Page 129 - SAMENA Trends - February 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

FCC Approves US$20 Billion Rural Broadband Funding Plan

The Federal Communications Commission voted to approve a month indicating which states had the most locations eligible for
$20.4 billion plan to subsidize the construction of high-speed the $16 billion in funding available through the first phase of the
broadband networks in rural America. FCC Chairman Ajit Pai plan. California, Texas, Michigan and Wisconsin topped the list.
called the vote the “biggest step the FCC has ever taken to close Through that same analysis, the FCC decided that Alaska and
the rural digital divide.” The Rural Digital Opportunity Fund will New York would be ineligible for funding through the program
help internet service providers deploy broadband over 10 years because of “previously established programs to fund rural
to areas currently lacking service of at least 25 megabits per broadband in these states.” During the meeting, Commissioner
second download and 3 Mbps upload speeds. The federal agency Geoffrey Starks, a Democrat, raised concerns that an updated
estimates about six million rural homes and businesses are version of the order might undermine efforts to leverage multiple
located in areas that could benefit from the initiative. Internet resources to improve broadband access. He said the order
service providers, including telecoms and government utilities, includes a provision that would exclude any areas from getting
would bid to provide broadband and voice services to the funding if the location was “awarded funding through the U.S.
locations. The FCC’s three Republican members voted for the Department of Agriculture’s ReConnect Program or other similar
rules, while the two Democratic members supported the plan but federal or state broadband subsidy programs, or those subject
dissented in part. Democrats said they were concerned that not to enforceable broadband deployment obligations.” Starks said
enough has been done to fix the FCC’s maps that show where he believes that could potentially disqualify nearly 30 states
broadband is and isn’t available. Without correcting what many from eligibility of Rural Digital Opportunity Fund money. “These
say are flawed maps, it is impossible to say what areas of the provisions discourage badly needed state-federal partnerships,
country most need help with access, they said. FCC Commissioner risk unequal application of the rules between states, and create
Jessica Rosenworcel cited the example of Duanesburg, New York, an unnecessary risk of litigation,” he said. Harold Feld, the senior
where a survey of residents found that about half of the FCC’s vice president at Public Knowledge, a consumer advocacy non-
broadband maps were incorrect in their indication of which profit, said the group is waiting to see what the final wording of the
residents had access to broadband. “There are a whole lot of order says, but cautioned that limiting access to the fund would
communities just like Duanesburg all across the country,” she harm millions of rural Americans who do not have broadband
said. “The FCC should know where service truly is and is not. It access. “We should encourage states to take initiative and reward
should be that we figure this out before sending federal funds those that rise to the challenge,” he said. “At least, we should not
who knows where to build who knows what.” Pai said the areas punish states by making them depend exclusively on underfunded
that will be targeted in phase one of the plan are known to not federal programs doled out from Washington, D.C.” Angelina
have broadband access. He said the FCC should not make those Panettieri, the legislative manager for information technology
Americans wait for a time-consuming analysis to be completed and communications at the National League of Cities, said local
in order to receive better service. An analysis to determine what telecommunications projects often have to rely on multiple funding
other areas also need assistance will be completed in phase two streams because one single funding source is not enough to cover
of the project, he said. The FCC released an analysis earlier this the total cost of a project. The decision could potentially preclude
state and local governments from weaving together funding from
a variety of sources to meet their infrastructure needs, she said.
For example, members of New York’s Congressional delegation
told the FCC this month that despite the state’s own broadband
initiative, there are still areas of the state in need of federal
investment. In a letter, they asked the FCC to change its decision
to leave the state out of the first phase of its plan because of past
investments, saying they were “deeply disappointed.” Pai said
Thursday that the FCC would welcome any information the states
would like to provide to demonstrate need. But he said money
should not be spent on efforts where companies are already
under obligation through other agreements to deploy broadband.
“We must target our limited funds to bring broadband to those
who will otherwise not be served,” Pai said. “That means limiting
efforts to areas that do not have broadband and where there are
no current federal and state programs that will ensure broadband
is deployed in the near future.”

129 FEBRUARY 2020