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Charter CEO Says Company is Optimistic About Rural Expansion

A rural build required as part of the company’s Time Warner Cable purchase was surprisingly profitable, Chris Winfrey said.

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Screenshot of Charter CEO Chris Winfrey.

October 17, 2023 – Rural build outs have gone well for Charter, and the company plans to continue participating in state and federal grant programs, the company’s CEO said on Tuesday. 

Charter was required to expand its broadband infrastructure to cover 145,000 unserved and underserved locations in Upstate New York as a condition for approval of its 2016 purchase of Time Warner Cable. The company initially missed deployment obligations, but the state extended the deadline in 2019, allowing the company to stay in New York.

Despite the initial hesitance, Charter was happy with the results, said Chris Winfrey, the company’s CEO since December 2021.

“We thought it would be terrible. Turned out it was really good,” he said at the Society of Cable Telecommunications Engineers’ Cable-Tec Expo. “The penetrations were not only high, but they were quick. The cost to serve was low.”

The situation was so favorable for Charter that it became one of the biggest bidders in the federal Rural Digital Opportunity Fund in 2020, ultimately winning over $1.2 billion to serve over one million locations in 24 states. That’s just under the largest award under the program.

Several companies defaulted on RDOF winnings in 2021 after scrutiny around suspected exaggeration in deployment plans and complaints of flawed data collection prior to the program’s auction. Charter was not among them, but asked to be released from its obligations in several states, citing the existing presence of adequate broadband.

Winfrey said he is optimistic about undertaking more rural projects with the coming influx of public grant money. 

“This is a unique moment. I think we should take advantage,” he said.

The Joe Biden administration’s $42.5 billion Broadband Equity, Access and Deployment program is getting underway, with states submitting initial proposals to the National Telecommunications and Information Administration until December 27. One state, Louisiana, has had volume one of that proposal approved and is accepting challenges to broadband map data ahead of awarding grants. 

Some states still have unallocated money from the American Rescue Plan Act that can also be put toward broadband programs.

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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Broadband's Impact

CES 2024: Industry Wants Federal Data Privacy Law

The current patchwork of state laws makes compliance difficult, said representatives from T-Mobile and Meta.

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Photo of the panel by Jake Neenan

LAS VEGAS, January 12, 2024 – Industry stakeholders called for federal data privacy legislation at CES on Thursday.

“I think oftentimes companies can be in the position of opposing additional regulation at the federal level,” said Melanie Tiano, director of federal regulatory affairs at T-Mobile. “But this is probably one of those areas where that’s not the case, in part because of the flurry of activity going on at the state level, which makes compliance in the U.S. marketplace extraordinarily confusing and difficult.”

The New Jersey legislature cleared one such bill on Monday. If that’s signed into law by the state’s governor, it would bring the number up to 13. Federal efforts, notably the American Data Privacy and Protection Act, have stalled in recent years.

“We will continue to be seriously committed to getting legislation done in a bipartisan way. That’s not always easy right now, but we’re continuing to work on that” said Tim Kurth, chief counsel for the House Innovation, Data and Commerce Subcommittee.

Simone Hall Wood, privacy and public policy manager at Meta, said “privacy regulation should not inhibit beneficial uses of data.” The company has argued it has a legitimate interest in data use practices that the European Union has found to be out of compliance with its data privacy law, the GDPR.

Industry groups, including the Consumer Technology Association, which runs the CES conference, have advocated for a light-touch privacy law in the United States, in contrast with the more comprehensive European standard.

Kurth had similar thoughts Thursday, saying the GDPR “really hurt startups and really hurt innovations.”

Still, Woods said establishing a uniform standard is something the law does well.

“It sets certainty across the marketplace for what privacy protections look like for consumers. And so that aspect of it is positive,” she said.

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Broadband's Impact

CES 2024: NTIA and House Commerce Weigh in on Spectrum Policy

Reinstating FCC auction authority is the ‘number one priority’ of the Energy and Commerce Committee Chair.

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Photo of the panel by Jake Neenan

LAS VEGAS, January 12, 2024 – A senior National Telecommunications and Information Administration advisor and the chief lawyers for both Democratic and Republican sides of the House Subcommittee on Communications and Technology talked about their spectrum policy priorities on Thursday at CES.

The group touted U.S. wins at the World Radiocommunication Conference in Dubai, as well as lawmakers’ goals for spectrum auction authority heading into 2024.

World Radio Congress

Going into the conference, in which representatives from around the world meet to coordinate spectrum usage, “the 6 GigaHertz (GHz) issue was the top priority of the U.S. government,” said Phil Murphy, a senior advisor at the NTIA.

