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12 Days of Broadband

12 Days: For State Broadband Offices, 2023 Was All About BEAD

All 56 states and territories have released for comment their Broadband Equity, Access and Deployment proposals.

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3 weeks ago

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Illustration by DALL-E

December 26, 2023 – The Infrastructure, Investment and Jobs Act’s landmark $42.5 billion broadband expansion effort was front and center in the broadband world in 2023. 

The Broadband Equity, Access and Deployment program got closer to breaking ground as maps were finalized, allocations were made, and states got to work drafting and refining their proposals for implementing the program.

Mapping was a central concern early in the year, as states pushed the Federal Communications Commission for more time to contest its coverage data. The commission had released the initial version of its broadband map in November 2022, and the updated version would be used by the National Telecommunications and Information Administration to determine relative need among states and territories and make final BEAD allocations.

The commission ultimately held to its January 13 deadline and unveiled the second version of its map in May.

Based on the data in that map, the NTIA made its BEAD allocations the next month. Texas saw the largest, at over $3.3 billion, with California taking home $1.8 billion. Missouri, Michigan, and North Carolina each received more than $1.5 billion and 14 other states were slated to get more than $1 billion to fund new broadband infrastructure.

All plans are due by December 27

That kicked off the planning phase. States have to get their proposals for administering BEAD funds approved by the NTIA. Those plans are due December 27, but some states have got theirs in early, with Louisiana and Virginia leading the pack.

As states worked to get their proposals together, the NTIA issued two important waivers for the BEAD program: one for the Infrastructure Act’s Buy America requirements and one for the original BEAD financing requirements.

The Build America, Buy America, or BABA, provision of the Infrastructure Act requires federally funded projects to spend 55 percent of their component costs with American suppliers and to manufacture materials in the United States.

That raised flags among the broadband industry, as deploying the fiber-optic cable favored by BEAD involves equipment full of semiconductors only manufactured at scale in Southeast Asia.

The NTIA released in August a proposed waiver for BEAD participants, releasing them from BABA requirements for all electronics and from the 55 percent component cost requirement for certain pieces of fiber equipment.

The waiver gives potential BEAD participants more breathing room and makes meeting BABA requirements feasible, Nokia’s Vice President of Broadband Policy Lori Adams said at a Broadband Breakfast event. The company announced a major manufacturing plant in Wisconsin for the fiber equipment that still needs to be American-made under the waiver, which it plans to get operational in 2024.

Alan Davidson, the agency’s administrator, testified at a December House oversight hearing that the finalized waiver will be coming in “weeks, not months.” 

Changes to the Letter of Credit requirements

The NTIA also issued in November a waiver to its letter of credit requirements. The agency’s original rules had mandated that BEAD grant recipients get a letter of credit from an accredited bank for 25 percent of total project costs. That involves putting up an equal amount of cash as collateral, which advocates and broadband providers warned was too restrictive and would prevent small companies from participating.

After months of pressure, the NTIA listened. Its November waiver opens the door for states to use a variety of other means to ensure the financial viability of projects, including performance bonds, which providers only pay out if the project fails, and completion milestones to lower the LOC as infrastructure is deployed and free up more money.

The first – and so far the only – state to have its full BEAD proposal approved by the agency was Louisiana. The NTIA greenlighted the first volume of the proposal, which outlines plans to accept and process challenges to government broadband coverage data, in September and approved the second volume, which details the state’s plan to award grants under the program, on December 15. 

That gives the state one year to accept grant applications and make their selections before submitting a final proposal to the agency.

Two others, Virginia and Kansas, have received approval on their volume ones, allowing them to follow Louisiana’s lead and start accepting broadband data challenges.

Several others have submitted their plans and are awaiting approval. Just as with the proposal process, they will likely be looking to Louisiana for lessons on implementing the BEAD program.

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Reporter Jake Neenan, who covers broadband infrastructure and broadband funding, is a recent graduate of the Columbia Journalism School. Previously, he reported on state prison conditions in New York and Massachusetts. He is also a devoted cat parent.

