The Federal Communications Commission said it will run out of money to fund the Affordable Connectivity Program (ACP), the largest such broadband subisdy in U.S. history, by April of this year unless Congress acts. The program has provided billions of dollars in subsidies that go to internet-service providers for providing service to rural and other communities lacking sufficient high-speed broadband.

The commission Thursday (January 11) issued an order detailing how that broadband subsidy program would be wound down, a process that has begun given that Congress has so far failed to extend the program's funding.

FCC chair Jessica Rosenworcel, who has urged continued funding, wrote to Congress on January 8, saying more money was needed so the program “can continue to support the households that rely on it and reach others that may be on the wrong side of the digital divide.”

Currently, there is a bipartisan bill in Congress, the Affordable Connectivity Program Extension Act, that would extend the funding and save the program.

Also Read: FCC Approves Rules for ACP Broadband Subsidy

The $14.2 billion ACP program, part of the Biden administration's effort to close the digital divide by decade’s end, provides subsidies of up to $30 per month toward broadband service (up to $75 for tribal communities) and up to $100 toward a broadband access device, excluding smartphones.

That is money that goes to the ISPs providing that service, so it is a program broadband operators are solidly behind.

Rosenworcel has pointed out that if the funding runs dry, “millions of households” will lose the benefit and some 1,700 internet service providers will be affected.

Not surprisingly, ISPs were speaking out in support of the new funding.

“[We] urge Congress to swiftly approve the Affordable Connectivity Program Extension Act of 2024,” NCTA–The Internet & Television Association said. “With the internet such an integral part of our daily lives, ensuring the ACP has adequate funding is a critical national priority.”

Jonathan Spalter, president of telco trade group USTelecom, said: “The ACP helps nearly 23 million low-income American households access affordable, reliable broadband. [D]espite the program’s immense success, its funding is expected to run out in a matter of months. The ACP Extension Act of 2024 is a critical and common-sense step towards keeping these millions of families online and fulfilling our nation’s bipartisan commitment to bridging the digital divide once and for all.”

The Communications Workers of America, the union representing workers for whom the ACP funding means more work, was also speaking out. “We urge Congressional leaders to support this funding request and to work with us to ensure that internet service remains affordable for everyone,” the CWA said in a statement. 

Broadband providers are applauding the Biden administration’s guidance on implementing its multibillion-dollar broadband subsidies to states, guidance those ISPs said will make it easier to build out the universal high-speed broadband that is the administration’s end-of-the-decade goal.

The National Telecommunications & Information Administration, which is administering the $42.45 billion Broadband Equity, Access and Deployment (BEAD) Program subsidies to states, on Tuesday (December 27) issued guidance on how that money should be handed out. The guidance essentially lines up with the Treasury Department’s guidance on broadband subsidies connected to COVID-19 recovery and capital projects.

NTIA had sought comment on the proposed new guidance. NCTA–The Internet and Television Association, the group representing big cable providers, had warned that not providing added flexibility could discourage participation in the program. It pointed out that what it called the “onerous” rules for the administration’s BTOP broadband grant program had discouraged “experienced“ and “more established and qualified” ISPs, as contrasted with the 60% of the awards that went to government or not-for-profit entities.

The NTIA clearly heard those comments.

For one thing, NTIA said the period over which ISPs will still be bound by the terms and conditions of grants — the so-called Federal Interest Period — will be shortened from 20 to 10 years. Cable broadband operators represented by NCTA, among others, had asked for a shorter compliance period.

Also Read: Republicans Slam Broadband Subsidy Program

NCTA had argued that the 20-year compliance period would “negatively impact an ISP’s ability to obtain financing for future broadband projects and thus impair their ability to participate in future BEAD bids.” ACA Connects, representing smaller, independent cable operators, had also sought an eight-year period.

Also music to ISPs’ ears is that they will be able to use income from BEAD-funded programs without restrictions and states won’t have to track where that income goes. ISPs can also upgrade BEAD-funded plant without getting NTIA's permission first.

ACA Connects president and CEO Grant Spellmeyer called the NTIA guidance a “significant step forward in implementing the BEAD program.” He said the “exemptions and modifications” to the BEAD requirements will “encourage participation by ACA Connects members and other broadband providers, leading to more cost-effective deployments.”

Telco broadband providers were also pleased.

“Getting the details right matters and today’s action by NTIA is a positive step towards streamlining the broadband deployment process for providers and consumers alike,” USTelecom CEO Jonathan Spalter said. “Waiving burdensome requirements will help encourage participation in the BEAD program and ensure more efficient utilization of federal funds. Also, NTIA’s commitment to align with Treasury’s approach on this issue will help ensure the overall success of BEAD.”

House Republicans are taking the Biden administration to task for what they allege is allowing states to regulate broadband rates as part of the implementation of the Infrastructure Investment and Jobs Act (IIJA), even though that law “explicitly prohibits” such rate regulations.

House Energy and Commerce Committee chair Cathy McMorris Rodgers (R-Wash.) and Communications Subcommittee chair Bob Latta (R-Ohio) were joined by 14 other committee Republicans in a letter to Alan Davidson, head of the National Telecommunications & Information Administration, which is the lead agency implementing the multibillion-dollar IIJA’s broadband subsidies to state via the administration’s Broadband Equity, Access and Deployment (BEAD) program.

The Republicans pointed to Davidson’s testimony at a December 5 NTIA oversight hearing in the House Communications Subcommittee, at which they said Davidson “repeatedly suggested” NTIA would allow state rate regulation.

“Throughout the hearing, you provided troubling answers that suggested that the NTIA would permit rate regulation by States participating in the Broadband, Equity, Access, and Deployment (BEAD) Program,” they told Davidson, according to a copy of the letter supplied to Multichannel News. “These answers are concerning as they suggest that the NTIA is administering this program in violation of the law.”

Republicans have long been concerned that the BEAD program was straying beyond simply subsidizing broadband where it was not available and into definitions of availability that included price, speed, quality, neutrality and equity.

Also Read: Republicans Slam Biden Broadband Subsidy Program as Misguided, Wasteful

“The Infrastructure Investment and Jobs Act (IIJA), which created the BEAD Program, explicitly prohibits the Assistant Secretary of Commerce for Communications and Information and the NTIA from ‘regulat[ing] the rates charged for broadband service,’ ” the letter reads. “During Senate floor debate on this legislation, members of Congress agreed that this language meant that ‘no rate regulation of broadband services would be authorized or permitted by NTIA or the Assistant Secretary who leads NTIA as part of the state broadband grant program.’ ”

The letter cited the fact that California’s broadband buildout plan using BEAD funds puts a thumb on the scale for applicants who agree to make “clear and unambiguous commitment to offer a symmetrical 1 Gbps service at $50 per month to BEAD-funded locations through Priority Broadband Projects, or 100/20 Mbps at $30 per month” for other projects."

They also pointed to NTIA’s approval of Louisiana’s BEAD plan, which they said “sets rates for certain broadband plans.”

The legislators said that there appeared to be some confusion about what constituted rate regulation. If so, they wanted to clear it up for Davidson. “We define rate regulation as regulating the rate of broadband services in any way, including setting a rate, freezing rates or placing a cap on rates,” they said.

Republicans on the Senate Commerce Committee have released a report they said shows that the Biden administration’s $42 billion-plus Broadband Equity Access and Deployment (BEAD) program is duplicative of other subsidy programs and ripe for waste, fraud and abuse, like doling out money to serve unserved locations at the National Zoo or funding “beachfront properties, mountain vacation homes and remote islands.”

The report also claims the program, which gives money to states to spend on broadband buildouts, includes requirements that “drive up overall program costs [and] burn through funding.” BEAD’s goal is to get internet to all Americans by the end of the decade.

On the duplication front, the report says that because the program did not distinguish between unserved locations that needed the money and ones that were technically unserved but about to be served using other broadband funding, over five million unserved locations that were already being funded under other programs got BEAD money.

The report basically lays out the Republican view of broadband subsidies in recommending “fixes” for BEAD. Those include that the money should not be used to overbuild where there is already service and should not be biased in favor of fiber.

Republicans disagree with the BEAD program’s focus on fiber builds, saying that high-speed satellite broadband could be a more cost-effective solution.

The Biden administration favors fiber over wireless for the money, but is allowing for technology flexibility so long as the service meets baseline high-speed and quality standards. The money is being allocated with the aid of the FCC’s updated Broadband Availability Map.

Awards range from $27 million to more than $3.3 billion, with every state receiving a minimum of $107 million.

Also Read: ISP Associations Track Biden’s Broadband Billions

The funding will initially go to deploy and upgrade broadband networks, then of there is any left over it can go to access, adoption or equity-related issues.

The report suggests the funds are being diverted from truly unserved areas to, well, questionable ones.

“According to the FCC’s National Broadband Map,” the report says, “which was used by NTIA [the National Telecommunications & Information Administration] to allocate BEAD funding based on each state’s share of unserved locations, 58 of the 184 unserved locations in D.C. are at the Smithsonian National Zoo, including the Butterfly Garden, Lion-Tiger Hill and the Otter Pond.”

D.C’s share of the BEAD money was a whopping $547,000 per unserved location.

“Forty-two billion dollars is more than enough money to deliver broadband to every American,” Sen. Ted Cruz (R-Tex.), ranking member of the Committee in his introduction to the report. “Will it, said succeed in doing so? In light of these findings? [C]ount me skeptical. This report should serve as a call to action for the Biden administration and the states to ensure BEAD dollars are not funneled to duplicative and wasteful purposes, and instead are used to solve the nation’s connectivity challenges once and for all.”

Not surprisingly, the association representing fixed wireless internet providers, whose service to the unserved the Biden Administration did not favor subsidizing, saw the report as "spot on."

