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Dutch Pension Fund Manager Buys 16.7% Stake in SiFi, Invests $500M in Open-Access Fiber Networks

SiFi is getting an injection of funds to deliver open fiber to cities.

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SiFi Networks CEO Ben Bawtree-Jobson

WASHINGTON, September 7, 2021 – Dutch pension fund manager APG Group NV announced that it is buying a 16.7 percent stake in fiber network builder SiFi Networks and creating a joint-venture to rollout open-access fiber-to-the-home infrastructure in the United States.

APG’s $500-million investment in the joint venture will “contribute to bridging the digital divide in the US where over one-third of households do not have access to high-speed internet by offering fiber connections to those underserved communities,” a Tuesday press release said.

SiFi said it’s currently building FTTH networks in multiple cities and has construction agreements with “many more.” It said that it intends to spend billions of dollars over the coming years on these networks.

“SiFi’s networks enable future-proof connectivity and provide smart city solutions aimed at improving the quality of life and generating revenues and savings for cities,” the release said.

“APG is excited to announce an additional investment with SiFi that will position the Company to provide vital infrastructure to underserved markets and customers well into the future,” Patrick Kanters, APG’s managing director of global real assets, said in a press release. “This partnership also contributes to APG’s ambition to support digitalization and the energy transition, as fiber is more energy efficient than copper or cable.”

Ben Bawtree-Jobson, CEO of SiFi Networks, said in the release that, “Cities, Consumers and ISPs can all benefit from our citywide fiber optic networks. From enabling Smart City applications, driving economic development and closing the digital divide the advantages of becoming a FiberCity are staggering and we’ve only just scratched the surface of what is possible.”

Open-access networks provide third-party providers the ability to share the same fiber, which in theory increases the number of providers, enhances competition, and lowers prices.

SiFi has been trusted with millions of dollars over the years to build these networks. In September 2020, it launched its first fiber city on the east coast, in Salem, Massachusetts. At that point, the city of Fullerton, California turned on the first section of a citywide open access network built by SiFi, funded by the Smart City Infrastructure Fund.

The agreement comes as the industry advocates for more fiber buildout to sustain the future of connectivity, coming off – and still in the midst of — a national health crisis that has forced home the workforce and schools.

Broadband Breakfast hosted a panel on Wednesday that echoed a call for future-proofed networks through fiber and praised the Senate-passed infrastructure bill, which includes $65 billion for broadband, for allowing the flexibility to scale up connectivity across the country.

Managing 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.

Funding

Treasury Department and Local Officials Tout American Rescue Plan Funds

Federal funding program prepares communities for economic turmoil.

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Photo of Jacob Leibenluft of the U.S. Department of the Treasury

WASHINGTON, March 23, 2023 – American Rescue Plan Act funds sets the United States ahead in economic resiliency, said experts at a Brookings Institution event Thursday. 

When ARPA was passed in March of 2021, the United States Department of the Treasury was tasked with ensuring that funds would be used to build sustainable programs past the 2026 expenditure deadline as well as programs that would build capacity for future government programs, said Jacob Leibenluft of the Treasury.  

At the onset of the COVID-19 pandemic, states did not have the systems in place to reach people in need of help, said Leibenluft. ARPA funds help communities invest in a strong system to provide support to community members, which sets the United States ahead of where it would have been otherwise, he said, claiming that the funds will help the country weather upcoming economic turmoil. 

To take advantage of this opportunity, Leibenluft suggested that localities develop and share best practices. The most effective way to use ARPA funds is to develop the “plumbing” that connects citizens to government programs which localities can then maintain on their own budgets, he said. 

“There are certain things that are just not sustainable in the absence of ARPA funds,” he continued, “what we have built is really a demonstration of programs that can be sustained through a combination of local, state and federal funds.” 

Local governments need to view ARPA as one-time spending, added Tishara Jones, mayor of Saint Louis, Missouri. Saint Louis did not develop any ARPA-reliant programs that would extend beyond the 2026 expenditure deadline. Instead, the city is finding revenue in its existing budget for supporting new programs on its own. 

Even so, state officials suggest that the Treasury’s 2026 expenditure deadline is too soon, claiming that not all funds necessary for broadband infrastructure upgrades will be received by that time.  

The American Rescue Plan gave $1.9 trillion for direct financial assistance, education support, health programs, transportation, and state and local fiscal recovery. An estimated 10% of funds are being used to build infrastructure, including broadband deployment, according to Brookings. The program’s allocation phase is set to be complete by the end of 2024.  

