A bipartisan group of senators from some of America’s most rural and broadband-challenged states blasted the mapping skills of the Federal Communications Commission in a hearing Tuesday.

The senators were upset because the FCC’s Universal Service Fund will pay subsidies to extend wireless connectivity only in areas deemed to have inadequate or non-existent coverage. The FCC’s latest wireless coverage map is the determining factor whether communities get subsidies to expand service or not, and many in attendance at the Communications, Technology, Innovation, and the Internet subcommittee hearing quickly called it worthless.

Sen. Jerry Moran (R-Kan.) said the map’s “value is nil,” quickly followed by the Subcommittee chair Sen. Roger Wicker (R-Miss.) who added, “we might as well say it, Mr. Moran, that map is utterly worthless of giving us good information.”

“The simple answer is: it’s garbage in, garbage out,” said Steve Berry, CEO of the Competitive Carriers Association, which counts several small, rural cell phone companies as members.

This FCC map shows (in blue) areas identified as eligible to receive wireless subsidies to expand service where little or none exists today. (click map to expand)

The latest version of the map was heralded by the FCC as a significant improvement over the 2012 map used during the first round of funding. But critics like Berry claimed the map still relies entirely on carrier-provided data, much of it based on network capacity, and there is an incentive for existing wireless carriers to overestimate coverage because it assures funds won’t be given to potential competitors to strengthen their cellular networks.

The FCC claimed it gave carriers new benchmarks to meet in its latest map, including a request to only identify an area as covered if it achieves 80% certainty of coverage at 4G LTE speeds of 5 Mbps or more. To identify underserved zones, the FCC asked carriers not to identify areas that passed the first test as served if cell towers in that zone exceeded 30% of capacity. But Berry noted the FCC did not include a signal strength component, which means a carrier could report a significant area as getting adequate coverage based on the capacity of their network in a strong reception zone, even if customers nearby reported ‘no bars’ of signal strength or coverage that dropped completely once indoors.

Sen. Wicker

Senators from Kansas, New Hampshire and Mississippi were astonished to see maps that claimed virtually 100% of all three states were fully covered with mobile broadband service. The senators rejected that assertion.

Sen. Maggie Hassan (D-N.H.) has devoted a section on her website to collecting reports from New Hampshire residents getting poor cell phone reception, and she has been a frequent critic of the FCC’s coverage maps which she has repeatedly called inaccurate.

In northern Mississippi, wireless coverage is so poor the Mississippi Public Service Commission launched an initiative to collect real-world data about reception through its “Zap the Gap” initiative. But the FCC’s latest map suggests the problem is solved in the most signal-challenged areas in the northern part of the state, with the exception of small pockets in the Holly Springs National Forest, the Enid Lake area, areas east of Coffeeville, parts of Belmont, and areas east of Smithville.

The four major national wireless carriers suggest there is no problem with wireless coverage in Mississippi either. AT&T claims to reach 98% of the state, Verizon Wireless 96.43%, T-Mobile 66.36%, and Sprint 30.92%. Regional carrier C Spire claims 4G LTE coverage that falls somewhere between T-Mobile and AT&T in reach.

Sen. Jon Tester (D-Mont.) told the subcommittee in his state, the FCC’s maps have little resemblance to reality, showing 4G LTE speeds in areas where no cellular reception exists at all.

“The FCC is wrong, they screwed up, we’re getting screwed because they screwed up, so how do we fix it?” Tester asked. “There has got to be a way to get the FCC’s attention on this issue. We’ve got to do better, folks, it’s not working.”

Mississippi’s program to report cellular coverage gaps.

Independent cell phone companies that specialize in serving areas the larger carriers ignore are hamstrung by the FCC and its maps, according to Mike Romano, senior vice president for policy for NTCA – The Rural Broadband Association — a trade group and lobbyist for smaller rural providers. Romano told the subcommittee if any cellular company reports coverage to even one household in a census block (which can cover a large geographic area in rural states), that entire block is ineligible for Connect America Fund subsidies.

The FCC, rural carriers complain, is relying on small wireless companies to serve as the map’s fact checkers and forces them to start a costly challenge procedure if they want to present evidence showing the map is wrong. Such proceedings are expensive and time-consuming, they argue. Even if successfully challenged, that does not win the companies a subsidy. It only opens the door to a competitive bidding process where challengers could face competing bids from larger companies that made no effort to challenge the map data.

A group of senators signed a joint letter to FCC Chairman Ajit Pai complaining about the accuracy issues surrounding the FCC’s wireless map:

Dear Chairman Pai:

We write this letter to express our serious concerns that the map released by the Federal Communications Commission last week showing presumptive eligible areas for Mobility Fund Phase II (MF II) support may not be an accurate depiction of areas in need of universal service support.  We understand that the map was developed based on a preliminary assessment from a one-time data collection effort that will be verified through a challenge process. However, we are concerned that the map misrepresents the existence of 4G LTE services in many areas.  As a result, the Commission’s proposed challenge process may not be robust enough to adequately address the shortcomings in the Commission’s assessment of geographic areas in need of support for this proceeding.

