WASHINGTON April 28, 2011 – The Federal Communications Commission gathered key industry experts on Wednesday to explore the different ways that the Universal Service Fund can be modernized to effectively deploy high speed broadband to rural America.
“The Universal Service Fund is at the heart of the Commission’s core mission,” said FCC Chairman Julius Genachowski at the start of the event. “The current system was largely successful in meeting the challenges of the 20th century challenges but cannot handle the needs of the 21st century; it does not work for broadband deployment.”
Genachowski said that the current system disperses broadband funds inefficiently and wastefully. He went on to say that, the current system cannot provide long-term sustainable broadband deployment and reform is necessary.
“This is an issue with bipartisan support,” said Commissioner Robert McDowell. “It’s my hope that one day we won’t need the USF because technology can bring affordable broadband to all Americans, but until then we need to work together to provide the necessary access.”
In early February, the FCC unanimously adopted a notice of proposed rulemaking aimed at transforming the Universal Service Fund (USF) to include broadband. The Commission proposed the creation of the Connect America Fund (CAF), which would provide support for both voice and broadband services. As a compliment to the CAF, the Commission also proposed the creation of a Mobility Fund, which would provide support to expand mobile broadband.
Andrew Newell, General Counsel at Viaero Wireless, called wireless networks the best solution for bringing high-speed broadband to rural areas with minimal cost.
“The endgame to bring fiber to every home won’t work. Fiber is getting increasingly expensive and it is considerably cheaper to deploy mobile broadband,” said Newell. “The download speed of mobile broadband is getting faster which makes it increasingly more attractive for home use.”
David Russell, Solutions Marketing Director at Calix, agreed that wireless is a solution, but to support the wireless network, a fiber backbone needs to be deployed and consumers should be able to access this fiber when it comes close to their homes. Also, he said, broadband is no longer a luxury, but increasingly a necessity.
“I was in Western Massachusetts recently, where a number of homeowners told me that they were unable to sell their homes because the properties did not have access to high speed broadband,” Russell said.
Consumer Federation of America Research Director Mark Cooper and Park Region Mutual Telephone CEO Dave Bickett both echoed Russell’s statements on providing users with access to fiber where possible.
“There is no doubt that mobile computing is more valuable than fixed computing,” said Cooper, “but there needs to be a shared infrastructure between wired and wireless to provide better access to consumers.”
One of the major reforms that the FCC proposes is the use of reverse auctions for the distribution of support. Currently the USF provides support to multiple companies that serve the same area as long as they provide access.
Under the reverse auction system, companies would bid to be the sole recipient of support, where the firm that can provide access with the least amount of funding wins.
The telecommunications industry is divided on the use of reverse auctions, but companies agree that the new fund should have separate wireless and wireline programs.
Maggie McCready, Vice President of Federal Regulatory at Verizon supported the use of reverse auctions saying, “this system will provide increased efficiency and provide the most access for the lowest cost.”
Grant Spellmeyer, Senior Director of Legislative & Regulatory Affairs at US Cellular and Jason Hendricks, Director of Government Relations and Regulatory Affairs, RT Communications, Inc. both voiced their opposition of the use of auctions saying that the auctions would not provide adequate support.
They both said that the auctions would leave current providers unable to recoup the cost of their current deployments if they lost the auction and stopped receiving funding.
Vice President of Government Affairs at the American Cable Association Ross Lieberman called upon the FCC to increase their speed goals for universal service.
“Right now the FCC has a broadband goal of 4 megabits per second (Mbps) download speed and 1 Mbps upload,” Lieberman said. “This is not adequate for future use. If the government is going to fund deployment it should make sure that the connections are going to be useful for long term use. Our members are currently offering base speeds of 16 Mbps down and 4 up and speeds will only improve over time.”
Federal Communications Commissioner Brendan Carr Optimistic About Finding Common Ground at Agency
March 24, 2021 — Federal Communications Commissioner Brendan Carr said the regulator has since 2017 seen what he wanted: Broadband speed increases and lower prices.
