Wednesday, November 29, 2023
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Rural Internet Subscribers Pay More
The Future of the Affordable Connectivity Program
Two States Tally Up Broadband Funding Applications: Available Budget Comes Up Short
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Rural advocates have high hopes for the Broadband Equity, Access, and Deployment (BEAD) Program. While it primarily focuses on providing infrastructure to places that are “unserved” and “underserved”, there is also a requirement for states to describe how their plans to award funds will address broadband affordability. Both are important topics for rural residents. The most recent data we have show dramatic rural-urban gaps in both broadband access and adoption. It’s widely recognized that affordability plays a large role in why households remain offline. But because there is no federally collected data on broadband price that includes both rural and urban areas, very few studies have been able to quantify the price differences across these geographies. BroadbandNow (an independent broadband availability website) went through the process of gathering pricing data from over 4,000 terrestrial broadband providers in late 2020 and compiled them into a Zipcode-level database that is publicly available. The data show that in late 2020, the average monthly cost of a 25/3 broadband connection was nearly $13 higher in rural Zip codes.

A look at potential changes to the Affordable Connectivity Program (ACP) eligibility criteria based on participation in social benefits programs such as Medicaid, Supplemental Nutrition Assistance (SNAP), Supplemental Security Income (SSI) and Public Assistance Income (PAP). These potential changes would have broad impacts since the National Verifier (NV) uses program participation rather than income to confirm eligibility for over 90 percent of ACP applications. This is unsurprising since program-based eligibility can be automatically verified through NV connections to federal and state program databases, thus reducing the administrative burden on potential recipients. If ACP eligibility were solely based on participation in social benefits programs, our estimate is that the number of eligible households nationwide would drop by about 13 percent. As for the impact on covered populations as defined in the Infrastructure Investment and Jobs Act (IIJA), if ACP eligibility were solely based on participation in social benefits programs (but not income), veterans and older adults would be affected the most, with about 1 in 3 currently eligible households where a member is a veteran or elderly no longer eligible for ACP. For other populations the relative impact would be somewhat smaller, with a decrease of about 20 percent in the number of eligible households.

In today’s world, connectivity is essential to our daily lives. For more than 750,000 veterans across the United States, this connectivity is all made possible thanks to the Affordable Connectivity Program (ACP)—and unless Congress funds this essential program, those veterans will be cut off by Spring. The program has been instrumental in keeping more than 21 million households connected across the U.S. and 2.5 million veterans are eligible. Unfortunately, funds are expected to run out by April 2024, leaving our communities and veteran populations suddenly without access. Our organization, VetsinTech, provides current and returning veterans with reintegration services and connects them to the national technology ecosystem. We bring together a tech-specific network, resources and programs for our veterans interested in what we call the 3Es—education, entrepreneurship and employment. If 750,000 of them are suddenly disconnected, we can’t reach them and neither can anyone else. It is unthinkable that Congress would allow critical connectivity to our veterans to lapse. Fully funding the ACP is the least we can do and Congress must act now.
[Michael McNerney is a technology entrepreneur and military veteran with a primary focus on cybersecurity. He currently works as the Chief Operations Officer of cybersecurity insurance startup Resilience Previously, he led the threat intelligence business at Arbor Networks.]

Add California and Wisconsin to the growing list of states whose broadband funding programs have received applications seeking considerably more funding than the program has available. California’s Federal Funding Account received 484 applications requesting $4.6 billion, which is more than double the $2 billion budgeted for the program. Awards are used to fund last mile infrastructure projects. Every county applied for funding. The state also provided information about applications made to two other broadband programs, the Broadband Adoption Account and the Infrastructure Grant Account, both of which appear to have sufficient funding, depending on how many funding rounds are conducted. The state of Wisconsin received 124 applications requesting $221.6 million from the state’s Broadband Infrastructure Grant Program, which has $42 million available from the federal Capital Projects Fund to award in that program.

