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Experts Weigh What Future Of Broadband Could Look Like Under Biden’s Infrastructure Plan

Experts at the Broadband Breakfast Live Online event debated what “future-proofing” broadband would look like.

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April 8, 2021 – Experts in Wednesday’s Broadband Breakfast Live Online event debated what “future-proofing” broadband could look like and whether President Joe Biden’s infrastructure plan can achieve it.

The White House’s new “American Jobs Plan” looks to fund $100 billion for broadband infrastructure in addition to other areas, and part of that plan “prioritizes building ‘future proof’ broadband infrastructure in unserved and underserved areas so that we finally reach 100 percent high-speed broadband coverage,” said a White House statement.

Carri Bennet, general counsel for the Rural Wireless Association, said at Wednesday’s event that fiber is essential for all types of networks. “We do mobile wireless, we do fixed wireless, we use all sorts of spectrum in our toolkit, and all of these wireless networks are connected to fiber at some point, somewhere,” she said.

But Bennet also said there are exciting developments for wireless that is not specifically fiber. “There are a lot of exciting things going on in the wireless world right now that could future-proof networks,” she said. “That’s using software and virtualized networks so that you don’t have to change out hardware on antennas on towers anymore.”

Open radio access networks (Open RAN) are such systems, which use open protocol wireless technologies that prevent the industry from relying on proprietary supplies generated by few companies. Bennet said open RAN is showing promise.

Sen. Mark Warner, D-Virginia, led a bipartisan effort Tuesday requesting $3 billion in Open RAN technology funding for the Biden administration’s annual budget request.

Doug Brake, director of broadband policy at the think tank Information Technology and Innovation Foundation, said Wednesday he believes the policy needs to technology neutral.

Legislation should be flexible to allow the best solutions for an area that are needed, he said. When ‘future proofing’ comes up, he said he is worried that fiber and cable become the focus. While fiber is really important to getting many unserved areas connected, we shouldn’t lock ourselves into a single tool — we want the flexibility to solve the problem as its needed, he said.

Municipal versus private broadband

Brake also expressed concern that Biden’s plan would prioritize funds for local municipal and co-op broadband.

“We really need to leverage our private providers, particularly private providers that have large economies that scale,” he said. While municipalities and co-ops are great at filling needed gaps, “they don’t scale well outside the jurisdiction, they don’t invest in [research and development] to develop new access technologies; they don’t contribute to standards,” he said.

But Gary Bolton, CEO of the Fiber Broadband Association, said Wednesday that, “We’ve seen first-hand the significant benefits and significant economic impact that fiber has when it’s deployed in communities,”. He referenced Chattanooga, Tennessee, the first city in America where gigabit-speed internet was offered in 2010. The city developed a municipally-owned fiber network that, according to a 2020 study by Bento Lobo at the University of Tennessee at Chattanooga, saw considerable return over the 10 years since its deployment.

“Fiber also delivers remote healthcare, online learning, public safety and provides a path for future services like 5G,” Bolton said.

On broadband affordability

Affordability is another piece of the broadband puzzle, and Biden’s proposal also seeks to address long-term cost issues. In a statement, the White House acknowledged the need for some short-term subsidies, but said that “continually providing subsidies to cover the cost of overpriced internet service is not the right long-term solution for consumers or taxpayers.”

Everyone needs to be able to afford broadband, Matt Wood, vice president of policy and general counsel at the advocacy organization Free Press, said Wednesday. “We want to talk about affordability and adoption, and we’ve done that in the mapping context, we’ve done it here, and I think that’s why this plan is so exciting to us,” he said.

Funding programs like the Emergency Broadband Benefit, and the focus on affordability and adoption in Rep. Jim Clyburn’s bill and the LIFT America Act are key, he said. This is not one of those, “if you build it, they will come” situations, he said. Building “fabulous networks” in rural and urban areas that people can’t afford to use should not be the infrastructure goal, he said.

Bolton expressed support for Biden’s proposal to address long-term affordability issues, but he wants to see funding done well. “It pains me to see so much precious stimulus money going to subsidize ridiculously expensive, poor-performing broadband such as satellite in rural areas,” he said.

The details of the American Jobs Plan are still being developed, and the White House is discussing those details with a variety of members of the broadband industry, according to Bolton.

Our Broadband Breakfast Live Online events take place every Wednesday at 12 Noon ET. You can watch the April 7, 2021, event on this page. You can also PARTICIPATE in the current Broadband Breakfast Live Online event. REGISTER HERE.