"Government policy to close the digital divide is awash in wasteful conflict, which limits its reach and ultimately dooms those who truly lack broadband," said Matt Mandel, VP of government affairs for WISP[Notice of Funding Opportunity], which sends $42 billion to the states for duplicative overbuilding – spending made even more pernicious due to the “Biden administration’s technology bias against non-fiber broadband [which] will drive up costs by billions of dollars and likely deprive some communities of any broadband access at all,” notes the Report. 

WISPA said the Biden Administration should follow the report's recommendation and end its bias against fiber alternatives like the internet service its members provide.

The Biden administration has figured out where it will be allocating $42.45 billion in Broadband Equity, Access and Deployment (BEAD) program subsidy money among the states and territories.

Legislators were already touting their states’ shares even as the funding allocation was being announced.

Congress provided $65 billion in the Infrastructure Investment and Jobs Act (IIJA) for broadband infrastructure. The National Technology and Information Administration (NTIA) is overseeing $48.2 billion of that, mostly going to states via the BEAD program. No state got less than $100 million and over a third--`19-got over a billion dollars.

The Biden Administration has suggested it favors fiber over wireless for the money, but is allowing for technology flexibility so long as it meets baseline high-speed and quality standards.

President Joe Biden has made universal high-speed broadband access by 2030 a priority of his administration.

The Adminisration appeared confident that the funding was all that it would take to reach its goal. "With these allocations and other Biden administration investments, all 50 states, DC, and the territories now have the resources to connect every resident and small business to reliable, affordable high-speed internet by 2030," the White house said in a statement.

The money is being allocated with the aid of the FCC’s updated Broadband Availability Map.

Texas topped NTIA’s list of available subsidy money with $3.17 billion, followed by California with $1.86 billion and Missouri with $1.736 billion.

The funding will initially go to deploy and upgrade broadband networks, then of there is any left over it can go to access, adoption or equity-related issues.

Also Read: White House Issues State Guide to Broadband Billions

States will get formal notice of their allocations on June 30, but the White House wasn’t waiting to spread the good news.

Now that the money has been allocated, the broadband subsidy gold rush — in other words, formal proposals from eligible broadband providers — can be submitted beginning July 1.

“From the Berkshires to the Cape, this federal funding will help Massachusetts’s unserved and underserved households stay connected with loved ones, apply for jobs, and access health care and other online resources,”  Sen. Ed Markey (D-Mass.) said of his state’s $147 billion.

“Today’s digital era has made clear that an internet connection is a necessity for New Mexico families," said Sen. Ben Ray Lujan (D-N.M.). "It’s needed in order for students to complete their studies, for families to access work and telehealth services, and for small businesses to get ahead,” said Luján. “That’s why I’m proud to work alongside NTIA to deliver this pivotal investment of $675 million to help deliver a reliable internet connection to families across New Mexico."

“With today’s funding allocations, the Biden Administration has taken another major step in bringing high-performance broadband to all Americans,” said Grant Spellmeyer, president and CEO of ACA Connects, which represents smaller independent cable operators. “The ball is now in the States, and ACA Connects members — who already offer wireline broadband service to millions of households, including in rural communities — are eager to work with them to fulfill the promise of the BEAD program.”

Also Read: FCC's New Broadband Map Still Work in Progress

Zachary Cikanek, executive director of Connect the Future, whose members include cable operator Charter Communications and wireless internet service providers, said: “Significant private and public investments in broadband, including the $42.45 billion BEAD program dedicated to expanding connectivity, represent a once-in-a-generation opportunity to connect every unserved American to reliable, high-speed internet. Now we have to make certain those funds are put to use effectively to bridge our nation’s digital divide. That means eliminating the obstacles that stand in the way of swift, efficient deployment, such as pole access issues, so that critical broadband deployment funding is not stranded.”

"Important details remain, however, which require ironing out for BEAD to quickly and efficiently realize its goals," said David Zumwalt, President of WISPA – Broadband Without Boundaries. "All solutions should be on the table.  Pernicious and wasteful overbuilding must be strenuously avoided.  Access to the state grant process should work to truly invite small players so more answers can be brought to bear on this national challenge.  Clarifying these and other matters will improve the program for all involved, especially those who lack broadband.   

“CCA congratulates the Biden Administration for allocating BEAD funding ahead of schedule,” said Competitive Carriers Association president and CEO Tim Donovan. "As more detailed planning for BEAD projects moves forward, all technologies — including wireless solutions — will be needed to successfully complete efforts to close the digital divide.”

“Today’s state allocation announcement is an important step in our work to close the digital divide. Especially now that these resources have been allocated, we need to make sure that the funds are used to connect every American,” House Energy and Commerce Committee chair Cathy McMorris Rodgers (R-Wash.) and Communications Subcommittee Chair Bob Latta (R-Ohio) said. “Energy and Commerce will continue our oversight to make sure National Telecommunications and Information Administration (NTIA) is carrying out its responsibilities according to congressional intent, which includes making those investments in a technology-neutral way that avoids overbuilding and other wasteful spending. That is how we make sure every unserved American has access to affordable, reliable broadband services.”

“Today’s announcement is history in the making," said House E&C ranking member Frank Pallone Jr. (D-N.J.). “Reliable, high-speed internet is not a luxury ± it’s a necessity. Americans depend on internet access to do their jobs, run their small businesses, complete schoolwork, and connect with family and friends. That’s why we delivered for the American people with the Bipartisan Infrastructure Law, which included a $42.45 billion investment in broadband buildout, and I am pleased the Biden administration has announced the funding allocations for the states and territories. 

“And with the FCC releasing the new National Broadband Map last month, we are well prepared to ensure these unprecedented high-speed internet investments will reach unserved and underserved communities nationwide that have been left behind for too long,” Pallone said. 

Gigi Sohn, who withdrew her nomination to the Federal Communications Commission in March, has been named executive director of the American Association for Public Broadband (AAPB), a nonprofit formed by state and local broadband officials with the mission of advocating for municipal broadband.

Sohn, who fought for confirmation as the FCC’s pivotal third Democrat after she was nominated by President Joe Biden in 2021,  will remain a senior fellow and advocate for the Benton Institute for Broadband and Society. AAPB membership comprises government officials who are either already operating municipal broadband networks or plan to do so.

“Until now, there has not been a membership-based advocacy organization that works to ensure that public broadband can grow unimpeded by anti-competitive barriers," Sohn said in a statement. ”That’s despite the success of public broadband to help places like Chattanooga and the Massachusetts Berkshires transform from sleepy hamlets to vibrant centers of economic opportunity, education, and culture. We have the chance to make a positive case for states to fund and communities to choose public broadband and oppose barriers to local choice.”

Sohn has plenty of experience in the area of municipal broadband. She was a top counselor to Obama-era FCC chair Tom Wheeler, who had asserted the regulator’s power to preempt state laws blocking muni broadband expansion, bills that are backed by broadband providers.

”With more than $45 billion going to the states and tribal lands to build out broadband, I’m excited to work with public broadband providers to educate policymakers, the press and the public on the critical role public broadband plays in providing affordable, robust, and scalable broadband to communities across the country and how barriers to public broadband can hurt efforts to close the digital divide in both rural and urban America,” Sohn said.

Sohn and the AAPB are not the only ones looking hard at that $45 billion.

At almost the same time Sohn’s new job was announced, over on Capitol Hill, House Energy and Commerce Committee chair Cathy McMorris Rodgers (R-Wash.) was announcing an oversight hearing in the Communications Subcommittee May 10 focusing on how that $45 billion is being spent. ”Americans deserve every assurance these resources are truly going to help the unserved communities that need them most,“ Rodgers said.

Sohn could have a tough time selling Republicans or private broadband providers on the benefits of municipal broadband. Both have been critical of such buildouts, arguing that they wind up being government-funded overbuilds of existing private networks or fail to make it as ongoing operations, leaving taxpayers holding the bag when they fail.

A federal appeals court has upheld the constitutionality of the way the Federal Communications Commission hands out billions of dollars in subsidies for broadband and other advanced communications services.

At issue were the Universal Service Fund (USF) and the FCC’s use of a private company, the Universal Service Administrative Co. (USAC), to administer the distribution of those funds to subsidize broadband and phone service to high-cost areas and low-income households nationwide.

Suing the FCC were phone provider Consumers’ Research and a group of its subscribers.

In an opinion released Friday (March 24) rejecting a challenge to that authority, the 5th U.S. Circuit Court of Appeals concluded that the FCC did sufficient due diligence on USAC proposals, which the agency independently considers based on data it collects and other relevant information, and that the regulator was sufficiently in charge not to run afoul of the law.

The challenge was principally based on the assertion that USAC was not “sufficiently subordinate” to the FCC to pass constitutional muster.

The 5th Circuit pointed out that federal agencies are allowed to “reasonably condition” their actions on “determinations by outside parties.” In the case of the USF and USAC, the conditions were reasonable and thus USAC was properly subordinate to the FCC.

“To be clear,” the court said, “agencies may delegate to private entities so long as the entities function subordinately to the federal agency and the agency has authority and surveillance” over its activities.

The USAC makes recommendations to the FCC, which are not binding until the commission signs off on them, the court pointed out. The FCC also allows telecoms to challenge USAC proposals directly to the regulator and “often” grants relief, the court said. The FCC also dictates the amount of the contribution telecoms have to make to the fund. 

All of that shows the FCC has sufficient control of the process for the delegation not to run afoul of the private nondelegation doctrine (under Article I of the Constiution) that prevents the delegation of or regulatory oversight to private entities, the court said.

Andrew Schwartzman represented the Benton Institute for Broadband & Society, which filed a brief in the case in support of the FCC. 

