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House Majority Whip James Clyburn Calls for Closing Broadband’s Rural Digital Divide

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Screenshot of House Majority Whip James Clyburn from the webcast

June 30, 2020 — “Broadband has got to be the order of the day, going forward,” said Rep. James Clyburn, D-S.C., during a Tuesday webinar hosted by the Northern Virginia Technology Council.

The webinar centered on the leadership Clyburn has exhibited in a slew of arenas, particularly, technology policy.

Clyburn has been a leading voice in Congress on making high-speed internet accessible and affordable to all Americans.

Growing up in Sumter, South Carolina, Clyburn saw first-hand the impact the digital divide has on rural Americans.

He recalled an early memory of taking the South Carolina caucus to visit technology headquarters in Silicon Valley, stating that he “wanted them to get in tune with what I knew we were heading for.”

The greatest demand of the present day is having broadband in every home, which will effectively revolutionize education, health and energy, Clyburn said.

In a letter written June 1, Clyburn was joined by the entire South Carolina congressional delegation in calling on House Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Mitch McConnell, R-Ky., House Minority Leader Kevin McCarthy, R-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., to include vigorous measures to invest in the expansion of affordable, high-speed internet access in any upcoming stimulus package aimed at addressing the COVID-19 pandemic.

In April, Pelosi appointed Clyburn chairman of the Select Subcommittee of the Coronavirus Crisis, which was dedicated to oversight of the $2 trillion Coronavirus Aid, Relief, Economic Security (CARES) Act.

The CARES Act allocated $100 million of federal funds to specifically helping rural communities connect to broadband, among funding other connectivity initiatives.

Clyburn referred to the pandemic as a benefit in the sense that it was instructive. It exposed fault lines in education, energy conservation and digital equity, he said.

A firm believer in telehealth, distance learning and telework initiatives, he stated that “we must use technology to penetrate rural communities in this country.”

On June 24, Clyburn was joined by members of the House Rural Broadband Task Force, a task force he created just over a year ago to provide coordination on ending the rural-digital divide, to introduce the Accessible, Affordable Internet for All Act.

Clyburn’s act is just one of many in the House Democrats’ proposed $1.5 trillion infrastructure bill, the Moving Forward Act.

The act would reserve $100 billion in federal funding to be used to build high-speed broadband infrastructure in unserved and underserved communities.

Energy and Commerce Committee Chairman Frank Pallone, D-N.J., spoke in support of the bill set to be presented on the House Floor.

“The pandemic has starkly demonstrated the need to ensure families all across the nation have access to high-speed internet,” he said Tuesday. “The Moving Forward Act provides over $100 billion to fund broadband-related programs, which will get us to 100 percent internet coverage.”

“This legislation provides $5 billion for mobile hotspots and connected devices to make sure students who don’t have access to these resources at home can effectively engage with remote learning,” Pallone added.

“We’re voting on an amount tomorrow, or the next day,” Clyburn said, “and we may not get it all this year.”

What is more important than the amount settled on is whether or not Congress responds efficiently, effectively and equitably, Clyburn said.

Former Assistant Editor Jericho Casper graduated from the University of Virginia studying media policy. She grew up in Newport News in an area heavily impacted by the digital divide. She has a passion for universal access and a vendetta against anyone who stands in the way of her getting better broadband. She is now Associate Broadband Researcher at the Institute for Local Self Reliance's Community Broadband Network Initiative.

Universal Service

Advocates Call for Universal Service Fund to Include Broadband Revenues

Letter cites Carol Mattey report, which recommends broadening the base.

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Carol Mattey of Mattey Consulting LLC

WASHINGTON, November 29, 2021 – A broad swath of organizations on Monday is calling for policymakers in Washington to reform and stabilize the Universal Service Fund by broadening its funding base to include broadband revenues.

The Universal Service Fund, which supplies the nation’s low-income and rural and remote communities with basic telecommunications services, currently relies on voice service revenues, which has been a dwindling for years. Debate has emerged about how the fund can be stabilized, with some asking for the money to come from a congressional budget item and others asking for it to come from broadband revenues.

The latter is being recommended by over 254 organizations, including public interest groups, anchor institutions, trade associations and broadband service providers, in a Monday call to action letter to policymakers in Washington. The letter cites a September report by Carol Mattey, a former deputy chief of the Federal Communications Commission, which said broadband revenues should be incorporated into the USF base of money to draw upon.

“Unfortunately, this universal service system is in danger of collapse because the mechanism that funds it has not been updated since it was adopted nearly 25 years ago,” the letter said. The USF program is a relic from 1997 and a product of the Telecommunications Act of 1996.

The letter features organizations including Public Knowledge, the Schools, Health and Libraries Broadband Coalition, Gigabit Libraries Network, California Emerging Technology Fund, and a number of telecoms and telecom associations and anchor institutions from over a dozen states.

The contribution percent – the percent providers must pay of their voice revenues – has reached an all-time high in the second quarter this year, at 33.4 percent in the second quarter this year, and decreased slightly after that. Mattey and the signatories, however, warn that the contribution could soar as high as 40 percent in the coming years, as the fund operates at around $10 billion annually.

Citing the Mattey report, the letter suggests that including broadband revenues into the fund would reduce the USF fee to less than 4 percent, adding it would not stunt broadband adoption or retention, as fees are often passed down to customers.

