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ReConnect, a Long-Awaited Agriculture Department Broadband Program, Unveiled by Secretary Sonny Perdue

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WASHINGTON, December 13, 2018 – The Agriculture Department on Thursday unveiled the details of is $600 million broadband loan and grant program – dubbed “ReConnect” – and which was originally called for by appropriations legislation passed in March.

“High-speed internet e-Connectivity is a necessity, not an amenity, vital for quality of life and economic opportunity, so we hope that today rural communities kick off their rural broadband project planning,” said Agriculture Secretary Sonny Perdue, who spoke at a press briefing at the department’s headquarters near the National Mall.

“Under the leadership of President Trump, USDA has worked to understand the true needs of rural communities facing this challenge so we can be strong partners to create high-speed, reliable broadband e-Connectivity,” said Perdue.

The program is being administered by “USDA Rural Development,” the umbrella agency at the Agriculture Department. The “Rural Development” moniker is now being utilized by the department to discuss an array of economic development initiatives.

Indeed, the Rural Utilities Service – the traditional entity within USDA to operate telecommunications and broadband programs – is not even mentioned in the press release.

The former head of RUS, Ken Johnson – appointed in April – no longer works at the USDA, and no replacement has been named. USDA has not responded to repeated requests by BroadbandBreakfast for information about when and why Johnson departed USDA.

Details of the rural development program ReConnect

Municipalities, rural electric coops and utilities, and private internet companies may all apply for funding through the ReConnect program.

USDA will make available approximately $200 million for grants, plus $200 million for loan and grant combination, and $200 million for low-interest loans. The grant applications are due by April 29, 2019, the loan-grant combination applications are due May 29, and the loan applications are due on June 28.

The USDA will utilize its traditional definition for “rural” in awarding grants and loans: Projects funded through the initiative must serve communities with fewer than 20,000 people.

An additional restriction on the awarding of grants is that projects funded through the ReConnect initiative must serve communities with no broadband service or, the Agriculture Department’s press release states, “where service is slower than 10 megabits per second (Mbps) download and 1 Mbps upload.” The Federal Communications Commission defines broadband as internet connectivity with speeds of at least 25 Mbps downstream, and 3 Mbps upstream, rendering 10/1 connections not officially “broadband.”

According to the USDA, the evaluation criteria include connecting agricultural production and marketing, e-Commerce, health care and education facilities.

Previous research by USDA – and many others – has connected high-capacity broadband to all aspects of rural prosperity, including the ability to grow and attract businesses, retain and develop talent, and maintain rural quality of life.

Websites and webinars run by the Agriculture Department

USDA is holding a series of online webinars and regional in-person workshops, and list of upcoming public webinars and workshops can be found at the ReConnect Program’s resource portal at reconnect.usda.gov.

In April 2017, Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities.

The task force findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America, and increasing investments in rural infrastructure was a key recommendation of the task force.

See the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity, as well as the various categories of the recommendations at Rural Prosperity infographic.

More significantly, $600 million in funds were included in the $1.3 trillion congressional omnibus spending bill passed in March.

At the time, Perdue said that “increased support for broadband internet access is in line with administration goals and will be an important boost as we look to improve the economy in rural America.”

Statements of support from other government agencies and industry groups

A variety of government and non-government entities weighed in with support for the ReConnect program.

Said Michael Kratsios, deputy assistant to the president for technology and head of the Office of Science and Technology Policy:

  • “Millions of rural Americans are on the wrong side of the digital divide, missing out on many of the benefits and opportunities of today’s digital age. In rural areas, seniors lack access to modern health care, students are left behind on educational opportunities, and small businesses in the heartland can’t sell their goods to a global market. Today, the Trump Administration, led by Secretary Perdue and USDA, took important action to bring high-speed internet to rural communities through the launch of the ReConnect Program. This new and innovative pilot program is dedicated to spurring broadband deployment and investment in the areas that need it most. We can’t allow rural America to fall behind, and today’s announcement is a critical step to help all Americans succeed in the 21st century.”

