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Internet Subscriber Growth Slows, Starlink in India, Trump Media Company Raising Questions About Hype

Comcast, Charter see internet growth slow, Starlink announces India venture, columnist analyzes the hype surrounding Trump media.

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Former President Donald Trump

November 1, 2021 – Analysts have noticed a drop in internet subscription growth, concerning stakeholders that further slowdowns are imminent.

Bloomberg news reported that Comcast and Charter Communications Inc. announced that internet subscriber numbers fell this year, raising speculation about market conditions and changing consumer priorities.

Charter reported on Friday that its estimations for new broadband subscribers fell short by 25 percent. Its analysis estimated that the overall number of new customers were all back to 2018 levels. Comcast reported 300,000 new internet customers over the year on Thursday, less than half of the number added in 2020.

Analysts say they expected a slowdown in demand after 2020, a year when broadband subscriptions saw massive growth as American life shifted online.

Charter’s regression raises questions about “whether this is the beginning of the end of the cable broadband story,” said Geetha Ranganathan, an industry analyst at Bloomberg Intelligence. Charter’s chief operating officer Chris Winfrey said that “residential customer activity” was “taking longer than we expected to return to normal levels. Analysts predict that Charter will add 1.4 million subscribers this year.

Analysts are concerned about a drop in consumer spending, lowering tiers and downgrading services. Companies are also facing competition from phone companies like AT&T, who added nearly 300,000 fiber internet competition last quarter.

Starlink going to India

Elon Musk’s Space Exploration Technologies Corp, or SpaceX, said Monday it will bring its satellite-based internet service to India’s rural communities.

The company’s India executive Sanjay Bhargava announced that the company has established a subsidiary in India and will begin broadband services in December 2022, subject to government approval.

Starlink is SpaceX’s low-earth orbit enterprise designed to beam down high-speed internet from satellites orbiting Earth. The satellites, which hover lower to the Earth’s surface than traditional satellites to provide better connectivity, can bring broadband to remote areas where building infrastructure is difficult.

“At Starlink, we want to serve the underserved. We hope to work with fellow broadband providers, solution providers in the aspirational districts to improve and save lives” he posted on LinkedIn. SpaceX plans to provide 100 Starlink hardware kits for free to rural Indian communities in the first phase.

In 2019, SpaceX launched a constellation of low earth orbit satellites to deliver high-speed internet to rural areas. Since then, the company has worked toward its ambitions to launch 30,000 satellites in order to connect the entire world.

Trump’s media company all hype and no substance, reports say

It’s hard to justify the fever over former President Donald Trump’s media venture when looking at its current state, David Nicklaus wrote Monday for the St. Louis Post-Dispatch.

Trump announced his new Trump Media and Technology group on October 20th and agreed to merge it with a public shell company, Digital World Acquisition Corp. The website says it intends to “rival the liberal media consortium” and “fight back against the ‘Big Tech’ companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America.”

The company said it intends to compete with the likes of Twitter and Facebook, which banned Trump after his words were connected to the riot at the Capitol in January; streaming services Netflix and Disney+ by offering “non-wok entertainment”; and cloud services from Amazon and Google.

After going public, the company’s shares jumped to $175, signaling excitement over the venture.

But Niklaus reports that the company has not hired anyone with digital media experience or developed any content for its services. He added that investors would need answers before putting money into the venture.

“How are you going to offer your services to people? How are you going to get paid for it, and how are you going to finance the growth of it?”

Broadband Roundup

TikTok Data Concerns, Broadband Data Collection System, Internet Access on COVID-19 Mortality

FCC Commissioner Brendan Carr is requesting Apple and Google remove the TikTok app over data concerns.

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Photo of Brendan Carr

June 29, 2022 – Federal Communications Commissioner Brendan Carr called for Apple and Google to remove Beijing-based popular video-sharing application, TikTok, from their app stores.

The app is run by ByteDance, a company that is “beholden to the Communist Party of China and required by Chinese law to comply with the PRC’s surveillance demands,” read the June 24 letter to Apple CEO Tim Cook and Google CEO Sunder Pichai.

“It is clear that TikTok poses an unacceptable national security risk due to its extensive data harvesting being combined with Beijing’s apparently unchecked access to that sensitive data,” said Carr, calling it a wolf in sheep’s clothing. “At its core, TikTok functions as a sophisticated surveillance tool that harvests extensive amounts of personal and sensitive data” such as search histories, keystroke patterns and biometric identifies.”

