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FCC Chair Floats Deadline Extension for Rip and Replace Applicants In Light of Funding Shortfall

Rosenworcel said the FCC has the authority to extend removal deadline by six months.

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Photo of FCC Chairwoman Jessica Rosenworcel

WASHINGTON, May 9, 2023 – The head of the Federal Communications Commission told members of Congress this month that the regulator has the authority to extend the time for carriers to replace problematic Chinese equipment from their networks in light of a lack of additional funding from the legislature.

For a while now, the commission has complained of a $3-billion shortfall in the Secure and Trusted Communications Networks Reimbursement Program, which seeks to reimburse carriers forced by the government to remove equipment deemed a national security threat. Requests from applicants, which were approved last July, far exceed what’s available from the $1.9-billion fund, the FCC has said.

In a letter to members of Congress dated May 3, FCC Chairwoman Jessica Rosenworcel said approved applicants are up against a tight Congress-imposed timeline to remove the equipment despite the funding shortfall and must file their first reimbursement applications this July. Carriers have one year from the initial reimbursement to complete removal work.

“With July 15, 2023 now less than three months away, the lack of an additional appropriation means that the Commission will need to plan to proceed with the…funding process,” Rosenworcel said in the letter. “However, the Act does permit the Commission to grant a six-month extension of the removal, replacement, and disposal deadline for all recipients if the agency determines that the supply of needed equipment and services is inadequate to accomplish the Reimbursement Program’s goals.

“The Commission also has authority under the Act to grant individual extensions to qualified recipients that fail to meet the deadline ‘due to no fault of such recipient,’” she added.

Rosenworcel said 52 of the 126 reimbursement requests have been filed of the approved applications, with 38 of those being approved for reimbursement. Those approved applications have between late September 2023 and April 2024 to remove the equipment from Huawei and ZTE.

Last month, wireless service provider SI Wireless complained that reimbursement payments were coming too slow for it to complete its replacement work.

“Deadlines to complete removal and replacement will continue to be set on an application-specific basis as additional reimbursement requests are submitted and approved,” Rosenworcel said.

“Some recipients may not begin actually removing this equipment until additional funding is appropriated,” Rosenworcel said. “In light of this, and the need to ensure that our Nation’s communications networks are free of this vulnerable and insecure equipment, the Commission stands ready to assist Congress in any efforts to fully fund the Reimbursement Program.”

The letter was addressed to Sens. Maria Cantwell, D-Washington, Ted Cruz, R-Texas, Chris Van Hollen, D-Maryland, Senator Bill Hagerty, R-Tennessee, and Reps. Cathy McMorris Rodgers, R-Washington, Steve Womack, R-Arkansas, Steny Hoyer, D-Maryland, and Rep. Frank Pallone, D-New Jersey.

The three priority tiers include applicants who serve two million and fewer customers, which makes up the bulk of funding requests; public or private non-commercial educational institutions, of which there are no approved applicants; and one applicant serving between two and 10 million customers, the chairwoman said. Rosenworcel added the latter will not receive funding support because of the money constraints.

Senators last month introduced a bill, called the Defend Our Networks Act, to top up the “rip and replace” fund. That came after Senator Mark Warner, D-Virginia, said he would push Congress to make the funding shortfall a priority.

In January, the FCC said in a report that nearly half of respondents required to submit status reports on their replacement efforts complained about a lack of funding.

Industry associations, including the Competitive Carriers Association and the Rural Wireless Association, have raised the issue to the FCC for months. The fact that the omnibus spending bill didn’t include rip and replace funding apparently “stunned” the Telecommunications Industry Association.

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Funding

$113 Million in Broadband Grants Aim to Empower Colorado’s Local Providers

All but one of the awardees are Colorado-based internet service providers.

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Photo of Highway 160 in Colorado TKN from Defense Visual Information Distribution.

WASHINGTON, January 4, 2024 – Colorado on Wednesday tentatively granted more than $113.5 million in broadband expansion awards to 13 applicants to connect nearly 19,000 homes and businesses across southwest Colorado. 

All but one of the awardees are Colorado-based internet service providers and municipal network operators. The other, Visionary Communications, offers service across two additional states, Montana and Wyoming. 

Administered through the Advance Colorado Broadband Grant Program, the awards were funded by the Treasury Department’s Capital Projects Fund. The program saw fierce competition, receiving 112 applications seeking a combined total of over $642 million across 47 counties.

Clearnetworx emerged as a major victor, securing $25.3 million for five projects. Based in Montrose, Colorado, the locally owned and operated fiber and wireless service provider arose in 2012 to address the region’s broadband scarcity.

Clearnetworx has been granted awards to install fiber along Highway 160 and Highway 184 in Montezuma County. This development coincides with the Colorado Transportation Commission’s recent approval of a fee schedule that allows broadband service providers to install fiber along the state’s roadways at reduced rates. Under the revised fiber access fee structure, broadband providers in rural counties such as Montezuma will gain access to some of the most competitive rates in the region, priced at $0.03 per foot.