Said David Redl, assistant secretary for communications and information and NTIA administrator:

  • “The Administration is taking an important step to help close the broadband coverage gap for the millions of rural Americans who lack access to broadband connectivity with the launch of the U.S. Department of Agriculture’s $600 million grant and loan program. NTIA looks forward to providing technical assistance to potential applicants through its partnership with USDA’s Rural Utilities Service (RUS). NTIA’s BroadbandUSA team has extensive experience working in the telecommunications industry, building broadband networks and consulting with service providers and local governments. Using this expertise, our team will be supporting educational materials and workshops to help applicants with the grant and loan process.”

Industry groups also expressed support, with NTCA (formerly the National Telecommunications Cooperative Association) CEO Shirley Bloomfield saying:

  • “We all recognize the value of and fundamental need for robust, sustainable broadband in rural America—technology that supports health care, education, economic development and more—and we hope this program can be a critical component of delivering on that value and responding to that need.”

No connection between ReConnect and the recently-passed Farm Bill

The ReConnect program bears no connection to the Farm Bill, which was passed on Tuesday by the Senate, and on Wednesday by the House. The bill, which also has some provisions impacting broadband, has not yet been signed by the president.

(Photo of Secretary Perdue on Thursday by Jerry Hagstrom/The Hagstrom Report)

 

 

Breakfast Media LLC CEO Drew Clark is a nationally respected U.S. telecommunications attorney. An early advocate of better broadband, better lives, he founded the Broadband Census crowdsourcing campaign for better broadband data in 2008. That effort became the Broadband Breakfast media community. As Editor and Publisher, Clark presides over news coverage focused on digital infrastructure investment, broadband’s impact, and Big Tech. Under the American Recovery and Reinvestment Act of 2009, Clark served as head of the Partnership for a Connected Illinois, a state broadband initiative. Now, in light of the 2021 Infrastructure Investment and Jobs Act, attorney Clark helps fiber-based and wireless clients secure funding, identify markets, broker infrastructure and operate in the public right of way. He also helps fixed wireless providers obtain spectrum licenses from the Federal Communications Commission. The articles and posts on Broadband Breakfast and affiliated social media, including the BroadbandCensus Twitter feed, are not legal advice or legal services, do not constitute the creation of an attorney-client privilege, and represent the views of their respective authors.

Expert Opinion

Bjorn Capens: Strong Appetite for Rural Broadband Calls for Next Generation Fiber Technology

The first operator to bring fiber to a community creates a significant barrier to entry for competitors.

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The author of this Expert Opinion is Björn Capens, Nokia Fixed Networks European Vice President

In July, the Biden-Harris administration announced another $401 million in funding for high-speed Internet access in rural America. This was just the latest in a string of government initiatives aimed at helping close the US digital divide.

These initiatives have been essential for encouraging traditional broadband providers, communities and utility companies to deploy fiber to rural communities, with governments cognizant of the vital role broadband connectivity has in sustaining communities and improving socio-economic opportunities for citizens. 

Yet there is still work to do, even in countries with the most advanced connectivity options. For example, fixed broadband is missing from almost 30 percent of rural American homes, according to Pew Research. It’s similar in Europe where a recent European Commission’s Digital Divide report found that roughly 18 percent of rural citizens can only get broadband speeds of a maximum 30 Mb, a speed which struggles to cope with modern digital behaviors. 

Appetite for high-speed broadband in rural areas is strong

There’s no denying the appetite for high-speed broadband in rural areas. The permanent increase in working from home and the rise of modern agricultural and Industry 4.0 applications mean that there’s an increasingly attractive business case for rural fiber deployments – as the first operator to bring fiber to a community creates a significant barrier to entry for competitors. 

The first consideration, then, for a new rural fiber deployment is which passive optical network technology to use. Gigabit PON seems like an obvious first choice, being a mature and widely deployed technology. 

However, GPON services are a standard offering for nearly every fiber broadband operator. As PON is a shared medium with usually up to 30 users each taking a slice, it’s easy to see how a few Gigabit customers can quickly max out the network, and with the ever-increasing need for speed, it’s widely held that GPON will not be sufficient by about 2025. 

XGS-PON is an already mature technology

The alternative is to use XGS-PON, a more recent, but already mature, flavor of PON with a capacity of 10 Gigabits per second. With the greater capacity, broadband operators can generate higher revenues with more premium-tier residential services as well as lucrative business services. There’s even room for additional services to run alongside business and residential broadband. For example, the same network can carry traffic from four G and five G cells, known as mobile backhaul. That’s either a new revenue opportunity or a cost saving if the operator also runs a mobile network. 