Wednesday, April 7, 2021, 12 Noon ET — “Billions and Billions: How to Spend Broadband Infrastructure”

On the heels of the Biden Administration’s unveiling of the American Jobs Plan, Broadband Breakfast will convene a special Broadband Breakfast Live Online event to take the pulse of the broadband industry on the core components of the administration plan:

  • Build high-speed broadband infrastructure to reach 100 percent coverage. The administration’s plan prioritizes building “future proof” broadband infrastructure in unserved and underserved areas so that we finally reach 100 percent high-speed broadband coverage.
  • Promote transparency and competition. President Biden’s plan will promote price transparency and competition among internet providers, including by lifting barriers that prevent municipally-owned or affiliated providers and rural electric co-ops from competing on an even playing field with private providers, and requiring internet providers to clearly disclose the prices they charge.
  • Reduce the cost of broadband internet service and promote more widespread adoption.

This measure is expected to allocate $100 billion for broadband infrastructure and adoption. This panel will consider and discuss the broadband parameters of the Biden plan.

Panelists:

  • Doug Brake, Director of Broadband and Spectrum Policy, Information Technology and Innovation Foundation (ITIF)
  • Gary Bolton, President and CEO, the Fiber Broadband Association (FBA)
  • Matt Wood, Vice President of Policy and General Counsel, Free Press
  • Carri Bennet, Partner at Womble Bond Dickinson (US) LLP
  • Drew Clark (moderator), Editor and Publisher, Broadband Breakfast

Doug Brake directs the Information Technology and Innovation Foundation’s work on broadband and spectrum policy. He writes extensively and speaks frequently to lawmakers, the news media, and other influential audiences on topics such as next-generation wireless, rural broadband infrastructure, and network neutrality. Brake is a recognized broadband policy expert, having testified numerous times before Congress, state legislatures, and regulatory commissions, as well as serving on the FCC’s Broadband Deployment Advisory Group.

Gary Bolton serves as president and CEO of the Fiber Broadband Association — the largest trade association in the Americas dedicated to all-fiber-optic broadband. With more than three decades in the telecom industry, Bolton joined the Fiber Broadband Association as president and CEO in 2020 after serving on the association’s board as vice chairman, treasurer and vice chairs of public policy and marketing committees. Prior to taking the leadership role at the Fiber Broadband Association, he spent 11 years at ADTRAN serving as vice president of global marketing and government affairs.

Matt Wood currently serves as Vice President of Policy and General Counsel at Free Press, where he helps shape the policy team’s efforts to protect the open internet, prevent media concentration, promote affordable broadband deployment and safeguard press freedom. Before joining Free Press, he worked at the public interest law firm Media Access Project and in the communications practice groups of two private law firms in Washington, D.C. He has also served as an expert witness before Congress on multiple occasions.

Carri Bennet is an outspoken advocate for small rural carriers, having battled with regulators and large companies for more than 30 years to ensure that small rural businesses have a seat at the table and a strong voice in Washington, DC.  Bennet launched her own successful boutique communications and technology law firm prior to joining Womble Bond Dickinson in its Washington, DC office, and she also serves as outside counsel for the Rural Wireless Association and earlier as General Counsel and de facto chief operating officer of an international wireless carrier.  She represents her clients before the FCC, state regulatory agencies, the courts and Congress, and she regularly testifies before the FCC, Congress and the courts on rural wireless issues and speaks regularly at industry trade shows and legal seminars on cybersecurity, data privacy, spectrum policy, universal service funding reform, and business development and strategy issues for communications and technology companies.

WATCH HERE, or on YouTubeTwitter and Facebook

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTubeTwitter and Facebook

See a complete list of upcoming and past Broadband Breakfast Live Online events.

Open Access

Financing Mechanisms for Community Broadband, Panel 3 at Digital Infrastructure Investment

Panel 3 video. Join the Broadband Breakfast Club to watch the full-length videos from Digital Infrastructure Investment.

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Video from Panel 3 at Digital Infrastructure Investment: Kim McKinley, Chief Marketing Officer, UTOPIA Fiber, Jeff Christensen, President & CEO, EntryPoint Networks, Jane Coffin, Chief Community Officer, Connect Humanity, Robert Wack, former Westminster Common Council President and leader of the Open Access Citywide Fiber Network Initiative, and moderated by Christopher Mitchell, Director, Community Broadband Networks, Institute for Local Self-Reliance

For a free article summarizing the event, see Communities Need Governance Seat on Broadband Builds, Conference Hears: Communities need to be involved in decision-making when it comes to broadband builds, Broadband Breakfast, November 17, 2022

Access Premium content for Broadband Breakfast Club members. Login to your account below. Or visit Broadband Breakfast Club to signup.