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Broadband Mapping & Data

FCC Added Just Over 1 Million Net New Locations in Broadband Map Fabric Slated For Spring Release: Chairwoman

Chairwoman Jessica Rosenworcel said the second version of map fabric ‘largely completed.’

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WASHINGTON, March 23, 2023 – The head of the Federal Communications Commission said Thursday that the commission added just over one million net new broadband serviceable locations after processing challenges and improving data models in its second round of data collection that ended March 1.

In a mapping update blog post, chairwoman Jessica Rosenworcel noted that the net additions to the map – where fixed broadband could be installed – came after it added 2.96 million new locations and removed 1.92 million locations from the first version of the fabric released in November.

The chairwoman also said the second version of the fabric, which underpins the broadband map, is “largely completed” and is slated for a release later this spring. The map will be used by the National Telecommunications and Information Administration to spread among the states by June 30 the $42.5 billion from its Broadband Equity, Access and Deployment program.

“In the past four months, our mapping team has processed challenges to availability data for over 4 million locations,” Rosenworcel said in the post. “In other words, on average, we are addressing availability challenges to tens of thousands of locations every single day. Every two weeks, our public map is updated to reflect all availability challenges that have been resolved. In other words, the system is working.”

The chairwoman noted that the one-million-location difference suggests that the net adjustment from the last version of less than one percent in the number of serviceable locations “says that, on balance, the November pre-production draft of the National Broadband Map painted a helpful picture of where high-speed Internet service could be available.”

Previously, the chairwoman said challenges that sought corrections to the data corresponded to less than one percent of the total number of locations identified.

Rosenworcel also noted Thursday that important corrections and additions to the data were made, including “data refreshes to more sophisticated tools” that helped remove structures like garages and sheds. The most significant additions were in Alaska, U.S. territories and tribal lands, she said.

The challenge process led to nearly 122,000 new location additions, she noted, but also added that the majority of location adds were due to the updates and dataset model refinements by the agency’s contractor CostQuest.

“While over time we expect future versions of the Fabric to require fewer refinements,” Rosenworcel added, “these ongoing efforts to improve the Fabric outside of the challenge process will continue and will remain an important tool for the improvement of the National Broadband Map.”

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Spectrum

Industry Dissent on Whether Spectrum Sharing is Sustainable

Experts disagree on the capabilities of spectrum sharing, particularly the CBRM model.

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Photo of Colleen King of Charter Communications, John Hunter of T-Mobile, and Matthew Hussey of Ericsson (left to right)

WASHINGTON, March 22, 2023 – Industry leaders disagreed on the capabilities of spectrum sharing and its future in the United States at a Federal Communications Bar Association event Wednesday. 

Dynamic spectrum sharing – a technology that allows for 4G, LTE, and 5G wireless to be used in the same frequency bands – is essential to a successful national spectrum strategy, said Jennifer McCarthy of Federated Wireless.  

Establishing a combination of access points for one frequency band can open its availability for all prospective users, she continued, touting the success of the Citizens Broadband Radio Service established by the Federal Communications Commission in 2012. 

CBRS is the spectrum in the 3.5 GHz to 3.7 GHz band which is shared through a three-tiered framework. Access to the spectrum is managed by a dynamic spectrum access system where incumbent users have protected access, priority access users enter through competitive auction, and general authorized access is given to a broad pool of users when not in use by others.  

Representative of T-Mobile, John Hunter, disagreed, claiming that dynamic spectrum sharing means there is less power available for technologies, particularly on higher frequencies that don’t propagate very far despite power disparities. As such, deploying the CBRS framework at scale across the country is not cost-feasible, he said. 

We should not conclude to share just for the sake of sharing, he said, particularly because it will decrease utility of the band so much that it will decline quality of networks down the line. “In many cases, sharing just outright won’t work,” said Hunter.  

Colleen King, vice president of regulatory affairs at Charter Communications, pushed against the argument that dynamic sharing’s lower power will stop providers from providing great service, claiming that it instead allows for more carriers to provide great service. In fact, the CBRS auction had 228 winning bids, 10 times the amount of other spectrum auctions, she said. 

The FCC’s Communications Marketplace Report showed that in one market where Verizon is using the CBRS framework, the company is providing “much faster speeds” than its other markets, King cited. Charter will use the CBRS system for its spectrum uses, she said. 

Panelists nevertheless agreed on the importance of maintaining US leadership in the spectrum space by developing a national spectrum strategy to address sharing issues. 

The panel followed considerable debate over spectrum allocation, sharing, and expansion. Earlier this week, industry leaders suggested that the allocation process be updated in preparation for future disputes. Additionally, debate continues over whether 5G operations can be shared on the 12 GHz spectrum with satellite service providers.  

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