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Industry Groups and Non Profit Advocates Offer Encouraging Words about House Energy and Commerce Broadband Measure

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BROADBAND BREAKFAST INSIGHT: Telecommunications industry and advocacy organizations on Wednesday and Thursday reacted to the introduction of the LIFT America Act, H.R. 2741, which stands for Leading Infrastructure for Tomorrow’s America Act, by House Energy and Commerce Committee Chairman Frank Pallone, R-N.J. The measure includes $40 billion, over five years, to deploy broadband. A hearing on the measure is scheduled for May 22.

Of the measure, US Telecom CEO Jonathan Spalter said, “we need a massive national commitment to improve American infrastructure right now. This includes smart and substantial direct funding mechanisms that allow for faster and more widespread broadband deployment everywhere.”

NCTA – The Internet & Television Association, was more measured in its praise, saying that it “welcomed” the LIFT Act’s “goal of improving our national infrastructure through programs specifically targeted at extending high-speed broadband networks to those communities that are not yet connected. In particular, we appreciate the legislation’s reliance on reverse auctions as an efficient and technologically neutral means of distributing support and its attention to significant disparities in rates for pole attachments that thwart deployment and fair competition.”

Schools, Health and Libraries Broadband Coalition Executive Director John Windhausen said it was positive that the LIFT America Act “granted [anchor institutions’] eligibility for the Broadband Infrastructure Finance and Innovation Program” because of their need for high-capacity bandwidth for education and telehealth services. He added, “The SHLB Coalition would like to work with Congress to give local communities a role in selecting the most appropriate broadband provider. We also hope to avoid using the flawed 477-based maps when identifying unserved and underserved areas, and suggest that the bill accommodate broadband availability information gathered from consumers.”

The Pallone press release follows:

ENERGY & COMMERCE DEMOCRATS INTRODUCE INFRASTRUCTURE PACKAGE AIMED AT COMBATING CLIMATE CHANGE, EXPANDING BROADBAND ACCESS & PROTECTING PUBLIC HEALTH AND THE ENVIRONMENT, from Rep. Frank Pallone:

All 31 Democratic members of the Energy and Commerce Committee today introduced a sweeping infrastructure package, the Leading Infrastructure For Tomorrow’s America Act, or LIFT America Act, that will rebuild America through investments in combating climate change, expanding broadband access and protecting public health and the environment.

Full Committee Chairman Frank Pallone, Jr. also announced that the Full Committee will hold a hearing on the bill on Wednesday, May 22, at 10 am in the John D. Dingell Room, 2123 Rayburn House Office Building. The hearing is entitled, “LIFT America: Modernizing Our Infrastructure for the Future.”

“We cannot wait any longer to act on climate or to modernize our nation’s aging infrastructure. The LIFT America Act makes significant investments in rebuilding our country and takes an important step in combating the climate crisis by moving us towards a clean energy future and reducing our carbon emissions,” said Pallone. “This legislation will strengthen our economy for the future by creating good paying jobs, making critical investments in our nation’s broadband network, and bringing critical improvements to our drinking water and health care infrastructure.”

The LIFT America Act includes investments in several key areas, including:

Action to Combat the Climate Crisis and Protect Our Environment:

  • Over $33 billion for clean energy, including $4 billion to upgrade the U.S. electric grid to accommodate more renewable energy and make it more resilient. It also includes $4 billion for the expansion of renewable energy use, including $2.25 billion for the installation of solar panels in low-income and underserved communities. LIFT America also includes $23 billion for energy efficiency efforts – namely retrofitting and weatherizing buildings, including schools and homes, to ensure they produce fewer carbon emissions – and funding the nationwide deployment of more clean energy fuels.
  • $2.7 billion to spur the development of Smart Communities, including $850 million in technical assistance to help cities and counties integrate clean energy into their redevelopment efforts, and $1.4 billion to support the development of an electric vehicle (EV) charging network.
  • More than $21 billion to protect Americans’ drinking water, including $2.5 billion to establish a new grant program allowing PFAS-affected communities to filter the toxic chemicals out of their water supplies. LIFT America also expands upon the passage of the 2017 Safe Drinking Water Act by extending and increasing authorization for the State Revolving Loan Fund, and other safe water programs.
  • $2.7 billion for Brownfields redevelopment to revitalize communities and create jobs by returning valuable land to productive use.

Expanding Access to Broadband Internet:

  • $40 billion for the deployment of secure and resilient high-speed broadband internet service to expand access for communities nationwide and bring broadband to 98 percent of the country.
  • $12 billion in grants for the implementation of Next Generation 9-1-1 services to make 9-1-1 service more accessible, effective, and resilient, and enable Americans to send text messages, images, or videos to 9-1-1 in times of emergency.
  • $5 billion in federal funding for low-interest financing of broadband infrastructure deployment through a new program that would allow eligible entities to apply for secured loans, lines of credit, or loan guarantees to finance broadband infrastructure build out projects.