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Fiber Providers Need to Go Beyond Speed for Differentiation, Consultant Says

40 percent are unsure of their home internet speeds, said Jonathan Chaplin of New Street Research.

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Photo of Jonathan Chaplin, managing partner at New Street Research

WASHINGTON, November 9, 2022 – Despite fiber’s fast broadband speeds, providers must innovate and offer other benefits – like content bundling – to maintain market share as customers increasingly make purchasing decisions based on non-speed factors, argued Jonathan Chaplin, managing partner at New Street Research, a telecommunications and technology research firm.

“Our message to the cable industry is: Stop marketing on speed, put everybody on the gigabit tier, and start differentiating on everything else,” Chaplin said at a Fiber Broadband Association event Wednesday.

Chaplin also urged fiber providers to prepare to enter the wireless market, saying that wireless and broadband will soon “converge into one marketplace.

“It’s not a major differentiator or driver of consumers’ decisions today, but you need to start working on this as a product category to be ready for it by the time it [is],” he added.

And raw speed won’t be enough to attract customers, Chaplin argued. Although consumers say speed and price are the two top factors when considering internet plans, he said, his research shows that 40 percent are unsure of their home internet speeds.

Typical speeds have greatly increased in recent years, and Chaplin said faster service provides no perceptible benefit to most customers once certain speeds are reached. According to his data, “Increases in speed (above 200 Mbps) really have no impact on the satisfaction of a household with their broadband provider.”

Fixed-wireless uptake shows speed isn’t always king

The rise of fixed-wireless providers, who usually don’t advertise on speed, further demonstrates that consumers are willing to make purchase decisions on other factors, Chaplin argued. In fact, his research shows that many new fixed-wireless customers did not make the switch due to speed complaints.

“If you’re in the fiber business, you’re in a strong position. You’ve got a product that wins in the market today, but you cannot afford to be complacent,” Chaplin said. “The battleground for consumers is going to shift and you need to be ready for shift when it comes,” he added.

The Federal Communications Commission is considering a proposal to mandate “broadband nutrition labels,” which proponents say would help consumers understand the details of their internet plans. Researchers at the TPRC 2022 conference in September suggested that such labels should include “interpretive” data to explain the real-world implications of technical metrics. TPRC speakers also echoed Chaplin’s claim increased speeds do not necessarily correlate with higher customer satisfaction rates.

Industry players differ on substantive policy points surrounding the proposal, however, including whether labels should be mandatorily included on month internet bills.

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Fiber

COVID Funds Ensuring NTIA Broadband Infrastructure Funding Adequate: Conexon Executive

‘The way you close the digital divide is you build fiber to every single rural home,’ Jonathan Chambers said.

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Photo of Jonathan Chambers, partner at Conexon

WASHINGTON, October 17, 2022 – Millions of dollars from the American Rescue Plan Act, which are currently being deployed by states to extend broadband networks, is helping ensure that new broadband money allocated from the Infrastructure, Investment and Jobs Act will be sufficient to extend fiber to all homes in America, said a telecom executive on a Fiber Broadband Association web event Wednesday.

Since many states are using ARPA funding to deploy new networks, fewer than ten million locations will “be left for BEAD after ARPA,” said Jonathan Chambers, partner at rural internet service provider co-op Conexon, referring to the $42.5 billion Broadband Equity, Access, and Deployment program of the National Telecommunications and Information Administration.

Since the American Rescue Plan became law in March 2021, federal programs – including the Capital Projects Fund and the Emergency Connectivity Program – and state governments have put tens of billions of ARPA-appropriated dollars towards broadband various projects.

Chambers, whose company builds fiber networks and works primarily with rural electric cooperatives, said he wants to refute the arguments of fiber skeptics by going “to the hardest-to-serve, poorest places in the country and demonstrate you can build fiber there,” saying the company is working to build a fiber network to every home and business in East Carrol Parish, Louisiana.

An argument against fiber builds in rural areas has been the expense required to do so.

The BEAD program will dispense block grants to the states based on relative need. States will issue subgrants for broadband infrastructure and other projects. Pro-fiber advocates like Chambers and FBA President Gary Bolton support using these funds primarily for fiber deployments.

“The way you close the digital divide is you build fiber to every single rural home,” Chambers said.

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