“Coming from one of the more conservative courts in the country, this decision is a ringing ratification of the system Congress established to ensure that all Americans have affordable access to telecommunications service and advanced services like broadband,” he said after the decision was issued. “This should not come as a surprise but once the USF was subjected to a legal challenge, the Benton Institute for Broadband & Society joined with its allies to defend this critical mechanism for ensuring universal broadband service.” 

"NaLA is pleased with this decision [because] the USF and Lifeline in particular provides targeted support to low-income Americans who struggle to afford essential communications services necessary to participate in our digital society," said David Dorwart, chairman of the National Lifeline Association. "NaLA is proud to serve these consumers and ensure they can connect to family, community, jobs, education, telehealth and other service using our members’ mobile voice and broadband solutions."

"We are pleased to see the Fifth Circuit uphold the FCC's authority to administer the Universal Service Fund," said Angie Kronenberg, presdient of INCOMPAS, whose members include edge providers rooting for as universal service as possible. "This is a big win for the FCC and a big win for the millions of Americans who rely on this program. While we are delighted at today's result, we believe reforms to the USF are necessary to ensure this critical service can continue to exist."■

A bipartisan House bill has been introduced that would exempt billions of dollars in government broadband subsidy money from taxation.

The bill, the Broadband Grant Tax Treatment Act, was introduced Wednesday (Dec. 7) by Reps. Jimmy Panetta (D-Calif.) and Mike Kelly (R-Pa.) to plenty of applause from the broadband sector.

The House bill mirrors one already introduced in the Senate by Sens. Mark Warner (D-Va.) and Jerry Moran (R-Kan.).

Specifically, the bill amends the tax code to say that broadband buildout subsidies providers get in the Infrastructure Investment and Jobs Act (IIJA) and the American Rescue Plan (ARP) are not taxable income.

"We are grateful that Congress committed tens of billions of dollars to broadband deployment grants through recent bills seeking to help close the digital divide in our country," said Shirley Bloomfield, CEO of NTCA-the Rural Broadband Association. "But taxing broadband grants—requiring recipients to pay back to the government a portion of what they receive from the government—will dramatically reduce the impact of these programs and likely leave the hardest-to-reach communities without essential connectivity for even longer. It is critical that all broadband grant funds go toward their intended purpose of network deployment."

"Representative Panetta's and Kelly's bill to eliminate the counter-productive tax on broadband grants is right on the money," said USTelecom President Jonathan Spalter. "Closing the digital divide in America – especially in our hardest-to-reach rural communities – will require every cent of the $65 billion Congress has dedicated for that critical purpose." ■

The broadband subsidy bucks continue to flow out of Washington.

The Federal Communications Commission has authorized almost $800 million dollars more in rural subsidies from its Rural Digital Opportunity Fund (RDOF) to six broadband providers reaching some 350,000 locations in 19 states, with the most money going to Illinois ($212 million), Arizona ($140 million) and Iowa ($113 million), the regulator said.

In its 2020 RDOF auction, the FCC allocated $20 billion for 1) rural broadband buildouts ($16 billion) and 2) unserved areas ($4 billion) over the next 10 years, money that can go to cable broadband providers as well as telecoms.

Also: FCC Proposes Millions in RDOF Default Fines

So far, the RDOF program has handed out more than $6 billion in funds to 47 states.

“This funding will connect more households throughout the country with high-speed broadband as part of our ongoing work to close the digital divide,” said FCC chair Jessica Rosenworcel, who has made closing the digital divide a signature issue since she was a commissioner. “We are confident these projects can bring quality service to currently unserved areas.” ▪️

The Biden Administration has given out the first five grants in its Connecting Minority Communities (CMC) Pilot Program, which is one of many broadband subsidies under the Administration totaling tens of billions of dollars.

The CMC grants total -- to the penny -- $10,642,577.03, according to the National Telecommunications & Information Administration (NTIA), which administers the program.

The money will be used for equipment as well as information technology training and hiring for expanding high-speed internet access to minority colleges and universities.

The first five grantees include Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), Hispanic Serving Institutions (HSIs), and Minority-Serving Institutions (MSIs)

The CMC was launched in August 2021 with $268 million in funding.

“Communities of color have faced systemic barriers to affordable broadband access since the beginning of the digital age,” said Secretary of Commerce Gina Raimondo at the time. “The investments we make as part of the Connecting Minority Communities Pilot Program will help communities that are struggling with access, adoption and connectivity, and will inform our path forward as we seek to finally close the digital divide across the country.”

To be eligible for the money, a recipient has to be in what is called an "anchor community," which means that the median household income cannot exceed 250% of the poverty line.

NTIA says it is continuing to vet the more than 200 applications it received in the application window which closed Dec. 1, 2021. ■

House Republicans may be pushing back on President Joe Biden’s nominee for a third Democrat on the Federal Communications Commission, but they are pushing him to nominate an inspector general for the agency as it hands out billions of dollars in broadband subsidies.

That came in a letter to the president signed by Reps. Cathy McMorris Rodgers (R-Wash.), House Energy & Commerce Committee ranking member; Robert Latta (R-Ohio), House Subcommittee on Communications and Technology ranking member; and Bill Johnson (R-Ohio).

The RAY BAUM's Act of 2018 made the FCC IG a presidential appointee, which means the Senate must sign off on the pick. But since then, the lawmakers said, the presidentially appointed position has remained vacant. The current unappointed IG remains in place, but that has been for moe than a year and a half, the lawmakers said.

Also: GOP Slams FCC Over EBB Subsidy Abuse

They noted that the current IG — David Hunt — issued an advisory about fraud and abuse in broadband subsidy programs, but given the “unprecedented” funding involved they want a nomination to the post expedited.

Back in March, Hunt put out an advisory to users and providers of the FCC's Lifeline, Emergency Broadband Benefit and Affordable Connectivity Program subsidies of “improper and abusive enrollment practices that are part of some providers’ online enrollment processes.”

Republicans have long questioned the independence of the FCC IG. ■

The Federal Communications Commission is asking for input on its congressional mandate to coordinate tens of billions of dollars of government money in various broadband subsidy programs with the National Telecommunications & Information Administration and the U.S. Department of Agriculture.

The NTIA, the White House’s chief telecom policy arm, has been charged with handing out most of the $65 billion worth of infrastructure-related broadband buildout money, but the FCC also hands out billions of dollars through various Universal Service Fund subsidies as well as telehealth and distance learning money related to the COVID-19 pandemic. USDA gives out money through the Rural Utilities Service.

The FCC’s Wireline Communications Bureau wants comment by August 16 on its interagency coordination agreement, which will be factored into a mandated report to Congress.

Also: FCC, NTIA Authorize More Broadband Funding

Under the direction of statute, which calls for the answers to some specific questions, the FCC's Wireline Competition Bureau, which issued the request for comment, wants to hear specifically about the agreement’s effectiveness in making sure the funds are distributed efficiently. One big issue: Congress wants to ensure there is no duplicative funding.

The FCC (read Congress) also wants to know how much deployment availability data from states, localities and tribal areas is available; how much of that is being used in interagency coordination; and what, if any, modifications are needed to improve coordination.

In May, the FCC, NTIA and USDA agreed to share and standardize their broadband data.

At times, particularly under the Trump administration, the FCC and NTIA would not have scored high marks in that “getting along well with others” checkbox on elementary school report cards, particularly over the issue of freeing up government spectrum by sharing it with commercial users. That was particularly the case when it comes to spectrum-sharing by commercial aviation operators and 5G WiFi providers.

Even before the infrastructure legislation mandated a formal agreement, though, FCC chairwoman Jessica Rosenworcel and new NTIA administrator Alan Davidson were talking regularly, according to the FCC. 

The Government Accountability Office has suggested there is a broadband coordination deficit that requires more than an agreement to play nice among the three agencies.

In a report earlier this month, GAO said Congress needs to come up with a national broadband plan to rectify what it says is a “fragmented, overlapping patchwork” of broadband accessibility funding, though the White House has not decided whether it plans to do that or not. ▪️

The vast majority of locations in New York State — 97.4% — are already served with high-speed broadband, raising the issue of just how much broadband subsidy money the Empire State will need from the tens of billions of dollars the Biden administration is putting toward closing the digital divide.

The 97.4% figure is according to the Broadband Assessment Program overseen by the New York State Public Service Commission. States were charged by Congress in the Comprehensive Broadband Connectivity Act of 2021 to conduct an annual assessment and map of broadband availability.

According to that report and map, 5,139,017 locations (97.4%) in New York are served by at least two providers with at least one of those offering high-speed service, defined as speeds of at least 100 Megabits per second downstream and 10 Mbps upstream. 

Also: FCC Slates Broadband Data Collection Webinar

Less than 1% (it does not even register on the above graphic), or only 5,997 locations, are consider underserved, defined as speeds “of at least 25 [Mbps] download but less than 100 Mbps download,“ and with only one ISP.

That leaves 132,601 locations, or 2.5%, unserved, which is defined as having either no fixed wireless service at all, or service “with speeds of less than 25 Mbps download available.“

All those definitions were assigned by the New York State Legislature.

The availability map drew from four data sources: 1) the New York State “Street and Address Maintenance (SAM) Program” for the location fabric; 2) data collected from ISPs; 3) a “Fiber Optic and Coaxial Asset Inventory Program;” and 4) input from the public and other stakeholders.

In a story about the new map, WGRZ Buffalo reported that some of the ISP data comes from the FCC’s Form 477 collection, which has been highly criticized and is still in the process of being revamped.

The PSC did field testing in some of the remotest areas to fact check the ISPs, but the station's consumer reporters said they clearly found some gaps in the numbers.

