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IIA: FCC Should Recognize Fixed, Mobile Equivalency

john.eggerton@futurenet.com (John Eggerton) — Fri, 22 Nov 2019 17:03:01 +0000

The Internet Innovation Alliance said the FCC should update its evaluation of advanced telecommunications deployment to recognize that fixed and mobile broadband are not functional equivalents.

In its 15th Sec. 706 Broadband Deployment Report, the FCC concluded that the two were not quite ready for prime time, head-to-head competition. That report is the annual report to Congress on whether advanced telecom is being deployed in a reasonable and timely basis.

In comments to the FCC on that report, IIA said that “the fact is that, over the past two years, the broadband market has evolved rapidly and sufficiently to permit – if not demand – the conclusion that mobile and fixed broadband are full substitutes."

IIA points out that consumers are using both for data, video, job applications and homework, and that mobile data use is surpassing fixed, "a result that would have been impossible if consumers did not view fixed and mobile broadband as functional equivalents."

IIA also said that the FCC should maintain the 2019 definition of high-speed broadband ( 25 Mbps/3 Mbps ) in the 2020 report, rather than prescribe a higher speed below which service does not count as being deployed.

IIA: Broadband is Big Shopping Bonus

john.eggerton@futurenet.com (John Eggerton) — Thu, 13 Dec 2018 16:14:33 +0000

"You better shop around," goes the old song, but those without access to broadband are at a distinct disadvantage.

The Internet Innovation Alliance says that the average family can save about $10,500 per year by using broadband to comparison shop. It is even more--$12,114.09--before subtracting the cost of a home broadband service and mobile data plan ($1,575).

That is based on the Department of Labor 2017 Consumer Expenditure Survey.

IIA says those savings, on necessities like gas, food and housing, result from the ability to "expand buying options, utilize mobile applications to identify nearby deals, and access online-only pricing."

The biggest savings by percentage with broadband was in online bill paying and by raw dollars, not surprisingly, it was big ticket items like cars and houses.

The report, "10 Ways Being Online Saves You Money," was authored by financial planner Nicholas Delgado, principal of Chicago investment bank Dignitas, for IIA.

One of the big reasons the digital divide needs closing is that online-only pricing or discounts for things like paying bills and various government services, like paying for new car registrations online, wind up being a regressive tax since it is usually on rural and lower-income areas that lack broadband but could most use a price break.

“In 2018, online purchasing power is taken for granted by the majority of Americans, but the reality is that many people are still missing out on the possibility of internet-enabled savings," said IIA co-chair Bruce Mehlman. "We need to put policies in place that encourage the expansion and availability of high-speed broadband internet, especially fifth-generation wireless, to help close the digital divide and bring the benefits of broadband to all.”

IIA Study: Consumers See Mobile, Fixed Broadband as Functional Equivalents

john.eggerton@futurenet.com (John Eggerton) — Tue, 17 Jul 2018 14:55:51 +0000

The FCC's conclusion in 2016 and again in 2018 that mobile broadband is not a "functional substitute" for fixed broadband is outdated and needs to change.

That is the conclusion of a June study of 10,000 consumers commissioned by the Internet Innovation Alliance.

Rick Boucher

IIA honorary chairman Rick Boucher said the FCC relied on the 2016 analysis in making the determination they are not substitutes, and that those findings are now obsolete. He said it was time for a fresh look at fixed and mobile broadband, and the IIA was sharing the findings and an accompanying white paper with the FCC Tuesday (July 17).

Boucher said 43% of respondents either preferred mobile or had no preference, with 47% saying they preferred fixed, which Boucher said was functional equivalency.

He also said consumers use wired and wireless in the same ways across various functions, including streaming video or watching news and reports.

Boucher said the FCC should tell Congress in its next annual report on availability of advanced communications that the two are functional equivalents.

The FCC is under a congressional directive to periodically assess deployment of advanced communications and is empowered to regulate in the event it finds it is not being deployed in a reasonable and timely manner, as was the finding of the report under FCC chair Ajit Pai's Democratic predecessors.

Boucher said the goal is for the FCC to use the most current data when it reports to Congress, which has made it clear that deployment of advanced communications is a key policy goal.

Consumers are seeing fixed and mobile services as exchangeable on price, affordability and speed, not simply that they would like mobile as well as fixed, all those things being equal, Boucher said, adding that when 5G arrives, the numbers will shift dramatically toward the mobile side.

But even with the numbers moving toward functional equivalency, fixed broadband remains the preferred access point, with 26% saying that was their preference, versus 23% for mobile, 20% no preference, 14% fiber and 7% DSL.

Study Says Broadband Is $1 Trillion Econ Driver

john.eggerton@futurenet.com (John Eggerton) — Thu, 05 May 2016 19:00:00 +0000

The U.S. broadband and ICT sectors have generated over a trillion dollars in annual value to the U.S. economy, according to an economic analysis commissioned by the Internet Innovation Alliance.

The study concludes that all that activity was generated thanks to an "environment of light federal regulation." And while the study authors say they don't know how the FCC's Title II reclassification of ISPs will affect economic growth and employment, they predict from former analysis and review of the literature and history that it could adversely affect broadband/ICT investment and have "significant secondary costs" for other industries.

