While cooperatives, utilities, and municipalities are seeing a welcome portion of Covid relief and infrastructure bill funding, the nation’s two biggest cable broadband monopolies continue to hoover up the lion’s share of most new broadband infrastructure grants. 

All told, the American Rescue Plan Act and Infrastructure Investment and Jobs Act will deliver more than $50 billion in new funding for broadband infrastructure. And while cooperatives and utilities have been big winners in states like Tennessee, a recent breakdown by Fierce Telecom of money awarded so far shows that cable monopolies have been the biggest winners by far. 

While cooperatives, utilities, and municipalities are seeing a welcome portion of Covid relief and infrastructure bill funding, the nation’s two biggest cable broadband monopolies continue to hoover up the lion’s share of most new broadband infrastructure grants. 

All told, the American Rescue Plan Act and Infrastructure Investment and Jobs Act will deliver more than $50 billion in new funding for broadband infrastructure. And while cooperatives and utilities have been big winners in states like Tennessee, a recent breakdown by Fierce Telecom of money awarded so far shows that cable monopolies have been the biggest winners by far. 

As of September, Charter (which sells service under the Spectrum brand) had won more than $170.8 million in grants across Ohio ($51 million), Kentucky ($49.9 million) Indiana ($27 million), Georgia ($12.2 million), Maryland ($8.5 million), Louisiana ($7.88 million), Alabama ($7.26 million), Wisconsin ($5.9 million) and Pennsylvania ($1.2 million).

Alabama and New Mexico voters will soon be given the midterm option of changing their state constitutions to help boost broadband funding and deployment, albeit in notably different ways. 

In Alabama, voters will head to the polls on November 8th to vote on a Broadband Internet Infrastructure Funding Amendment that would amend the state's constitution "to allow local governments to use funding provided for broadband internet infrastructure under the American Rescue Plan Act (ARPA) and award such funds to public or private entities."

County leaders have spent much of this year warning that Section 94 of the Alabama Constitution bans the state from granting public money or “things of value” to local governments for public and private use. That’s a significant problem when it comes to the $276 million in ARPA funds Alabama Governor Kay Ivey earmarked for broadband expansion last March.

Programs such as the USDA’s ReConnect and the FCC’s Rural Digital Opportunity Fund (RDOF) haven’t run afoul of the Alabama Constitution because they both involve the federal government directly doling out funds for broadband expansion. But ARPA funding allows local municipalities to distribute a portion of state-allocated funds.

Welcome to another installment of In Our View, where from time to time, we use this space to share our thoughts on recent events playing out across the digital landscape and take the opportunity to draw attention to important but neglected broadband-related issues.

As its ongoing work to revamp the agency’s notoriously inaccurate broadband coverage maps continues, the Federal Communications Commission (FCC) announced last week the opening of a window for states, local and Tribal governments, service providers, and other entities to challenge the service data submitted by providers over the summer.

At the end of June, as FCC chairwoman Jessica Ronsenworcel noted, the FCC “opened the first ever window to collect information from broadband providers in every state and territory about precisely where they provide broadband services.” 

The key word here is “precisely” because the truth is: no one really knows precisely where broadband is, or is not, available. And with tens of billions of dollars in federal funding being spent to deploy high-speed Internet infrastructure, accurate mapping data is essential for targeting where those funds would be best allocated in each state and U.S. territory.

Image

Historically, the FCC relied on self-reported submissions of Internet service providers (ISPs) for information on which locations they serve and what speeds are available at those addresses. However, in practice, that meant the FCC maps could declare an entire census block to be “served” by a broadband provider if that provider claimed the ability to serve just one home in the entire block; thereby overcounting how many households have access to broadband.

The National Telecommunications and Information Administration (NTIA) announced earlier this week that Louisiana will be the first state in the nation to receive federal grant planning funds to help states prepare for the deployment of high-speed Internet infrastructure and digital skills training under the Biden Administration’s “Internet for All” initiative.

Enabled by last year's passage of the Infrastructure Investment and Jobs Act (IIJA), the $2.9 million heading to the Pelican State is from the Broadband Equity Access and Deployment (BEAD) program and the Digital Equity Act (DEA) – a development Commerce Secretary Gina Raimondo said was a signal that “the Internet for All initiative is on track and on schedule.”

Over the coming weeks, every state and territory will have funding in hand as they begin to build grant-making capacity, assess their unique needs, and engage with diverse stakeholders to make sure that no one is left behind. My thanks go to Governor Edwards and his team; Louisiana was among the first to sign onto Internet for All and to apply for funding, and I know they’re ready to get to work for the people of Louisiana.  

