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Broadband's Impact

Hewlett-Packard to Pay $16.25 Million for Alleged E-Rate Fraud

WASHINGTON, November 11, 2010 – The Justice Department revealed Wednesday that it has reached a $16.25 million civil settlement with Hewlett-Packard for alleged E-rate fraud, following an investigation with the Federal Communications Commission. The program funds internet connections in schools and libraries. HP’s payment will flow back into the fund.

Broadband Breakfast Staff

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WASHINGTON, November 11, 2010 – The Justice Department revealed Wednesday that it has reached a $16.25 million civil settlement with Hewlett-Packard for alleged E-rate fraud, following an investigation with the Federal Communications Commission. The program funds internet connections in schools and libraries. HP’s payment will flow back into the E-rate program.

Acting on tips from whistleblowers, the government investigated allegations that contractors working with HP and other companies gave gifts to staff at the Dallas Independent School District and Houston Independent School District to get contracts that included approximately $17 million in HP equipment.

Meals and entertainment, which included trips on a yacht and tickets to the 2004 Super Bowl, were provided by the contractors to get inside information and win contracts that were supposed to be awarded through a competitive bidding process, according to the FCC.

“Broadband is key to our children’s 21st century education,” said FCC Chairman Julius Genachowski. “That’s why one of the FCC’s top priorities is making sure E-rate works to benefit students and libraries. Today’s settlement shows the extensive efforts of the FCC and DOJ to protect the E-rate program from waste, fraud, and abuse, and to deter misconduct in the future.”

Broadband Breakfast is a decade-old news organization based in Washington that is building a community of interest around broadband policy and internet technology, with a particular focus on better broadband infrastructure, the politics of privacy and the regulation of social media. Learn more about Broadband Breakfast.

Digital Inclusion

Virt Seeks To Serve As The Hub To Find And Join Virtual Events

Launched last week, virt.com hopes to take advantage of the rise in virtual events by crowdsourcing them in one place.

Tim White

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Photo of GHS co-founder Victor Zonana, left, from Global Health New Zealand

April 13, 2021 – Global Health Strategies, the global advocacy group focused on health and policy, last week launched Virt.com, a new open-source media platform that crowdsources virtual events on various issues.

Those “issue channels” include health, Covid-19, climate and environment, gender, food and nutrition and human rights. It relies on users in different regions posting about upcoming events in those categories.

The launch last week coincided with a new ad campaign called Unmutetheworld, focused on digital equity around the world with the belief that internet access is a human right. It includes partnering with groups like National Digital Inclusion Alliance and grassroots organizations in many different countries.

“The pandemic has transformed our lives. The way we connect, the way we celebrate, the way we mourn, the way we work, access healthcare and learn, has changed,” GHS CEO David Gold said in an interview. “Broadband allows us to connect virtually even during the pandemic, but so many people don’t have access to the internet, they cannot connect, and we have to change that,” he said.

Gold described Virt as a way to connect people globally to meaningful conversations about health, science, policy, technology, among other topics. “We have a window of opportunity right now with the pandemic to really change. Despite all the terrible effects of COVID-19, we have this moment in time to make the case for big investments,” he said.

Gold highlighted the work of GHS and the Unmutetheworld campaign to connect people across different nations. “Broadband access comes to the heart of economic development, we have to take that momentum in the U.S. and expand it around the world,” he said.

Broadband is becoming increasingly more important, with more people working, schooling, or using health services virtually than ever before due to the pandemic.

Broadband central to digital activities

“Broadband used to be a ‘nice to have,’ now it is a ‘must have,’” Angela Siefer, executive director at NDIA, said in an interview. “Twenty years ago, we were worried about having enough computers in a classroom and lucky that one of them connected to the internet, but that has changed now, and we need to keep up with the technology. It permeates our whole lives,” she said.

