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Appalachian Regional Commission Prepares Communities for Federal Broadband Money

The commission said it is helping communities prepare to apply for some of the $42.5B NTIA BEAD program.

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Screenshot of Curtis Hansen of Appalachian Regional Commission

WASHINGTON, July 27, 2022 – Appalachian Regional Commission, a federal state partnership agency in the Appalachian Mountain range, is working to improve broadband access ahead of billions in federal funding, according to its broadband program manager.

Curtis Hansen said during a Fiber for Breakfast event Wednesday that the commission is working with local leaders to help develop capacity for the $42.5 billion Broadband Equity, Access and Deployment funding that is coming from the National Telecommunication and Information Administration. The only way to make sure the money makes an impact, said Hansen, is to ensure that communities are prepared to use it.

Hansen said ARC will soon deploy an outreach program at the request of the Federal Communications Commission to help people in the region sign up for the Affordable Connectivity Program, which helps alleviate broadband cost burden for low-income families.

Counties under the care of ARC are disproportionately poor compared to the national average, with lower connectivity to the internet. According to an Appalachian Regional Commission report, only 78 percent of households in the region have a broadband internet subscription, compared to 83 percent nationwide.

The agency was established in 1965 by an act of Congress and includes 13 states and 423 counties, which cover over 25 million people. They currently invest approximately $30 million per year for broadband grants in the area to improve broadband connection for residents.

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Funding

FCC Denies Funding for Two of the Biggest Winners of Rural Digital Opportunity Fund Money

‘We are continuing to review the letter and are evaluating our next steps,’ LTD said.

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Photo of Corey Hauer from the StarTribune provided by LTD

WASHINGTON, August 10, 2022 – LTD Broadband’s prolonged effort to get certification status in several states and Starlink’s still nascent and pricey satellite broadband project have proven enough for the Federal Communications Commission to deny them funding from the Rural Digital Opportunity Fund, the agency announced Wednesday.

The reverse auction process for the $9.2-billion fund culminated in December 2020 to awards of $1.3 billion for LTD Broadband – the largest winner in the auction – and $885 million for SpaceX’s Starlink project. But since the winners were announced, a new-look commission emerged under the leadership of Jessica Rosenworcel to weed out projects that did not align with the goals of the program – including bids in areas with adequate coverage or areas that don’t need the services pitched.

In a decision on Wednesday, the commission said that the limited number of dollars available cannot go to support Starlink’s still developing technology. “Starlink’s technology has real promise,” Rosenworcel said in a press release.  “But the question before us was whether to publicly subsidize its still developing technology for consumer broadband—which requires that users purchase a $600 dish—with nearly $900 million in universal service funds until 2032.”

For LTD, the commission ruled that it “failed to timely receive eligible telecommunications carrier status in seven states,” adding the “relatively small fixed wireless provider…was not reasonably capable of deploying a network of the scope, scale, and size required by LTD’s extensive winning bids.

“We must put scarce universal service dollars to their best possible use as we move into a digital future that demands ever more powerful and faster networks,” Rosenworcel said. “We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements.”

In a statement to Broadband Breakfast, LTD CEO Corey Hauer said, “We are extremely disappointed in the FCC staff decision.  I don’t believe the FCC fully appreciated the benefits LTD Broadband would bring to hundreds of thousands of rural Americans. We are continuing to review the letter and are evaluating our next steps.”

In the same release on Wednesday, the FCC announced it has authorized $21 million in funding to three companies to deploy gigabit service to nearly 15,000 locations in Tennessee, Texas, Utah and Wyoming. The commission has so far authorized more than $5 billion to bring fiber gigabit to over three million locations in 47 states, it said.

The FCC had provided winning bidders an opportunity last year to review the areas in which they won bids and to relinquish those areas they find are not in need of services. The aftermath included several defaults in areas, some of which were attributed to updated broadband maps from the commission. The commission said that it may waive penalties for the defaults, but last month proposed fines of $4.3 million against 73 RDOF applicants for violations related to those defaults.

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FCC

FCC Encouraged to Limit Data Collection on Affordable Connectivity Program, Others Want More

One trade group warns about providers leaving the program if data collection too onerous.

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Photo of Jonathan Spalter, CEO of US Telecom, from ISE

WASHINGTON, August 9, 2022 – The Federal Communications Commission is being warned not to overly burden internet service providers with its Congress-mandated order to collect pricing and subscription rates data from participants in the Affordable Connectivity Program.

Under the Infrastructure, Investment and Jobs Act, the FCC is required by November 15 to adopt rules to collect annual data relating to the price and subscription rates of each internet service offering by a provider participating in the broadband subsidy program, which offers up to $30 per month for low-income households (up to $75 per month on tribal lands) and a one-time $100 off a device.

But a number of submissions are warning the FCC against rules that require any additional data collection efforts beyond the scope of the law so as not to unduly burden providers and, at least one other trade group said, push providers away from participating in the program.

Telecommunications company Lumen, for example, recommended the commission limit the scope of the annual reporting to monthly pricing and to exempt “excessively granular” requirements, such as promotional rates, grandfathered plans, or subscriber-level data, which the commission is proposing to collect.

Communications companies and industry groups want to limit data collection

T-Mobile said in its submission that Congress told the FCC to rely on the broadband consumer labels, which are due this November, for pricing. The commission asked for comment on the interpretation of the IIJA requiring a reliance on price information displayed on the consumer labels.

