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Gigabit Fever Spreads from the Heartland Across the Nation; Giving Gigabit Credit Where Credit is Due

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WASHINGTON, May 3, 2013 – It’s springtime across the country, the flowers are blooming, and Gigabit fever must be in the air.

Within the past month, several major companies and communities have announced plans for Gigabit-level deployments within their communities. Several major conferences have featured the Gigabit theme, including the Schools, Health and Library Broadband Coalition event here on Thursday and Friday.

Even the Federal Communications Commission has gotten in on the act: one of the last major initiatives of outgoing agency Chairman Julius Genachowski was the workshop on “Gigabit Community Broadband Networks,” on March 27, 2013.

As the Executive Director of Broadband Illinois, the statewide non-profit entity responsible for promoting internet engagement and broadband planning in the Land of Lincoln, we’re very heartened by this development.

Our governor, Gov. Pat Quinn, has been at the forefront of the benefits of better broadband for many, many years.

When it comes to promoting advanced internet connectivity, many public servants talk about the importance of Gigabit-level connectivity. Gov. Quinn has acted. Well over a year ago, Quinn announced the Illinois Gigabit Communities Challenge in his 2012 “State of the State” Address.

“Through this challenge, we want our neighborhoods to become Gigabit communities with Internet connections more than 100 times faster than today,” Quinn declared in the February 1, 2012, address. “Our goal is to build smart communities that will foster the job engines of the future.” The challenge allocated up to $6 million in funds for communities seeking an award.

The next step was an open and public competition, in which communities and providers were eligible to put forward applicants that would serve at least 1,000 end users to an ultra-high-speed broadband network. Applicants for the Illinois Gigabit Communities Challenge were encouraged to demonstrate ways to improve economic opportunities, foster economic development through the expansion of “smart communities,” increase the number of residents with college degrees, connect health care professionals with their patients, and position Illinois’ universities to continue leading the nation in research, innovation, and technology.

By the June 30, 2012, deadline, Illinois had received 40 applications, from communities and providers, for Gigabit connectivity. Thus far, three winners have been announced: Gigabit Squared on the South Side of Chicago — in a project that proposes to serve nine neighborhoods across the community; the City of Aurora, about an hour west of Chicago; and the City of Evanston/Northwest University, just north of Chicago. Additional award-winners have yet to be announced.

What does the activity in Illinois say about the viability of Gigabit connectivity?

Whether a proposed Gigabit project is on the metropolitan scale (as with Google Fiber’s builds in Kansas City, KS, and Kansas City, MO) or within a portion of a city (as with Gigabit Squared’s venture on Chicago’s South Side), Gigabit connectivity is the next major leap in broadband access.

Over the past four years, broadband speeds and availability have been steadily increasing. The maps that we produce at Broadband Illinois, at http://broadbandillinois.org/maps, and which feed into the National Broadband Map, demonstrate substantial progress on this front. This is due to the advanced DOCSIS 3.0 cable modems, to increased penetrated and speeds of the wireless LTE standard, to rural-friendly wireless internet service providers, and to co-ops and telecom companies that have been continuing updating their fiber plants.

Now, Gigabit-level connectivity is the next major step.

Google Fiber drew headlines for this issue through its “Think Big With a Gig” campaign in 2009. That led first to the selection of Kansas City.

Also highlighting the importance of Gigabit-level connectivity has been Blair Levin, the former director of the FCC’s National Broadband Plan in 2010. He’s taken the ambitious goals of that plan and worked to translate them into to action through the Gig.U. consortium of 37 universities seeking Gigabit-level connectivity in their surrounding communities.

Now, it seems like everyone is getting in on the act. On April 9, 2013, Google announced that Austin, Texas, was its next stop.  A few hours later, AT&T announced that it, too, would build Gigabit-level service in Austin. A little more than a week later, Provo, Utah, was in the spotlight. And just this week, the telecommunications company CenturyLink announced that it will tee up Gigabit service in Omaha, Nebraska.

All of this is a great testament to bringing the most advanced-level connectivity to cities throughout the State of Illinois, and to our country.

Google asked us to Think Big With a Gigabit. Gov. Quinn in Illinois took the next step in fostering the smart communities that will be the places for investment, jobs, and the commerce of the future.

Now, as Gigabit fever spreads across the nation, it’s time for us think even bigger.