President Joe Biden recently announced a new $2.3-trillion infrastructure proposal called the American Jobs Plan, which includes $100 billion for broadband programs over eight years. Congress has also recently introduced legislation on broadband initiatives, including $100 billion as part of the Leading Infrastructure for Tomorrow’s America Act, or LIFT America Act, sponsored by the Democratic delegation on the House Energy and Commerce Committee.

“We are excited about the potential of these government initiatives, not just for funding deployment, but also to address affordability, digital literacy skills and devices,” Siefer said. “We’ve never had this much awareness about broadband issues. We’re seeing real ideas being put into action.”

Siefer also mentioned state-level efforts to expand broadband, including recent legislation in New York and Maryland. Maryland plans to spend $300 million of federal funding from the American Rescue Plan on broadband programs, including infrastructure, subsidies for fees and devices, and grants for municipal broadband. New York state recently announced the 2022 fiscal year budget including a $300 billion infrastructure package that contains broadband subsidies for low-income residents and an emergency fund to provide economically-disadvantaged students with free internet access.

“We’re seeing a shift to address adoption and affordability at both the state and federal level, where previously we only saw discussion of availability,” Siefer said. “It’s not just about unserved and underserved areas when it comes to digital equity, because the infrastructure might be there, but people are not participating in broadband for a variety of reasons,” she said. “Affordability and digital literacy lock people out. New programs aim to solve that problem and get people connected.”

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Broadband's Impact

Federal Focus On Municipal Builds Rubs Against States’ Policy Opposing Practice: Report

Tim White

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Photo of Tyler Cooper from BroadbandNow

April 8, 2021 – President Joe Biden’s new broadband plan, which emphasizes the importance of municipal-owned networks, is likely to cause tensions with states that have restrictive rules in place against those kinds of builds, according to a new report.

That focus on local networks in Biden’s infrastructure plan, which includes $100 billion for broadband, has some in the telecom industry critical or uneasy, while others are excited about the possibilities.

New federal funding with attached rules prioritizing municipal and co-op networks will likely collide with policy in almost half the country, as shown in a BroadbandNow report released Wednesday that details restrictive legislation that is currently on the books in 18 states and minor “roadblocks” in five other states.

BroadbandNow has monitored municipal broadband for several years, and the methodology for this report was done differently than in the past. “Instead of tallying every state that restricts municipal broadband in some way, we’re looking at those that explicitly bar or make it unreasonably difficult to establish such networks,” it reads.

“The broadband sector has come into the forefront of public discourse, with millions of Americans struggling to stay online amidst the pandemic. In many communities, local governments have turned to creating their own solutions where private competition has not met the needs of the populace,” writes Tyler Cooper, chief editor at BroadbandNow.

“These barriers vary from state to state, but tend to take the form of outright bans on the establishment and/or operation of municipal broadband infrastructure,” the report reads. “As well as bureaucratic obstacles that make it functionally infeasible to create a citywide network.”

The report also found that “five additional states (Iowa, Arkansas, Colorado, Oregon, and Wyoming) have other types of roadblocks in place that make establishing networks more difficult than it needs to be.” Those roadblocks include items like vague legal stipulations, restrictions on certain pricing mechanisms, proposal-stage barriers, phantom cost requirements, and extra tax burdens.

Several states have introduced legislation to reduce those restrictions, including an Arkansas bill that passed in February 2021, a Washington bill still in progress, a Montana bill that failed, and three bills stalled in Tennessee and Idaho, according to the report.

A Republican-led House bill called the CONNECT Act would restrict government-run broadband networks nationwide as long as more than one other broadband service was already available in an area. The bill was introduced on February 18 by Missouri Rep. Billy Long.

In direct opposition to that effort, Biden’s American Jobs Plan would prioritize funding for “broadband networks owned, operated by, or affiliated with local governments, non-profits, and co-operatives,” according to a White House statement.

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Broadband's Impact

Experts Weigh What Future Of Broadband Could Look Like Under Biden’s Infrastructure Plan

Tim White

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Screenshot taken from Broadband Live Online event

April 8, 2021 – Experts in Wednesday’s Broadband Breakfast Live Online event debated what “future-proofing” broadband could look like and whether President Joe Biden’s infrastructure plan can achieve it.

