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Broadband's Impact

White House Releases Report on Community-Based Broadband Solutions, Touting Municipal Competition for Gigabit Networks

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WASHINGTON, January 14, 2015 – The White House on Tuesday released a report, “Community-Based Broadband Solutions: The Benefits of Competition and Choice for Community Development and Highspeed Internet Access,” seeking to bolster President Obama’s new push for Gigabit Networks.

The report states:

Affordable, reliable access to high speed broadband is critical to U.S. economic growth and competitiveness. Upgrading to higher-speed broadband lets consumers use the Internet in new ways, increases the productivity of American individuals and businesses, and drives innovation throughout the digital ecosystem. As this report describes, while the private sector has made investments to dramatically expand broadband access in the U.S., challenges still remain. Many markets remain unserved or underserved. Others do not benefit from the kind of competition that drives down costs and improves quality. To help fill the void, hundreds of towns and cities around the country have developed their own locally-owned networks. This report describes the benefits of higher-speed broadband access, the current challenges facing the market, and the benefits of competition – including competition from community broadband networks.

The report highlights laws that restrict municipalities’ involvement in broadband:

Not all communities, however, have the choice to pursue a local broadband network. 19 states currently have barriers in place limiting community broadband and protecting incumbent providers from competition. President Obama believes that there should be a level playing field for community-based solutions and is announcing today a series of steps that the Administration will be taking to foster consumer and community choice.

In highlighting the demand for internet access, the report also puts emphasis on the need for applications:

Demand for Internet access is growing quickly. Total wired and wireless Internet access revenues in 2013 were $140 billion, and have increased by about 15 percent per year in real terms since 2005. The rapidly growing demand for bandwidth is driven by new applications of the Internet that effectively require a broadband connection. These applications, which are increasingly central to everyday life for many Americans, include video streaming, which is used for education, entertainment, and communication; teleworking; cloud storage that allows users to store their files on the Internet, share them, and access them from any device; and online games that allow users to interact with one another in a virtual environment.

The report highlights limitations in access:

The gap in broadband availability between urban and rural communities is linked to the economics of network investment. The costs of providing a connection increase with distance, and the expected profits increase with the number of customers served. This makes it more economical to serve densely populated urban locations, where shorter wires can serve a larger number of potential customers. While satellite and terrestrial wireless technologies continue to deliver promising improvements, more work is needed to close the urban rural gap in broadband availability.

To address this gap, the USDA, BTOP, and the FCC’s Connect America Fund program have all invested in creating the middle-mile infrastructure that provides high-speed access to “anchor institutions” such as schools and libraries in many rural communities. With middle-mile and community infrastructure in place, the remaining challenge is to provide last-mile connections so millions of Americans have access to high-speed broadband. As we describe below, the availability of middle-mile connections creates a significant opportunity for municipalities to increase such access.

And it highlights challenges in affordability:

U.S. broadband is also relatively expensive when compared internationally. The next chart uses data from a recent report on broadband prices in 24 U.S. and international cities. While the 24 cities in this study may not be representative of all urban locations in the U.S. or abroad, it is notable that the median monthly price at each speed level is higher in the U.S., often by 50 percent or more. And while it appears that the U.S. has less price variability at speeds above 75 Mbps, this observation actually reflects the fact that fewer U.S. cities even offer a consumer plan at that level.

It singles out Google Fiber’s beneficial impact on competition:

Domestic experiences also show how the threat of competition can produce gains for broadband consumers. When Google announced that Google Fiber was coming to Kansas, speeds on existing networks surged 97 percent—the largest year-over-year jump in bandwidth observed in any state, ever. Likewise, when Google indicated that it would begin offering extremely fast connection speeds in Austin, TX, AT&T responded by announcing its own gigabit network.

It then presents a series of case studies about the impact of super-fast broadband in Chattanooga, Tenn.; Wilson, NC; Lafayette, Louisiana; Scott County, Minnesota; and Leverett, Mass. – a project supported by the Massachusetts Broadband Intitiative – and Choctaw National Tribal Area, Oklahoma.

It concludes with an appendix of “U.S. Municipalities with Broadband Networks,” based upon data provided upon request from the Institute for Local Self-Reliance.

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.

Broadband's Impact

Julio Fuentes: Access Delayed Was Access Denied to the Poorest Americans

Big Telecom companies caused months and months of delays in the rollout of the Emergency Broadband Benefit.

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The author of this Expert Opinion is Julio Fuentes, president and CEO of the Florida State Hispanic Chamber of Commerce

Remember when millions of students in dense urban areas and less-populated rural areas weren’t dependent on home broadband access so they could attend school?

Remember when we didn’t need telehealth appointments, and broadband access in urban and outlying areas was an issue that could be dealt with another day?

Remember when the capability to work remotely in underserved communities wasn’t the difference between keeping a job and losing it?

Not anymore.

Education. Health care. Employment. The COVID-19 pandemic affected them all, and taking care of a family in every respect required broadband access and technology to get through large stretches of the pandemic.

You’d think the Federal Communications Commission and its then-acting chairwoman would have pulled out all the stops to make sure that this type of service was available to as many people as possible, as soon as possible — especially when there’s a targeted federally funded program for that important purpose.

Alas, by all appearances, some Big Telecom companies threw their weight around and caused months and months of delays, denying this life-changing access to the people who needed it most — at the time they needed it most.

The program in question is the federally funded Emergency Broadband Benefit program. The EBB offered eligible households — often the poorest Americans — a discount of up to $50 per month toward broadband service, and those households can also receive a one-time discount of up to $100 to purchase a laptop or other computer if they contribute just $10 to the purchase. Huge value and benefits for technology that should no longer be the privilege of only those with resources.