This convergence of different services onto a single PON fiber network is starting to take off, with fiber-to-the-home networks evolving into fiber for everything, where homes, businesses, industries, smart cities, mobile cells and more are all running on the same infrastructure. This makes the business case even stronger. 

Whether choosing GPON or XGS-PON, the biggest cost contributor is the same for both: deploying fiber outside the plant. Therefore, the increased cost of XGS-PON over GPON is far outweighed by the capacity increase it brings, making XGS-PON the clear choice for a brand-new fiber deployment. XGS-PON protects this investment for longer as its higher capacity makes it harder for new entrants to offer a superior service. 

It also doesn’t need to be upgraded for many years, and when it comes to the business case for fiber, it pays to take a long-term view. Fiber optic cable has a shelf-life of 75 or more years, and even as one increases the speeds running on fiber, that cable can remain the same.  

Notwithstanding these arguments, fiber still comes at a cost, and operators need to carefully manage those costs in order to maximize returns. 

Recent advances in fiber technology allow operators to take a pragmatic approach to their rollouts. In the past, each port on a PON server blade could only deliver one technology. But Multi-PON has multiple modes: only GPON, only XGS-PON or both together. It even has a forward-looking 25G PON mode. 

This allows an operator to easily boost speeds as needed with minimal effort and additional investment. GPON could be the starting point for fiber-to-the-home services, XGS-PON could be added for business services, or even a move to 25G PON for a cluster of rural power users, like factories and modern warehouses – creating a seamless, future-proof upgrade path for operators. 

The decision not to invest in fiber presents a substantial business risk

Alternatively, there’s always the option for a broadband operator to stick with basic broadband in rural areas and not invest in fiber. But that actually presents a business risk, as any competitor that decides to deploy fiber will inevitably carve out a chunk of the customer base for themselves. 

Besides, most operators are not purely profit-driven; they too recognize that prolonging the current situation in underserved communities is not great. High-speed broadband makes areas more attractive for businesses, creating more jobs and stemming population flows from rural to urban centers. 

But rural broadband not only improves lives, but it also decreases the world’s carbon emissions both directly, compared to alternative broadband technologies, and indirectly by enabling online and remote activities that would otherwise involve transportation. These social and economic benefits of fiber are highly regarded by investors and stockholders who have corporate social responsibility high on their agendas. 

With the uber-connected urban world able to adopt every new wave of bandwidth-hungry application – think virtual reality headsets and the metaverse – rural communities are actually going backwards in comparison. The way forward is fiber and XGS-PON. 

Björn Capens is Nokia Fixed Networks European Vice President. Since 2017, Capens has been leading Nokia’s fixed networks business, headquartered in Antwerp, Belgium. He has more than 20 years of experience in the fixed broadband access industry and holds a Master’s degree in Electrical Engineering, Telecommunications, from KU Leuven. 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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Broadband Mapping & Data

FCC Maps Have ‘Misleading’ Satellite Claims, Need Clarity on Challenge Process: Advocacy Group

The commission published the initial draft of its map Friday, unleashing a storm of controversy in the industry circles.

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Photo of Jenna Leventoff from Internet Law & Policy Foundry

WASHINGTON, November 23, 2022 – Advocacy group Public Knowledge alleged in a letter on Tuesday that the Federal Communications Commission’s newly released map includes “misleading” coverage claims of satellite broadband providers and asked the commission to demystify the national broadband map’s bulk challenge process.

The commission published the initial draft of its map Friday, unleashing a storm of controversy in industry circles. While many agree that the map’s granular, location-level model is superior to the previous Form 477–based, census-block model, some worry that much the new map’s data is deeply inaccurate.

“State broadband offices, local communities, and community based organizations have noted a number of inaccuracies in the new broadband maps,” Public Knowledge wrote in its filing, authored by Jenna Leventoff of the advocacy group, and submitted on behalf of her, Harold Feld, and Greg Guice of Public Knowledge.