The PSC provided this caveat about the ISP numbers: “The information contained in this Map has, in part, been collected from ISPs operating in New York who were asked to provide reasonable representations of their respective internet service areas. Determining each ISP‘s service area without a field inspection verification of every address may yield discrete inaccuracies, and while the Department conducted field inspections in the most remote areas of the State of New York to corroborate information received from the various ISPs, it was not feasible to verify 100% of the addresses in the field.” ■

The Federal Communications Commission said it will preview its Broadband Data Collection (BDC) system on June 29, one day before broadband service providers can start filing info on where service is available. 

Congress has directed the FCC to come up with better data on where broadband is and isn't as the Biden administration begins to hand out tens of billions of dollars to subsidize unserved, then underserved, areas.

All facilities-based providers of fixed and mobile broadband internet access service must provide “complete, granular and reliable data” on broadband availability.

Also: FCC Public Data-Reporting Option Seeks Input on Broadband 'Problems'

The mandatory data filing window opens June 30 and closes Sept. 1. The webinar will help filers navigate the BDC system so they can start submitting their data.

The webinar, which starts at 2 p.m., will be streamed live at both www.fcc.gov/live and the FCC's YouTube page.

"The FCC is in the process of updating its current broadband maps with more detailed and precise information on the availability of fixed and mobile broadband services," the FCC said on a BDC web page it has set up. “The Broadband Data Collection (BDC) program will give the FCC, industry, state, local and Tribal government entities, and consumers the tools they need to improve the accuracy of existing maps.” ■

With most of the Biden administration‘s $65 billion in broadband subsidies yet to be handed out, the Federal Communications Commission continues to distribute hundreds of millions of dollars to help close the digital divide.

An additional $313 million to be distributed via the FCC’s through its Rural Digital Opportunity Fund (RDOF) was authorized Friday (March 25). Total authorized funding now comes to more than $5 billion, including more than $1 billion doled out in January.

The latest tranche of money will go for new deployments in 19 states.

Also: FCC Authorizes Over $1 Billion for Rural Broadband

“The funding announced today will help hundreds of thousands of Americans get access to high-speed, reliable broadband service,” FCC chairwoman Jessica Rosenworcel said. “We continue our expanded oversight of this program through the Rural Broadband Accountability Plan to make sure that applicants deliver services as promised to areas that truly need help.”

That plan is intended to prevent waste, fraud and abuse, and make sure the money is going where it is most needed.

In its RDOF auction, the FCC allocated $20 billion for: 1) rural broadband buildouts ($16 billion); and 2) unserved areas ($4 billion) over 10 years.

The Commerce Department’s National Telecommunications & Information Administration is overseeing the vast majority of the $65 billion in new broadband subsidies provided for in the Biden infrastructure package, but the FCC remains a big player through its longstanding Universal Service Fund money, which constitutes billions of dollars for advanced telecommunications in areas of the country that are difficult to monetize or reach.

“The Fiber Broadband Association commends the Federal Communications Commission for continuing to carefully scrutinize the Rural Digital Opportunity Fund (RDOF) long form applications and for approving fiber and well-designed broadband projects by authorizing an additional $313M in 19 states and 130,000 locations into the program," said Gary Bolton, president of the Fiber Broadband Association, "bringing us up to over $5 billion in RDOF funding to fiber and high performing deployments in 47 states and 2.8 million locations. We encourage the FCC continue to carefully scrutinize non-fiber projects, as this precious funding is desperately needed to connect communities with reliable and future-proof broadband service now and into the future.” ■

Saying some fraud has already been uncovered, Sen. Roger Wicker (R-Miss.), ranking member of the Senate Commerce Committee, wants an investigation into whether billions of dollars in broadband subsidy spending already handed out went “appropriately” to unserved areas and areas economically affected by the pandemic.

Wicker is concerned the money could be used to overbuild existing providers while doing little to close the digital divide.

The CARES Act, which included COVID 19 relief-related broadband subsidies, also created the Pandemic Response Accountability Committee (PRAC) to try to prevent waste, fraud and abuse, which are always a potential problem in any large government subsidy.

Wicker said PRAC, which is part of the Council of the Inspectors General on Integrity and Efficiency, is in the best position to review multiple broadband subsidies across multiple agencies, including the Federal Communications Commission, the National Telecommunications and Information Administration (NTIA) and the Department of Agriculture, as well as state and local governments.

“The speed at which funds were disbursed in response to the COVID-19 pandemic, and the sheer amount of money involved, put the funds at high risk of fraud and misuse, making the work of oversight entities like the PRAC and IGs essential to a successful national recovery,” Wicker said in making the request. “We are already finding fraud within these new programs," which he said would continue absence the needed oversight from PRAC.”

In a letter to PRAC chair Michael Horowitz, Wicker pointed to the fact that the FCC's Inspector General had found that some broadband providers had been "fraudulently enrolling households in the Emergency Broadband Benefit [EBB] program."

Wicker asked Horowitz to answer a number of questions related to broadband subsidy oversight, including what broadband availability data the NTIA and the Treasury Department used to determine where the money went or is going. NTIA is counting on better maps from the FCC, which is in the process of creating them, but a process that is not yet complete.

Wicker also wants to know “what level of coordination is occurring between FCC, Treasury, USDA, and NTIA to protect against overbuilding and duplication of funding awards?;” “what, if any, federal, state, or local regulatory barriers are impeding or increasing costs to broadband deployment funded by these programs?;” and “what oversight measures are NTIA and Treasury implementing to ensure providers meet their buildout obligations?” ■

The Pew Charitable Trusts has teamed up with some businesses and nonprofits to launch Opportunity Broadband, a digital equity initiative.

The goal is to make sure that the tens of billions of dollars in government broadband subsidies being handed out by the Biden administration -- the Infrastructure Investment and Jobs Act, the American Rescue Plan Act and the FCC's Universal Service Fund -- translates to affordable broadband and equal economic opportunities for all.

Opportunity Broadband is meant to help communities "prepare to leverage connectivity, skills, and devices to realize the long-promised outcomes of digital equity." The vast majority of the subsidies -- over $40 billion -- is going to states and localities for their own broadband build-out and uptake initiatives.

Also: Democrats Suggest Broadband Subsidies Be Used To Promote Net Neutrality

"Universally available and affordable broadband, access to devices, and digital literacy are the first—not the only—steps toward achieving that goal,” said Kathryn de Wit, who heads up Pew's broadband access initiative.

Founding members of the coalition are Heartland Forward, the James H. and Mary B. Quello Center at Michigan State University, the Small Business Majority, the XR Association and the National Birth Equity Collaborative. The Quello Center is named after former FCC Chairman James Quello and his wife, Mary.

Look for a community broadband action plan from the alliance in the next few months. ■

The Biden Administration has tapped a veteran public interest advocate, Sarah Morris, to be senior advisor at the National Telecommunications & Information Administration, the President's top communications policy arm.

Beginning next week, Morris, who has been director of New America's Open Technology Institute, will advise NTIA head, Assistant Commerce Secretary Alan Davidson, himself a former OTI director.

OTI said that its chief of staff, Chhaya Kapadia (CQ) will be interim director.

Morris' over 10 years of experience working for greater broadband access and adoption, including heading up OTI's Cost of Connectivity studies, will come in handy as NTIA oversees some $42.5 billion in broadband subsidies in the Administration's infrastructure package.

Also: NTIA: Closing Digital Divide Is Job One

Before joining New America, Morris was with public interest law firm Media Access Project. ■

INCOMPAS, whose members include Amazon, Facebook, Google, Netflix and Twitter, is telling the FCC to expand the contribution base of Universal Service Fund broadband subsidies from telecoms to ISPs, but that no way should it make edge providers pay into the fund.

The FCC sought comment on what, if any, changes it should make to the Universal Service Fund, which is currently supported by fees on phone service, even while it has been transitioned to focus on broadband service as the nation's new baseline communications service.

In its filing, the Internet Innovation Alliance points out that USF "draws from a pool of landline phone service revenues, which shrunk from $72.3 billion in 2010 to $47.5 billion in 2019."

Some have suggested that big, bandwidth-intensive edge providers -- like Amazon, Facebook, Google, Netflix and Twitter -- should also be hit up for money to help close the digital divide.

Also: Could the FCC Make Video Streamers Pay Into the Universal Service Fund?

But in its filing, INCOMPAS counted the ways that making edge providers pay was a bad idea, including arguing they already contribute in other ways.

1: "The FCC does not have authority to require edge providers to
contribute to USF." IMCOMPAS says that the USF fund is in a "crisis," -- a declining base of phone customers, whose fees feed the fund, as broadband customers, on whom no fee is levied, explode, so the FCC should focus on solutions it has authority to impose -- fees on broadband service for one thing." The FCC...does not have the authority to require edge providers to contribute to USF and would need congressional action to do so," it told the FCC.

2: INCOMPAS says edge providers are not receiving a "free ride" from USF. "In reality, every business that is using a USF-assessed service contributes to the USF, including edge providers," it says. "For example, companies using interconnected VoIP in their business operations are contributors to the USF just like any other subscriber." And besides, it says, it is all those online content services that drive demand for broadband service and thus benefits ISPs and their subs.

"Indeed, it is the edge providers’ products that are contributing to the demand for BIAS services and the incentive to build more BIAS networks that are faster and more robust," INCOMPAS said. "This investment is far from a “free ride.” To stretch the metaphor further, what good is there in building a rollercoaster if there is no one bringing in the customers to ride it?" ■

Internet-service providers weighed in Monday on the White House‘s promotion of the 10 million households now served by some of its billions of dollars in broadband subsidies. 

The ISPs wanted to point out they have been offering affordable broadband to millions through their own subsidy programs for years, though they welcome the Biden administration‘s help (as long as it is targeted to the unserved and not to overbuilding in the name of price and competition).