For governors and mayors and businesses across the country, and for the next Chairman of the Federal Communications Commission: Let’s make high-capacity bandwidth the strategic advantage that America needs to tap into the talents of our communities, our manufacturers, our students and our entrepreneurs.

Drew Clark is the Executive Director of Broadband Illinois, a non-profit organization based in Abraham Lincoln’s Springfield. You can find him on Google+ and Twitter. He brings experts and practitioners together to advance Better Broadband, Better Lives. As the designed State Broadband Initiative entity, Broadband Illinois (officially known as the Partnership for a Connected Illinois) receives funds from the U.S. Department of Commerce’s National Telecommunications and Information Administration, and the State of Illinois, as well as through private sector donations.

Drew Clark is the Executive Director of the Partnership for a Connected Illinois, or broadbandillinois.org, which is the designated entity under the State Broadband Data and Development grant program based in Springfield, Illinois. Through convening stakeholders, the creation of local eTeams, and other activities, broadbandillinois.org has the mission to build a statewide effort to make the case that Better Broadband Leads to Better Lives. Additionally, Drew is the founder of BroadbandCensus.com and BroadbandBreakfast.com.

Broadband's Impact

Broadband Breakfast on October 27, 2021 — When ‘Greenfield’ Fiber Meets ‘Brownfield’ Multiple Dwelling Units

What options do owners of, operators in, and tenants within MDUs have for better-quality broadband?

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Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. You can watch the October 27, 2021, event on this page. You can also PARTICIPATE in the current Broadband Breakfast Live Online event. REGISTER HERE.

Wednesday, October 27, 2021, 12 Noon ET — “When Greenfield Fiber Meets Brownfield Multiple Dwelling Units”

Bringing fiber to the premises is sometimes only half the battle. For example, bringing fiber to an MDU may not mean that every tenant will get better-quality broadband. In the case of multiple dwelling units or multi-tenant housing, it isn’t easy to completely rewire an existing building with fiber-to-the-unit. Further, the Biden Administration and the Federal Communications Commission are pushing real estate owners to eliminate or minimize exclusive MDU broadband contacts. What options do the owners of, operators in, and tenants within MDUs have to enjoy both competitive and better-quality broadband?

Panelists:

  • Sandra Howe, Board of Directors, Minim
  • Pierre Trudeau, President and Chief Technology Officer, Positron Access
  • Other Guests have been invited
  • Drew Clark (moderator), Editor and Publisher of Broadband Breakfast

Drew ClarkEditor and Publisher of Broadband Breakfast, also serves as Of Counsel to The CommLaw Group. He has helped fiber-based and fixed wireless providers negotiate telecom leases and fiber IRUs, litigate to operate in the public right of way, and argue regulatory classifications before federal and state authorities. He has also worked with cities on structuring Public-Private Partnerships for better broadband access for their communities. Drew brings experts and practitioners together to advance the benefits provided by broadband. He is also the President of the Rural Telecommunications Congress.

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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Education

National Non-Profit to Launch Joint Initiative to Close Broadband Affordability and Homework Gap

EducationSuperHighway is signing up partners and will launch November 4.

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Evan Marwell, founder and CEO of Education Super Highway.

WASHINGTON, October 18, 2021 – National non-profit Education Super Highway is set to launch a campaign next month that will work with internet service providers to identify students without broadband and expand programs that will help connect the unconnected.

On November 4, the No Home Left Offline initiative will launch to close the digital divide for 18 million American households that “have access to the Internet but can’t afford to connect,” according to a Monday press release.

The campaign will publish a detailed report with “crucial data insights into the broadband affordability gap and the opportunities that exist to close it,” use data to identify unconnected households and students, and launch broadband adoption and free apartment Wi-Fi programs in Washington D.C.

The non-profit and ISPs will share information confidentially to identify students without broadband at home and “enable states and school districts to purchase Internet service for families through sponsored service agreements,” the website said.

The initiative will run on five principles: identify student need, have ISPs create sponsored service offerings for school districts or other entities, set eligibility standards, minimize the amount of information necessary to sign up families, and protect privacy.

The non-profit said 82 percent of Washington D.C.’s total unconnected households – a total of just over 100,000 people – have access to the internet but can’t afford to connect.

“This ‘broadband affordability gap’ keeps 47 million Americans offline, is present in every state, and disproportionately impacts low-income, Black, and Latinx communities,” the release said. “Without high-speed Internet access at home, families in Washington DC can’t send their children to school, work remotely, or access healthcare, job training, the social safety net, or critical government services.”