Investing in America’s Health Infrastructure:

  • $2 billion in funding to reauthorize the Hill-Burton hospital infrastructure program, including targeted assistance to support cybersecurity in the health system.
  • $1 billion for Indian Health Service infrastructure projects to reduce health disparities in Indian Country.
  • $100 million to support state labs on the frontlines of fighting infectious diseases.
  • $100 million to establish a community-based care infrastructure program and to develop teaching health centers and mental health care centers.
  • $3.5 billion to improve public health infrastructure at the Centers for Disease Control and Prevention (CDC) and at state, local, tribal and territorial health departments.

The LIFT America Act is sponsored by Energy and Commerce Committee members Frank Pallone, Jr. (D-NJ), Bobby Rush (D-IL), Anna Eshoo (D-CA), Eliot Engel (D-NY), Diana DeGette (D-CO), Mike Doyle (D-PA), Jan Schakowsky (D-IL), G.K. Butterfield (D-NC), Doris Matsui (D-CA), Kathy Castor (D-FL), John Sarbanes (D-MD), Jerry McNerney (D-CA), Peter Welch (D-VT), Ben Ray Luján (D-NM), Paul Tonko (D-NY), Yvette Clarke (D-NY), Dave Loebsack (D-IA), Kurt Schrader (D-OR), Joe Kennedy III (D-MA), Tony Cárdenas (D-CA), Raul Ruiz (D-CA), Scott Peters (D-CA), Debbie Dingell (D-MI), Marc Veasey (D-TX), Annie Kuster (D-NH), Robin Kelly (D-IL), Nanette Barragán (D-CA), Donald McEachin (D-VA), Lisa Blunt Rochester (D-DE), Darren Soto (D-FL) and Tom O’Halleran (D-AZ).

A section-by-section of the bill is available HERE, and the text of the bill is available HERE.

Source: E&C Democrats Introduce Infrastructure Package Aimed at Combating Climate Change, Expanding Broadband Access & Protecting Public Health and the Environment | Democrats, Energy and Commerce Committee

(Photo of Chairman Pallone from his web site.)

Open Access

Sweden’s Open Access Fiber Deployment Offers Lessons for U.S. Strategy

The country boasts internet penetration with 98% served with Gigabit symmetrical speeds.

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Photo of COS Systems CEO Mikael Philipsson from the company.

December 6, 2023 – The former CEO of a fiber deployer in Sweden urged the United States Tuesday to be bolder in broadband deployment, reflecting on the Nordic nation’s aggressive buildout of open access fiber networks that now provide 98 percent of the population with access to gigabit download and upload speeds.

COS Systems CEO Mikael Philipsson, and former CEO of GlobalConnect, highlighted at Broadband Breakfast’s Digital Infrastructure Investment Summit Tuesday how Sweden’s gigabit broadband strategy drove an open access “fiber race” in the Nordic nation, from which he said the U.S. can learn.

Philipsson called for U.S. network engineers to “plan for 100 percent,” saying if municipalities start to cherry pick which homes they build to, it will result in a fraction of the population likely never being served.

When GlobalConnect was planning its wholesale fiber network, it built fiber to the smallest, most rural locations first, then invited all ISPs to provide services over the network on equal terms, he said.

The Swedish government’s broadband strategy adopted in 2016 encouraged rapid investment and innovation. The government had several initiatives and strategies to encourage private investment in broadband networks, including subsidies and grants for private investment in rural areas, the promotion of public-private partnerships, and encouraging open access networks.

Today, 60 percent of the Swedish market has adopted internet service that utilizes the open access model, with the other 40 percent choosing a vertically-integrated fiber or cable offering that still relies on a wholesale fiber backbone. Due to consumer demand, even the former incumbent, Telia, adopted the open access model in order to maintain its competitive advantage.

Lessons along the way on the open access path

But there were hard lessons learned along the way, Philipsson said, including labor shortages and permitting issues that caused buildouts to stall for 12 to 15 months at a time.

“It’s going to be more expensive and take a longer time than you think,” warned Philipsson.

Fifteen years earlier, leaders of GlobalConnect were deciding whether to pursue an intensive infrastructure rollout. In what would become a defining moment, the team decided to challenge incumbent providers who at the time owned 99 percent of the physical infrastructure in the country, launching a fiber-to-the-home wholesale network with private backing.

The company’s move kicked off a land grab across Sweden, as infrastructure providers raced to compete for a share of the wholesale fiber market.

“It was a fight on the street to get customers,” recalled Philipsson. “We rolled tractors out on the street as a marker to say ‘We will serve this part of the town.’” Within five years, GlobalConnect had addressed two million households across Sweden with a fiber offering, and built its wholesale network to pass one million homes with a 70 percent take rate.

The positive effects of adopting the wholesale model across Sweden were sweeping for service providers, infrastructure providers, and residents, alike. Service providers with big ambitions were able to launch their services nationally with no capital expenditures, he said. Competition drove providers to become more customer centric, offering differentiated pricing models and expanded offerings to separate themselves, he added.