MF II is intended to provide $4.53 billion in support over 10 years to preserve and expand mobile coverage to rural areas. These resources will be made available to provide 4G LTE service where it is not economically viable today to deploy services through private sector means alone.  Having consistently traveled throughout rural areas in our states, it appears that there are significant gaps in mobile coverage beyond what is represented by the map’s initial presentation of “eligible areas.” To accurately target support to communities truly in need of broadband service, it is critical we collect standardized and accurate data.

For too long, millions of rural Americans have been living without consistent and reliable mobile broadband service.  Identifying rural areas as not eligible for support will exacerbate the digital divide, denying fundamental economic opportunities to these rural communities.  We strongly urge the Commission to accurately and consistently identify areas that do not have unsubsidized 4G LTE service and provide Congress with an update on final eligible areas before auctioning $4.53 billion of MF II support.

In addition to Senator Roger Wicker (R-Miss.), the letter was signed by Maggie Hassan (D-N.H.), Jerry Moran (R-Kan.), Angus King (I-Maine), Cory Gardner (R-Colo.), Amy Klobuchar (D-Minn.), Pat Roberts (R-Kan.), Roy Blunt (R-Mo.), Gary Peters (D-Mich.) and Thom Tillis (R-N.C.).

The Senate Commerce, Science and Transportation Subcommittee held a hearing on broadband infrastructure needs. The FCC’s wireless broadband coverage map was a main issue in contention. (Note, the hearing begins at the 30:00 mark.) (2:05:00)

Judith Monroy looks up at a recently installed Verizon small cell signal booster (upper right) placed a few dozen feet from her front door. It was accompanied by a 5-foot high utility cabinet (lower left) containing backup batteries to power Verizon’s equipment for up to four hours in the event of a blackout. (Image courtesy: The Press Democrat)

A preview of the possible aesthetics battle of future 5G small cells that are expected to proliferate across America’s cities and towns in the coming years is taking place in Santa Rosa, Calif., where residents and some city officials reacted with surprise when Verizon began attaching “small cell” wireless repeater equipment on 72 city-owned light and utility-owned poles around the city. While not exactly the same at the 5G equipment Verizon is preparing to install in Sacramento to launch its forthcoming fixed wireless service, the similar-sized equipment turned out to look nothing like what was promised by Verizon officials. But city officials learned this only after the project was approved by a 7-0 City Council vote in 2017.

In January, one resident learned about the sudden arrival of Verizon Wireless’ equipment when she opened her front door one morning to confront a utility pole decorated with antenna equipment and a 5-foot high utility box about 30 feet away from her home.

“I’m planning to put this house on the market and the mechanisms on the telephone pole and in the ground are very aggressive and ominous-looking,” said Judith Monroy, 75. “You can’t miss them.”

Within days, someone vandalized the utility box, spray painting the word “no” and “stop this” for all to see.

In many areas, 5G small cells will be installed on utility or light poles in the front yards of residential homes. Wireless companies will want to place equipment on poles that are not obstructed by foliage or tall, nearby infrastructure, which can block signals. Requests for aggressive tree trimming to remove obstacles, within the limits permitted by local ordinances and the policies of the pole owner, are also likely. This is certain to create controversy if property owners find their trees or shrubbery removed or aggressively pruned. But for many others, the appearance of the new equipment is enough to provoke protests.

When some property owners discovered Verizon was also adorning electric utility poles with its cellular equipment, some started referring to them as “PG&E’s Godzilla Poles.”

‘PG&E Pole Godzilla’ (Image courtesy: The Press Democrat)

The utility poles hosting Verizon’s equipment have new “branches” attached several feet below pre-existing utility wiring, onto which small cell antennas are attached.

As more equipment gets installed, the more concerned citizens are phoning up city hall to complain.

Last week, city officials bowed to citizen pressure and temporarily suspended Verizon Wireless’ antenna upgrade program. While some residents cited health and safety fears from electromagnetic radiation — a fear repeatedly debunked — many more were upset by the aesthetics of the equipment and wondered if the city got a raw deal.

“I think it is time to push the pause button on this installation in our neighborhoods,” said John Cushman, a resident of Hidden Valley. “This project has been rushed and the only urgency I can see is financial.”

Verizon is paying the city $350 per pole, an amount some local residents consider absurdly low. As opposition mounted, some uncomfortable members of City Council that originally voted in favor of Verizon’s plan changed their minds, according to The Press Democrat:

Neighbors are not happy about Verizon’s new equipment. (Image courtesy: The Press Democrat)

“I am supportive of putting the brakes on this,” Councilman Tom Schwedhelm said. “I’m not convinced that we’ve done everything that we can so we can look anyone in the face and say ‘Yes it’s safe there. It’s safe to be in front of my house.’ ”

Councilman Jack Tibbetts said he viewed the rollout as a “commercial enterprise” that perhaps was better suited to commercial areas given the city’s stated goal of helping strengthen the city’s wireless infrastructure to foster entrepreneurialism.

