of guest commentaries on the National Broadband Plan, and appears by special invitation of BroadbandBreakfast.com. Neither BroadbandCensus.com nor BroadbandBreakfast.com endorse the views in this commentary. We invite officials, experts and individuals interested in the state of broadband to offer commentaries of their own. To offer a commentary, please e-mail commentary@broadbandcensus.com. Not all commentaries may be published.

By Transmission Project Executive Director Belinda Rawlins

The Transmission Project congratulates the Federal Communications Commission on its formal release of a National Broadband Plan. We honor the Commission for its planning approach, making sure that voices inside and outside of Washington, D.C., were included in the process using a range of media, including in-person conversation.

The emphasis on creating value, improving care and maximizing consumer welfare is an environment where connectivity is presumed and expected represents a dramatic shift in perspective for the Commission and is to be lauded. Capitalizing on available resources and opportunities such as wireless backhaul spectrum, “dig once” policies and existing community institutions and programs working to increase civic engagement is indeed the most efficient path forward toward reaching the goals set forth.

We do hope that greater emphasis and clarity will develop in the strategies to ensure affordability to low-income Americans and support them in adoption. The proposed National Digital Literacy Corps, much like the Transmission Project’s own Digital Arts Service Corps, is an important tool to support not only individual skill development, but also to strengthen organizations and schools to increase civic engagement and create content for the cinstitutenties that trust them in their communities.

With the launch of the National Broadband Plan, some believe that the hard work is just beginning. In the field we know that the hard work continues and that this plan will help to lay a foundation for renewed support of this work.

The Transmission Project for 10 years has worked to build the capacity of nonprofit organizations that use media and technology to strengthen communities. The Boston-based group’s primary initiative is the Digital Arts Service Corps, which recruits and places full-time, on-site AmeriCorps VISTA members to build the strength and community impact of low-power radio stations, media arts centers, rural broadband initiatives and media reform policy advocates through defined capacity-building projects.

Broadband Mapping & Data

Kirsten Compitello: The Need for a Digital Equity Focus on Broadband Mapping

Incorporating equitable processes and outcomes from the start is crucial to avoid perpetuating continued inequalities.

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The author of this Expert Opinion is Kirsten Compitello, National Broadband Digital Equity Director at Michael Baker International

Broadband for all is in the spotlight right now, and closing the digital divide is recognized as a national priority. The divide goes far beyond access and touches issues of costs, ownership, culture, awareness, skills, and more. As we enter into a period of major statewide planning and deployment efforts, incorporating equitable processes and outcomes from the start is crucial to avoid perpetuating continued inequalities in access, adoption, and literacy.

Digital equity is not just a value statement: it’s a commitment to inclusive and equitable decision making at every stage of broadband deployment, from planning to service delivery.

Ensuring equitable representation at the table

Embedding digital equity analysis into mapping is especially critical at this moment in time as we prepare for historic broadband funding. This funding is an opportunity to rebalance systemic patterns of exclusion and ensure rapidly deployed planning and implementation funds are fairly dispersed.

The Digital Equity Act provides $2.75 billion to establish three grant programs that promote digital equity and inclusion, including the State Digital Equity Planning Grant Program, a $60 million grant program for states and territories to develop digital equity plans. In creating these Statewide Digital Equity Plans, extensive outreach to and collaboration with underserved, unserved and historically marginalized populations will prove critical. These discussions will be much more informative and effective in guiding successful policies, programs and projects if they are rooted in clear understanding of social, economic and environmental patterns alongside broadband access maps.

Documenting the effects of digital exclusion

Access is not an equal term: reducing it simply to speed of service available neglects the social and economic complexities that determine how and where users are affected by a lack of broadband. In short, mapping where the infrastructure exists only tells part of the story. Data analysis needs to layer in demographic and economic information in order to reveal patterns of exclusion and identify root causes.

To better understand community impacts, our team at Michael Baker developed data visualization tools such as a Digital Equity Atlas which takes the next step toward analyzing how broadband gaps disproportionately impact segments of the population. The methodology looks at Title VI and Environmental Justice data to reveal where poor connectivity correlates to social factors including low income, senior populations, English as a Second Language, households without a vehicle and more. As an example, the Southwestern Pennsylvania Commission leveraged the Digital Equity Atlas to prioritize new broadband expansion projects that stand to benefit the greatest number of at-risk or marginalized households. These households should not be last in line to see broadband investment finally bringing greater connectivity and opportunities to their doorsteps.

Fulfilling Broadband Equity, Access, and Deployment program requirements

Federal reporting requirements for upcoming Investment in Infrastructure and Jobs Act funding call for a proven and documented understanding and analysis of digital equity needs, from planning to projects in the ground.