“As the nation’s leading broadband industry, we join the Administration in celebrating the milestone of connecting ten million households to the internet via the subsidy program that Congress included in last year’s infrastructure legislation,“ Michael Powell, president and of NCTA–The Internet & Television Association, said. ”For the past decade, over 14 million consumers have subscribed to the internet via NCTA member company broadband adoption programs which include low-cost services of $10-$20 per month, discounts for computers and digital skills and literacy training. 

Also: Broadband Prices Have Been Dropping

“Cable broadband providers strongly supported inclusion of the federal subsidy in the infrastructure legislation and are active participants in the Affordable Connectivity Program,“ Powell added. “These collective public-private efforts are making a real difference in closing the digital divide and we remain committed to the mission of connecting all Americans to the internet through these programs plus our efforts to build new networks in areas that don’t yet have service.”

Comcast also pointed to its Internet Essentials program.

“Comcast is an active participant in providing connectivity through this program and has been working on the issue of broadband adoption among low-income families for over a decade,” the company said, including pointing to its own 10 million benchmark.

“In 2011, we launched Internet Essentials, a $9.95 tier of service geared for low-income families,” Comcast added. “Since the program launched, we’ve kept the price the same while increasing speeds and features, and we’re proud to have connected 10 million people, including 5 million students, over the past 10 years. Comcast is working to get the word out to customers and community partners about the ACP and help get even more people connected to broadband, example materials are attached.”

The White House called on the public and others to help spread the word about the ACP program, including at community events and on social media. ■ 

The FCC is being asked to review/improve its community outreach materials to non-English speaking communities about the billions of dollars in broadband subsidies it is handing out in the $14.2 billion Affordable Connectivity Program.

The ACP program provides up to $30 per month toward broadband service (up to $75 for tribal communities) and up to $100 toward a broadband access device, excluding smart phones, with the FCC providing info in various languages, including Spanish and Korean.

In a letter to the FCC, Asian Americans Advancing Justice, Benton Institute for Broadband & Society, MediaJustice, New America’s Open Technology Institute, and Public Knowledge, said the FCC needs to review its materials to make sure that "appropriate languages and translations are used for the intended
audience." They say some of translations "are overly technical and wouldn't be useful to the average reader."

As an example, they point to the Spanish-language materials' use of the term "banda acha" for broadband, which they say is not a commonly used term for internet access. "Technically accurate translations may not be recognizable or accessible to people who speak that language in the United States," they tell the FCC. ■

Wireless internet service providers have some modifications they are asking the Federal Communications Commission to make to its draft Affordable Connectivity Program broadband subsidy before it adopts the rules by Congress‘ January 14 deadline.

That came in meetings Monday between WISPA, the Wireless Internet Service Providers Association, and top FCC officials.

The modifications, according to an ex parte filing by WISPA, include: 1) ISPs should be reimbursed for partial services because if, as proposed, there are no subsidies for service provided for only part of a month, that will discourage ISPs from participating if they are forced to absorb those “lost costs;” and 2) the FCC should allow providers to downgrade the service due to subscriber nonpayment, as long as advance notice is given, rather than not being allowed to downgrade without the subscriber‘s advance consent.

Also: FCC Won't Set Minimum Service Standards for Affordable Connectivity Program Bucks

WISPA also said the draft rules as presently written would allow a subscriber disconnected for nonpayment to re-enroll and the ISP could not deny them because of their nonpayment history. The ISP would then have to wait 90 days before de-enrolling them if they do not pay, a cycle that could continue ad infinitum.

WISPA did say it was on board with the FCC's decision to prohibit credit checks for subsidy recipients and to adopt a hybrid opt-in/opt-out approach to transitioning subscribers from the Emergency Broadband Benefit program that the ACP supplants. ■

The Federal Communications Commission has decided not to set minimum service standards for the broadband service to low-income Americans that its new $14.2 billion Affordable Connectivity Program subsidizes, saying the law won't allow it.

The commission similarly did not set minimum standards for the temporary Emergency Broadband Benefit (EBB) COVID 19-related subsidy that the ACP has supplanted, but had sought comment on whether it could or should mandate them for the ongoing ACP subsidy program.

In draft rules for administering the ACP, which the FCC released for comment last week and will have to promulgate them — vote to approve them — before January 14 under orders from Congress and the infrastructure bill that created the ACP.

In that draft, the FCC said that after reviewing the statute’s language, it concluded that “Congress intended that ‘any internet service offering’ be eligible for support in the ACP,” and that imposing minimum service standards (which could be anything from speed and latency to price quality) “would contradict the Infrastructure Act” and so “is not statutorily supported.”

The FCC did say, as it did with the EBB, that to qualify, the service must include a fixed or mobile broadband connection “that permits households to rely on these connections for the purposes essential to telework, remote learning and telehealth.”

That definitely leaves room for interpretation of just what bandwidth that requires.

Coming up on a January 14 statutory deadline to promulgate rules to govern the multibillion-dollar Affordable Connectivity Program (ACP) broadband subsidies, the Federal Communications Commission plans to put out a draft of the rules ASAP so the public can comment on them.

The FCC has already said the rules applying to the Emergency Broadband Benefit (EBB) COVID-19-related broadband subsidy program, which ACP is supplanting, would apply — with some tweaks — from December 31, when the ACP triggered, until the new rules are adopted. That will happen sometime after January 14, since the Office of Management and Budget has to sign off on the information collection portion of the rules.

"In light of the approaching statutory deadline and the Commission’s desire to receive targeted and timely input from a broad cross-section of the affected public, chair [Jessica] Rosenworcel announces that extraordinary circumstances exist to warrant the discretionary release of a draft Report and Order and Further Notice of Proposed Rulemaking, including draft rules, which will be available to the public soon," the FCC said Thursday (January 6).

It will have to be ASAP for there to be enough time to comment given the FCC deadline. The FCC said it will take input through January 11 at 5 p.m. ■

Republican congressional leaders have reached out to key Biden administration agencies to make sure the billions of dollars in various broadband subsidy programs created by Congress goes to areas unserved by broadband, particularly rural areas, rather than to “duplicative and wasteful subsidized overbuilding.”

The definition of “access" is key, as Republicans generally define access as the availability of  “any” high-speed broadband service — definitions differ, but speeds of 25 Megabits per second downstream and 2 Mbps upstream are considered the low end. The Biden Administration, though, has suggested that price and competition can also be factored into the access equation, which would allow for upgrades where there is already service.

Republican lawmakers sent letters to the Federal Communications Commission, the National Telecommunications & Information Administration and the departments of Treasury, Agriculture and Education, making clear where they thought the money should go. They also requested an accounting of where any of the money from the CARES Act, American Rescue Plan Act and Consolidated Appropriations Act has gone.

Also: Commerce Says CARES Act Includes $1.5 Billion for Broadband

Signing on to the letters were Reps. Cathy McMorris Rodgers (R-Wash.), ranking member of the House Energy & Commerce Committee;  James Comer (R-Texas), ranking member of the Oversight and Reform Committee; and Kay Granger (R-Texas), ranking member of the Appropriations Committee.

The NTIA is the lead agency on most of the Infrastructure Act grants, overseeing the distribution of almost $1.5 billion for access for unserved areas, tribal lands and minority communities; $42.45 billion for broadband deployment; $2.75 billion for “digital equity” grants and $1 billion for middle-mile infrastructure.  

“As you work to allocate grants pursuant to these laws, we urge you to prioritize funding for unserved communities that lack access to any broadband connection rather than funding duplicative or upgraded service in areas that already have broadband access,” the lawmakers wrote.

Also: ISPs Team to Track Biden's Broadband Billions

The legislators want answers by Jan. 14.

Anong the questions they want the FCC to answer are how it is preventing duplication with other subsidy programs — including the Rural Digital Opportunity Fund (RDOF), which is giving out its own billions for broadband in rural areas — and how the commission is preventing the overbuilding of existing service.

The House on Friday (Nov. 19) passed President Joe Biden’s $1.85 trillion Build Back Better Act, whose investments in “better” include more broadband-related subsidy funding, help for local journalism and bulking up the Federal Trade Commission with a new privacy-targeted arm.

The party-line House vote was 220 to 213, but the bill faces a tougher crowd in the 50-50 Senate, where Sen. John Barrasso (R-Wyo.), chairman of the Republican Conference, said it would meet “a buzzsaw of resistance.” Not mincing words, Barrasso said in a statement emailed to Next TV: “Senate Republicans are united in our efforts to plunge a stake through the heart of this Democrat disaster.”

Currently it is two moderate Democrats, Sens. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, who probably hold the keys to its passage. The principal broadband funding boost came from the just-passed infrastructure bill and its $65 billion, but the Build Back Better Act does have another about $1 billion in additional broadband-related funding.

Connect Americans Now praised the inclusion of $475 million in funding for a broadband Connected Device Grant Program, another $300 million for the Emergency Connectivity Fund, $285 million for public-private partnerships to get broadband to historically underserved communities, and another $100 million to educate the public about the availability of various broadband subsidy programs.

The bill also incorporated the Local Journalism Sustainability Act, which provides tax credits for broadcast and online media outlets and newspapers to incentivize them to hire and keep journalists.

“The Local Journalism Sustainability Act will provide meaningful incentives for local broadcast stations to hire and retain the news-gatherers who keep our communities informed, connected and engaged,” said National Association of Broadcasters president and CEO Gordon Smith, who has pushed for the provision. “Local broadcast news is consistently ranked among the most trusted sources of news and information, and this bill would allow radio and television stations to employ additional journalists to report on the events, issues and emergencies affecting our nation.”

Michael Lee, executive director of the LPTV Broadcasters Association, was also pleased. “We have actively supported the Local Journalism Sustainability Act from the beginning and the principle of investing to maintain and develop trusted local community news coverage," he said. "The payroll tax credit should mean this is straightforward to implement, benefit from and track." He also praised FCC acting Chairwoman for this week coming out in support of the credit.

