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Biden’s Infrastructure Participants, Low-Price Broadband Access, U.S. Versus EU On Broadband

Associations want inclusion in infrastructure plan, BroadbandNow report on state of broadband, and report says U.S. leads EU on broadband.

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Photo of Claude Aiken courtesy of the Aspen Institute

April 22, 2021 – The Rural Broadband Association (NTCA) and the Wireless Internet Service Providers Association (WISPA) want to ensure all community-based providers have a seat at Biden’s infrastructure funding table.

In an Thursday op-ed for the Morning Consult, WISPA CEO Claude Aiken and NTCA CEO Shirley Bloomfield said they don’t want Biden’s new infrastructure proposal—the American Jobs Plan—to exclude some members of their organizations simply because they don’t fit the criteria of “broadband networks owned, operated by, or affiliated with local governments, non-profits, and co-operatives.”

“Corporate structure does not dictate the strength of commitment to closing the digital divide,” Aiken and Bloomfield wrote. “We also count among our memberships family-owned companies, sole proprietorships, Tribal internet service providers and other community-based commercial businesses who are today delivering essential services across rural and small-town America.”

Many of the providers in WISPA and NTCA who would be excluded from the infrastructure funding are committed to their communities on delivering broadband service, they wrote. “They have helped to keep us connected, productive and safe during these difficult times. It is hard to fathom what the crisis might have become without them,” they wrote.

“We believe any community-based provider with a proven track record of performance should be eligible for funding regardless of corporate form,” they wrote. “Corporate structure should not matter if your heart and soul has been devoted to bringing essential connectivity to the hardest to reach and serve in America.”

Low-priced broadband access higher, BroadbandNow report says

Access to low-priced broadband has seen a significant increase over the last year, according to BroadbandNow’s first quarter 2021 report on the “State of Broadband in America,” released Wednesday.

“For the first time, more than 3 of 4 of Americans (77 percent) have access to low-priced wired broadband plans compared to 50 percent in our 2020 Q1 report,” the report said.

“The expansion of cost-effective broadband internet to more than three-quarters of the U.S. population is a milestone, yet one we must continue to push further,” said Tyler Cooper, editor-in-chief of BroadbandNow. “Momentum toward closing the digital divide is at an all-time high, and it is clearer than ever that both access and affordability must be addressed.”

Low-priced internet is a plan that costs $60 per month or less, excluding promotional pricing, with a minimum speed of 25 megabits per second (Mbps) download and 3 Mbps upload. That speed threshold matches the Federal Communications Commission’s definition of high-speed broadband.

Other key findings in the report include data that only 31 percent of Americans have access to a low-priced plan that has 100 Mbps download/25 Mbps upload speed, a significant speed increase over the 25/3 Mbps threshold. It also details that 41 percent of Americans have access to symmetrical service of 100 Mbps speed from a wired or fixed wireless provider.

Data for the report comes from “(a) pricing and package data from all 2,000+ U.S. ISPs, (b) publicly available FCC “Form 477” data, (of which the latest public release was December 2020) and (c) updated coverage data voluntarily submitted to us directly from providers,” according to the report.

US Telecom says U.S. leads EU on broadband

In another report released Wednesday, US Telecom says the United States significantly leads the European Union in broadband deployment and adoption.

“The study: US vs. EU Broadband Trends (2012-2019) debunks a persistent myth that the EU’s more intensive framework for broadband regulation has yielded a superior online experience for consumers and ought to be replicated in the United States,” read the US Telecom statement.

According to the report, the U.S. leads the EU by 12 percentage points on deployment for speeds at 30 Mbps, and leads by 25 percent points at speeds higher than 100 Mbps. For adoption, the U.S. leads by 9 percentage points at 30 Mbps and by 21 percentage points at speeds higher than 100 Mbps, the report said. In rural areas the U.S. leads by 20 percentage points at 30 Mbps.

The report also details investment costs by broadband providers, saying that the U.S. invests three times more than the EU per household, or approximately $700 per home per year. And American consumers “enjoy twice the facilities-based competition as their EU counterparts.”

“It’s no contest. If the U.S. had followed the EU’s more regulatory broadband path, our digital divide would be substantially bigger and our shared networks considerably less prepared for the traffic demands of the pandemic and our increasingly connected economy,” US Telecom CEO Jonathan Spalter said in a statement.

Reporter Tim White studied communication and political science at the University of Utah, and previously worked on Capitol Hill for a member of Congress. A native of Salt Lake City, he escapes to the Pacific Northwest as often as he can. He is passionate about politics, Star Wars, and breakfast cereal.

Broadband Roundup

House Passes Ban on Chinese Equipment, 3.45 GHz Auction Reaches Reserve Price, Against a ‘Wi-Fi Tax’

Bipartisan Senate bill clears the House, FCC auction prices climb higher, tech groups oppose newly proposed fee

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Sen. Marco Rubio, R-Florids

October 22, 2021—The House of Representatives passed the Secure Equipment Act of 2021 on Wednesday, with a goal of mitigating perceived national security threats from equipment manufacturers, particularly Chinese companies.