The IIJA’s Broadband Equity, Access and Deployment Program provides $42.45 billion to expand broadband access by funding planning, infrastructure deployment and adoption programs across the country. Statewide Five-Year Action Plans, funded through this program, will require government agencies and their partners to take an integrated digital equity approach.

From planning through the ensuing reporting requirements, establishing digital equity strategies and a clear rubric for measuring success in achieving digital equity goals is a must for agencies. These entities must demonstrate how projects funded through BEAD improve digital equity. A strong data-driven baseline – such as the Digital Equity Atlas – will be a necessary starting point for agencies to track and monitor the effect of each new deployment on surrounding households. These data-driven metrics will also be a win for state and local governments to tell the story of their successes with clear data to back it up.

Setting a goal for sustainable inclusivity

As the consumption of internet content continues to rise and as broadband for all projects bring connectivity to the unserved, baseline expectations for broadband service and speed will only continue to grow. If we aren’t careful, new categories of have-nots will emerge: for example, those who pay high fees for minimum speeds versus those with lower fees for premier plans and Gig speeds. The currently unserved will gain access to service, but many will continue to struggle with basic internet skills, navigating through complex terms of service, or even simply finding time to schedule installation without missing a day of work.

To create a truly equitable society, everyone – no matter age, ability, location or status – needs access to affordable and reliable broadband; internet-connected devices; education on digital technology and best use practices; tech support and online resources that help users participate, collaborate and work independently.

By grounding our planning in equitable practices from the very first step, we can help to ensure that everyone is able to benefit from Internet for All.

Kirsten Compitello, AICP, is the National Broadband Digital Equity Director at Michael Baker International. This piece is exclusive to Broadband Breakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views expressed in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

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Broadband's Impact

Dianne Crocker: Recession Fears Have Real Estate Market Forecasters Hitting the Reset Button

Growing fears of recession trigger pullback on previous rosy forecasts.

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The author of this Expert Opinion is Dianne Crocker, Principal Analyst for LightBox

The lyrics to “Same As It Ever Was” by the Talking Heads certainly don’t apply to how 2022 is playing out in the commercial real estate market. Two quarters of negative economic growth has put a damper on market sentiment and triggered fears that the U.S. economy is heading for a recession. By midyear, market analysts were taking a good, hard look at their rosy forecasts from the start of the New Year and redrawing the lines.

Once upon a time…

At the start of 2022, forecasters were bullishly predicting that commercial real estate investment and lending levels would be nearly as good as 2021. This was significant, considering that 2021 set new records for deal-making and lending volume as the debt and equity capital amassed during the pandemic while looking for a home in U.S. commercial real estate.

What a difference a few quarters have made. Virtually, all the predictions that started the New Year were obsolete by mid-summer. The abrupt shift in market conditions is palpable and surprised just about everyone. Now, markets are reaching an inflection point that is in sharp contrast with the strong rebound of last year.

The two I’s: Inflation and interest rates

At the core of the recent upset in market sentiment is the persistence of high inflation, which seems to be ignoring all attempts by the Federal Reserve to raise interest rates and bring prices down. Higher inflation is having a ripple effect throughout the economy, pushing up the costs of construction materials, energy, and consumer goods. Among the notable economic indicators showing stress at mid-year was the GDP, which fell for the second consecutive quarter, and the Consumer Price Index, which jumped 9.1% year-over-year in June – the highest increase in about four decades.

In July, the CPI fell to 8.5%, an encouraging sign that inflation was beginning to stabilize. By the latest August report from LightBox, however, hopes were dashed when the CPI showed little improvement, holding firm at a still high of 8.3%.

The market is responding to a higher cost of capital as lenders tap the brakes. As the cost of capital rises with each interest rate hike and concerns of a recession intensify, many large U.S. financial institutions are pulling back on their loan originations for the rest of 2022 and into 2023. This change in tenor is a significant shift, given that 2021 was a record-breaking year for commercial real estate lending. Many lenders have already shifted to a more defensive underwriting position as they look to mitigate risks.

The Mortgage Bankers Association, which had previously predicted that lending levels in 2022 would break the $1 trillion mark for the first time revised their forecast downward in mid-July. By year-end, the MBA now expects volume to be a significant 18% below 2021 levels—and one-third lower than the bullish forecast made in February. Now, investment activity is cooling as higher borrowing costs drive some buyers from the market.

In the investment world, transactions were down by 29% at midyear due to a thinning buyer pool as higher rates impact access to debt capital. Market volatility is causing investors, lenders, and owners to rethink strategies, reconsider assumptions, and prepare for possible disruption.

Looking ahead to year-end and 2023

The rapid and diverse shifts in the market make for an uncertain forecast and certainly a more cautious investment environment. The battle between inflation and interest rates will continue over the near term. As LightBox’s investor, lender, valuation, and environmental due diligence clients move toward the 4th quarter—typically the busiest quarter of the year–unprecedented volatility is driving them to recalibrate and reforecast given recent market developments.

