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Boucher and Terry Declare USF Broken

WASHINGTON July 22, 2010- Representative Rick Boucher (D-VA) Chairmen of the Subcommittee on Communications, Technology, and the Internet, and Lee Terry (R-NE) introduced a new bill to update the Universal Service Fund. This update will include broadband as a mandatory serve, modify the contribution requirements and add new accountability measures.

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WASHINGTON July 22, 2010- Representatives Rick Boucher (D-VA) Chairmen of the Subcommittee on Communications, Technology, and the Internet, and Lee Terry (R-NE) introduced a new bill to update the Universal Service Fund. This update will include broadband as a mandatory serve, modify the contribution requirements and add new accountability measures.

“The Universal Service Fund is broken. Consumers currently pay more than thirteen percent of long distance revenues into the fund and have at times this year contributed over fifteen percent. Our legislation is a comprehensive and forward-looking measure, which will control the spiraling growth of the Universal Service Fund while ensuring that sufficient universal service support is available on a technology-neutral basis to the carriers which rely on it to provide service. The measure will expand who pays into the Fund, control the growth of the Fund and modernize the Fund by allowing its use for the deployment of high-speed broadband service,” said Boucher and Terry

The National Broadband Plan had recommended the inclusion of broadband within the fund but also wanted to change the entire structure to include wireless broadband.

The bill declares broadband to be a universal service and that the fund should support the build out of broadband lines. It also requires fund recipients to offer high speed broadband service within five years of the bills enactment. The definition of “high speed” is to be determined by the Federal Communications Commission. This requirement may be waived by the FCC if they determine that offering the service would be too expensive.

The FCC will also be instructed to develop a new cost model which will incorporate broadband.

In order to manage the rising costs of the High Cost Fund the bill will decrease the number of eligible carriers by “eliminating high-cost support to incumbent carriers in areas where at least 75 percent of households can receive voice and high-speed broadband service from a competitive provider that does not receive universal service support”

Contributions will now be required of “Any provider of a service that uses telephone numbers, IP addresses or their functional equivalents to provide or enable real time voice communications and in which the voice component is the primary function (e.g., VoIP providers); and any provider that offers a network connection to the public (e.g., DSL, cable modem, WiMax and broadband over powerline providers).”

One of the largest criticisms of the USF is that it lacks accountability. In order to resolve this the bill directs the FCC to setup a set of performance goals and measures for each of the USF programs. The FCC will then be required to produce an annual report to Congress on the status of each program.

The bill has received support from American Public Communications Council, Inc., AT&T, CenturyLink, Frontier Communications, the Independent Telephone and Telecommunications Alliance, the National Cable and Telecommunications Association, the National Telecommunications Cooperative Association, OPASTCO, Qwest, USTelecom, Verizon, Vonage and the Western Telecommunications Alliance.

The National Cable & Telecommunications Associations released a statement in which they say in part “The Universal Service Reform Act of 2010 represents a sound first step in modernizing the USF program to bring it into the competitive era and refocus the program on broadband adoption and deployment where support is needed. Building on a proposal that NCTA filed with the FCC last year, the bill would establish a permanent mechanism by which the Commission would reassess support levels in competitive areas and reduce or eliminate support where adequate competition exists. The bill also recognizes the importance of resolving the difficult, but very important, issues surrounding intercarrier compensation reform.”

Rahul Gaitonde has been writing for BroadbandBreakfast.com since the fall of 2009, and in May of 2010 he became Deputy Editor. He was a fellow at George Mason University’s Long Term Governance Project, a researcher at the International Center for Applied Studies in Information Technology and worked at the National Telecommunications and Information Administration. He holds a Masters of Public Policy from George Mason University, where his research focused on the economic and social benefits of broadband expansion. He has written extensively about Universal Service Fund reform, the Broadband Technology Opportunities Program and the Broadband Data Improvement Act

Broadband's Impact

Multilingual Digital Navigators Crucial For Inclusion

Digital liaisons who speak multiple languages can help guide multilingual communities for the digital future.

Derek Shumway

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Screenshot taken from the Net Inclusion webinar

April 19, 2021 – Encouraging multilingualism among digital navigators will help facilitate better inclusion in digital adoption, experts said last week.

Speaking Spanish is a huge plus for digital navigators in Salt Lake City, Utah, for example, as many of its focused neighborhoods needing to be connected to broadband speak the language,  said Shauna McNiven Edson, digital inclusion coordinator at Salt Lake City Public Library.

Edson and other panelists spoke last Wednesday at the 2021 Net Inclusion Webinar Series hosted by the National Digital Inclusion Alliance, a digital inclusion advocacy group on what skills are needed to become a digital navigator.

At the Salt Lake City Public Library, progress is there but challenges persist for digital inclusion and navigation. Edson said there were about 450 participants in its library program’s group for digital inclusion. However, only about 5 percent of participants, or 22 people, have adequate broadband at home. Seventy-five percent of members said they needed help finding a computer or internet-enabled deice, and 10 percent of its 450 members have contacted the library’s support staff for It issues.

Digital navigators are crucial because they connect community members with the skills and resources they need to become digitally literate and help them get adequate broadband. Navigators can be volunteers or cross-trained staff who already work in social service agencies, libraries, health, and more who offer remote and socially distant in-person guidance. 

Compared to the rest of the country, Salt Lake City is highly connected, said Edson. Every community has a unique demographic make-up, and if the communities who need access to broadband mostly speak Spanish or English or even Mandarin, there should be community anchors with highly trained digital navigators to help the underconnected.

Andrew Au, director of operations at Digital Charlotte, said digital inclusion should include adult education. Every library and public institution that offers internet services should have digital navigators available and onsite to guide individuals in their communities and offer continuing education resources to keep digital skills literacy up, he said.