According to NTIA’s press announcement, $2 million of the planning funds being allocated to Louisiana come from the BEAD program and will help the state:

Three years ago, the National Digital Inclusion Alliance (NDIA) ranked Cleveland as the worst-connected city in the United States (with more than 100,000 households).

City leaders are now using its American Rescue Plan funds to make that dishonorable distinction a thing of the past with a plan to invest $20 million to get the “Comeback City’s” digital future rockin’ n rollin’.

Although the city (pop. 383,000), home to the Rock & Roll Hall of Fame, is currently underserved by AT&T, Charter Spectrum, and T-Mobile, earlier this summer the city issued a Request for Proposals (RFP) that “seeks one or more partners” to help bridge Cleveland’s digital divide following a two-phased approach that first addresses the city’s immediate needs before tackling its longer-term strategic goals.

More specifically, the RFP details “the Phase I goals: ensuring that individuals who do not engage online can become full Internet users as quickly as possible, relying on digital adoption and affordable access strategies. (While) the Phase II goals (envision) —ubiquitous fiber optic connections and Smart City deployments.”

Or, as Cleveland Mayor Justin Bibb told Cleveland.com:

The first phase is on making sure on the short-term basis we connect as many families as we can to high-speed broadband, and the second phase will consist of making sure we lay fiber all across the city so we can be competitive, not just five years from now, but 20, 30 years from now, as a city and as a region.

Technically, the RFP that was issued is to fully implement the first phase of the city’s vision and set the table for the second phase. Work beyond the $20 million the city has set aside would require the issuance of a second RFP.

For more than a year and a half, the nation’s top telecommunications regulator has been stuck in limbo, thanks to a combination of federal dysfunction and industry lobbying. Now the nomination of popular reformer Gigi Sohn to the FCC is facing a full frontal assault by telecom monopolies dedicated to preventing the agency from standing up to monopoly power.

After an inexplicable nine-month delay, President Biden nominated consumer advocate Gigi Sohn to the FCC late last year. Sohn, Co-Founder and CEO of consumer group Public Knowledge and a former advisor to FCC Chairman Tom Wheeler, is well versed in media and telecom policy, and broadly popular across both sides of the aisle. 

Yet since her belated nomination, Sohn has been met with a bevy of telecom, media-industry, and politically constructed allegations designed to derail her nomination, ranging from false claims that she’d harm rural America, manufactured allegations that she hates police, and false assertions that she’s looking to censor conservative voices in media. 

All of these efforts serve one function: to ensure the nation’s top telecommunications regulator remains mired in partisan gridlock and a 2-2 commissioner voting split. Without a clear voting majority, the agency can’t embrace reforms that are widely popular with the public, whether that’s restoring the FCC’s consumer protection authority, or restoring recently-discarded media consolidation rules.

The BEAD Notice of Funding Opportunity (NOFO) released by NTIA is packed with guidance and regulations for how tens of billions in new funding with be spent. Reading the rules closely gives us a sense of who they might advantage, at least early on, and the line NTIA is trying to walk in giving the money the most bang for its buck while also heading off abuse. 

On a recent episode of the Connect This! Show, Christopher Mitchell, Travis Carter (USI Internet), Kim McKinley (UTOPIA Fiber), and Doug Dawson (CCG Consulting) tackled what we know, what we don't, and what's likely to happen as states begin to file their letters of intent to participate in the program. Watch the shorts below to see them tackle Congressional intent, supply chain requirements, who we think will apply for these subgrants, and WISPs and overbuilding.

Watch the full episode here.

Subscribe to the show using this feed on YouTube Live or here on Facebook Live, on find it on the Connect This! page.

Email us broadband@muninetworks.org with feedback and ideas for the show.

Mountain Connect 2022 got a big kick off this morning in Keystone, Colorado with a Q&A discussion between National Telecommunications and Information Administration (NTIA) Assistant Secretary Alan Davidson and Broadband Breakfast CEO, Editor and Publisher Drew Clark.

Davidson provided a broad overview of the newly released Notice of Funding Opportunity (NOFO) for the $42.5 billion Broadband Equity Access & Deployment (BEAD) program, which set the table for the multitude of break-out sessions that attracted a who’s who of broadband providers, vendors, policy-makers and vendors.

Under the BEAD program, each of the 50 states will be eligible to receive a minimum of $100 million to expand high-speed Internet access, though most states will receive hundreds of millions more as additional funding will be allocated to states based on a formula that takes into account how many unserved households are in each state.

Most States On Board for BEAD

Davidson said that 25 states have already submitted their Letter of Intent (LOI) to seek BEAD funding. In all, 35 states have indicated they will also participate in the program so far as NTIA works with the other 15 states and territories to encourage them to take advantage of the largest ever federal investment in broadband.