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State Broadcasters Want FCC to Revisit Regulatory Fee Structure, Expand Payer Base

State broadcasters associations want a proceeding in light of proposed fees it said unduly burdens the industry.

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Acting FCC Chairwoman Jessica Rosenworcel

August 26, 2021 – A coalition of broadcasters want the Federal Communications Commission to revisit how it collects fees used to run the agency and refrain from implementing a proposed fee increase that would see the industry pay 16 percent of the operating costs this year.

In a letter sent to the commission on Wednesday, representatives from the state broadcasters associations said local media continues to struggle as advertisers flock to larger national and international outlets, and that a fee increase this year to compensate for new operating costs stemming from broadband-related legislation it does not benefit from does not square with the law.

The letter notes that the increase in regulatory fees comes largely from the Broadband DATA Act, legislation signed into law last year that requires the FCC to improve the accuracy of broadband maps.

The issue the broadcasters have with this is that they don’t have a connection to the purpose of the legislation and don’t benefit from better mapping, which they say is contrary to the RAY BAUM’s Act. That piece of legislation, which became law in 2018, outlines how the FCC collects its fees, and the broadcasters argue that law requires “regulatory fees be tied to the benefit delivered to the payor.”

In June, the D.C. Circuit Court of Appeals ruled that satellite company Telesat Canada must pay regulatory fees to the FCC despite being a foreign provider simply because Telesat benefits from the commission’s regulations. The court said that there are four categories of those who are excluded from paying regulatory fees, one of them being “non-commercial radio and TV stations.”

The state broadcasters associations noted as much to argue that they shouldn’t have to pay any increasing fees for regulations they don’t benefit from.

Request for proceeding to reevaluate regulatory fee philosophy

The organization said the RAY BAUM’s Act and the D.C. Circuit’s ruling together should instigate changes that would broaden “the universe of payors” and ultimately “reduce the impact of the fees on any one particular industry, like broadcasting, while achieving greater fairness.”

The broadcasters used the example of social media and technology companies that “consume vast amounts of the commission’s time and resources while paying no regulatory fees whatsoever” because they are not FCC licensees.

They noted that despite a proposed fee increase, the broadcasters hold only 0.07 percent of the spectrum regulated by the FCC. Since 2019, at least 122 commercial AM and FM radio stations have gone dark, “demonstrating the increasingly precarious situations many stations face,” the letter said, adding the 16 percent fee on the industry is “unsustainable.”

“It is therefore important for the commission to promptly launch a separate proceeding to commence that effort and ensure a thoughtful process in which all may participate,” the letter said.

Assistant Editor Ahmad Hathout has spent the last half-decade reporting on the Canadian telecommunications and media industries for leading publications. He started the scoop-driven news site downup.io to make Canadian telecom news more accessible and digestible. Follow him on Twitter @ackmet

Broadband Mapping & Data

Sustainability and Scalability are Crucial For State Broadband Projects, Say State Experts

Partnerships for broadband need to emphasize community engagement to improve connectivity

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Photo courtesy Heartland Forward

September 21, 2021—Public-private partnerships for broadband need to emphasize community engagement to improve connectivity in regions that need help, state broadband officials said Tuesday.

Speaking at a “Connecting the Heartland Conference Series,” BroadbandOhio CEO Peter Voderberg highlighted the state’s focus on ensuring student broadband connectivity. He highlighted the $50 million BroadbandOhio Connectivity Grant, for which more than 900 school districts have applied.

Funds could be allocated to subsidize the cost of internet for students without broadband, hotspot service plans, providing improved public Wi-Fi infrastructure, or otherwise improving existing connectivity, he said. Collaborative efforts between school districts and ISPs have been able to bring the overall cost of broadband down for consumers.

Voderberg also described a $250 million Ohio Residential Broadband Expansion Grant to bring internet to areas with connections slower that 25 Megabits per second (Mbps) download and 3 Mbps upload.

This program would subsidize private efforts by compensating ISPs for the difference between the cost of the project and the price it would take to make the effort profitable for them.

Illinois’ early efforts at broadband progress

Matt Schmit, director of the Illinois Broadband Office, pointed to “the three legs of the stool” for broadband expansion: Access, adoption, and utilization.