For subscription information, T-Mobile urges the commission to look at data collection from the Universal Service Administrative Company – which administers high-cost broadband programs for the Universal Service Fund – to avoid “adopting a largely redundant collection that would impose additional burdens” on all parties.

“The IIJA leaves the Commission no discretion to collect any additional price information, and the statute does not require collection of data on other service plan and network characteristics,” such as speed and latency and data allowances, the submission said.

“Collection of this additional data would create additional burdens and is unnecessary,” the submission added.

Similar limitations were also proposed by telecom Starry Inc., which pushed for privacy protection by collecting data at a higher level (such as the state) and working with information collected in other transparency efforts, such as the consumer labels.

Industry association IMCOMPAS, which represents internet and competitive communications networks, told the FCC in a submission that data collection should be limited to the state level to protect consumer privacy and proprietary information of the providers; streamline other data collection, including the consumer labels; and provide instruction on how to providers to better understand the data collection rules.

Concurring with this position is the Wireless Internet Service Providers Association, which said data collection must be simple and should not go to a level of detail that goes beyond what the IIJA calls for. The trade group, which represents small providers, said such data collection beyond that required in the law could burden companies with small teams.

The included data, WISPA said, should be an annual aggregate of items including broadband plans subscribed to by ACP customers, number of subscribers for each plan, and pricing minus promotional rates, taxes, discounts or pricing breakdowns for bundled services. Any additional onerous collection could see providers leave the program, it added.

Industry groups US Telecom and NCTA – Internet and Television Association similarly urged a simple annual report that captured undiscounted monthly pricing of each broadband service offering and the number of customers subscribed. The Competitive Carriers Association and the Cellular Telecommunications and Internet Association also recommended a limited data collection approach.

ACA Connects, a trade group representing small and medium-sized independent operators, said the FCC should direct providers to report numbers of ACP households “that are applying their benefit to each speed tier along with the standard price of each tier on a state-by-state basis” – rather than the FCC-proposed continuous collection of subscriber-level data via the National Lifeline Accountability Database, it said, adding the commission should be mindful of the time it takes for completion, as smaller providers have limited resources.

Others pushing for subscriber-level, more data

The cities of New York and Seattle, in their submissions, said the FCC should collect subscriber-level information to assess different service adoption rates on different plans over time – publishing categories based on price, plan and performance by the zip code. It added it is not seeking information about the households itself, and said this would not be a privacy concern as others have pointed out.

Similarly, the Connecticut Office of State Broadband said the commission should go beyond the IIJA requirements by mandating information including performance of the plans and whether a device is offered.

For the National Digital Inclusion Alliance, data collection on the ACP should include data beyond what’s included in the consumer labels, and should include other items such as installation, equipment, service, miscellaneous, data and usage fees, and state and local taxes.

In a joint submission, non-profit media group Common Sense and internet advocacy group Public Knowledge recommended data collection that is necessary to monitor the ACP, which include promotional rates, taxes, overage costs and device and equipment costs. This way, they say, the FCC can get a better idea of how much is going toward internet access after applying the subsidy. They are also asking for the commission to collect information on whether the subsidy is being used to upgrade or discount current service, and how customers are becoming aware of the program.

The commission is currently trying to get more Americans on the program, which has over 13 million households signed up. That number, the commission said last week, should be much higher. As such, it ordered the development of an outreach program to market the subsidy.

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Funding

Agriculture Department Announces Fourth Round of ReConnect Funding

The announcement is the second round of ReConnect funding in fiscal year 2022.

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Photo of RUS Acting Administrator Christopher McLean by Drew Clark from June 2022

ASHINGTON, August 1, 2022 – The Rural Utilities Service of the United States Department of Agriculture announced the fourth round of funding for the ReConnect Program, with publication of the funding opportunity announcement scheduled for the federal register on August 4.

The announcement is the second round of ReConnect funding in fiscal year 2022.

The RUS has seen great interest in the third round of funding and is considering drawing on other federal infrastructure funds to satisfy demands, said the Acting Administrator Christopher McLean said in June. The latest round of funding received 305 applications requesting a total of $4.8 billion, but the program only allocated $1.15 billion.

USDA Considering Drawing on Infrastructure Bill Money as ReConnect Demand Increases

 

The ReConnect Program uses funds provided under the Infrastructure and Investment Jobs Act which sets aside $42.5 billion for the National Telecommunications and Information Administration to disburse among states for broadband infrastructure. It provides loans and grants to broadband deployment projects in rural areas.

The application will open 30 days after the announcement of funding opportunity is released. Applications will be submitted through the RUS online application portal on the ReConnect webpage. The application process will be open for 60 days.

Applicants should consider projects that will assist rural communities recover economically from the COVID-19 pandemic, ensure all rural residents have equitable access to rural development programs, and reduce climate pollution while increasing resilience to the impacts of climate change.

Proposed service areas are eligible for funding if at least 50 percent of the households in the area lack sufficient access to broadband as defined in the funding opportunity announcement.

As part of the application process, applicants are expected to undergo an evaluation process and will be scored based on the rurality of the proposed service area, level of existing service, economic need of the community, affordability of service offerings, net neutrality principles, cybersecurity, and labor standards. Applications submitted by local governments, non-profits and tribal governments will be awarded higher scores.

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