The band was set aside in 2020 by the Federal Communications Commission for unlicensed use in the United States, but some countries like China wanted to see some of the band tapped for 5G mobile use, Murphy said.

The U.S. delegation was ultimately able to deliver in December: the conference decision set aside 700 MegaHertz (MHz) for mobile, but left the door open for regulatory agencies to approve unlicensed use throughout the band.

That’s a win for the American Wi-Fi industry: the Wi-Fi alliance announced its official Wi-Fi 7 certification on Monday ahead of the tech conference. The new generation supports wider spectrum channels and multi-link operation, both of which will make use of the 1,200 MHz of real estate in the 6 GHz band.

“We’re really excited by the results,” Murphy said. “We’re really excited to see 6 GHz moving forward, not just here in the United States, but in other parts of the world as well.”

Auction authority

The Federal Communications Commission’s authority to auction and issue licenses for the commercial use of electromagnetic spectrum expired for the first time in March 2023. That’s not an issue for technologies like Wi-Fi, which don’t require such licenses to operate in bands set aside for unlicensed use, but it is important for ever-expanding 5G networks and wireless broadband.

“The Chair’s number one priority is to reauthorize the FCC spectrum auction authority that expired in March,” said Kate O’Connor, chief counsel for the Republican majority on the communications and technology subcommittee. “Even if it hasn’t been public, there’s been a lot going on behind the scenes.”

Jennifer Epperson, chief counsel for the Democratic side of the subcommittee, and Murphy, the NTIA advisor, agreed on the importance of the issue. 

“I think reauthorizing the FCC’s spectrum auction authority is a priority for the administration as well,” he said. “There’s probably spectrum that the FCC has available to auction right now, but they can’t because they don’t have the authority to do so.”

At a House oversight hearing in November, FCC Chairwoman Jessica Rosenworcel said “I have a bunch of bands sitting in the closet at the FCC,” pointing to 550 MHz in the 12.7-13.25 GHz band as spectrum the agency could go to auction with “relatively quickly.”

Efforts at blanket reauthorization have stalled publicly since a bill cleared the House Energy and Commerce Committee in May, but a stopgap measure allowing the Commission to issue licenses that had been purchased before the lapse was signed into law in December.

“With the funding bills coming up, we’re taking a look and hoping that we can turn this on as soon as possible,” O’Connor said.

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Broadband's Impact

FCC Issues Timeline for ACP Wind Down

The FCC order came a day after bipartisan legislation was introduced to extend ACP.

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Photo of hourglass via iStock.

WASHINGTON, January 12, 2024 – The Federal Communications Commission announced on Thursday that starting February 8 it will no longer accept new enrollments for the Affordable Connectivity Program, barring Congressional approval of additional funding for the low-income program.

The commission issued a 15-page order detailing its timeline and requirements to gradually phase out the program. The first in a series of deadlines is set for January 25, when providers must notify participants of the program’s anticipated end for the first time.

The FCC’s order came the day after bipartisan legislation was introduced in both the Senate and the House, proposing an additional $7 billion for the ACP program.

If passed, this funding would enable the FCC to extend the ACP until the year’s end, potentially negating some of the wind-down steps detailed in the recent FCC order.

Introduced in January 2022 to replace the Emergency Connectivity Fund that arose during the COVID-19 pandemic, the ACP offers monthly stipends of $30-75 for internet service to qualifying U.S. households.

In the recent order, the commission notes that with the Infrastructure Investment and Jobs Act, Congress enacted several changes to the ECF Program to transform it from an emergency COVID-19 program to a longer-term broadband affordability program. 

The FCC continues to change the program to address participant needs. Most recently, the commission raised the monthly ACP benefit to $75 for high-cost rural areas and directed the Universal Service Administrative Company to accept applications from interested providers.

Yet, due to concerns about potential confusion, the commission canceled the plans for USAC to process applications in a recent order. 

Absent Congressional intervention, the FCC’s Bureau will announce the last fully funded month of the program in late February, currently projected to be April 2024.

Fifteen days after that announcement, providers will be required to send a second notice to ACP participants about the program’s end. The third notice issued will coincide with the last billing cycle that the full ACP benefit is applied to. 

Providers must secure a household’s explicit agreement to continue to receive broadband services after the end of the ACP.

In the order, the commission said it will begin to inform organizations that received outreach grants to cease outreach work focused on enrollment.

On Friday, the National Digital Inclusion Alliance, alongside four community partner organizations representing the 240 outreach coordinators for the ACP, filed a letter to the FCC asking that ACP outreach grantees be able to redirect their funded work toward program wind-down activities, including “raising awareness about the potential end of the ACP.”            

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