Among the takeaways are that $1,019.2 billion in value added, or 5.9% of U.S. GDP, employing almost 5 million workers (full time or full time equivalent), and average salaries across the sector of $104,390, or 59.3% of the average national wage of $65,517.

“Today, high-speed Internet is the backbone for 21st century economic growth in the digital economy,” said Rick Boucher, honorary IIA chair and the former non-honorary Democratic chair of the House Telecommunications Subcommittee. “Unnecessary price regulation in competitive broadband markets will have far-reaching negative impacts on U.S. economic growth and development.

A Lifeline Argument Not Rooted in Reality

Rick Boucher, Sidley Austin — Mon, 28 Sep 2015 18:00:00 +0000

The Federal Communications Commission is now modernizing its Lifeline program, originally designed to connect low-income Americans to the telephone network.

Lifeline was created in the mid-1980s and reflects the pre-broadband era, when Americans communicated primarily by wired or wireless telephone. The reform now underway would broaden the program to cover high-speed Internet service.

That change is urgently needed. Only 36% of individuals with incomes below $10,000 have access to broadband, even though broadband is the bridge to success in today’s economy.

Lifeline is unique in that service providers, and not the government, today determine whether consumers qualify for and remain in the program. That means service providers maintain an incentive to qualify as many subscribers as possible, which can lead to waste and misallocation of program resources.

That’s why my organization, the Internet Innovation Alliance (IIA), has joined FCC commissioner Mignon Clyburn and many others in calling for fundamental reform of the Lifeline program. We seek to enhance consumer choice, expand the number of carriers willing to offer Lifeline-supported services and promote greater financial accountability to ward off waste, fraud and abuse. To enhance accountability, IIA supports having states, not self-interested companies, determine who is eligible to receive Lifeline service. A state agency determination that an individual is eligible for other federal benefit programs, such as food stamps, would automatically qualify that person in the Lifeline program.

TIME FOR AN EBT

To spur competition by encouraging a larger number of carriers to participate in the program and to give consumers the most flexible way to choose from among competing carriers, we support moving the Lifeline subsidy to an electronic benefit transfer (EBT) card.

Putting the Lifeline benefit on an EBT card and asking the states to confirm eligibility would empower consumers in the marketplace and help prevent fraud. Yet even as many states have adopted the convenience and accountability of moving government-provided benefits to an EBT card, some still resist this change for Lifeline.

They contend that EBT cards would burden certain beneficiaries, such as the elderly, disabled and rural poor, based on an incorrect assumption that the cards would have to be swiped at a retail location on a regular basis.

Let’s review how eligibility determinations and EBT cards would work in practice under a new Lifeline program.

First, Lifeline eligibility would be determined through “coordinated enrollment,” with states performing Lifeline enrollments as they judge eligibility for a number of other federal programs (such as the Supplemental Nutrition Assistance Program, or SNAP). Lifeline could be added to this process to ensure that only those eligible for benefits actually receive them. Upon a determination of eligibility, the low-income consumer would receive a “Lifeline EBT Card,” similar to food stamp cards, allowing them to apply the subsidy to the telephone or broadband service of their choice.

State agencies that approve eligibility for Lifeline would also provide to the beneficiary a list of registered Lifeline service providers in that area. Individuals could then sign up for Lifeline by visiting a retail location or by using their electronic benefit to order service by phone or over the Internet.

Consumers with EBT cards could apply their $9.25 Lifeline monthly discount toward basic telephone or basic wireless service, or they could decide to apply the discount toward Internet service.

When consumers are satisfied with their service option and want it to continue, they should be able to set up automatic monthly payments of the Lifeline subsidy through an agreement with the carrier, revocable by the customer at any time.

There’s no need to go to a storefront every month unless the consumer wants to switch Lifeline providers (which could also be done online or over the telephone).

WORKS IN THE STATES

Thirty-seven states have put federal benefits on some form of debit card. It’s efficient, and it’s working well. There’s no reason why it should not be extended to the Lifeline program.

Those who argue against EBT cards and want to maintain the status quo are obliged to frame their arguments in the realities of how the program would actually function in practice. In particular, claims that placing the Lifeline benefit on an EBT card would impose logistical burdens on subscribers by requiring that they visit physical store locations on a regular basis are simply inaccurate and do nothing to advance the reform dialogue. Moreover, those who oppose moving Lifeline eligibility determination authority to the states and removing self-interested carriers from the process should spell out how the government can stop Lifeline enrollment abuse that weakens popular support for the current program.

An EBT card as part of coordinated enrollment with other federal programs is the best way forward. Giving consumers more choices, including both the choice of broadband and greater choice among providers, will empower consumers to take maximum advantage of their Lifeline benefit and to encourage the nation’s transition to broadband. That is the key not only to Lifeline reform, but to its success in the 21st century.

Rick Boucher was a member of the U.S. House for 28 years, chaired the Subcommittee on Communications, and the Internet, and is honorary chair of the Internet Innovation Alliance (IIA). He is a partner in the Washington office of law firm Sidley Austin.