The bill would require the Federal Communications Commission issue rules prohibiting new equipment licenses to potentially dangerous companies on the agency’s “Covered Equipment or Services List.”

Sens. Ed Markey, D-Mass., and Marco Rubio, R-Fla., initially introduced the act before its passage in the Senate. The House version of the bill was introduced by Reps. Anna Eshoo, D-Calif., and Steve Scalise, R-Louisiana.

Chinese state-backed firms Huawei and ZTE are among the companies included in the FCC’s list of technology companies that the agency has deemed a national security threat. The agency was required by the Secure and Trusted Communications Networks Act of 2019 to detail which companies it believes to pose a severe threat to U.S. safety.

The new measure would make it impossible for U.S. telecommunications carriers to continue using equipment from companies deemed threats by the FCC if that equipment was purchased with private or non-federal government dollars. That practice was previously allowed, even those using such equipment with federal funds had already been effectively banned.

FCC 3.45 GHz auction proceeds reach reserve price

The 3.45 GHz auction at the FCC hit the agency’s reserve price of $14.77 billion Wednesday.

Many doubts existed about whether the auction would not hit the reserve price and become the first to do so in the FCC’s history.

Should this auction follow the same progression as this year’s C Band auction, it is possible proceeds could reach $20 billion. Current proceeds total $16.43 billion.

Success of the auction would come as a large relief to AT&T, which is projected to be the auction’s largest spender ahead of T-Mobile and Dish.

Analysts at New Street Research stated that they believe it is likely that the auction will meet the reserve price and that the actions of the Department of Defense will serve as a strong indicator of the auction’s success because it uses the mid-band spectrum that is most sought after by carriers.

CCIA opposes a proposed ‘Wi-Fi tax’

The Computer & Communications Industry Association on Thursday in submitting comments to the FCC on Thursday in opposition to a proposal that would charge regulatory fees to users of unlicensed spectrum.

The CCIA was joined in its opposition by the Internet Association, Digital Media Association and Incompas.

The organizations said that the FCC’s proposed fees would “effectively result in something like a Wi-Fi tax.”

CCIA said that the proposal would be “unworkable to implement” and that it exceeds the legal authority and mission of the FCC. Further, they state it would also harm innovators who use unlicensed spectrum to create services for consumers.

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Broadband Roundup

‘Squid Game’ Exposes Traffic Problem, Virginia’s $2B Broadband Investment, West Virginia Mapping

Netflix hit’s traffic struggle, Virginia expects $2B from P3, op-ed says FCC expects states to get good maps before FCC.

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Netflix CEO Reed Hastings

October 20, 2021––A South Korean broadband company is suing Netflix to cover the cost of the surge in traffic from its hit television show “Squid Game.”

The show, which according to Netflix has more than 100 million streams, became a global hit last month.

The Financial Times reports that SK Broadband, owned by SK Telecom, South Korea’s largest mobile operator, argues that streaming platforms should pay for the congestion on its networks.

The company said that the traffic Netflix generated on its network increased to 1.2 trillion bits of data processing per second since September, an increase that’s equal to 24 times the company’s normal traffic over three years. The company said its network had to be upgraded twice to accommodate the traffic surge caused by customers streaming the show on Netflix.

Local law in South Korea requires the companies with more than 1 million users and using more than 1 percent of total network traffic to pay internet fees to distribute the maintenance costs incurred by broadband providers.

Netflix accounted for almost 5 percent of internet traffic in the fourth quarter and had more than 1.7 million paid subscribers. SK Broadband argues that Netflix must pay more in network usage fees.

Virginia announces $2 billion public-private broadband partnership

Virginia Governor Ralph Northam said Tuesday that the state expects more than $2 billion in funding for high-speed broadband investments after announcing a public-private partnership with local governments and private internet service providers, according to the Richmond Times-Dispatch.

Northam announced that the state received requests to fund 57 projects to expand broadband across 84 localities across Virginia, totaling $943 million in grants. It would be matched by $1.15 billion in private and local government funds.

“Broadband is as critical today as electricity was in the last century,” said Northam. “Making sure more Virginians can get access to it has been a priority since I took office, and the pandemic has pushed us all to move even faster.

“Virginia is now on track to achieve universal broadband by [2024], which means more connections, more investments, more online learning and expanded telehealth options, especially in rural Virginia,” he said.

Northam and the Virginia general assembly appropriate $700 million of the $4.3 billion that Virginia received under the federal emergency aid package to accelerate Virginia’s universal broadband coverage goal. The expected completion has been moved up from 2028 to 2024.

The plan is expected to bring internet access to more than 250,000 homes and businesses.

The state is using federal emergency aid from the American Rescue Plan Act to close the digital divide in Virginia.