“Our recommendation would reduce regulatory uncertainty, would better reflect evolving uses of services, would be straightforward to administer, and would be more equitable and nondiscriminatory for residential and business consumers than the current system,” the letter said.

“Moreover, the Federal Communications Commission could make this change under its existing authority without requiring new legislation,” the letter added, as Mattey and Greg Guice, Public Knowledge director of government affairs, said at a conference recently.

FCC Commissioner Brendan Carr suggested earlier this year that Big Tech companies like Google, Apple, and Facebook should contribute to the fund because they benefit from broadband services. FCC Chairwoman Jessica Rosenworcel called the idea “intriguing,” while FCC Commissioner Nathan Simington also raised the idea at an event in September.

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Universal Service

Experts Urge FCC Unilaterally Broaden Revenue Base of Universal Service Fund

Consultants say the Federal Communications Commission has the authority to do so.

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Carol Mattey and Greg Guice at INCOMPAS event on October 25.

WASHINGTON, November 3, 2021 – Telecommunications experts are recommending that the Federal Communications Commission unilaterally expand the revenue base of the Universal Service Fund to include broadband revenues, rather than waiting on Congress to do so.

Advocates such as Public Knowledge Director of Government Affairs Greg Guice cite congressional infighting over the bipartisan infrastructure bill as an example of inefficiency in the legislature that would stall the passage of urgent reform for the USF, a fund that helps deliver basic telecommunications services to low-income Americans and those in remote regions.

Telecommunications policy experts said at the INCOMPAS Show in Las Vegas October 25, on which Guice was a panelist, that it is essential that the USF force broadband revenues into the pool of funds, as the fund’s overreliance on voice revenues – even as those revenues decline – is putting a strain on the programs.

Guice and Carol Mattey, principal of Mattey Consulting LLC and former deputy chief of the FCC, told Broadband Breakfast Tuesday that the agency has the jurisdiction to broaden the base of the contribution to the USF under the Telecommunications Act of 1996 if it is in the public interest.

“My view is the FCC has the statutory authority to assess broadband internet access service,” said Mattey in an email. “Under existing law — specifically, section 254(d) of the Telecommunications Act of 1996 —  the FCC has the statutory authority to require any ‘providers of interstate telecommunications’ to contribute to the universal service fund if the public interest warrants.

“The FCC has classified broadband internet access service as an information service,” she added. “Under the ’96 Act, the definition of an information service is a service that offers the capability to generate, acquire, store, transform, etc. etc. information ‘via telecommunications.’”

Recommendations for reform

Mattey published a report in September that laid out the case for the fund to be expanded to incorporate a broadband range of money sources, including broadband.

And there has been no shortage of recommendations to help the fund prosper. Earlier this year, a panel of experts debated the merits of having Congress wholly assume contributions to the fund from general tax dollars, while others suggested that recommendation would destabilize the fund because it would swing with the political winds. Those people, instead, focused on simply broadening the base to include other sources, including broadband.

More recently, FCC Commissioner Brendan Carr penned an op-ed in Newsweek recommending the fund include contributions from Big Tech because that industry benefits from broadband. It was a suggestion that FCC Chairwoman Jessica Rosenworcel called “intriguing.”

But while Guice and Mattey argue for the FCC to step in and make changes unilaterally, in a one-on-one interview with the Internet Innovation Alliance in September, FCC Commissioner Nathan Simington – in pontificating about Carr’s recommendation for Big Tech contributions – said he didn’t want to get ahead of Congress on the matter, suggesting a wait and see approach.

USF in need of change

Over the last two decades, the USF has seen the revenues subject to its assessment decline by 63%. This money goes to support four main programs: high cost support for rural areas, Lifeline for low income areas, the E-rate program for schools and libraries as well as a rural healthcare support program.

This year, the contribution percentage relative to revenues hit an all time high.

The panel at the INCOMPAS show pinpointed the major factor behind declining USF revenues as decreases in mobile service revenues due to providers setting lower mobile rates. These decreases come despite continual increases in communications revenues overall.

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Funding

FCC Announces $163 Million in Second Round of Approved RDOF Funding

The agency is reevaluating winning bids after asking providers to ensure census blocks aren’t already served.

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Acting FCC Chairwoman Jessica Rosenworcel

WASHINGTON, October 7, 2021 – The Federal Communications Commission announced Thursday another approved round of funding from the $9.2-billion Rural Digital Opportunity Fund.

The $163 million in approved money will go to 42 providers who will drive fiber to the home for gigabit services covering 65,000 locations in 21 states over the next ten years, the FCC said Thursday.

“More help is on the way to households without broadband,” said FCC Acting Chairwoman Jessica Rosenworcel in a press release Thursday. “This is an important program for getting more Americans connected to high-speed internet, and we are continuing careful oversight of this process to ensure that providers meet their obligations to deploy in areas that need it.”

The FCC in July asked that providers conduct an assessment in areas for which they won money from the fund in December, because complaints emerged that the approved areas were already served with adequate connectivity.

The commission said 85 bidders chose not to pursue their bids in 5,089 census blocks because those areas were either served or could be wasted. Some attributed their enlightenment to updated FCC maps based on Form 477 data, an often criticized form of data collection that is reliant on service provider data.

The last round of approved money was last month, when the FCC approved a further 13 bidders.

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