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12 Days of Broadband

12 Days of Broadband: State Regulations and Children’s Safety Online

12 year olds (and older) having to age-verify on social media may become more common going forward.

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1 week ago

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January 3, 2024

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Illustration by DALL-E

January 3, 2024 – A nationwide push to restrict teenagers’ online actions gained ground in 2023 as several states implemented stringent laws targeting social media use among youth.

In March, Utah ventured into uncharted territory when Republican Gov. Spencer Cox signed two measures, H.B. 311 and S.B. 152, mandating parental consent for all minors – 17 and under – before they can register for platforms like TikTok and Meta’s Instagram. For decades, the default standard of the 1998 Children’s Online Privacy Protection Act has been no restrictions on social media use by kids 13 and over.

The pair of bills, which do not go into effect until March 2024, require individuals under 18 to gain parental consent to open a social media account, bar minors from accessing social media platforms between the hours of 10:30 p.m. and 6:30 a.m., and grant parents full access to their child’s social media accounts.

In October, Utah announced a lawsuit against TikTok, alleging that the app deploys addictive features to hook young users. The lawsuit raises additional concerns regarding user data and privacy, citing that TikTok’s China-based parent company, ByteDance, is legally binded with the Chinese Communist Party. 

Arkansas, Montana may be following Utah

Soon after, Arkansas took a similar step as Republican Gov. Sarah Huckabee Sanders signed Act 689, named the Social Media Safety Act, in April 2023. The newly approved act, aiming to mandate age verification and parental consent for social media users under 18, was set to come into effect on September 1. 

However, on that very day, U.S. District Judge Timothy Brooks granted a preliminary injunction following a petition from the tech trade industry group, NetChoice Litigation Center. Their contention was that the new law infringed upon the First Amendment’s freedom of expression guarantee.

In May, Montana Gov. Greg Ganforte signed legislation banning TikTok on all devices statewide, threatening fines up to $10,000 per violation for app providers like Google and Apple. Before the law took effect on January 1, Federal Judge Donald Molloy stopped the TikTok ban in late November, stating that the law exceeds state authority and violates the constitutional rights of users. 

Shortly after, TikTok filed a lawsuit against Montana. Judge Molloy found merit to numerous arguments raised by TikTok, including that TikTok has a number of safeguards in place surrounding user data.

Is Age verification a First Amendment issue?

Consumer groups, including the American Civil Liberties Union, have raised issues with the fact that many of these bills extend beyond merely mandating age verification solely for minors; they now necessitate age verification through proof of legal documents for anyone seeking to utilize social media within the states.

The issue was much discussed at a Broadband Breakfast Live Online session in November 2023, where child safety advocate Donna Rice Hughes and Tony Allen, executive director of Age Check Certification Scheme, agreed that age verification systems were much more robust than from a generation ago, when the Supreme Court struck down one such scheme. They disagreed with civil liberties groups including the Electronic Frontier Foundation.

On TikTok, 13 states joined in enacting bans over the use of the Chinese-owned platform being installed on government-issued devices. That brings to 34 the total number of states that have banned TikTok on government devices due to national security concerns. Additionally, more than 40 public universities have barred TikTok from their on-campus Wi-Fi and university-owned computers in response to these state-level bans.

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12 Days of Broadband

12 Days of Broadband: Net Neutrality Is the Issue That Never Dies

It’s been 11 years since Verizon filed arguments against the FCC in the D.C. Circuit Court of Appeals.

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2 weeks ago

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January 2, 2024

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Illustration by DALL-E

January 2, 2024 – The net neutrality debate was alive and well in 2023, more than 11 years since Verizon filed arguments against the Federal Communications Commission before the D.C. Circuit Court of Appeals in July 2012 in a partisan issue that has dominated telecom politics for more than a decade.

In the latest twist in the saga, the FCC proposed in October 2023 to reclassify broadband internet as a telecommunications service under Title II of the Communications Act.

If ultimately approved, the move would give the FCC broader authority over broadband providers. Crucially, the commission would be able to require that internet traffic is not sped up or slowed down artificially, meaning businesses could not pay providers for preferential treatment.