The White House’s new “American Jobs Plan” looks to fund $100 billion for broadband infrastructure in addition to other areas, and part of that plan “prioritizes building ‘future proof’ broadband infrastructure in unserved and underserved areas so that we finally reach 100 percent high-speed broadband coverage,” said a White House statement.

Carri Bennet, general counsel for the Rural Wireless Association, said at Wednesday’s event that fiber is essential for all types of networks. “We do mobile wireless, we do fixed wireless, we use all sorts of spectrum in our toolkit, and all of these wireless networks are connected to fiber at some point, somewhere,” she said.

But Bennet also said there are exciting developments for wireless that is not specifically fiber. “There are a lot of exciting things going on in the wireless world right now that could future-proof networks,” she said. “That’s using software and virtualized networks so that you don’t have to change out hardware on antennas on towers anymore.”

Open radio access networks (Open RAN) are such systems, which use open protocol wireless technologies that prevent the industry from relying on proprietary supplies generated by few companies. Bennet said open RAN is showing promise.

Sen. Mark Warner, D-Virginia, led a bipartisan effort Tuesday requesting $3 billion in Open RAN technology funding for the Biden administration’s annual budget request.

Doug Brake, director of broadband policy at the think tank Information Technology and Innovation Foundation, said Wednesday he believes the policy needs to technology neutral.

Legislation should be flexible to allow the best solutions for an area that are needed, he said. When ‘future proofing’ comes up, he said he is worried that fiber and cable become the focus. While fiber is really important to getting many unserved areas connected, we shouldn’t lock ourselves into a single tool — we want the flexibility to solve the problem as its needed, he said.

Municipal versus private broadband

Brake also expressed concern that Biden’s plan would prioritize funds for local municipal and co-op broadband.

“We really need to leverage our private providers, particularly private providers that have large economies that scale,” he said. While municipalities and co-ops are great at filling needed gaps, “they don’t scale well outside the jurisdiction, they don’t invest in [research and development] to develop new access technologies; they don’t contribute to standards,” he said.

But Gary Bolton, CEO of the Fiber Broadband Association, said Wednesday that, “We’ve seen first-hand the significant benefits and significant economic impact that fiber has when it’s deployed in communities,”. He referenced Chattanooga, Tennessee, the first city in America where gigabit-speed internet was offered in 2010. The city developed a municipally-owned fiber network that, according to a 2020 study by Bento Lobo at the University of Tennessee at Chattanooga, saw considerable return over the 10 years since its deployment.

“Fiber also delivers remote healthcare, online learning, public safety and provides a path for future services like 5G,” Bolton said.

On broadband affordability

Affordability is another piece of the broadband puzzle, and Biden’s proposal also seeks to address long-term cost issues. In a statement, the White House acknowledged the need for some short-term subsidies, but said that “continually providing subsidies to cover the cost of overpriced internet service is not the right long-term solution for consumers or taxpayers.”

Everyone needs to be able to afford broadband, Matt Wood, vice president of policy and general counsel at the advocacy organization Free Press, said Wednesday. “We want to talk about affordability and adoption, and we’ve done that in the mapping context, we’ve done it here, and I think that’s why this plan is so exciting to us,” he said.

Funding programs like the Emergency Broadband Benefit, and the focus on affordability and adoption in Rep. Jim Clyburn’s bill and the LIFT America Act are key, he said. This is not one of those, “if you build it, they will come” situations, he said. Building “fabulous networks” in rural and urban areas that people can’t afford to use should not be the infrastructure goal, he said.

Bolton expressed support for Biden’s proposal to address long-term affordability issues, but he wants to see funding done well. “It pains me to see so much precious stimulus money going to subsidize ridiculously expensive, poor-performing broadband such as satellite in rural areas,” he said.

The details of the American Jobs Plan are still being developed, and the White House is discussing those details with a variety of members of the broadband industry, according to Bolton.