“The approach we adopted in 2017 is working,” he said at the Free State Foundation’s 13th annual telecom policy conference on Tuesday. “Speeds have increased, prices are down, and we see more competition than ever before; we need to keep it that way,” he said, stressing the importance of reinforcing the good work the previous administration did and continues to do.
Carr, who has been a part of the FCC since 2012 in various capacities and through different compositions, said the transition into the new administration is going well.
In contrast to before, when it seemed as though the “sky was falling” and there were many problems with net neutrality, today’s reality is quite different, thanks to Acting Chairwoman Jessica Rosenworcel, he said.
The chairwoman contacted him almost immediately after she asked him to participate an event together on telehealth. There have been a lot of conversations and compromises since that moment, he said.
He said elections do bring some consequences, and undoubtedly have shaken some of the agency’s previous standards with a different party in leadership. However, he said the FCC has been finding common ground, something that “has been all too rare in the past couple of years.”
He added that, in 2016, experts and analysts weren’t painting a very rosy picture for the US future leadership when it comes to 5G. One of the primary reasons cited was the cost and length of time to build out the Internet infrastructure in this country, he said.
“We went from 708 new cell sites in 2017 to over 46,000. The progress is astounding, and not only with towers but with fiber, as we built 450k miles of fiber in just one year alone.”
Spectrum auctions driving the agenda, Carr says
Optimistic on spectrum, he pointed out that at present, there is a lot of it available. “In 2017, the FCC had previously voted in a lot of higher band spectrum options.”
The work of initial prioritization was completed by us before 2017 when we moved in and noticed the lack of midband spectrum in the pipeline. We had to move fast, and we had the first auction for the midband in 2020, with frequencies ranging from 3.5 to 5.5 gigahertz.
Over the last couple of years, he said the FCC has opened that band to intensive use, pushing the midband spectrum a great deal. The future holds the need to create a spectrum calendar with a rough outline of spectrum auctions, including which bands are available for auction and when, he said. “I have already filled in that calendar.”
He said the regulator’s challenge is not with a lack of communication but with coordination. “We need the FCC to take a step back and consider the public interest, how the agency can best achieve the federal missions and how it can best do this. Even if there are going to be disagreements, it is paramount to ensure that the American economy stays competitive.”
Looking ahead, Carr said the 5.9 gigahertz project, which last year was on trial to expand rural broadband access, would be a great beginning to prove that good leadership and compromise are possible between both parties.
The $3.2 Billion Emergency Broadband Benefit Program: What’s In It, How to Get It?
March 5, 2021 – Just shy of the 60-day deadline set by Congress, the Federal Communications Commission adopted an order on February 25, detailing how the new Emergency Broadband Benefit Program would work.
The $3.2 billion program was part of the Consolidated Appropriations Act of 2021 that passed Congress in December 2020 and is allocated to the FCC to help low-income households with broadband access during the COVID-19 pandemic.
Broadband Breakfast Live Online will focus on the program on Wednesday, March 10, 2021: “The Emergency Broadband Benefit: How Will the $3.2 Billion Program Work?“
The funding will provide up to $50 per month for eligible low-income households, increased to $75 per month for those living on native tribal lands. Rather than disbursing directly to consumers, the funds will be distributed to participating broadband providers, who in turn will grant the discounted internet access to qualifying households who apply.
The Emergency Broadband Benefit program is not to be confused with the Emergency Connectivity Fund currently being considered by Congress.
The Emergency Broadband Benefit program also has a one-time reimbursement option of $100 for purchasing desktops, laptops or tablets for connecting to the internet, with a co-pay of between $10 and $50.
Households do not receive the reimbursement for buying a device separately: That is provided by the service providers through which the funding will be disbursed.
To qualify for the program, households must meet one of the following criteria:
- Qualifies for the FCC Lifeline program
- Is approved for the free or reduced-price school breakfast/lunch program
- Demonstrates substantial documented loss of income since February 29, 2020
- Received a federal Pell grant in the current award year
- Qualifies for a participating provider’s existing low-income or COVID-19 relief program, subject to FCC approval.