Close on its heels, Maverix Broadband, is in line to win $25.1 million, aiming to deploy fiber-to-the-home services across Gilpin, Boulder, Chaffee, and Saguache counties, and Kiowa city, extending coverage to 731 locations in a city of 725 residents.

Fort Collins Connexion, a municipal broadband utility, secured $10.8 million for four projects serving 1,409 locations in Larimer County. Meanwhile, another municipal network operator, Loveland Pulse, is slated to receive $3.2 million to extend fiber connectivity to three service areas.

The Southern Ute Indian Tribe secured $8.5 million to serve 557 locations within the Southern Ute Reservation, marking a significant step in enhancing connectivity.

The recipients are committing over $42 million in additional funds towards the project’s costs – a total $155.5 million investment. 

Additionally, more funding from the Capital Projects Fund is designated for the Ridge View campus in rural Colorado. This initiative aims to establish a supportive residential community to aid in overcoming homelessness, ensuring long-term housing stability, and fostering successful reintegration into preferred communities.

The awards are set for finalization following an ongoing challenge process.

The state is committed to connecting 99 percent of Colorado’s households to “adequate” broadband by 2027. Today, over 90 percent of Colorado’s households and businesses have access to internet with 100 * 20 Megabits per second service, according to state data.

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Funding

Florida Announces $13 Million for Broadband Devices

The money will allow community centers to loan devices like laptops and routers.

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Photo by Shannon McGee

WASHINGTON, January 4, 2024 – Florida announced on Wednesday $13 million in grant funding for devices through its Digital Connectivity Technology Program.

Counties, municipalities, non-profits, and organizations serving high-poverty areas can apply for grants until March 4. The funds can be used to make devices like laptops and routers available for loan at local community centers, or to equip those community centers with connectivity equipment and devices.

The money comes from the Treasury Department’s Capital Projects Fund, a $10 billion pandemic response that provides states money for expanding broadband infrastructure and other connectivity projects. About $9 billion of that has been awarded so far.

Florida received an additional $247 million in CPF funds for its Broadband Infrastructure Program, which the state awarded in July. Those projects are expected to get broadband 59,000 homes, businesses, farms, and community centers. 

CPF rules require new infrastructure funded by the program to deliver speeds of at least 100 * 100 Megabits per second (Mbps), but most projects funded by the state are expected to provide up to 1 * 1 Gigabit per second (Gbps).

The state will hold a webinar on the Digital Connectivity Technology Program’s application process on January 10.

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Funding

In Year-End Message, FCC Chairwoman Urges Affordable Connectivity Funding

The low-income internet subsidy could run out of funding as early as April 2024.

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Photo of FCC Chairwoman Jessica Rosenworcel from December 2022

WASHINGTON, December 29, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel again called for Congress to fund the Affordable Connectivity Program.

In a year in review note published Friday, Rosenworcel touted the FCC’s efforts to promote the ACP, which provides a $30 monthly internet discount to low-income households. She noted the more than $77 million in ACP outreach grants – money for organizations to advertise the program and get eligible households enrolled –  the Commission awarded in 2023 and the 7 million new households that signed up for the program, bringing the total to more than 22 million.

“But our progress here cannot slow down – we need help from Congress to keep this groundbreaking program going,” she wrote.

The ACP was set up with a $14.6 billion allocation from the Infrastructure, Investment and Jobs Act. About $3.6 billion of that remains, according to a monitoring tool developed by the advocacy group Institute for Local Self-Reliance. Rosenworcel testified to the Senate in September that the Commission expects that money to dry up as early as April 2024.

Republican leaders on the House and Senate commerce committees expressed some skepticism about the program in a December 18 letter to Rosenworcel, calling the ACP “wasteful” because many enrolled low-income households were able to subscribe to broadband before receiving the subsidy. The FCC’s estimates put the number at 78 to 80,  Rosenworcel testified at a November House oversight hearing, but she noted the figures are not exact, as providers are not required to collect that information when someone enrolls.

President Joe Biden asked Congress in October for $6 billion to keep the fund afloat through 2024. Bipartisan groups of lawmakers and broadband industry groups have also pushed for Congress to refund the program, saying it will be an important tool for closing the digital divide and ensuring low-income subscribers stay online.

Providers who build new infrastructure with money from the Infrastructure Act’s $42.5 billion Broadband Equity, Access and Deployment program will be required to participate in the ACP, which experts have said would help stabilize revenue for ISPs who build in the hard-to-serve areas targeted by BEAD.

Rep. Yvette Clarke, D-New York, hinted at introducing a bill before the new year to address the impending ACP shortfall during the FCC oversight hearing, but the legislation has not yet materialized.

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