The issue is a contentious one at the FCC, and the commission can only take it up now that Democrats have a 3-2 majority, after several years of a 2-2 agency. Along with the strong digital discrimination rules adopted in November, it’s part of a Democratic effort to expand regulatory oversight of broadband as it becomes more essential for daily life.

Republicans in Congress and at the FCC oppose this, arguing it makes providers less likely to invest in new infrastructure. 

Controversy over Title II Reclassification

Title II brings a host of other regulatory powers, but the commission is proposing to abstain from wielding more than two dozen of the most onerous provisions on broadband providers if the service is recategorized. Those include explicit rate regulation and immediate Universal Service Fund contribution.

Net neutrality has been a longstanding goal of the Biden administration and Democratic FCC Chairwoman Jessica Rosenworcel, who referenced it in a letter to lawmakers after being confirmed as chairwoman in December 2021. 

“You’re dealing with the most central infrastructure in the digital age. Come on, it’s time for a national policy,” Rosenworcel said before voting in favor of the proposal at the commission’s October open meeting. It would pass 3-2 along party lines, putting the rules up for public comment.

That set the commission up for an earful: more than 40,000 comments on the proposed net neutrality rules have since been filed with the agency. Reply comments on the proposal are due January 17, 2024.

The broadband industry is largely opposed to the move. AT&T and T-Mobile, in addition to trade groups and conservative think tanks, filed comments arguing that the practices net neutrality rules are designed to combat are not widespread. They say using Title II authority to enforce net neutrality principles would stifle investment in broadband, both by opening providers up to sanctions for previously legal conduct and by introducing the potential for future commissions to pick up the 27 Title II provisions the FCC is choosing to forego.

“No ISP takes that assurance seriously,” AT&T said of the commission’s proposal not to regulate broadband prices as part of the rulemaking.

Advocacy groups like Public Knowledge argued the anticompetitive practices net neutrality rules aim to prevent are only uncommon because states like California enacted their own net neutrality laws.They said the move would protect consumers who depend on reliable and consistent internet access.

Broadband “is not a luxury but a necessity for education, communication, and participation in the economy,” the group said. “The FCC’s proposed action will restore its ability to oversee this essential service.”

This was expected to some degree. The Trump-era FCC received comments from many of the same players in 2017 when it repealed net neutrality rules – substantially similar to the 2023 proposal – set up by the 2015 commission under Obama. 

A prolonged nomination to break a deadlock

The commission was unable to move on the issue until this year because Democrats lacked a majority. President Joe Biden first nominated net neutrality advocate Gigi Sohn, a former FCC staffer and co-founder of Public Knowledge, to the FCC’s vacant fifth seat in 2021, but her nomination turned into a prolonged political fight. 

Republican senators hung on her position on the board of a nonprofit streaming service that was shut down after large telecoms sued for copyright infringement. They alleged Sohn would be unable to remain impartial on matters related to broadcasting and copyright – even after she moved to recuse herself from related issues.

Votes repeatedly stalled along party lines before Sohn withdrew her name from consideration in March of this year, citing campaigns against her nomination by telecom lobbyists.

“The unrelenting, dishonest and cruel attacks on my character and my career as an advocate for the public interest have taken an enormous toll on me and my family,” she said in a statement announcing her withdrawal.

Commissioner Anna Gomez had a comparably smooth nomination process. Biden announced her nomination in May after Sohn stepped back and the Senate voted to approve her four months later, finally giving Democrats a 3-2 majority on the FCC. Rosenworcel wasted no time taking advantage of the new math, announcing her intention to reinstate net neutrality rules one day after Gomez was sworn in as a commissioner in September.

Potential legal roadblocks

Following the October vote to move forward with the proposal, Republican Commissioner Brendan Carr pointed out a potential legal hurdle to reclassifying broadband as a Title II service this time around. The Supreme Court’s conservative supermajority has been less deferential to agencies’ interpretation of the law, and might consider the reclassification too significant a move for an agency to make without explicit approval from Congress.