Seems fairly straightforward, right?

It should have been. But FCC Chairwoman Jessica Rosenworcel slammed on the brakes. Why? It turns out that Big Telecom giants wanted more time to get ready to grab a piece of the action — a lot more time. While the program was ready to go in February, it didn’t actually launch until several months later.

That’s months of unnecessary delay.

But it wasn’t providers who were waiting. It was Americans in underserved and rural areas, desperate for a connection to the world.

Here are some numbers for Rosenworcel to consider:

  • As recently as March, 58% of white elementary students were enrolled for full-time in-person instruction, while only 36% of Black students, 35% of Latino students, and 18% of Asian peers were able to attend school in person.
  • Greater portions of families of color and low-income families reportedly fell out of contact with their children’s schools during the pandemic. In one national survey in spring 2020, nearly 30% of principals from schools serving “large populations of students of color and students from lower-income households” said they had difficulty reaching some of their students and/or families — in contrast to the 14% of principals who said the same in wealthier, predominantly white schools.
  • In fall 2020, only 61% of households with income under $25,000 reported that the internet was “always available” for their children to use for educational purposes; this share was 86% among households with incomes above $75,000.

And all of these numbers cut across other key issues such as health care and maintaining employment.

Access delayed was access denied to the poorest, most isolated Americans during the worst pandemic in generations.

Allowing Big Telecom companies to get their ducks in a row (and soak up as many federal dollars as possible) left poor and rural Americans with no options, for months. Who knows how many children went without school instruction? Or how many illnesses went undiagnosed? Or how many jobs were terminated?

This delay was appalling, and Chairwoman Rosenworcel should have to answer for her actions to the Senate Commerce Committee as it considers her nomination for another term as commissioner. Rather than expedite important help to people who needed it most, she led the agency’s delay — for the benefit of giant providers, not the public.

Hopefully, the committee moves with more dispatch than she did in considering her actual fitness to be FCC chairwoman for another term.

Julio Fuentes is president and CEO of the Florida State Hispanic Chamber of Commerce. 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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Texas High School Students Enter the Fight for Better Connectivity

Students in a Houston-area school district hosted a panel on connecting schools and libraries as part of a national event on bridging the digital divide.

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John Windhausen Jr., founder and executive director of the Schools, Health & Libraries Broadband Coalition

WASHINGTON, December 1, 2021 – Generation Z students are making their mark at a Houston-area school district by adding broadband access to the list of issues they are actively working on.

The high school students in the Fort Bend Independent School District organized a panel conversation on internet access in education as part of Connected Nation’s national event titled “20 Years of Connecting the Nation,” and were able to host some high-profile guests in the world of telecommunications.

The November 17 panel included John Windhausen Jr., founder and executive director of the Schools, Health & Libraries Broadband Coalition, Chris Martinez, division director of information technology for the Harris County Public Library, Heather Gate, vice president of digital inclusion for Connected Nation, and Meredith Watassek, director of career and technical education for Fort Bend ISD.

Nine percent of residents in Harris County, where Houston is located, reports that they do not have a connected device at home and 18 percent say they do not have access to an internet connection. These gaps in access are the focus of the panelists’ digital equity efforts.

With Windhausen and Martinez present on the panel, a key point of discussion was the importance of helping libraries to act as anchor institutions – institutions which help enable universal broadband access.

Watassek pointed out that she has been helping oversee distance learning in Fort Bend ISD for six years, starting such a program to enable teachers to teach students in several of the district’s buildings without having to drive to each one, and has seen that with time and learned experience it is possible to work through distance learning logistical issues that school districts around the nation are currently facing.

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Broadband's Impact

New York City Broadband Housing Initiative Gets First Completed Project

The initiative is part of New York City Mayor Bill de Blasio’s $157 million Internet Master Plan.

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BlocPower CEO Donnel Baird speaks at a press conference at Melrose Housing. Photo provided by BlocPower.

November 30, 2021 – BlocPower, Metro IAF, People’s Choice Communications, and pillars in the Bronx community in New York City gathered Monday at the Melrose Housing development to celebrate the first of five New York City Housing Authority community Wi-Fi projects completed by BlocPower.

Community members and other stakeholders were welcomed by Rev. Sean McGillicuddy, pastor of Immaculate Conception Church and leader at Metro IAF. “As the pandemic has shown us, internet is not just a luxury, it is a necessity,” he said. “We have internet now in Melrose Housing and we are celebrating with hundreds of Immaculate Conception Church parishioners.”

The build out to Melrose Housing and Courtland Avenue was part of New York City Mayor Bill de Blasio’s $157 million Internet Master Plan, with a goal of connecting 600,000 additional New Yorkers considered underserved. A third of those underserved people are residents in New York City Housing Authority communities.

With these two projects completed, Melrose and Courtland Housing can now provide internet to their more than 2,500 residents spread across 1,200 apartments and ten buildings.

“We are incredibly excited today to bring this much-needed, low-cost wi-fi alternative to Melrose and Courtlandt Avenue,” said BlocPower CEO Donnel Baird. “What began as the by-product of our efforts to convert New York City’s aging, urban buildings into smarter, cleaner more eco-friendly ones, installing community-owned urban wi-fi networks has now become an important part of BlocPower’s expanded mandate – to help close the digital divide in America’s underserved communities.”

P.C.C. technicians were able to install antennas on roofs and wi-fi nodes on each floor. To have a sufficient workforce to accomplish this task, BlocPower trained local New Yorkers through the company’s “Pathways: Civilian Climate Corps” program.

Going forward, P.C.C. will be responsible for maintaining, billing, and customer service. Melrose and Courtland residents will, in turn, elect a board to represent them in matters of data governance, use of proceeds, and quality of service issues.

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