Cable broadband operators are all for a new bipartisan bill focused on subsidizing rural broadband buildouts where there is no physical plant and with a thumb on the scale for experience in such buildouts.

NCTA-The Internet & Television Association applauded the introduction Tuesday (November 29) of the Rural Internet Improvement Act of 2022.

Backing the bill is Sens. John Thune (R-S.D.) and Ben Ray Luján (D-N.M.), ranking member and chairman, respectively, of the Communications Subcommittee, along with Amy Klobuchar (D-Minn.), and Deb Fischer (R-Neb.). All of them are members of the Committee on Agriculture, Nutrition, and Forestry.

The bill would "streamline" USDA rural broadband subsidy programs, essentially replacing the current ReConnect Program to better target it to areas without wired broadband service.

In 2021, USDA made $1.15 billion in federal loans and grants available to expand high-speed internet access in rural communities across the country through the ReConnect Program, part of President Biden’s Build Back Better agenda.

Also: USDA Makes $1B Available for Building Better Rural Broadband

Republicans in particular, along with cable operators, generally advocate for such a definition, rather than using speeds or price as a determinant of availability.

Speaking to that was Sen. Thune, who said in a statement: "Our bipartisan legislation would help bridge the digital divide by improving USDA’s ReConnect Program to ensure its funding goes to truly unserved areas.”

Klobuchar was focused on what she characterized as "key" improvements that would "allow for a more convenient application process and more efficient deployment."

The ReConnect program has had a definition of broadband availability that included considering the economic needs of the community to be served; the extent to which a provider will offer affordable service options; and a project’s commitment to strong labor standards.

"[S]ignificantly," said NCTA, "this bill would direct funding for network expansion to areas where at least 90 percent of households lack access to broadband, and it would encourage reliance on applicants with demonstrated experience constructing and operating broadband networks in order to promote network construction that is on budget and on time. These are solid improvements to the current program that should be adopted as part of next year’s farm bill," to which the standalone bill is expected to be attached.

In addition, according to Thune's office, the bill would:

1. "[M]erge and codify the popular Rural e-Connectivity Pilot Program (ReConnect) with USDA’s traditional broadband loan and grant program;

2. "Enhance the participation of all types of broadband providers in the ReConnect Program by removing unnecessary barriers;

3. "Increase transparency by improving the challenge process in the ReConnect Program;

4. "Improve the coordination between USDA and the Federal Communications Commission (FCC) on broadband programs; and

5. "Require USDA to enter into a memorandum of understanding with the FCC and National Telecommunications and Information Administration to facilitate outreach to rural residents and businesses of available federal programs that promote broadband access, broadband affordability, and broadband inclusion." ■

Just why the government needs to subsidize universal broadband service was made clear in a press release Friday (Sept. 23) issued by Sens. Lisa Murkowski and Dan Sullivan, both Alaska Republicans trumpeting money their state got for high-speed internet.

The money came from the Agriculture Department's ReConnect Program, one of many broadband subsidy programs totaling tens of billions of dollars.

Alaska Telephone Co. got $33 million and Arctic Slope Telephone got $30.9 million. Alaska Telephone's money went to deploy fiber to the premises for 211 people and five businesses, while Arctic Slope's $30.9 million is being used to connect 476 people and 15 businesses.

Or put another way, it is costing over $90,000 dollars per sub or business to get high-speed access to rural Alaska.

USTelecom has said that one of the biggest roadblocks to universal service in rural communities is the cost of installing fiber to the premises. "[S]teep installation cost[s] can scuttle even the most optimistic business case for expanding broadband in sparsely populated regions," USTelecom said when arguing for "Dig Once" policies.

The Biden Administration clearly recognizes that the business case for rural service needs a boost from the big pockets of government/taxpayers, as do the Senators trumpeting their home state funds.

“It’s great to see the USDA continuing to award significant resources to assist with delivering high-speed internet access to rural Alaska—an essential component of 21st century infrastructure,” said Sen. Sullivan. ■

The U.S. Department of Agriculture has asked for a six-month waiver of the “buy American” provision of Congress‘s Build America, Buy America Act (BABA), citing, among other things, broadband buildouts that would be negatively affected without that relief.

“The absence of a reasonable adjustment period will slow projects; result in customer confusion; delay the processing of funding obligations for much-needed infrastructure investments; disrupt established supply chains; increase the need for cost overrun awards due to project delays; and represent an unanticipated change in the rules for program applicants who submitted applications to open funding opportunities without the benefit of knowing the breadth or effect of the BABA guidance,” the USDA said.

USDA oversees a number of broadband-related grants, and said one of the outcomes of not getting the waiver would be to adversely affect “high-speed internet access in rural, tribal and high-poverty areas.” That includes either delaying or canceling projects, it suggested.

The USDA’s Rural Utilities Service telecom buildout grants have Buy American provisions that pre-date the BABA mandate, but would impact its $1 billion-plus Rural Development Broadband ReConnect grant and loan program.

There is precedent for the waiver.

Back in 2009, the Commerce secretary granted broadband buildouts a limited waiver of the Buy American provisions of an economic stimulus bill. ■

The FCC, Department of Agriculture, National Telecommunications & Information Administration (all of which oversee broadband subsidy programs) and the Treasure Department have signed a memorandum of understanding (MOU) agreeing to share "information about and collaborate regarding the collection and reporting of certain data and metrics relating to broadband deployment."

They have also agreed to, to the degree possible, develop "consistent, complementary, uniform formats, standard, protocols and reporting processes for that data.

For its part, the FCC has been working on collecting better data's on where high-speed broadband is or isn't given the tens of billions of dollars being spent on subsidies.