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Broadband's Impact

Mentorship Instrumental To Women Involvement in Telecom Industry

Experts advise mentorship and encouragement to get more women in the industry.

Derek Shumway

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Photo of Mitsuko Herrera, center, via Montgomery County, Maryland

April 19, 2021 – A group of women were asked to rate gender equality in their workplace on a scale of 1-10. Their average score? About a four. The solution? More mentorship early in their lives.

The women, experts in network companies, spoke at the event, “Women in Broadband: Achieving zero barriers,” hosted by fiber network company Render Networks last Wednesday.

Kari Kump, director of network services at Mammoth Networks, said that in the broadband industry, she rates it a four, and in government jobs, a bit higher at five. Kump said she sees lots of women in marketing positions and non-technical managerial positions that “may oversee tech.” She said the worst gender equality in her view is at the construction site, where women “pay the bills” in the office rather than being out on site.

What’s causing gender inequality? The problem starts long before the job interview. Mitsuko Herrera, from planning and special projects for Montgomery County, said in her current work, only 2 out of 25 colleagues are women.

“The opportunity may be there, but we don’t see a lot of qualified women in the industry,” she said. Even before they reach college, women and girls need to have opportunities for engagement across various industries. Having mentors at an early age would greatly increase women participation and influence at work. In the workspace, praising women privately is just as important as praising them publicly, said Herrera. Women need to know they are supported at all times with all people.

Having better representation at the table is crucial because diverse perspectives affect industry and society for the better, said Laura Smith, vice president of people and culture at Biarri Networks. “The groups making decisions should reflect society,” she said.

And even if there is diversity, it’s not enough to have women at work for diversity’s sake—you also need to listen to that diversity and not ignore it.

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Broadband's Impact

Partnerships And Trust Go Long Way To Securing Financing For Broadband Projects, Panelists Say

Broadband Breakfast panelists wrestle with the challenge of financing broadband infrastructure projects.

Tim White

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Screenshot taken from Broadband Live Online event

April 16, 2021 – Financing broadband projects requires real human relationships among everyone involved, said Broadband Breakfast experts Wednesday.

The weekly panel addressed the challenge of financing broadband infrastructure. Billions of federal dollars are making their way to expand internet access across the country, including the $9.3 billion Rural Digital Opportunity Fund, the $3.2 billion Emergency Broadband Benefit program and the $7 billion Emergency Connectivity Fund. There is significant funding to be spent, but it’s not always as simple as receiving a check in the mail from the government.

Getting the necessary funds to build broadband networks — whether they are private service providers like Comcast, electric co-ops or municipal-owned networks — often requires financing with banking institutions or other means of funding.

“You really want to strike a deal with someone that you can trust, who you think has your community’s interests in mind,” said Christopher Mitchell, director of the Institute for Local Self Reliance’s Community Broadband Network Initiative. “Human relationships are important, and often are a precursor to striking any of these sorts of deals.”

He mentioned unique ways that companies and communities can collaborate to build broadband networks.

For example, he referenced some long-term agreements in Minnesota between localities and CTC – Consolidated Telephone Company. The localities would pay for and own fiber-to-the-home networks that are operated by the CTC. “That can really help for operators that have the capacity to do more work, but may be at their lending or borrowing limits,” Mitchell said.

Internet Service Providers “can work with a community that would take on the debt in order to build the network and then offer, whether that’s exclusive, whether that’s permanently exclusive, or timed-exclusive, that’s one way,” Mitchell said.

Partnering with anchor institutions

Another method is for providers to partner with communities or schools to build networks that are owned by the company but paid for by the community or school with state or federal funding, such as the company Clearnetworx in Colorado.

“ISPs sometimes have to build those relationships and have creative ideas to make these things happen,” Mitchell said.

“When I think about the creation of MBC back in 2004, I think it was really all about leadership and relationship and good timing,” echoed Lauren Mathena, director of economic development and community engagement at Mid-Atlantic Broadband (MBC). On grant processes and getting the necessary financing, she said “the biggest thing is building those relationships and keeping that determination, and if you haven’t started, start today, because it is a process.”

Many smaller banks often lend out for broadband projects, sometimes even banding together if they hit their limits, because they see it as a wholistic community development, explained Tim Herwig, district community affairs officer at the Office of the Comptroller of the Currency.

“A lot of these banks are locally-owned, the bank president, the members of the board, sit in the pew at church next to customers,” Herwig said. “Their kids go to the same schools together, they eat in the same restaurants, they go jogging down the same streets, right? They have a deep sense of corporate community responsibility. They see broadband as a gateway to the financial security and future of the communities where they serve,” he said.

High cost challenges

“The big challenge in a lot of these markets for rural operators is the economics of providing service in high-cost areas just don’t pencil out,” said Jeff Johnston, lead communications economist at CoBank, a private bank that focuses on services in agriculture and infrastructure for rural areas.

In addition to getting the upfront funding to building the infrastructure, there is also the operating costs to consider, and for some areas that’s not feasible without extra support, he said. “It’s one thing to get support up front to build a network in a high-cost area, but there’s on going expenses to managing the network,” he said.

Johnston also mentioned financial issues that may occur in federal reverse auction programs such as RDOF. “They’re great programs, first of all, but I also think operators going into these reverse auctions don’t overextend themselves,” he said. “Be realistic in what you think you can do operationally and financially.”

For MBC, which operates in Virginia, they pair funding with state and federal programs, such as the 1998 national tobacco settlement through the Virginia Tobacco Region Revitalization Commission, Mathena said. “We’ve been able to pair state and federal grant applications together, so that we’re using state dollars to help build that match, so that’s not just coming from MBC’s revenue,” she said.

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