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City Loses Case for Streaming Revenues, 1/3 Get News from Facebook, Open Broadband Project

Ashdown wanted share of streaming revenues, chunk of Americans regular consumers of news on Facebook, Open Broadband project takes off.

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A third of Americans regularly consume news on Facebook, study finds.

October 6, 2021A federal judge dismissed a lawsuit from the City of Ashdown, Arkansas, which sought to take a share of Netflix and Hulu revenues generated from the city.

The lawsuit proposed that Hulu and Netflix owed money to Ashdown because of their use of public broadband infrastructure.

U.S. District Judge Susan Hickey arrived at the conclusion that the streaming services fall within an exclusion for public internet enshrined in the Video Service Act, a state law. Attorneys representing the city, however, claimed that the law requires a franchise fee of 5 percent to be paid to their municipality.

The important legal question was whether streaming services were offered over the “public” internet. Attorneys for Ashdown argued that since customers have to pay a premium for Hulu or Netflix, they are not public.

“The Court finds the analogy offered by Hulu on point: whether a driver locks the car doors while driving does not affect whether the road taken is a public road,” Judge Hickey responded.

A third of Americans get news from Facebook, study finds

A large percentage of Americans are receiving their news from social media platforms, despite recent controversies related to the platforms’ safety.

A recent study from The Pew Research Center, published late last month, found that 31 percent of Americans routinely receive their news from Facebook.

The research found that 22 percent of Americans routinely consumed news from Google’s Youtube, 13 percent from Twitter, 11 percent from Facebook’s Instagram, and six percent from TikTok.

People who regularly receive their news from Facebook are more likely to be women than men. White adult males, though, make up the majority of Facebook’s and Reddit’s regular news consumers. Black and Hispanic adults account for 20% and 33% of regular news consumers of Instagram respectively. And younger adults are far more likely to get their news from TikTok and Snapchat than any other demographic.

The research comes as more Americans hope for the government to curb the spread of misinformation. It also emerged before Frances Haugen, former Facebook product manager turned whistleblower, came forward Tuesday in front of a Senate committee to say that Facebook only takes down 3-5 percent of hate speech on its platform.

The Broadband Forum launches Open Broadband project

The Broadband Forum has launched a new project, Open Broadband, in order to use open-source collaboration to help vendors and operators introduce products to market quicker and with reduced development time cycles.

Open Broadband said it hopes to create a gold-standard for 5G residential technologies, which use open-source technologies for 5G rollout.

Founding members from BT, Deutsche Telekom, Telecom Italia, Telstra, Verizon and Vodafone UK began the project last month. Project leader David Woolley said there was a need for customer premises equipment (CPE) manufacturers, end-to-end integrators, and hardware and software vendors, “to join the project and share ideas.”  The project participation agreement can be found online here.

Broadband Roundup

Rosenworcel and Sohn Expected On FCC, Electric Coops Praise USDA Program, Internet Speeds Up 40%

Report says Acting Chair Jessica Rosenworcel will be permanent and Gigi Sohn will break the party tie on the FCC.

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Gigi Sohn, right, is expected to be selected as commissioner of FCC, Politico reports.

October 26, 2021 – President Joe Biden is expected to select Acting Chairwoman Jessica Rosenworcel as the permanent head of the Federal Communications Commission and will install former agency official Gigi Sohn as the tie-breaking commissioner, according to Politico, citing sources.

Biden has been under pressure from senators representing 17 states and has been urged by institutions and former FCC commissioner Michael O’Rielly to make interim head Rosenworcel permanent.

Observers have speculated that the lack of action on the selections have put the Democratic agenda for broadband policy at risk. It has even stirred speculation that Rosenworcel was on her way out.

But one consistent has been speculation that Sohn, a net neutrality advocate, could have gotten the nod as chair of the commission.

If selected, Democrat Sohn will break the party deadlock that has pitted two Democratic and two Republican commissioners.

Electric co-ops pleased with changes in USDA ReConnect broadband program

Electric cooperatives are praising changes made to the third round of applications for the $1.15 billion ReConnect loan and grant program for rural broadband, which include increasing the download speed for served areas.

That means for the latest round of applications, served areas will be defined by access to speeds of 100 Megabits per second download and 20 Mbps upload, compared to 10/1. In addition, networks built with the funds will need to deliver symmetrical speeds of 100/100 Mbps; applications to areas that lack 25/3, the federal standard, will be prioritized; and areas lacking 100/20 Mbps service that have previously received federal money will be eligible.

“We greatly appreciate USDA’s work to help spur rural broadband deployment, and their appropriate recognition of the need to make sure the program continues to serve those communities most in need of broadband,” the National Rural Electric Cooperation Association, which represents nearly 900 local electric cooperatives, said in a press release Friday.

“Significant changes to this new round of the ReConnect program will allow electric cooperatives and other broadband providers to offer service to many more unserved and underserved rural communities.”