“We are pleased to see the House passage of the payroll tax credit for local journalists as part of the Build Back Better legislative package,” said Nadine Farid Johnson, Washington director of PEN America (https://pen.org/). “This provision will provide a crucial lifeline to local news outlets, bolstering the breadth and durability of community coverage and civic discourse. We urge the Senate to retain the payroll tax credit as it moves toward final consideration.”

Also Read: Journalists Get Build Back Better Help

Consumer Reports was praising the bill's $500 million over 10 years to fund an FTC office focused on policing privacy and data violations, as well giving the FTC civil penalty authority for the first time.

“We applaud the House of Representatives for taking action to empower the FTC to hold bad actors accountable,” CR senior policy analyst Maureen Maloney said. “We call on the Senate to approve the measure, so that the FTC can redouble its efforts to protect consumer privacy, advance civil rights, and address inappropriate uses of data.”

Not surprising in a bill this massive, not everything was to the media/tech industry's licensing.

“While the Build Back Better Act as passed by the U.S. House of Representatives supports companies' ability to keep their intellectual property in the U.S., invest in research and development, and accelerate semiconductor production, its international tax provisions would still hamper the overall competitiveness of globally-engaged U.S. employers," said Jason Oxman, president of tech association ITI. "Certain provisions would impose new worldwide interest limitations and discourage expansion, increase the base erosion and anti-abuse tax rate, and put the U.S. at a disadvantage by increasing its minimum rate before other countries adopt similar rules. As negotiations continue, it is imperative that lawmakers consider the essential role the U.S. international tax system plays in supporting the ability of the U.S. to compete on a global stage and promote innovation. We look forward to continuing to work with U.S. Congress on these provisions.”

A majority of U.S. voters said broadband, devices and computer skills are essential to success in the 21st century and agree that investment in ubiquitous affordable broadband in Biden administration-backed legislation can help close the digital divide for good.

That is according to a survey conducted by Moore Information Group and David Binder Research for Connect Americans Now.

“Voters overwhelmingly agree that access to an affordable, reliable broadband connection and the digital devices and skills necessary to unlock the full potential of technology are critical to safeguarding the promise of the American Dream in the 21st Century,” CAN executive director Richard T. Cullen said. “More than ever, creating good jobs, lifting wages, reducing poverty, improving health outcomes and strengthening education depend on affordable, reliable broadband connectivity in every American community.”

Cullen said that the infrastructure package — with about $65 billion for broadband — would be a critical downpayment on closing the digital divide.

The survey comprised telephone interviews with 800 voters nationwide conducted Oct. 20-24. The margin of error is plus or minus 3 percentage points with a 95% confidence level.

That survey found that 84% of respondents said the internet was either essential (54%) or important. More than nine in 10 African American voters agreed with the statement that “access to broadband internet is essential to protecting and realizing the American Dream in the 21st Century economy and classroom.”

Almost nine in 10 (89%) of the voters polled said that having a device was essential and important for success in the economy and classroom and 81% said Americans must have the digital skills to achieve that success.

The Biden broadband subsidy money is going to schools and libraries and low-income residents, and includes subsidizing a variety of broadband access devices.

The survey found that a majority (60%) supported the Biden infrastructure package — which has already passed the Senate — with only 28% opposing it. Support for the bill is highest among the lowest-income residents most likely to benefit, with 74% calling the legislation essential or important.

And for legislators gauging their potential success in midterm elections, the survey found that almost six in 10 would be more likely to support a congressional candidate who supports “making sure every American can access an affordable and reliable broadband internet connection.”

Connect Americans Now is an eclectic coalition of connectivity advocates, ranging from computer companies and app developers to barley growers and bison raisers.

As expected, the U.S. Treasury Department has stuck with the program of tying broadband subsidy money to high internet speeds, and with a priority on municipal networks and a thumb on the scale for affordability.

In its just-issued guidance for the COVID-19-related capital projects fund in the American Rescue Plan, Treasury outlined how the the $10 billion available to states for "high-quality broadband infrastructure as well as other connectivity infrastructure, devices, and equipment," should be spent and which providers would be eligible to get it.

Also Read: ACAC Says Treasury Should Not Play Favorites with Rescue Bucks

To get the money from a state (territory or tribal government), an ISP must deliver infrastructure that delivers upload and download speeds of 100 Mbps, or, if that is impracticable, at least 100 Mbps downstream and no less than 20 Mbps upstream. 

The project has to address some impediment to the community's access to work, education and health monitoring that resulted from or was exposed or exacerbated by the COVID-19 pandemic.

Treasury encourages the money to be focused on last-mile projects--connections to the home or school or library — and to “prioritize investments in fiber-optic infrastructure where feasible, as such advanced technology better supports future needs.”

NCTA: Biden Broadband Bucks Should Not Favor Government Nets

The President had signaled municipal broadband should get priority consideration, something ISPs opposed. Treasury advised that approach, saying fund recipients were encouraged "to prioritize projects that involve broadband networks owned, operated by or affiliated with local governments, non-profits, and co-operatives," explaining that those providers will have "less pressure to generate profits and with a commitment to serving entire communities."

While there is no affordability requirement, recipients are encouraged to develop plans that recognize that affordability is a barrier to "full use" of the 'net.

Treasury also issued lists, though non exhaustive, of eligible and ineligible costs.

Eligible costs include:

• “Costs associated with completing the grant or Application and Grant Plan;

• ”Pre-project development costs and uses, including data-gathering, feasibility studies, community engagement and public feedback processes, equity assessments and planning, and needs assessments; permitting, planning, architectural design, engineering design, and work related to environmental, historical, and cultural reviews;

• “Costs of repair, rehabilitation, construction, improvement, and acquisition of real property, equipment (e.g., devices and office equipment), and facilities (e.g., telecommunications equipment, including infrastructure for backhaul, middle, and last mile networks);

• “Cost of long-term leases (for terms greater than one year) of facilities required to provide qualifying broadband service, including indefeasible right-of-use (IRU) agreements and capital leases;

• “Personnel costs including salaries and fringe benefits for staff and consultants required for carrying out a Capital Project (such as project managers, program directors, subject matter experts, equity consultants, grant administrators, financial analysts, accountants, and attorneys);

• “Ancillary costs necessary to operationalize and put the capital assets to full use, including costs to increase broadband adoption and improve digital literacy;

• “Costs associated with monitoring of and reporting on Projects in compliance with Treasury requirements, including award closeout costs;

• ”Costs associated with collecting and measuring performance data and conducting activities needed to establish and maintain a performance management and evaluation regime related to Projects funded by the Capital Projects Fund program.”

Ineligible costs include:

• “Acquisition of spectrum licenses;

• “Operating expenses, other than grant administration costs;

• “Short-term operating leases;

• “Payment of interest or principal on outstanding debt instruments, or other debt service costs incurred prior to March 15, 2021;

• “Fees or issuance costs associated with the issuance of new debt;

• “Satisfaction of any obligation arising under or pursuant to a settlement agreement, judgment, consent decree, or judicially confirmed debt restructuring plan in a judicial, administrative, or regulatory proceeding; or

• ”To support or oppose collective bargaining. This does not affect the ability to use funds to comply with 41 C.F.R. 60-1.4.”

In response to the Treasury guidelines, Mignon Clyburn and Chip Pickering, co-chairs of INCOMPAS's BroadLand USA universal broadband campaign, said they were pleased. 

“By speeding up broadband speed goals, the Treasury Department is helping American consumers and small businesses avoid crashes that slow down their ability to work and learn," Clyburn said. ”We commend the Treasury Department for taking a smart look at the broadband speed needs of our small businesses and putting forward guidelines for the Capital Projects Fund that increase speeds and call for building scalable, symmetrical networks that reflect marketplace demand and global competition.”  

“By prioritizing networks of the future fed by fiber and both middle-mile and last-mile connections, the Treasury Department’s new goals will help move our broadband network infrastructure from the monopoly era into a new age of competition that will bring more investment, innovation and jobs for all Americans,“ said Pickering.

ACA Connects is telling the Treasury Department that it should direct the American Rescue Plan block broadband grants — it estimates those will total about $20 billion to $30 billion — to areas without broadband service of at least 25 Megabits per second upstream and 3 Mbps downstream. That‘s currently the FCC‘s minimum for high-speed data. 

But the trade group representing smaller, independent cable operators also said the regulator should not prioritize municipal broadband and co-ops over other providers.

The Treasury Department issued a proposed framework for handing out the money, including proposing that it prioritize buildouts by local governments, nonprofits and co-ops, that new builds should deliver symmetrical 100 Mbps (download and upload) speeds, and that the definition of unserved and underserved should be set at 25/3 Mbps.

In comments to Treasury, ACAC agreed that 25/3 should be the definition of “unserved” areas eligible for the broadband buildout money. It also agreed that those getting the funds should be required to offer 100/100 Mbps, arguing that the government can afford to build to that standard, which would help future-proof the funding. “[F]unding anything less — and then having to fund it again in the near future — is a bad investment,“ it said.

As to prioritizing municipal or nonprofit buildouts — Treasury said those had “less pressure to turn profits and a commitment to serving entire communities” — ACAC was not on the same page. It said Treasury should not put the thumb on the scale for anyone, including the co-ops and municipal systems who are also members of ACAC.

“[W]e know first-hand that all have a deep commitment to serving their entire communities and take a long-term approach to building networks and providing services,” ACAC said. But ACAC was also hedging its bets. It said that if Treasury does prioritize, it should give the highest priority to “any small entity that is an experienced broadband provider.”

ACAC said it would prefer auctions to grants for handing out the money, and that given that there is an adoption as well as an availability problem, for every dollar spent on deployment, at least a third as much should be spent on adoption programs.