That MOU, which extends out two years but will almost certainly be renewed, comes as the Biden Administration Friday announced notices of funding opportunity for $45 billion worth of subsidies being handed out by NTIA, mostly to the states for their own broadband deployment and adoption programs.

As part of the agreement, the agencies will share information about projects that have gotten funding--or will be getting funding--under their respective broadband subsidy programs. They will also make that data available for public perusal  The MOU complements, rather than supersedes, a June 2021 MOU among the agencies "to coordinate the distribution of federal high-speed internet funds."

The FCC oversees billions in Universal Service Fund broadband subsidies as well as COVID-19 related emergency programs including for telehealth, remote learning. NTIA has about $45 billion in subsidies, mostly going to the states, and USDA has ongoing broadband subsidy programs for connected agriculture. ■

Some high-profile Senate Republicans are asking the Department of Agriculture not to impose net neutrality conditions on broadband buildout subsidies, conditions that are essentially a USDA imposition of the FCC's scrapped net neutrality rules.

In its rural development broadband ReConnect grant and loan program, applicants get a preference--10 extra points in considering its application--for "applicants that commit to net neutrality."

To get the extra thumb on the scale for their application, according to the USDA, an applicant must promise that it "shall not (1) block lawful content, applications, services, or non-harmful devices, subject to reasonable network management; (2) impair or degrade lawful internet traffic on the basis of internet content, application, or service, or use of a non-harmful device, subject to reasonable network management; and (3) engage in paid prioritization, meaning the management of a broadband provider's network to directly or indirectly favor some traffic over other traffic, including through use of techniques such as traffic shaping, prioritization, resource reservation, or other forms of preferential traffic management, either (a) in exchange for consideration (monetary or otherwise) from a third party, or (b) to benefit an affiliated entity."

Those are essentially the network neutrality rules the Republican-led FCC under chairman Ajit Pai eliminated over current acting chair Jessica Rosenworcel's opposition and which Democrats want to reimpose.

In a letter to Agriculture Secretary Tom Vilsack, Sens. Ted Cruz (R-Tex.) and John Thune (R-S.D.) said it was "deeply troubling" that USDA had "suggested" it had the authority and expertise to determine what qualifies as "lawful internet traffic."

“Rather than attempting to impose monopoly-era regulations on broadband providers and politicizing the ReConnect program," they wrote. "We strongly urge you to reverse your decision to provide additional scoring points based on USDA’s determination of what constitutes ‘net neutrality'...."If USDA decides to make attempts at regulating the internet absent authority from Congress, it would lead to tremendous legal and marketplace uncertainty," they told the secretary.

"As you know, 'net neutrality' restrictions have been subject to much debate in Congress and at the Federal Communications Commission, the agency that oversees our nation’s telecommunications policy," they told Vilsack. "Any effort to impose unnecessary 'net neutrality' restrictions would be dangerous to our nation’s dynamic broadband economy and threaten future investments in broadband infrastructure."

The FCC under Pai defended eliminating the rules in part because it argued the rules had depressed broadband investment, something Democrats disputed.

Also signing the letter were Sens. Roger Wicker (R-Miss.), Marsha Blackburn (R-Tenn.), Roy Blunt (R-Mo.), Shelley Moore Capito (R-W.Va.), Deb Fischer (R-Neb.), Ron Johnson (R-Wis.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Jerry Moran (R-Kan.), Dan Sullivan (R-Ala.), and Todd Young (R-Ind.).

The Department of Agriculture's Rural Utilities Service was doing its part this week to try and close the digital divide, at least to the degree that government broadband subsidies will do that. 

Related: USDA Opening Window on $550 In Subsidies 

The USDA said Monday (Jan. 20) that it had given out $18.7 million for a high-speed infrastructure project to improve rural connectivity for 6,300 households in West Virginia. The money is part of the first round of funding in its ReConnect Pilot [loan/grant] Program. 

Then on Tuesday, USDA said it had handed out another $7.1 million for two high-speed broadband fiber-to-the-home infrastructure projects in rural Arksansas connecting about 560 households, also part of that pilot program. 

The program is funded with $600 million provided by Congress in 2018 to expand rural broadband, plus another $550 million allocated for 2020.  

There was plenty of interest in the money.  

USDA got 146 applications for $1.4 billion in funding, some for loans, some for grants, and some for a mix of both. The department is announcing winners on a rolling basis.  

The Trump Administration has declared rural broadband deployment a priority, particularly for precision agricultural. 

Allocating money for rural broadband and precision agriculture is a big issue in Washington these days, including prompting legislators to call for using the money from a C-Band midband auction for rural rollouts  rather than paying satellite operators to give up that spectrum.   

The U.S. Department of Agriculture's Rural Utilities Service (RUS) is making $550 million available for deploying high-speed broadband in rural areas. 

The application window for this, the second round of broadband subsidies in the USDA's ReConnect program, opens Jan. 31. 

Related: Sanders Unveils High-Speed Net for All 

“Our core mission at USDA is to increase rural prosperity through boosting economic opportunity in rural America," said USDA Secretary Sonny Perdue. "We know that rural communities need robust, modern infrastructure to thrive, and that includes having access to broadband e-Connectivity. Under the leadership of President Trump and in cooperation with Congressional appropriators, USDA is proud to partner with rural communities to deploy this critical infrastructure, because we know when rural America thrives, all of America thrives.” 

The money will be offered in three tranches: grants, low-interest loans and a 50/50 combination of grants and loans. 

In March 2018, Congress allocated $600 million to USDA to expand rural broadband infrastructure. 

Allocating money for rural broadband and precision agriculture is a big issue in Washington these days, including prompting legislators to call for using the money from a C-Band midband auction for rural rollouts rather than paying satellite operators to give up that spectrum.