Our Broadband Breakfast Live Online events take place every Wednesday at 12 Noon ET. You can watch the April 7, 2021, event on this page. You can also PARTICIPATE in the current Broadband Breakfast Live Online event. REGISTER HERE.

Wednesday, April 7, 2021, 12 Noon ET — “Billions and Billions: How to Spend Broadband Infrastructure”

On the heels of the Biden Administration’s unveiling of the American Jobs Plan, Broadband Breakfast will convene a special Broadband Breakfast Live Online event to take the pulse of the broadband industry on the core components of the administration plan:

  • Build high-speed broadband infrastructure to reach 100 percent coverage. The administration’s plan prioritizes building “future proof” broadband infrastructure in unserved and underserved areas so that we finally reach 100 percent high-speed broadband coverage.
  • Promote transparency and competition. President Biden’s plan will promote price transparency and competition among internet providers, including by lifting barriers that prevent municipally-owned or affiliated providers and rural electric co-ops from competing on an even playing field with private providers, and requiring internet providers to clearly disclose the prices they charge.
  • Reduce the cost of broadband internet service and promote more widespread adoption.

This measure is expected to allocate $100 billion for broadband infrastructure and adoption. This panel will consider and discuss the broadband parameters of the Biden plan.

Panelists:

  • Doug Brake, Director of Broadband and Spectrum Policy, Information Technology and Innovation Foundation (ITIF)
  • Gary Bolton, President and CEO, the Fiber Broadband Association (FBA)
  • Matt Wood, Vice President of Policy and General Counsel, Free Press
  • Carri Bennet, Partner at Womble Bond Dickinson (US) LLP
  • Drew Clark (moderator), Editor and Publisher, Broadband Breakfast

Doug Brake directs the Information Technology and Innovation Foundation’s work on broadband and spectrum policy. He writes extensively and speaks frequently to lawmakers, the news media, and other influential audiences on topics such as next-generation wireless, rural broadband infrastructure, and network neutrality. Brake is a recognized broadband policy expert, having testified numerous times before Congress, state legislatures, and regulatory commissions, as well as serving on the FCC’s Broadband Deployment Advisory Group.

Gary Bolton serves as president and CEO of the Fiber Broadband Association — the largest trade association in the Americas dedicated to all-fiber-optic broadband. With more than three decades in the telecom industry, Bolton joined the Fiber Broadband Association as president and CEO in 2020 after serving on the association’s board as vice chairman, treasurer and vice chairs of public policy and marketing committees. Prior to taking the leadership role at the Fiber Broadband Association, he spent 11 years at ADTRAN serving as vice president of global marketing and government affairs.

Matt Wood currently serves as Vice President of Policy and General Counsel at Free Press, where he helps shape the policy team’s efforts to protect the open internet, prevent media concentration, promote affordable broadband deployment and safeguard press freedom. Before joining Free Press, he worked at the public interest law firm Media Access Project and in the communications practice groups of two private law firms in Washington, D.C. He has also served as an expert witness before Congress on multiple occasions.

Carri Bennet is an outspoken advocate for small rural carriers, having battled with regulators and large companies for more than 30 years to ensure that small rural businesses have a seat at the table and a strong voice in Washington, DC.  Bennet launched her own successful boutique communications and technology law firm prior to joining Womble Bond Dickinson in its Washington, DC office, and she also serves as outside counsel for the Rural Wireless Association and earlier as General Counsel and de facto chief operating officer of an international wireless carrier.  She represents her clients before the FCC, state regulatory agencies, the courts and Congress, and she regularly testifies before the FCC, Congress and the courts on rural wireless issues and speaks regularly at industry trade shows and legal seminars on cybersecurity, data privacy, spectrum policy, universal service funding reform, and business development and strategy issues for communications and technology companies.

WATCH HERE, or on YouTubeTwitter and Facebook

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTubeTwitter and Facebook

See a complete list of upcoming and past Broadband Breakfast Live Online events.

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