Experts disagree on how likely a Supreme Court intervention is, as the FCC’s previous reclassifications of services under the Communications Act – both the 2015 net neutrality rules and a classification of DSL under Title II in 1998 – have passed legal muster.

At a House oversight hearing in November, Republican Commissioner Nathan Simington asked Congress to “put an end to the continued whipsawing of industry over the Title II fight” by passing new legislation governing the internet ecosystem. A Democratic bill that would codify broadband as a Title II service stalled after being introduced in both the House and Senate last summer.

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12 Days of Broadband

12 Days of Broadband: Nearly 10 Months Without FCC Spectrum Authority

As the global race for 5G dominance continues, a significant hurdle looms ahead.

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2 weeks ago

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January 1, 2024

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Illustration by DALL-E

January 1, 2024 – Nearly 10 months have passed since the Federal Communications Commission lost its authority to auction off fresh spectrum licenses on March 9, 2023. Further, there are no available bands in the nation’s spectrum pipeline. 

This prolonged situation has raised industry concerns about the future of 5G stemming from the scarcity of accessible mid-band spectrum and the uncertainty surrounding upcoming spectrum auctions.

The ongoing spectrum standstill prompted the need for a bill to be pushed forward to enable the FCC to authorize the sale of 8,000 2.5 GigaHertz (GHz) spectrum licenses sold to companies last year. President Biden signed the 5G Sale Act to reinstate limited FCC authority to auction the 2.5 GHz licenses on December 19.

T-Mobile is poised to leverage the over $300 million worth of spectrum licenses it secured to fortify its existing 5G networks. 

Otherwise stagnant spectrum pipeline prompts worries

A years-long battle between the Defense Department and the commercial telecommunications industry over access to the 3.1-3.45 GHz S-band raged between military and commercial establishments.

The Defense Department produced a report in December finding that the agency cannot currently share S-band spectrum with commercial users. The Pentagon currently uses the band for its air, land and sea-based radars, weapons systems and other electronics.

The Defense Department was required to produce the report investigating the potential for commercial use of the spectrum in conjunction with the Commerce Department’s National Telecommunications and Information Administration, which administers use of the airwaves by federal agencies. The study was required by the 2021 Infrastructure, Investment and Jobs Act. 

This spectrum band is considered important because it allows for longer-range transmissions than the millimeter-wave spectrum that makes up much of what has so far been available in the U.S.

The NTIA will continue to study opening the band in the future, either by exploring options that would make spectrum sharing possible or moving a government system to another band. 

National Spectrum Policy released

That and other studies laid out in the Biden Administration’s National Spectrum Policy released in November are set to be complete within the coming two years. The White House’s plan calls for a two-year study on potentially repurposing five spectrum bands, a total of 2,786 megahertz, and identifies the lower 3 GHz and the 7-8 GHz bands as primary contenders for a strong pipeline of spectrum for private sector use. 

The plan also calls for the federal government to develop a new process aimed at increasing communication in decision making between government and private sector stakeholders.

The last time the federal government freed up spectrum for commercial use was when the 3.45-3.55 GHz band was made available under Republican FCC chief Ajit Pai in 2020.

This uncertainty about spectrum places the U.S. in a troubling position. The government’s reservoir of new spectrum for private sector allocation appears to be drying up. The typically bipartisan process of replenishing it has ground to a halt.

Months of delays and disagreements over reauthorization

Many thought the shock of the lapse of the FCC’s spectrum auction authority would prompt quick action in the 118th Congress.. 

The House Energy and Commerce Committee cleared in May a bill that would reinstate FCC spectrum auction authority for three years. That bill would allow for, but not mandate, an auction of the lower 3 GHz band.The bill stalled after clearing the Energy and Commerce Committee.

In an Expert Opinion piece in Broadband Breakfast, Joel Thayer argued that unnecessary intergovernmental infighting is now jeopardizing the nation’s 5G rollout.

“What’s more, the advent of AI will require even more data transmissions over our 5G networks and will inevitably strain them. Without a refilled spectrum pipeline, data-driven applications—like AI—will become a pipedream for the U.S.,” he wrote.

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