Illinois’ plans and programs were designed with this three-pronged approach in mind, he said, crediting Democratic Gov. J.B. Pritzker for establishing programs prioritizing broadband two years before the rest of the country is now doing.

Two key aspects of Illinois’ efforts are technology neutrality and a focus on scalability. “[We believe in focusing on] investing in an area and making sure that we have the kind of investment, service, and infrastructure that is going to serve [a] community well into the years ahead.”

In terms of prioritizing which communities and regions get service, Illinois considers any area with services less than 25 x 3 Mbps to be unserved, much like the federal government’s current broadband standard.

However, unlike the federal government, Illinois also has a category for what it considers to be underserved, which is any area below 100 x 20 mpbs. He called the state’s approach a compromise between advocates that have called for a broadband standard of 100 x 100 Mbps or even 1 Gigabit per second (Gbps). On the other hand, he said, are voices that argue against “future-proof” technologies, saying that gigabit speeds are gratuitous.

The most challenging aspect of providing service, however, is simply identifying which areas are served, underserved, or lacking coverage completely, he said.

“We don’t necessarily trust the maps that are out there—even our own,” he said, adding that mapping “is the start of the conversation, not the end of the conversation.”

It will only be through conversations with applicants, communities, and providers that enough data is collected to sufficiently serve the state, “We are investing in a community or investing in an area for the long term,” Schmit continued, “Because what we’re going to invest in is fully scalable for the needs, not only today, but for tomorrow.”

The event was hosted by National Urban League, agribusiness Land O’Lakes, Inc., and Heartland Forward, a think tank focused on rural economic development.

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TPRC Conference to Discuss Definition of Section 230, Broadband, Spectrum and China

Broadband Breakfast briefly breaks down the topics to be discussed at the TPRC conference.

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Photo collage of experts from TPRC

WASHINGTON, September 17, 2021 – The TPRC research conference on communication, information, and internet policy is right around the corner and it is set to address some of the most pressing issues facing Big Tech, the telecom industry, and society at large. We cover some topics you can expect to see covered during the conference on September 22 to 24.

If the recent election cycle and the Covid-19 pandemic have taught us anything, it is that the threat of misinformation and disinformation pose a greater threat than most people could have imagined. Many social media platforms have attempted to provide their own unique content moderation solutions to combat such efforts, but thus far, none of these attempts have satisfied consumers or legislators.

While the left criticizes these companies for not going far enough to curtail harmful speech, the right argues the opposite— that social media has gone too far and censored conservative voices.

All this dissent has landed Section 230 of the Communications Decency Act of 1996—once a staple in the digital landscape—in the crosshairs of both Democrats and Republicans, as companies still scramble to strike a compromise to placate both sides of the aisle.

Definition of broadband

The future of broadband classifications is another topic that will also be touched on during the conference. This topic quickly became relevant at the outset of the pandemic, as people around the country began to attend school and work virtually.

It became immediately clear that for many Americans, our infrastructure was simply insufficient to handle such stresses. Suddenly, legislators were rushing to reclassify broadband. Efforts in Washington, championed primarily by Democrats, called for broadband standards to be raised.

The Federal Communications Commission’s standing definition of 25 Megabits per second (Mbps) download and 3 Mbps upload appeared to become unpopular overnight, as calls for symmetrical service, like 100 x 100 Mbps speeds, and even gigabit speeds became a part of the conversation.

Many experts were quick to strike back, particularly those operating in the wireless community, arguing that the average consumer does not need 100 Mbps symmetrical speeds, let alone one gigabit, and such efforts only amounted to fearmongering that would hurt the deployment of broadband infrastructure to unserved communities.

These experts contend that shifting the standards would diminish the utility and viability of any technology other than fiber, as well as delaying when unserved communities (as they are currently defined) can expect to be served. Broader topics surrounding rural broadband and tech-equity will also be prominently featured—addressing many of the questions raised by Covid-19 across the last year and a half.

Future of spectrum

Finally, the quest for spectrum will be discussed at the conference.

As ubiquitous 5G technology continues to be promised by many companies in the near future, the hunt is on to secure more bandwidth to allow their devices and services to function. Of course, spectrum is a finite resource, so finding room is not always easy.