Carr claims that TikTok’s pattern of conduct regarding persons in Beijing having access U.S. sensitive data violates policies that both companies require every app to adhere to as a condition of remaining available on the app stores. “I am requesting that you apply the plain text of your app store policies to TikTok and remove it from your app stores for failure to abide by those terms.”

TikTok has assured users that American’s data is being stored in the U.S. but, according to Carr, this statement “says nothing about where that data can be accessed from.”

FCC opens mapping data system for filers early 

The Federal Communications Commission released a public notice on Thursday announcing that filers of broadband availability data in its new maps may obtain early access of the system for registering filer information.

The filing window for the Broadband Data Collection opens June 30, but early access will enable users to register their entities in the system and become familiar with the system before that date, the FCC said.

“We are making this functionality available in advance of the opening of the filing window to enable filers to log in, register, and be ready to enter their availability data as early in the filing window as possible,” read the public notice.

The BDC program is said to help improve broadband mapping data to help funnel federal dollars to where broadband infrastructure is needed. Most fixed and mobile broadband providers will be required to file information in the system, but third parties and government entities are also encouraged.

Impact of internet access on COVID-19 mortality

New analysis released last week by private research university Tufts found that increased broadband access in the United States reduced COVID-19 mortality rates.

“Even after controlling for a host of other socioeconomic factors, a 1 percent increase in broadband access across the U.S. reduced COVID mortality by approximately 19 deaths per 100,000, all things equal,” read the report.

The study also found that the impact was felt more strongly in metro areas, where a 1 percent increase in broadband access reduced the deaths by 36 per 100,000.

By conducting a correlation analysis, Tuft researchers found that broadband access is negatively correlated with COVID mortality, even after controlling for other major factors such as health status, income, race and education.

The study only considered pre-vaccine number to account for inconsistencies.

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Rosenworcel Committed to Net Neutrality, Better Spectrum Coordination, Starlink Up in Internet Speeds

The FCC chairwoman reaffirmed her commitment to net neutrality at a conference on Friday.

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FCC Chairwoman Jessica Rosenworcel

WASHINGTON, June 28, 2022 – At a conference hosted by the American Library Association on Friday, FCC Chairwoman Jessica Rosenworcel reaffirmed her support for net neutrality rules.

According to a press release, Rosenworcel stated she wants to make a “return to common carrier regulation of internet service providers which aims to prevent ISPs from slowing down or blocking web traffic.”

Rosenworcel “fully backs” net neutrality rules passed under the Obama administration that were repealed during the Trump administration. “I opposed the last administration’s effort to roll it back, and I want it to once again become the law of the land,” she stated at the ALA.

A press release calls Rosenworcel ’s statement on net neutrality the “hallmark of her tenure” and says she faces opposition in her attempt to bring back net neutrality rules.

“It is just wrong for the internet to have slow lanes for people with less money,” Patty Wong, president of the ALA, said at the conference.

Better coordination needed for receiver performance 

On Monday, non-partisan think tank TechPolicy urged more coordination by the Federal Communications Commission with other agencies to better utilize spectrum assets during its receiver performance study, filing comments in response to the commission’s public consultation about that matter.

“The Commission has a considerable expertise and prior work to review in assessing whether it has the statutory authority in this area, and how to best incentivize all parties to build more robust receivers to operate in more and more congested spectrum,” the think tank said.

It suggested engaging with other agencies, such as the National Telecommunications and Information Administration, as well as users of government receivers.

James Dunstan, general counsel of TechFreedom, stated, “the FCC cannot fine-tune spectrum management with only half the orchestra.” He added that if the FCC does not engage with government users, “there will be little progress made toward finding broad solutions to increased spectrum congestion.”

The FCC and the NTIA have already agreed earlier this year to coordinate on spectrum management.

Ookla finds Starlink increased speeds by 38 percent over the past year

Metrics company Ookla said Tuesday that, according to its review of Starlink satellite broadband service in the first quarter, the company saw an increase of 38 percent in internet performance in the United States over the past year, said a press release.

However, the company’s analysis also showed that Starlink’s upload speeds decreased nearly 33 percent in the U.S. from 16.29 Mbps in 2021 to 9.33 in 2022.

Ookla notes that even as consumers choose Starlink, competitors are not far behind. It mentioned as key developments FCC approval for Amazon’s Project Kuiper to test its satellite service this year, and Viasat getting closer to merging with Inmarsat for a constellation launch next year.

