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During ‘Infrastructure Week’ at the White House, One Wonders: Where’s the Infrastructure?

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WASHINGTON, June 6, 2017 — Despite giving this week the title of “Infrastructure Week” at the White House, President Donald Trump and his staff haven’t taken any public actions to make digital infrastructure, such as high-speed broadband, a part of their plans for the much-discussed infrastructure bill.

“On infrastructure, the President has said all along he believes it will be a bipartisan exercise and its one that we will be looking to partner with [Democrats] on,” White House Director of Legislative Affairs Marc Short said during a Monday press briefing. “Whether it becomes an individual bill or its part of something else, I don’t know yet.”

Neither Short nor the two White House officials who briefed the press on the Trump Administration’s plans earlier on Monday made any mention of high-speed broadband when discussing the bill that is expected to be a centerpiece of President Trump’s legislative agenda.

Instead, White House officials — including Transportation Secretary Elaine Chao, who is married to Senate Majority Leader Mitch McConnell, R-Kentucky — made a spectacle out of unveiling plans to privatize the nation’s Air Traffic Control system, which has long been a goal of Republicans.

Conservatives have been opposed to the clout of public employee unions, such as the one that represents air traffic controllers, despite legal prohibitions on labor actions like striking.

White House officials continued to have no comment, when asked by BroadbandBreakfast News, whether high-speed broadband internet would be included in the infrastructure plan despite the lack of any announcement.

Still, there has been some movement from independent agencies within the Trump Administration on broadband despite the lack of action from the White House.

During a public trip through several Midwestern states, Federal Communications Commission Chairman Ajit Pai has on multiple occasions stated the need for more broadband investment, particularly in rural areas.

But Pai has on many occasions voiced opposition to the kinds of municipal and community broadband networks that rural communities have sought to deploy.

Incumbent communications companies like Verizon Communications  and others have found it unprofitable to invest in bringing higher-speed connectivity broadband to areas they have traditionally service. These incumbents often support federal and state laws and regulations prohibiting attempts to install municipal networks.

(Caricature of Elaine Chao by Donkey Hotey used by permission.)

Fiber

New Whitepaper Shows Long Wait Times for Fiber Construction Materials

The Fiber Broadband Association has said there is up-to 60 weeks of wait for materials necessary for fiber deployment.

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Photo of Gary Bolton, president and CEO of the Fiber Broadband Association, via fiberbroadband.org

WASHINGTON, September 20, 2022 – Covid-19 and other supply chain stressors have contributed to lead times of up to 60 weeks for materials necessary for fiber deployment and operation, according to a recent white paper from the Fiber Broadband Association.

Speaking at a web event Thursday, FBA President and CEO Gary Bolton presented some of the report’s findings. The waiting period for fiber optic cabling is 52–60 weeks, the report says, and lead times for other necessary goods – e.g., 10–20 weeks for cabinets and splitters, 20–35 weeks for multiport terminals, and up to six months for home equipment – are also extended. The report also notes shortages or inflated prices of raw goods such as plastics, resins, steel, aluminum, copper, and wood.

Prices in the fiber broadband industry are also affected by the global semiconductor shortage. For instance, the price of neon – necessary for semiconductor production – has spiked in the wake of Russia’s invasion of Ukraine, which halted production from a major neon manufacturer in Mariupol and another in Odesa.

President Joe Biden last month signed the Chips and Science Act into law, which includes $52 billion to incentivize domestic manufacturing of semiconductor chips.

In addition, logistical bottlenecks still plague the supply chains, the report said: “COVID shutdowns continue in waves around the globe, with Chinese ports particularly hard hit this year. In April 2022, up to 20% of the 9,000 globally active container ships were stuck outside backed-up ports in various parts of the world. Almost a full 30% of that backlog was created by shutdowns in Chinese ports alone.”

Supply chain disruptions have contributed to the inflation currently disrupting the broadband industry. To avoid such disruptions, the FBA report recommends a series of strategies, including increased domestic sourcing of materials, supply chain diversification, and the utilization of AI technology.

“AI can help companies make short term, reactive decisions about how to source components, and it can also help them make longer-term planning decisions about where they will manufacture their goods,” the report says.