Indeed, spectrum sharing efforts have been underway for years, where incumbent users either incentivized or are compelled to make room for others in their band—just like we saw the military in the Citizens Broadband Radio Service band, and more recently between the Department of Defense and Ligado in the L band.

Even though these efforts are ongoing, there is still disagreement in the community about how, if at all, sharing spectrum will impact users in the band. While some argue that spectrum can be shared with little, if any, interference to incumbent services, others firmly reject this stance, maintaining that sharing bandwidth would be catastrophic to the services they provide.

On China

China is also going to be a significant topic at the conference. Due to the competitive nature of the U.S.-China relationship, many regard the race to 5G as a zero-sum game, whereby China’s success is our failure.

Furthermore, security and competition concerns have led the U.S. government to institute a “rip and replace” policy across the country, through which Chinese components—particularly those from companies such as Huawei—are torn out of existing infrastructure and substituted with components from the U.S. or countries we have closer economic ties with. The conference will feature several sessions discussing these topics and more.

Register for TPRC 2021

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Broadband Breakfast on Wednesday, September 15, 2021 — A ‘Consumer Confidence’ Survey for Broadband

BroadbandNow launches a “consumer confidence” survey.

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Our Broadband Breakfast Live Online events take place every Wednesday at 12 Noon ET. You can watch the September 15, 2021, event on this page. You can also PARTICIPATE in the current Broadband Breakfast Live Online event. REGISTER HERE.

Wednesday, September 15, 2021, 12 Noon ET — BroadbandNow Presents a ‘Consumer Confidence’ Survey for Broadband

As part of its efforts to provide the latest research on the social, economic and political issues contributing to the digital impact and the impact of broadband on everyday life, BroadbandNow is launching a new survey among broadband leaders enthusiasts. Think of this as a “consumer confidence” survey for broadband.

Recently, there have been many changes regarding broadband at the federal, state, local and industry levels. BroadbandNow and Broadband Breakfast aim to launch the survey at a presentation during Digital Infrastructure Investment 2021, a mini-conference at the Broadband Community Summit in Houston, Texas, from September 27-30, 2021.

Join us on September 15, 2021, for this special Broadband Breakfast Live Online preview of the survey with John Busby, Managing Director of BroadbandNow, and Drew Clark, Editor and Publisher of Broadband Breakfast.

Panelists for the event:

  • John Busby, Managing Director of BroadbandNow
  • John B. Horrigan, Senior Fellow, Benton Institute on Broadband & Society
  • Drew Clark (moderator), Editor and Publisher of Broadband Breakfast

Panelist resources:

  • John Busby is the Managing Director of BroadbandNow.com, where millions of consumers find and compare local internet options and independent research is published about the digital divide. Prior to BroadbandNow, John held senior leadership positions at Amazon and Marchex. John holds a Bachelor’s Degree from Northwestern University.
  • John B. Horrigan, Ph.D., is Senior Fellow at the Benton Institute on Broadband & Society, with a focus on technology adoption and digital inclusion. Horrigan has served as an Associate Director for Research at the Pew Research Center and Senior Fellow at the Technology Policy Institute. During the Obama Administration, Horrigan was part the leadership team at the Federal Communications Commission for the development of the National Broadband Plan (NBP).
  • Drew Clark, Editor and Publisher of Broadband Breakfast, also serves as Of Counsel to The CommLaw Group. He has helped fiber-based and fixed wireless providers negotiate telecom leases and fiber IRUs, litigate to operate in the public right of way, and argue regulatory classifications before federal and state authorities. He has also worked with cities on structuring Public-Private Partnerships for better broadband access for their communities. As a journalist, Drew brings experts and practitioners together to advance the benefits provided by broadband, and – building off his work with Broadband Census – was appointed Executive Director of the Partnership for a Connected Illinois under Gov. Pat Quinn. He is also the President of the Rural Telecommunications Congress.

BroadbandNow is a data aggregation company helping millions of consumers find and compare local internet options. BroadbandNow’s database of providers, the largest in the U.S., delivers the highest-value guides consisting of comprehensive plans, prices and ratings for thousands of internet service providers. BroadbandNow relentlessly collects and analyzes internet providers’ coverage and availability to provide the most accurate zip code search for consumers.

See also:

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.

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