Report finds internet speeds increased 40% over pre-pandemic speeds

According to a report from comparison website WhistleOut this month, average internet speeds have increased 40 percent nationwide over pre-pandemic speeds, which the organization said could be due to customers upgrading their internet packages or providers increasing overall speeds.

The speeds bump on average moved from 84.5 to 118.4 Mbps, with Alaska seeing the largest bump at a 170 percent increase. Idaho followed with a 77 percent increase, then it was Kentucky at 70 percent, Iowa at 64 percent, Wyoming at 62.6 percent, Kansas at 60.3 percent, Maine at 59.7 percent, Montana at 57.7 percent, Oklahoma at 57.4 percent, and South Carolina rounding out the top 10 with 56.1 percent.

The only state that saw a decrease was West Virginia, which saw a decline of 17 percent over the period.

Whistleout measured nearly one million speed test results from December 1, 2019 to March 15, 2020 (pre-Covid) and from May 1, 2021 to August 17, 2021 (during Covid).

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Broadband Roundup

Space Cybersecurity Concerns, USTelecom’s New Board, Agriculture’s $1.15 Rural Broadband Grant

Cybersecurity experts are concerned about space hacking, USTelecom elects new board, USDA makes $1B for rural broadband.

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Jaisha Wray of the NTIA.

October 25, 2021 — Cybersecurity experts raised concern Friday about the vulnerabilities of satellite technology to hacking at the FCBA’s cybersecurity lunch event.

“There’s a wide range of malicious activity that is disruptive to space activity,” said Jaisha Wray, associate administrator for international affairs at the National Telecommunications and Information Administration.

Wray is raising alarm about the potential losses from bad actors in space missions. Space agencies risk the loss of mission data or even completely losing control of their space systems, Wray said. Space systems are defined as a combination of a ground control network, a space vehicle, and a user or mission network that provides a space-based service.

The problem, she said, is space systems are difficult to physically access while in orbit. The solution, panelists said, is to design cybersecurity features into space systems prior to launching into orbit. Cybersecurity should be integrated into “the full life cycle” of the space system to ensure systems are protected from bad actors, the panelists agreed.

Wray said that the U.S. must identify risks and coordinate with stakeholders to manage cybersecurity risks to space systems. “Information sharing [between government and suppliers] is key” to protecting U.S. data in space, she said.

Wray said that Space Policy Directive 5, signed in September 2020 by then-President Donald Trump, emphasized the need to improve cyber protections when developing space systems. Wray worked on the development of Space Policy Directive 5 as director of international cyber policy on Trump’s National Security Council.

USTelecom elects new mostly women-led board, officers, and leadership

Telecom trade association US Telecom announced Friday a number of telecommunications executives to the board of directors and leadership, making US Telecom’s board mostly women-led for the first time in the association’s 124-year history.

The elected positions represent “the full spectrum of US Telecom’s diverse and innovative membership” said CEO Jonathan Spalter.

Kathy Grillo, senior vice president of the public policy and government affairs group at Verizon, was elected as the new chair of the USTelecom board of directors. Calling this moment “a pivotal time” for broadband expansion, Grillo emphasized broadband’s impact on our economy and her call to action.

“Broadband during the pandemic, broadband helped sustain our economy,” Grillo said. “But we can do better. We must close the digital divide and ensure all Americans have access to broadband and the benefits it brings. Expanding broadband’s reach will fuel our nation’s future growth,” Grillo said.

The board also elected Julie Kearney, vice president of communications regulatory affairs and policy at Twilio. Other elected members include Jason Williams, CEO of Montana-based Blackfoot Communications, and Takami Abe, general manager at Nippon Telegraph and Telephone Corp.

USDA to make $1.15 billion available for broadband, distance learning grants  

Department of Agriculture Secretary Tom Vilsack announced Friday that the agency would make up to $1.15 billion available to fund broadband expansion nationwide.

Beginning November 24, the USDA will begin accepting applications to distribute the funds in loans and grants to expand the availability of broadband in rural areas through the ReConnect program.

“For too long, the digital divide” has left too many people living in rural communities behind: unable to compete in the global economy and unable to access the services and resources all Americans need,” Vilsack said. “As we build back better than we were before, the actions I am announcing today will go a long way toward ensuring that people who live or work in rural areas are able to tap into the benefits of broadband, including access to specialized health care, educational opportunities and the global marketplace.”

To be eligible for funding through the ReConnect program, an applicant must service an area without broadband service at speeds of 100 megabits per second (Mbps) (download) and 20 Mbps (upload). An applicant must also commit to building facilities capable of providing broadband service at speeds of 100 Mbps (download and upload) to every location in its proposed service area.

Vilsack also announced a $50 million investment in 105 rural distance learning and telemedicine projects in 37 states and Puerto Rico. The awards will be funded by USDA’s Distance Learning and Telemedicine program.

The announcement follows President Joe Biden’s Build Back Better agenda by mobilizing federal agencies to invest in the nation’s infrastructure.

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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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