The group argued the map overestimates the capabilities of satellite broadband. “Satellite broadband, in theory, is capable of serving most locations in the country,” the filing reads. “However, in practice, satellite providers cannot serve the whole country at broadband speeds.”

The NTIA, in its notice of funding opportunity for the BEAD program, classified locations served exclusively by satellites as unserved. In August, the FCC rescinded Starlink’s $885 million grant from the Rural Digital Opportunity Fund, alleging unreliability. Besides private advocates such as think tank TechFreedom, FCC commissioners Nathan Simington and Brendan Carr have criticized the agency’s RDOF flip-flop. Starlink appealed in September.

Problems with the challenge process

Public Knowledge also took issue with the process by which the public can challenge the maps’ accuracy. “Although eager to challenge those inaccuracies,” it wrote, “Many expressed confusion over the bulk challenge process, with one even noting that they did not think it was possible.” The advocacy group also asked the commission to clarify the treatment of submitted speed test data.

The FCC scheduled a webinar on the bulk-challenge process for fixed-availability data for November 30, at 4 p.m. ET.

Regardless of accuracy, the FCC’s data will shape the National Telecommunications and Information Administration’s state-by-state allocations from the $42.5 billion Broadband Equity, Access, and Deployment program, which are scheduled to be announced in June 2023. To ensure challenges are factored into the NTIA’s decision making, the agency has encouraged potential challengers to submit data before January 13, 2023 – less than two months after the map was made available.

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Wireless

GOP Senators Want NTIA to Revisit View That Unlicensed Spectrum Networks Are Not ‘Reliable’

The coalition sent a letter to NTIA head Alan Davidson urging the agency to reconsider the policies outlined in the BEAD NOFO.

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Photo of Sen. Steve Daines, R-Mon., in July 2015, by Joel Kowsky used with permission

WASHINGTON, November 22, 2022 – Led by Montana’s Steve Daines, a coalition of Republican senators on Tuesday urged the head of the National Telecommunications and Information Administration to remove regulatory barriers facing networks that rely entirely on unlicensed spectrum.

In the notice of funding opportunity for the $42.5 billion Broadband Equity, Access, and Deployment program, the NTIA stated that any fully unlicensed networks will not be considered a “reliable broadband network,” and therefore all locations served exclusively by such networks will be classified as unserved.

The coalition, which included Ted Cruz, R-Tex., John Cornyn, R-Texas, and Marsha Blackburn, R-Tenn., sent a letter to NTIA head Alan Davidson urging the agency to reconsider, arguing the NTIA’s BEAD notice was at odds with congressional intent and precedent set by the Federal Communications Commission.

“Broadband is not a one-size-fits all service. Different states, regions, communities and differing terrain will require different solutions. Removing options off the table will result in communities being left behind,” the senators wrote. “Solutions that work in urban areas may not work in rural America where farms and homes can be miles apart. Likewise, what works in flat terrain, may not work well in mountainous areas. It is important that NTIA allow all broadband providers and technology to compete in order to ensure that we finally close the digital divide.”

The senators also expressed concern that the NTIA’s current policy would lead to waste of taxpayer dollars if areas served by otherwise satisfactory unlicensed-only networks are allotted funding for another type of build, such as a fiber deployment.

“This is a great development for [wireless internet service providers], who serve their communities mainly with unlicensed spectrum,” Mike Wendy, director of communications for the wireless-provider trade organization WISPA, said Tuesday. “Instead of fiber-only builds, it would help limited taxpayer resources go further to bring all Americans online.”

Not all industry players are sanguine about the potential of unlicensed spectrum. Gary Bolton, president and CEO of the Fiber Broadband Association and a fervent supporter of fiber-optic broadband, opposed the senators’ stance.

“Senators that are pressing NTIA to include technologies that have been defined as ‘unreliable’ are doing their constituents a huge disservice,” Bolton told Broadband Breakfast Tuesday.

“We have a once in a generation opportunity to get this right,” he added. “Let’s keep broadband about people and ensure that no one is left behind because of their zip code.”

Bolton argued that the NTIA’s BEAD-related policies should facilitate the deployment of long-lasting broadband infrastructure. Bolton also touted fiber as essential to smart grid modernization, public safety, and emerging technologies such as 5G.

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