“Partner up with your former competitors, perhaps,” said Philipsson. “Sharing infrastructure is really the end game for digital infrastructure, just like all the other infrastructures.”

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The High Cost of Fiber is Leading States to Explore Other Technologies

If the state chose to solely install fiber, underserved communities would be left out, said state broadband leaders.

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Photo of Sandeep Taxali of New Mexico, Kaiti Saunders of Verizon, Edyn Rolls of Oklahoma and Brian Newby of North Dakota (left to right)

WASHINGTON, November 17, 2023— The high cost of fiber installation has led states to pursue hybrid fiber models to ensure rural and underserved communities have access to the internet.

Speaking at the U.S. Broadband Summit here on Thursday, state broadband officials expanded on the challenges they face in ensuring broadband deployment.

Sandeep Taxali, broadband program advisor with the New Mexico Office of Broadband Access, said that New Mexico’s $745 million allocation under the Broadband Equity, Access and Deployment program falls short of the $1.3 to 2.5 billion that the state would need for full fiber deployment.

If the state chose to solely install fiber, underserved communities would be left out, he said.

“We want to lead with fiber but we also recognize that advanced fixed wireless and hybrid fixed wireless and fiber and satellite have a seat at the table for the very high cost remote areas where fiber is just going to not allow us to get the mission done,” Taxali said.

Jade Piros, director of Kansas Office of Broadband Development said her state is likely chosing to do 75% fiber model and 25% other technologies. Uncertainty of the cost from broadband providers make it difficult to have a standard cost calculation.

“We have to get everybody connected, and that’s why we require a lot of flexibility in shifting our expectations and the willingness to work closely with providers and be responsive to what they’re telling us,” Piros said.

Edyn Rolls, director of broadband strategy at the Oklahoma Broadband Office, expressed optimism that all of the underserved residents in her state would be reached, despite having what she said was an estimated $500 million shortfall.

“We will find the technologies that are going to be less expensive and achieve the needed model,” Rolls said. “We are trying to reach universal access. That is the goal.”

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In New York City, Sharing Broadband Infrastructure Takes on a New Dimension

Panelists from Stealth Communications and Sidewalk Infrastructure Partners addressed operational and financial broadband

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At VON: Evolution, Drew Clark, Joe Plotkin of Stealth, and David Gilford of Sidewalk Infrastructure Partners (left to right)

NEW YORK, November 6, 2023 – Expanding competitive broadband infrastructure in New York City is challenged by aging conduit access and difficulties attaching fiber lines to utility poles, experts said at a panel discussion here on Thursday.

Register for Digital Infrastructure Investment in Washington on December 5, 2023!

In a discussion called “Building Beyond BEAD,” a reference to the Broadband Equity, Access and Deployment grant program at VON Evolution, a tech and telecom summit, panelists highlighted the critical role of funding for digital infrastructure investment.

Joe Plotkin, business development director for New York fiber provider Stealth Communications, explained how the city’s underground conduit system dates back to the 1880s. This legacy infrastructure helps new entrants like Stealth run fiber by providing conduit access through an established system long occupied by incumbents like Verizon and Altice.

Above ground, pole attachment policies also stymie broadband competition, according to David Gilford, head of policy and strategic partnerships at Sidewalk Infrastructure Partners, a company that builds technology-enabled infrastructure, backed by institutional investors including Alphabet.

Gilford advocated for greater sharing of “scarce” pole real estate among competitive carriers looking to deploy fiber and wireless infrastructure.

Plotkin and Gilford explored these challenges at a panel organized and moderated by Broadband Breakfast CEO Drew Clark at VON Evolution. They examined how private capital can help bridge broadband gaps as an alternative to, or extension beyond, government funding programs like the $42.5 billion BEAD initiative.

While BEAD will expand service to unserved and underserved areas, Plotkin noted it may have limited impact in locations deemed served. He gave the example of old apartment buildings in New York City that lack modern wiring, leaving residents with poor broadband options.

Gilford explained companies like SIP make investments in physical infrastructure like shared radio access networks and other wireless components. But his company does not build the lower-level fiber networks itself, instead partnering with both municipalities and private providers like Stealth.

Plotkin emphasized fiber remains the “gold standard” for reliable, high-capacity broadband versus other technologies like satellite. But innovations are still needed in running fiber the “last 50 feet” into residences and businesses, including affordably wiring older apartment buildings.

The panelists named immersive extended reality environments, two-way video calling, cloud computing and connected vehicles as emerging applications dependent on robust fiber and wireless networks.

Editor’s note: Sidewalk Infrastructure Partners makes investments in physical infrastructure like shared radio access networks and other wireless components, but does not actually invest in fiber routes or cell towers, as was stated in a prior version of this story. Additionally, SIP is not best described as a venture capital spin-off of Google, but as a technology-enabled builder of infrastructure backed by institutional investors including Alphabet. The story has been corrected.

Register for Digital Infrastructure Investment in Washington on December 5, 2023!

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