The Federal Communications Commission on Wednesday (May 12) will launch its $3.2 billion Emergency Broadband Benefit (EBB) program, saying it expected the money to last a number of months, and signaling that the quicker the money runs out, the more successful it will have been.

Congress provided the funds and some of the mandatory framework, including that participating broadband providers — there are more than 825, according to the FCC — cannot exclude eligible households even if they have past or current delinquent payments.

Households already getting discounted broadband through various broadband operator programs will be automatically eligible for the EBB subsidy, but cannot be automatically enrolled by the broadband provider.

Also Read: FCC Unveils First Round of Emergency Broadband Benefit Participants

In fact, the FCC's Enforcement Bureau put out an advisory Tuesday (May 11) to that effect, "reminding" broadband providers that existing Lifeline subsidy customers "give their informed affirmative consent to participate in the EBB Program and are able to choose not to apply their emergency broadband benefit with their Lifeline provider without jeopardizing their existing Lifeline service."

The Lifeline subsidy is the existing Universal Service Fund subsidy for advanced telecommunications services for low-income residents.

The advisory also warns against marketing practices that could confuse consumers about the EBB program, including suggesting that signing up for EBB is required for getting Lifeline service or tying enrollment to obtaining other customer information.

Asked why that advisory was issued, an FCC official said it was to clarify some of the obligations and responsibilities of providers to make sure they were operating on a level playing field in terms of disclosures they were making to households.

The EBB is as much as $50 per household — $75 on tribal lands — and a one-time device subsidy of up to $100 for laptops or desktops, as long as the household chips in at least $10 toward the device cost.

The FCC plans to make public information from the Universal Service Administrative Co., which is overseeing the process, on how many households are taking advantage of the program and how much money is going out the door, according to an agency official speaking on background. The official had no estimate on how long the program would last, given that it has yet to start. Its length will depend on how many people avail themselves of it, the official said, adding that a shorter program means essentially a more successful program.

In addition to the Lifeline subscribers who are automatically eligible for EBB, there are at least 30 million children receiving free or reduced lunches, which qualifies their household for the emergency benefit. Households getting Pell Grants — another 6.5 to 7 million homes — are also eligible. There is, of course, some overlap among those categories, but it provides some idea of how many households could be applying for the money.

The FCC is also handing out more than $7 billion in a remote learning connectivity fund, but there is language in the legislation that created the EBB to prevent double-dipping, said one official. There could, however, be a case in which a household receiving the broadband benefit has a child receiving a device subsidy for schoolwork through the connectivity fund.

The connectivity fund device subsidy can go to a laptop or tablet, but can't go to a desktop or smartphone.

The FCC has extended its existing COVID-19-related waivers related to the Lifeline phone/broadband communications subsidy through Feb. 28, 2021.

The waivers deal with the program's "recertification, reverification, general de-enrollment, usage and income documentation requirements." 

Related: Dems Push FCC for Unlimited Lifeline Data

Without the extensions, those waivers would have expired Nov. 30.

In addition, the FCC has granted a partial waiver of the scheduled increase in what speed of mobile broadband plan qualifies for subsidies. Without that waiver, beginning Dec. 1, those plans would have to offer 11.75 GB per month of data compared to the current 3 GB.

It is partial because the National Lifeline Association (NLA) petition for waiver had sought a freeze of the 3 GB threshold. Instead, the FCC said it would allow it to increase to 4.5 GB. 

NLA had also sought to stop the FCC's planned decrease of Lifeline voice support from $7.25 to $5.25. The FCC declined to do so as it continues to migrate the program from voice to broadband.

The FCC said that allowing the increase to 11.75 GB "would risk undue disruption for Lifeline subscribers and providers," but that keeping it at 3 GB "would risk leaving Lifeline consumers behind at a time when broadband access is more important than ever."

The 4.5 GB figure has always been more to FCC Chairman Ajit Pai's liking--the bump-up to 11.75 was mandated by a previous FCC.

Saying he was cleaning up a mess made by the previous commission, Pai last July circulated a draft order that would permanently cut that new minimum mobile broadband data capacity provided to low income residents by the Lifeline subsidy from 11.75 GB to 4.5 GB.  

The FCC has authorized $7.4 million in funding over 10 years for rural broadband buildouts in Oklahoma and Oregon. 

Viasat will get $2,708,529.40 to serve 3,811 rural locations in Oregon and tribal provider Redwire will get $4,766,845.60 for fixed broadband "of at least 25/3 Mbps" for 8,041 rural homes and businesses in Oklahoma, including tribal areas. 

The providers must build out to 40% of those homes and businesses within three years and add another 20% yearly until all are served by year six. 

The funding is the 13th tranche of subsidies under the FCC's 2018 Connect America Fund Phase II auction, which is being replaced by the Rural Development Opportunities Fund auction that launches this fall.

The 2018 Phase II auction allocated $1.488 billion in subsidies in an effort to get broadband to 700,000 more rural residents within 10 years, with over half of them getting at least 100 Mbps speeds. The FCC has now authorized over $1.4 billion in 13 tranches.   

The largest incumbent price cap carriers—AT&T, Verizon, CenturyLink—declined about $2 billion in Connect America Fund phase II (CAF II) support for building out broadband to high-cost, generally rural, areas, so the FCC opened that pot of money up to competitors, like cable broadband providers, via auction.  

“Access to the internet is more important than ever as our nation responds to the coronavirus pandemic,” said Rep. Greg Walden (R-Ore.), ranking member of the House Energy & Commerce Committee. “Far too many Oregonians still lack access to reliable broadband internet service and thus access to things like telemedicine, remote learning, next generation emergency services, and video streaming because of insufficient Internet service. Expanding access to rural broadband in Oregon brings us closer to narrowing the urban/rural digital divide and ushers rural Oregonians into the 21st Century. This money is welcome news for the over 2,000 individuals and small businesses in the second district that will be impacted. I am grateful to Chairman AjitPai, who saw firsthand the need for expanding rural broadband in eastern Oregon when he visited in 2018, for his efforts to strengthen connectivity in Oregon and I look forward to continuing to work with him on expanding rural broadband across our great state and nation.”

Sen. Roger Wicker, the chairman of the Senate Commerce Committee, is asking FCC chairman Ajit Pai to weigh in on how the FCC will speed the allocation of billions of dollars for rural broadband subsidies. 

The FCC is scheduled to auction access to the first $16 billion (phase one) of the $20.4 billion Rural Digital Opportunity Fund (RDOF), starting Oct. 22.  

Related: Bill Would Goose Broadband Buildouts 

Wicker points out that legislation, the Rural Broadband Acceleration Act (H.R. 7022), has been introduced to get money out even before that auction. It would direct the FCC to allocate money to applicants who were expected to be the sole bidder and who promised gigabit speeds. It would also require the FCC to start processing provider applications for the auction by July 31 (it could more quickly identify which sole bidders might be able to get money early). 

Related: House Democrats Update Broadband Plan

Wicker said he has heard from providers in his home state who are ready to deploy in unserved areas--the first $16 billion is targeted to unserved areas--but need the subsidy money to do so. 

The senator said expediting the funding could help close the digital divide. He said that while Congress is considering the bill and is cognizant of the legal and procedural constraints on modifying FCC rules already approved, Wicker wanted some questions answered--by June 12--to help them with the legislation. 

Related: Pai Circulates Framework for Rural Broadband Fund

They include how the FCC would modify the auction to meet accelerated deadlines or make awards of money early and when it will update its March 17 list of areas eligible for that phase one support. 

Wicker's desire to advance the auction and funding is in contrast to a number of Democrats who have been arguing the auction should be delayed until the FCC can collect more accurate data on where broadband is and isn't. 

Cable operators are telling the FCC that if it wants to attract cable operators and other terrestrial broadband providers to its massive subsidy program for rural broadband buildouts, it should retain census blocks as the smallest biddable unit in the Rural Digital Opportunity Fund (RDOF) reverse auction.

That is the $20 billion subsidy over 10 years for building out broadband to rural areas.

The FCC has asked whether it should stick with that unit, which it used for the Connect America Fund program that has morphed into RDOF, or go to larger census tracts.

NCTA–The Internet & Television Association has suggested that if the FCC goes big, cable operator bidders may stay home. The reason is that if the FCC changed to larger, census-tract blocks, cable operators might not bid because many will be expanding their current networks and it would not be economical in some cases to have to build out huge tracts of land as it were.

That could put a thumb on the scale for satellite providers, who are generally the broadband of last resort for high-cost, hard-to-reach areas, NCTA said.

The FCC is giving carriers more flexibility to target government broadband subsidies to areas hardest hit by the COVID-19 pandemic and thus most in need of continued broadband connectivity in a shelter- and quarantine-in-place world.

The FCC said Tuesday (March 31) that it would provide waivers to allow competitive eligible telecommunications carriers (ETCs) to use their high-cost legacy dollars to respond to the "unprecedented challenges" of the virus. 

Related: FCC Grants Spectrum to WISPs

High-cost money are subsidies for broadband service where it is least economical to deliver. 

FCC rules require all such high-cost legacy support to be used only in a particular service area, but the FCC said it was in the public interest to free it up where it would do the most good, specifically maintaining networks in the most-affected areas. 

“With this waiver, we give these carriers the ability to adjust their deployments as appropriate to the specific needs of the communities they serve," said FCC Chairman Ajit Pai. "I hope and expect this waiver will allow these carriers to focus their efforts in the areas most in need." 

The waiver lasts until June 30, but the FCC will reevaluate at that time as to whether that will need to be extended.  

Republican FCC Commissioner Michael O'Rielly is spearheading an effort to put the Universal Service Fund broadband subsidies on a budget, which means capping spending $11.42 billion, which he points out is "well-above current disbursement levels," and leaves a nearly $2 billion cushion for potential spending.