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North Carolina Officials Tout Recent Investments in Rural Fiber

North Carolina hopes to achieve 80 percent subscription to broadband services among its citizens.

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Screenshot of Nate Denny, deputy secretary of the North Carolina Department of Information Technology’s Broadband and Digital Equity Division

September 9, 2022 – With $260 million being awarded by North Carolina to several fiber deployments, a key state official highlighted his strategy toward broadband infrastructure, community engagement, mapping and digital literacy initiatives.

Speaking on Wednesday at the Fiber Broadband Association’s Fiber for Breakfast event, Nate Denny, deputy secretary of the North Carolina Department of Information Technology’s Broadband and Digital Equity Division, said that the Tar Heel State allocated more than $1 billion from its American Rescue Plan funding for different facets of broadband deployment.

Dubbed the Growing Rural Economies with Access to Technology, $260 million of an anticipated $380 million is to be awarded, including $206 on August 31, 2022.

According to Denny, the $260 million already allocated will span 92 counties and connect more than 115,000 new homes and businesses.

Additionally, the private sector has provided $120 million in matching funds to the $260 million in public funds already spent, Denny said.

GREAT is a reimbursement program, Denny explained, and grantees have two years to complete projects under state supervision. Grantees thus far include major national companies – including AT&T and Charter – as well as small regional providers and cooperatives.

Beneficiaries of GREAT funding are expected to participate in the Federal Communications Commission’s Affordable Connectivity Program, which provides discounts on monthly internet bills and eligible device purchases to low-income households.

Denny said that North Carolina hopes to achieve 80 percent subscription to broadband services among its citizens in the next few years. Besides GREAT, the state’s American Rescue Plan–funded broadband programming includes the Stop Gap Solutions program, which provides targeted solutions such as satellite coverage to hard-to-reach locations. It also includes a broadband mapping initiative and a $50 million digital literacy effort.

In addition to current funding programs, Denny expects North Carolina to be the recipient of more than $800 million in upcoming Broadband Equity, Access, and Deployment program grants. He said that the state plans to funnel BEAD moneys into existing programs that have proven themselves effective.

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Fiber

Fiber Providers Feeling the Heat of Inflation as Cost of Materials, Labor Rise

One fiber tools company says inflation is hitting broadband developers hard.

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Photo of Sam Pratt, CEO of Render Networks, from his Twitter account

September 8, 2022 – Inflation-driven high prices for materials and labor are putting significant economic pressure on builders of fiber networks, Render Networks CEO Sam Pratt told Broadband Breakfast Tuesday.

Inflation woes have gripped America for almost a year and a half. The latest consumer price index report has year-over-year inflation at 8.5 percent. According to the Federal Reserve Bank of Atlanta’s data for August 2022, the median hourly wage jumped 6.7 percent quarter-over-quarter.

The fiber industry is feeling the effects of inflation like all others. Pratt, who runs the software company that assists fiber construction companies, said that fiber developers that already submitted cost estimates in their government funding applications but haven’t yet ordered supplies or contracted for labor will likely run over budget due to inflation.

Consulting firm Dgtl Infra estimates that fiber optic cables cost $60,000–$80,000 per miles buried, up to sixty percent of which pays for labor. Taking the average of Dgtl Infra’s estimate – $70,000 per mile – as current, and if quarter-over-quarter wage growth remains at 6.7 percent – as it has since June 2022 – each new mile of fiber laid will cost an additional $4,814 in labor costs come November.

For a fiber deployment of 7,000 miles – the length of Google Fi’s project in Kansas City – the next three months would bring a labor-cost increase of $33,698,000.

Government officials warned last summer that the inflation problem could make closing the digital divide more challenging. One official from Minnesota said the increased cost of deployments could even be pushed onto consumers, raising their monthly bills.

Streamlining production

Inflationary pressures make efficiency in the construction process incredibly important, Pratt said he believes, adding construction costs make up the vast majority of broadband funding. He said his company offers tools to allow users to digitally map all progress and to streamline workflows. Pratt said that extensive geospatial data allows builders to better identify and eliminate inefficiencies in the construction process.

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