Over 120 regional and national carriers have signed up for the initiative.

The initiative is another in a national effort to close the “homework gap.” The Federal Communications Commission is connected schools, libraries and students using money from the Emergency Connectivity Fund, which is subsidizing devices and connections. It has received $5 billion in requested funds in just round one.

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Broadband's Impact

Steve Lacoff: A New Standard for the ‘Cloudification’ of Communications Services

The cloudification of communications services makes it easy to include voice, data, SMS, and video within any existing service.

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The author of this Expert Opinion is Steve Lacoff, general manager of Avalara for communications

The line of demarcation between what has traditionally been considered a telecommunications service was once very clear. It was tangible – there were wires, end points, towers, switches, facilities. Essentially, there was infrastructure required to relay voice or data from point A to point B.

Today that line is fuzzy, if not invisible. The legacy infrastructure remains, but an industry of cloud-based services that don’t require the physical connections has exploded. Voice, data, SMS, and video conferencing can now be conveniently delivered OTT. Enabled by simple API integrations, businesses can embed just one of these services or a complete communications platform-as-a-service (CPaaS) into an app, service, or product.

Cloudification is a game changer

This “cloudification” of communications services makes it easy to include voice, data, SMS, and video within any existing application, product, or service. These are essential components for many business models.

Consider these services we have come to rely on in our daily lives: food or grocery delivery, ride services, and business and personal communications. These require multiple methods of communication with shoppers, drivers, co-workers, watch party groups, and external business partners.

The exciting news is there is no end in sight. Use cases will continue to evolve and growth will continue to skyrocket. The scale cloud delivery accommodates is massive. These untethered, easy to embed communications services are a critical differentiator for both business-to-business and business-to-consumer buyers, and the lifeblood of the businesses providing both the end user subscriptions and the APIs.

In fact, one industry juggernaut saw H1 YoY video application service demand grow nearly 600% in 2020.

Not surprisingly, as business demand for these services increases smaller CPaaS players continue to enter the market to quickly snag market share. According to a recent IDC study, “the global market revenue for CPaaS reached $5.9bn in 2020, up from $4.26bn in 2019, and is expected to reach $17.71bn by 2024.”

Merger and acquisition activity is aligned with this hockey stick growth forecast. Large telcos, SaaS providers, and even other CPaaS providers are all on the hunt. Whether they want to add additional features to punch up their products or eliminate the competition in a very tight, nuanced market, the end game is clear – as the market expands, the players will ultimately contract leaving only the most competitive offerings.

Don’t let communications tax take you by surprise

One of the least understood risks when adding cloud-based voice, data, SMS, or video conferencing to an existing product or service is new eligibility for and exposure to the complex world of communications taxation. Making mistakes can get costly very quickly.

Here are some of the key pitfalls to keep an eye on:

  • Expanded nexus: Understanding communications tax nexus is different – and exceptionally more complicated – than sales tax. There are approximately 60,000 federal, state, local, and special taxing jurisdictions, each with uniquely complex rules that tend to change at their own pace. Rules are very different for each service.
  • More complex calculations: The more communications services you provide via API, the more complicated communications taxes will be. Each feature can be taxed at different rates in each individual jurisdiction, or the whole bundle can be taxed at one rate. It’s critical to monitor monthly to avoid audit issues.
  • Maintaining overall compliance: Just as tax rates and rules need to be maintained, so must tax and regulatory filing forms in each jurisdiction. Some of these are very long and require significant detail.  They must be filed in a timely, accurate cadence to avoid additional audit risk.

Bottom line: Don’t assume, be prepared! As these communications services become more pervasive a larger swath of technology providers will find themselves liable for communications tax. The more your business falls behind, the more it can cost you.

It pays to be proactive and prepared. Tax and legal advisory experts can help determine your level of risk, and tax and compliance software providers can help you keep up with changing rules and regulations. Don’t underestimate the ongoing value of networking with peers who are either struggling to answer the same questions or have already overcome the hurdles you’re facing today.

Steve Lacoff is General Manager of Avalara for Communications. With a focus on data, VoIP, and video streaming, Steve has spent 15 years in various product and marketing leadership roles in communications and technology industries, including Disney’s streaming services and Comcast technology solutions. Steve now drives business strategy on today’s changing industry landscape and associated tax impacts. 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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