Continued softness in transaction volume is likely to continue as rates and valuations establish a new equilibrium. If property prices begin to level out, there will be more pressure on buyers to consider how to improve a property to get their return on investment. The next chapter of the commercial real estate market will be defined by how long inflation sticks around, how high interest rates go, and whether the economy slips into a recession (and how deeply). The greatest areas of opportunity will be found in asset classes like office and retail that are evolving away from traditional uses and morphing to meet the needs of today’s market. Until barometers stabilize, it’s important to rethink assumptions, watch developments, and recalibrate as necessary.

Dianne Crocker is the Principal Analyst for LightBox, delivering strategic analytics, best practices in risk management, market intelligence reports, educational seminars, and customized research for stakeholders in commercial real estate deals. She is a highly respected expert on commercial real estate market trends. This piece is exclusive to Broadband Breakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views reflected in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

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Expert Opinion

Jeff Pulver and Noah Rafalko: A Humble Request to the FCC on Robocalls

Blocking bad actors requires a whole new way of thinking, the authors say in this ExpertOp exclusive to Broadband Breakfast.

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The authors of this Expert Opinion are Jeff Pulver (left), innovator in VoIP and Noah Rafalko, is a pioneer in TNID

Should the Federal Communications Commission seek out alternative platforms to solve their 2022 spam, scam and robocall issues? Yes! Does Blockchain offer valuable solutions? Yes! We would like to ask the FCC to increase the width of their lens when it comes to deploying solutions to solve their growing number of systemic challenges.

Any action to stop robocall insanity and tech-driven scams would be welcome. While Americans deal with the linger pandemic, mass shootings, an uncertain economy and war in Europe, the constant annoyance from scammers and 4.1 billion robocalls a month is just too much. Most people have responded by literally giving up voice communications all together.

Recently implemented legislation called STIR/SHAKEN is a step in the right direction, but it is not a long-term solution. The FCC  is simply taking old standards and applying them to new technologies. New thinking is needed; the next generation of technology must be explored. And the most promising of the new tools to protect our telecommunications system from fraudulent players lies in blockchain.

The key to stopping these nefarious acts lies in a digital identity solution powered by blockchain – a shard database or ledger. An identity solution enables customers to be confident that the communication is truly from enterprises they know and trust.

With blockchain, only authorized and verified messages get through. Spam and robocalls are virtually eliminated in one shot. All that’s required is a slight change in how we approach communications.

In a world where consumers are already doing whatever they can to self-manage their identity, it isn’t a large leap of faith to imagine adding a certified, digital ID to our telephone numbers.

Consumers freely use their telephone numbers to attest and manage their identity – even more than they use their Social Security numbers, birthdays, mother’s maiden name and secret questions. In our current digital universe, consumers use their phone numbers to register for store discounts, receive health and safety alerts and even transfer money to others.

And in their effort to stop spam and robocalls, consumers willingly add apps such as Hiya, paying over $300 million a year to these intermediaries.

The FCC needs to evolve and embrace the technology that allows consumers and mobile carriers who have a shared stake in attesting their identities. They need to recognize that blockchain technology offers an elegant, all-encompassing solution to the $40 billion in fraud that consumers fall victim to every year.

It’s time we leveraged a solution that’s already being used in other countries such as India, where blockchain technology helps protect over 600 million citizens from spam and robocalls.

Back in 2004, when the future of telecommunications was being written, the FCC was challenged with laying down rules governing Voice over Internet Protocol (VoIP). At that time, we hosted brown-bag lunches for Congress, and held open demonstration days at the FCC as well as a mini-trade show on the Hill in our effort to inform and educate Congress, staffers and other government employees on the latest and greatest innovations in Internet communications technology.

The FCC would be wise to revisit this practice of show and tell where they hear from the innovators of new game-changing technologies that can solve their biggest concerns. It certainly is wiser than simply taking advice handed down from lobbyists and relying on legislation that’s severely limited and unenforceable.

When the FCC uses its influence to investigate and embrace new and innovative technologies, they can finally make significant headway in restoring trust in the quality of service associated with our communications.

Jeff Pulver is an innovator in the field of Voice over Internet Protocol (VoIP). He was instrumental in changing how the FCC classified VoIP in 2004, paving the way for the development of video and voice internet communications. The co-founder of Vonage, Jeff has invested in over 400 start-ups. 

Noah Rafalko is a pioneer in TNID (Telephone Number ID), a blockchain solution that restores trust in communications. Noah is founder and CEO of TSG Global, Inc. which provides voice, messaging and identity management services for SaaS companies and large enterprises. This piece is exclusive to Broadband Breakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views reflected in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

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