Final guidance for North Carolina's Broadband Pole Replacement Program as part of ongoing efforts to connect more North Carolinians to affordable, reliable high-speed internet. This program, established with $100 million in federal American Rescue Plan Act funds, will reimburse high-speed internet service providers for eligible pole replacement costs in connection with qualified projects. Broadband providers deploy infrastructure in remote areas by attaching fiber and other communications assets to utility poles. When utility poles lack space for additional attachments, a pole replacement often is required to accommodate the new infrastructure attachments. Service providers were required to prequalify for the Broadband Pole Replacement Program. The program guidance was posted for public review and comment in August and September of 2023 and will be used by service providers when applying for reimbursement through the program. The program will launch February 1, 2024, and service providers will be able to submit reimbursement requests for eligible expenses dating back to June 1, 2021.
Governor Kelly Announces $5 Million to Expand Access to High-Speed Internet in Rural Kansas Communities

Five million dollars has been awarded to eight internet service providers (ISPs) in the latest round of Broadband Acceleration Grants for 2023. The awards will be paired with an additional $6.6 million in matching funds, resulting in an investment of nearly $12 million for high-speed broadband access projects across 10 rural Kansas counties. Initiated in 2020, the Broadband Acceleration Grant is a 10-year, $85 million program designed to bring essential internet access to Kansas communities. Administered by the Kansas Office of Broadband Development and funded through the Kansas Department of Transportation’s Eisenhower Legacy Transportation Program (IKE), this latest round of grants brings the program’s total investment for broadband infrastructure since 2020 to more than $31.5 million. The projects were selected after review by an executive committee and the public. The public comment period was provided to ensure transparency and community feedback was considered in the selection process.

Colorado is a bit of an enigma. It’s home to numerous dense and high population areas including the Denver/Boulder metro area, Fort Collins to the north and Colorado Springs to the south. But, outside those metro areas of the eighth largest state geographically, there have been significant challenges to deploying internet service. Colorado’s challenges include mountains blocking lines of sight, a granite-rich topography that makes underground builds pricey, and sparsely populated desert plains on the West side of the state. Colorado is receiving $826.5 million in Broadband Equity, Access, and Deployment (BEAD) funding, a number that the state’s broadband director, Brandy Reitter, speculates was boosted because of the high-cost threshold for deployment in challenging topographies in the fiber-first program. As for how Colorado will define its own ‘high cost per location threshold,’ Reitter says her office is in the process of defining parameters and that Colorado will not be using a ‘one size fits all’ approach because the variety of topographies in the state makes deployment costs vary significantly.

Massachusetts will become the fifth state in the nation to make prison and jail calls free. Gov. Maura Healey (D-MA) signed a bill that will go into effect December 1, 2023. The move is a victory for advocates and legislators who have sought to lessen the burden on prisoners communicating for years. In July 2023, the Massachusetts State Legislature passed a state budget that included a requirement for corrections officials to make phone calls free for incarcerated people, but Gov. Healey pushed back to give more time to implement the program. The new legislation also makes video and emails free. Counties will be refunded for their calls’ costs through a fund facilitated by the Executive Office of Administration and Finance. Telecommunication contracts with companies like Securus will continue until they expire, and will be renegotiated. When the law goes into effect, Massachusetts will join Connecticut, California, Minnesota and Colorado in eliminating prisoner phone call fees.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) awarded seven projects across six states a total of $13 million in the second round of grants from the Public Wireless Supply Chain Innovation Fund’s first Notice of Funding Opportunity. This second round of funding will support research and development of new and improved testing methods for open and interoperable networks. The projects focus on advancing security and energy efficiency testing, automating the testing process, and leveraging artificial intelligence to improve network and software testing. The $1.5 billion Wireless Innovation Fund supports the development of open and interoperable wireless networks as part of the Biden-Harris Administration’s Investing in America agenda. Open and interoperable wireless equipment will help drive competition, strengthen global supply chain resilience and lower costs for consumers and network operators.
Lobbying
American Association For Public Broadband (AAPB) Statement On Dark Money Attacks On Utopia Fiber And Traverse City Light & Power

Here they go again. Using false and tired arguments, big cable is attacking three community broadband networks that residents and their elected officials chose to build and own. And like it did earlier in 2023 in Bountiful City, Utah, it is hiding behind a surrogate that doesn’t reveal its financial supporters. It is profoundly ironic that the country’s richest media companies are attacking “government-run” networks when they are at the same time bringing in billions of dollars of subsidies from the federal government and seeking billions more in grants from state governments. When your tax dollars are on the table, these “private” enterprises are more than happy to grab them with both hands. It is hardly a coincidence that two of community networks featured on big cable’s dark money hit list are affiliated with [the American Association for Public Broadband] AAPB. As hundreds of communities consider public broadband as an option for their residents, AAPB will be there to defend their freedom to choose at every turn.”
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org), Grace Tepper (grace AT benton DOT org), and David L. Clay II (dclay AT benton DOT org) — we welcome your comments.
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