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Data Export Bill, Chamber of Commerce’s BEAD Issues, Wisconsin Putting $125M for Broadband

A bill would have the Commerce Secretary identify categories of personal data that could harm national security if exported.

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Photo of Marco Rubio, R-FL

June 27, 2022 – A bipartisan group of senators, including Marco Rubio, R-FL., and Ron Wyden, D-OR., introduced a bill Thursday that would limit the selling or transferring of Americans’ sensitive data to high-risk foreign countries.

The Protecting Americans Data from Foreign Surveillance Act directs the Secretary of Commerce, in collaboration with other key agencies, to identify categories of personal data that could harm national security if exported. It directs the Secretary of Commerce to “compile a list of low-risk countries for which exports will be unrestricted and to require licenses for bulk exports of the identified, sensitive categories of personal data to other countries.”

In a press release, Rubio said, “It is common sense to prevent our adversaries from obtaining the highly sensitive personal information of millions of Americans. We cannot trust private companies to protect Americans’ private data, especially given how many of them do business in China. Our bill would address this massive national security threat and protect Americans’ privacy.”

Experts have warned the data from Chinese-company-owned apps like TikTok, one of the world’s most popular video sharing websites, could be used by the Communist government for nefarious purposes.

“Our bipartisan legislation sets common-sense guardrails to block bulk exports of private, sensitive information from going to high-risk foreign nations and protect the safety of Americans against foreign criminals and spies,” added Wyden. “It will empower the United States to build a coalition of trusted allies where information can be shared without fear of misuse by authoritarian actors.”

Exports to high-risk countries will be presumptively denied and risk status of countries will be determined on the adequacy of the country’s privacy and export control laws, the circumstances under which the foreign government can coerce a person in that country to disclose personal data, and whether that government has been hostile against the United States.

Chamber of Commerce takes issue with aspects of BEAD program

The United States Chamber of Commerce highlighted in a press release last week what it said are faults in the $42.5-billion Broadband Equity, Access, and Deployment program that will be distributed to states and territories for broadband deployment projects.

The Chamber of Commerce commended the National Telecommunications and Information Administration for focusing the BEAD program on serving unserved areas first, having strong subgrantee qualifications, enabling effective stakeholder engagement, and addressing the costs of broadband permitting.

“Despite the many positive aspects, the notice of funding opportunity contains numerous problematic provisions and mandates, which will hinder the Infrastructure Investment and Jobs Act’s objective to connect all Americans while running contrary to the law’s bipartisan approach,” said the release.

The first concern is that the NOFO promotes government-owned networks, despite the IIJA’s neutrality to the type of provider. NTIA imposes “burdensome requirements on eligible entities as well as pressuring states to waive laws that place restrictions on public sector broadband providers.”

The NOFO, said the release, “picks technology winners and losers” by strongly prioritizing fiber at the expense of other technologies like satellite and fixed wireless.

Furthermore, it incentivizes states to adopt net neutrality rules, in direct contrast to IIJA requirements, by ensuring that subgrantees do not “impose unjust or unreasonable network management practices.”

The Chamber of Commerce further added that the NOFO requires eligible entities to create a middle-class affordability program that is “ill-defined” and “opens the door to additional state-level intervention in the broadband marketplace.”

The NOFO also favors union-friendly policies that “have nothing to do with connecting all Americans and everything to do with advancing unrelated union priorities.”

Wisconsin awards $125M in rural internet service grants

The Wisconsin Public Service Commission on Thursday awarded $125 million in broadband expansion grants toward 71 projects that will reach over 87,000 underserved and unserved locations over 45 counties.

According to the press release, the grant awards will leverage $185 million of matching funds from the grantees. The PSC received 194 applications in March 2022 requesting a total of $495 million.

Since 2019, Wisconsin has committed to disbursing over $289 million toward expanding broadband, including $105 million in federal funding.

“Over the last three years, we’ve worked hard to invest state and federal funding in projects that will provide more than 387,000 homes and businesses with reliable, high-quality internet. These grants will go to ensure students, workers, business owners, families, and communities can access the internet in every part of our state,” said Wisconsin Governor Tony Evers in the release.

“We’ve made tremendous progress in the past three years towards getting people access to high-quality, affordable internet service,” said PSC Chairperson Rebecca Cameron Valcq. “We will continue to make the investments needed to ensure all in our state have access to affordable broadband.”

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