Op-Ed: West Virginia being asked to produce quality broadband maps before FCC

Advocates for more accurate maps say that the federal government is hypocritical in asking West Virginia for more accurate maps than the Federal Communications Commission can produce.

“The state is being asked to produce accurate maps, which the federal government knows full well its own agency did not produce” for the state the invest millions of dollars in federal American Rescue Plan funding for broadband expansion, writes a Wednesday op-ed in the Weirton Daily Times.

The FCC has been under fire for flaws in its broadband mapping data, which was relied upon to produce winners for the Rural Digital Opportunity Fund, which forced the commission to clean-up the result of the reverse auction after finding that some of the money would go toward wasteful spending.

West Virginia’s effort to expand broadband is led by the state Department of Economic Development. State Economic Development Secretary Mitch Carmichael said that if self-reported maps show no service in an area “you can bet your life there’s no service there.”

“There’s a lot more at stake as the department works to get these maps right. It is no exaggeration to say that the future of education and employment in West Virginia is riding on it,” said the Times. “Good luck, then, to Carmichael and his department as they work to clean up yet another federal government mess that has left the Mountain State struggling for too long.”

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Broadband Roundup

New Senate Antitrust Bill Reaction, Charter Making Executive Changes, T-Mobile, Verizon Top Charts

Trade association doesn’t like new antitrust bill, Charter makes changes at the top, T-Mobile leads wireless, Verizon on wireline.

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Chuck Grassley, R-Iowa.

October 19, 2021 – A Senate antitrust bill introduced Monday that would empower the Federal Trade Commission to further regulate technology companies will harm start ups and small business, according to the Consumer Technology Association.

The trade association, which represents companies across the tech sector, said the American Innovation and Consumer Choice Act – introduced by Sens. Amy Klobuchar, D-Minnesota, and Chuck Grassley, R-Iowa – will “cause irreparable harm to small businesses and startups and put U.S. companies at a competitive disadvantage against China and other nations eager to overtake our country as global tech leader.”

The bill would prohibit “dominant platforms” from favoring their own products and services to the detriment of competition, stop conduct that is harmful to small businesses including preventing interoperability with big platforms, requiring payment to receive preferential treatment on the big platform, bias search results, and misuse business data to compete against the small companies.

Amazon, for example, was accused of having taken the information of products of smaller companies on its platforms to create their own competing products.

According to the release, the bill received the support of at least 10 other Senators across party lines and companies including Spotify and Roku.

But the CCA said the bill, in empowering the FTC, would allow it to “ignore the consumer welfare standard, while imposing massive fines with minimal due process.

“Further, the bill will take away features and functions that millions of Americans love and use in their everyday lives,” the CCA statement said. “Say goodbye to Amazon Prime free shipping, Google maps in search results, preinstalled iPhone apps and many more.”

The House already has before it six antitrust bills that are awaiting votes.

Charter makes executive changes

Charter announced Tuesday that it is promoting chief financial officer Chris Winfrey to chief operating officer and Jessica Fischer will move from executive vice president to the COO position.

John Bickham will be vice chairman before he retired at the end of 2022, the company also announced in a press release, while chief product and technology officer Rich DiGeronimo will oversee the company’s network operations as an additional responsibility.

“I have worked with John for three decades and at every turn, his knowledge, leadership and steady hand have not only contributed greatly to the success of the companies we led, but made a profound impact on the growth of our industry,” said CEO Tom Rutledge. “I am grateful that John will continue to serve Charter in this new capacity as a strategic advisor to me and the executive team, and his guidance will help ensure a successful transition for Chris into the COO role.”

T-Mobile gets top billing for wireless, Verizon for wireline

According to an Ookla report Monday, T-Mobile ranked as the fastest mobile operator in the country in the third quarter with a median download speed of 62.35 Megabits per second, as Verizon took home the top rank for wireline download speeds at 178.38 Mbps.

For wireless, AT&T was second in speed at 47.42 Mbps, followed by Verizon at 39.91 Mbps. T-Mobile also ranked first in 5G performance with a median speed of 135.17 Mbps, followed by Verizon at 78.94 Mbps and then AT&T at 72.46 Mbps. T-Mobile was also top in 5G availability with 64.4 percent, with AT&T second at 44.8 percent and Verizon third at 34.3 percent.

T-Mobile completed its merger with Sprint last year. It proposed that the combined entity was the only way the companies could compete against the top players and offer a competitive 5G product.

On the wireline side, Cox was second to Verizon on download speed at 168.56 Mbps, followed by Comcast’s Xfinity at 161.87 percent, Spectrum fourth at 143.57 Mbps, AT&T Internet at 132.48 Mbps, and CenturyLink at 59.80 Mbps.

New Jersey had the fastest median download speed on wireline at 158.19 Mbps, followed by New York at 147.46 Mbps, California at 142.56 Mbps, Florida at 141.88 Mbps, and Texas at 140.15 Mbps.

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