To receive reimbursement for services and connected devices, participating service providers must register with SAM.gov, cannot be listed on the Department of the Treasury’s “do not pay” list, and must register with the FCC to receive a registration number. Similar to the Lifeline program, the EBBP will be provided to companies who participate through the Universal Service Administrative Company.
To participate, companies are not required to be eligible telecommunications carriers through Lifeline, but must apply through an “election notice” with USAC. They must also get prior approval from the FCC before filing their notice.
The application window for service providers to apply to the program opens on Monday, March 8, 2021, and ends March 22. The program should begin approximately April 25, or 60 days after the FCC published the order.
The service provider’s broadband plan must have been in place by December 1, 2020, to receive the discounted rate.
Unlike the FCC’s Lifeline program that has been in place for several years, this new funding is temporary and set to expire, either when the $3.2 billion are exhausted or six months after the Health and Human Services secretary declares that COVID-19 is no longer a health emergency.
What You Need To Know About the More-Than-$7 Billion Emergency Connectivity Fund
March 5, 2021 – The Senate on Thursday voted to begin debate on the $7.6 billion Emergency Connectivity Fund, which is part of the House-passed $1.9-trillion coronavirus stimulus bill.
Most of the 591-page bill adheres closely to what President Biden called for in his relief proposal in January 2021, as reported by CNN. The $7.6 billion Emergency Connectivity Fund includes funds for internet service, hot spots, and other devices to use at home. The larger coronavirus bill includes new rounds of stimulus checks, unemployment assistance, and healthcare support.
This comes after a coalition of education advocates in January 2021 petitioned the FCC to add in a provision for emergency E-rate funding. On Feb. 9, 2021, House Energy and Commerce Chairman Frank Pallone, D-N.J., announced the provision as part of the committee’s legislative recommendations for the COVID budget reconciliation legislation. The Federal Communications Commission would be tasked with implementing the $7.6-billion fund.
The potential fund of more than $7 billion fund in this Emergency Connectivity Fund is not to be confused with the Emergency Broadband Benefit Program, a new pot of broadband money allocated by the consolidated appropriations bill passed in December 2021.
Broadband Breakfast Live Online will focus on that other program on Wednesday, March 10, 2021: “The Emergency Broadband Benefit: How Will the $3.2 Billion Program Work?“
The magnitude of the pandemic has sent schools scrambling to connect students to virtual learning. The Emergency Connectivity Fund would help connect some more than 15 million children and as many as 400,000 teachers, according to Common Sense and Boston Consulting Group.
But passage of the additional more-than-$7 billion in funding is not assured. Even to begin debate on the broader coronavirus relief package, Vice President Kamala Harris had to cast a tie-breaking vote because the Senate is even split with 50 senators who caucus with the Democrats and 50 Republicans.
Major tech priorities included in an earlier Senate draft of the bill appear unchanged in the official version of the bill introduced to the Senate yesterday. Funding for the Emergency Connectivity Fund is part of larger funding for the Technology Modernization Fund, as well as for the Cybersecurity and Infrastructure Security Agency and other proposals.
President Biden originally proposed $10.2 billion of funding for the modernization fund and cybersecurity, but the Senate’s version includes just $1 billion. Additional, the Senate’s version includes $7.17 billion for the Emergency Connectivity Fund, which was reduced by more than $400 million from the original $7.6 billion proposed figure.
Still, the fund represents the a very large tech investment to support broadband capabilities and remote learning in schools.
As Broadband Breakfast noted on Monday, the Emergency Connectivity Fund, previously signed into law in December 2020, secured $3.2 billion to expand broadband coverage to underserved communities and households in need. This internet service discounts of up to $50 per month for eligible consumers and up to $75 per month for those on tribal lands. Additional discounts on a computer or laptop device are also included.
As reported by MeriTalk, getting the Senate to bring its version of the $1.9 trillion stimulus bill to a vote later this week is imperative, as both chambers are pushing to get the bill signed into law before March 14, when some unemployment assistance programs will expire.
Presuming the Senate passes its version of the bill, it goes back to the House for a vote and then onto the White House for President Biden’s final signature.
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