An item was circulated to that effect last week, setting off a storm of protest from some quarters

In a blog about the effort, O'Rielly said it was a much needed and overdue move, and dismissed its critics as "special interest groups and uninformed detractors reflexively opposed to any restraint on the agency’s redistributive subsidies."

He called it an effort to "inject fiscal responsibility" into the USF.

Related: FCC's Pai Pans USF Cuts to Small Carriers

"I believe we must set an upper limit of what we’re willing to take from hardworking American consumers to support these subsidies," said O'Rielly. "Determining this maximum level is also a necessary precondition to any effort to reform the FCC’s method for assessing USF contributions."

Related: O'Reilly Grills USAC on WAN Overbuilds

Critics of a cap on the fund abound.

“Latino communities need the FCC to find ways to make good on its promise to bridge the digital divide instead of perfecting ways to undermine programs working towards that goal," said Francella Ochillo, VP of policy and general counsel at the National Hispanic Media Coalition. "Arbitrary budget cuts to Universal Service Funds will disconnect Americans who are starving for digital opportunities, especially in unserved and underserved communities that Latinos call home.”

“This proposal may impede the FCC from making broadband affordable and accessible for all Americans, and those impacts will be felt most directly by our country’s most vulnerable communities, jeopardizing families who most need assistance connecting, students and low-income individuals who rely on internet access at schools and libraries, and families living in the most rural parts of the U.S.," said Public Knowledge Communications Justice Fellow Alisa Valentin.

"The SHLB Coalition completely agrees with the importance of fiscal responsibility, but imposing an arbitrary cap on the USF expenditures is an awkward approach that could undermine the FCC's stated 'top priority' of closing the digital divide," said John Windhausen, Jr., executive director of the Schools, Health and Libraries Broadband Coalition.

O'Rielly is having none of it.

"Based on some of the more hysterical accounts, a cap would only serve to undermine digital access and hurt the disadvantaged," said O'Rielly. "This couldn’t be further from the truth."

He said it is the lack of a governor on the fund that hurts the disadvantaged because the fund comes from fees on broadband user's bills, so raising what is in effect a tax on broadband access makes it harder for lower income households to connect. 

Comcast has announced that its subsidized ISP program Internet Essentials has now been provided to six million low-income Americans.

In addition to the benchmark, the cable company also said it will expand the program to nearly one million low-income military veterans.

Comcast said it has connected two million users to Internet Essentials just in the last year—its largest annual increase to date.

Related: Comcast Connects on New Internet Essentials Campaign

“This program has had an enormous impact on millions of families and children who now have high-speed Internet at home, many for the first time in their lives,” said David L. Cohen, senior executive VP and chief diversity officer for Comcast, in a statement. “We’re excited to extend that same opportunity to more than one million, low-income veterans. Veterans have stood up for our country, now it’s time for us to stand up for them by providing access to life-changing digital tools and resources.”

Comcast also announced that U.S. Olympic Gold Medalists Jocelyne Lamoureux-Davidson and Monique Lamoureux-Morando will join Cohen on a multi-city tour to raise awareness for the Internet Essentials program.

"What began as connecting the country via telephone lines — which were, in those early days, sometimes fashioned from cattle wire — has evolved into the innovative broadband and fiber networks of the digital age." —Jonathan Spalter, USTelecom 

In a recent spending bill, Congress made $600 million available for additional broadband deployment to America’s rural areas. The U.S. Department of Agriculture’s Rural Utilities Service (RUS) has been tapped to administer these funds through a new pilot program.

Without question, this funding is a welcome and needed addition to the growing arsenal now aimed squarely at closing the digital divide to rural Americans once and for all. USTelecom members have led the way on connecting these communities for more than a century, through companies often run by generations of the same family. 

What began as connecting the country via telephone lines — which were, in those early days, sometimes fashioned from cattle wire — has evolved into the innovative broadband and fiber networks of the digital age.

Private investment from our nation’s broadband providers has placed them among the leading investors in the U.S. economy, putting, since 1996, more than $1.6 trillion of their own capital on the line to upgrade and expand the nation’s digital infrastructure. As a result, over the past 10 years, broadband in rural homes has risen 117%.

This private investment, paired with dedicated federal programs, will connect millions more in the coming years. That’s why great care must be taken to maximize the RUS program’s effectiveness.

Coordination Is Key

Unquestionably, coordination with existing rural broadband programs and guidance from agencies with a proven track record of supporting successful deployment are critical to ensuring broadband gets deployed to the communities and households that actually need it.

Related: FCC Rural Broadband Office Bill Introduced

I emphasize this point because some prior funding efforts have resulted in duplicative construction rather than maximizing coverage across truly unserved areas. Lack of coordination between agencies and existing programs not only led to the overbuilding of broadband networks, but also to the distortion of competition in the ongoing efforts to deploy broadband.

In a blog published in April, Federal Communications Commission member Michael O’Rielly made a reasoned argument for such collaboration, encouraging RUS to coordinate with the FCC and the National Telecommunications and Information Administration to ensure the funding prioritizes unserved areas and avoids overbuilding and duplicative construction.

Related: ISPs to Senate: Limit RUS Overbuilds

The smart coordination of RUS with existing programs we know already work, such as the Universal Service Fund, can best help providers extend and sustain broadband into our most rural communities. If this coordination doesn’t happen, projects selected by RUS could risk hollowing out the “Main Streets” of small communities, leaving another program, such as USF, to pick up the surrounding portions at much greater costs. 

New RUS funding should instead focus on areas not already reached, or not likely to be reached through programs such as the FCC’s High Cost and Remote Areas Funds, intended to bring service to many of the hardest-to-reach portions of the United States.

To that end, along with NCTA–The Internet & Television Association, the American Cable Association and ITTA (Independent Telephone and Telecommunications Alliance), we submitted a letter this week to the Senate Agriculture Committee which is considering the Farm Bill, asking them to modify the RUS Broadband Loan Program to better achieve its goal of helping truly unserved areas.

In a strapped budget climate, it is imperative that federal agencies work in lockstep to ensure that taxpayer dollars are stretched to their full potential. Rural Americans who are still waiting on fast and reliable broadband service to reach their front door can’t afford anything less.

Jonathan Spalter is president and CEO of USTelecom, the telecommunications industry trade association.

The FCC has taken a big step toward is auction for up to $2 billion in broadband subsidies to primarily rural areas as it tries to close the digital divide via its Connect America Fund (phase II) of Universal Service Fund subsidies. It said this week it has identified the unserved areas that will get the money, which is collected in the form of fees levied on providers--and passed along to subscribers on their monthly bills--to help provide advanced communications to low income and hard-to-reach areas.

The largest incumbent price cap carriers—AT&T, Verizon, CenturyLink—declined about $2 billion in Connect America Fund phase II (CAF II) support for building out broadband to high-cost, generally rural, areas, in 20 states, so the FCC is opening that pot of money up to competitors, like cable broadband providers, via auction.

All that money is coming from the Universal Service fund for high-cost, mostly rural, areas for which there is no business case for building out broadband absent that subsidy.

In February the FCC voted to establish rules for handing out the money and sought comment on how it should structure the bidding, with final comments due by Oct. 18. The CAF II auction is scheduled to begin next year.

The FCC voted unanimously in August to give the go-ahead to that framework and the next phase of the CAF subsidies.

 The FCC is auctioning the CAF II money, available over 10 years, to cable and telco ISPs to build out the almost 1 million homes and businesses in the contiguous 48 states the FCC has identified as currently not served by high-speed broadband (defined as 10 mbps downstream, 1 upstream).

“Closing the digital divide is my number one priority, and through this innovative Connect America Fund auction, we are poised to take the next big step in reaching that goal,” said FCC Chairman Ajit Pai of identifying the unserved locations.  “In rural America, broadband opens the doors of opportunity by connecting remote communities to global markets, jobs, education, health care and information.”

The auction is scheduled to begin in 2018.

In an unusual move, FCC commissioners Michael O'Rielly, a Republican, and Democrat Mignon Clyburn have taken to the blogosphere together to issue an informal request for comment on means-testing of high-cost broadband subsidies

Formal requests for comment are motormanned by agency chair Ajit Pai.

Both Clyburn and O'Rielly agree that the FCC should not be subsidizing people who don't require government assistance in its quest to reach those who do.

"We should end the practice of spending scarce USF [Universal Service Fund] high-cost support to illogically subsidize the cost of communications services for very rich people who happen to live in the more rural portions of our nation," they wrote.

The high-cost fund is for the hard to reach -- mostly rural -- areas of the country where there is the toughest business case for building out broadband on a purely marketplace basis.

The commissioners offered a proposal to institute means testing, saying they want to spark a conversation and that they also hope to be able to bring up the issue more formally -- that would have to come from Pai -- so as to "properly engage the entire American public."

They suggested that one way to means test would be to set a threshhold for adjusted gross income (AGI) above which households would not get the subsidy, then use a pretty hefty cut-off: "Would it be reasonable to select an AGI of $1 million or $500,000?" they asked, meaning that someone making $999,000 would still get the subsidy.

Among the questions they want input on are:

"What are the advantages and disadvantages of using means-testing? Would it make the program more efficient as some commenters have suggested? Given our limited budget, would it enable the Commission and/or providers to retarget funding to areas or consumers in greater need of support? How can it be implemented without disruption to the current programs? Should it apply on a going- forward basis as rules for additional parts of the high-cost program, such as the Remote Areas Fund, are adopted? Could it eventually be implemented uniformly across all of the high-cost programs as they come up for renewal in the years to come, or would it need to be tailored to each program? How can it be structured to be effective and with sufficient accountability while imposing the fewest costs on providers and consumers? How should the Commission set income eligibility criteria? How should the Commission structure means-testing in a way that is administrable for the Commission, companies, and consumers? What data would the Commission need in order to effectively means-test the high-cost program?"