“I’d like to see residential zones be carved out in our ordinance,” Tibbetts said to loud applause in a chamber full of people wearing bright yellow stickers reading “Caution: Cell tower microwave frequency hazard.”

But Verizon may have positioned itself to move forward regardless of what the city has in mind.

The company announced it would continue installation at 25 previously approved sites where it already has permits in-hand. Verizon has yet to obtain permits to place equipment at two other PG&E sites and 31 city light poles.

The city will not have much say over pole attachments on PG&E’s infrastructure, which is governed on the state level by the California Public Utilities Commission.

If the city denies Verizon’s request to install its equipment on city-owned light poles, the company could just move those antennas to other PG&E poles nearby instead.

Accenture’s six-page analysis.

CTIA, America’s largest wireless industry trade group and lobbyist, commissioned a research consultant to produce a six-page analysis that unsurprisingly concludes stripping some oversight responsibilities regarding cell tower placement would reduce the cost to deploy 5G wireless small cells by as much as $1.6 billion over the next nine years.

The Federal Communications Commission is currently considering industry-friendly proposals that would “streamline” and “modernize” the historic and environmental regulatory requirements for wireless deployments, exclude small cells from certain federal regulatory reviews, and put a strict limit on completing environmental impact reviews on new tower and antenna installations or else they will be automatically approved.

The Accenture analysis, produced at the request of CTIA, claims that it will cost an average of $9,730 for each 5G small cell regulatory review. But the report also states only 28-29% of installations will face this type of review. The CTIA implies it is much worse than that in its new 30-second ad complaining about regulatory burdens. That ad suggests 5G small cell “approval can take a couple of years.”

As the FCC ponders further deregulation of cell tower and antenna placement, wireless industry players are sharing their horror stories with the FCC to strengthen the agency’s likely  view that installation rules and oversight should be relaxed.

In January, Sprint complained it faced a demand to pay a $90,000 “tribal review fee” for six tower upgrades in the Chicago area. The company claims the towers were located in historic preservation areas, but not in areas of tribal significance. Sprint added in its letter to the FCC it only planned to install additional antenna equipment at those tower sites to increase capacity, not erect new towers.

The wireless industry is also lobbying to get cut-rate access to public infrastructure like street lights, on which it eventually plans to place 5G network equipment.

In states like California, AT&T has pushed hard for new legislation that would mandate cities and counties to give the company open access to public infrastructure in public rights-of-way or utility easements. In a 2017 bill before the California Senate, companies like AT&T would face a fee limit of $100-850 per small cell per year, indexed for inflation,

With multiple wireless companies prepared to enter the 5G marketplace, utility poles could get crowded.

Cities and counties may also find their right to object to what eventually ends up on their poles curtailed as a result of the deregulation effort.

CTIA’s new 30-second advertisement claims 5G small cells can be installed in about 90 minutes, but only after waiting years for a sluggish review process. (30 seconds)

Dommermuth

The billionaire founder of United Internet, a Frankfurt based ISP with a 14% market share of Germany’s broadband market, has proposed the creation of a new jointly owned company to construct a nationwide fiber-to-the-home broadband network to improve German connectivity.

Ralph Dommermuth said German telecom leader Deutsche Telekom must be a decisive member of the alliance in a country where only 2.5% of homes are connected to fiber optic broadband. Dommermuth complained that the new government formed by Chancellor Angela Merkel only pledged €10-12 billion over the current parliamentary session to create what she calls a “Gigabit Society” by 2025. He believes that amount is completely inadequate.

In an interview with newspaper Welt am Sonntag, Dommermuth said Merkel’s government would contribute only a small fraction of the €80 billion he estimates is needed to wire up to 70% of the country with fiber optics.

German companies have already warned Germany’s economy was at risk from underinvestment in broadband, especially as business and transportation systems are increasingly powered by broadband networks.

Deutsche Telekom (DT) is frequently blamed for the mediocrity of German broadband. Its CEO Tim Hoettges has been heavily criticized for his decision to embrace upgrading its existing copper-based DSL service with “vectoring” instead of rebuilding its network using fiber optics. Although vectoring can significantly improve the speed of DSL connections, critics say it is a technological dead-end and further upgrades are limited and costly.

Hoetgges answers his critics by arguing Deutsche Telekom has spent more money on broadband — €5.4 billion — in the last year than all of its competitors put together.

Most ISPs in Germany are dependent on Deutsche Telekom to reach customers. United Internet, which does business under the 1&1 brand, pays DT for access to its DSL lines, over which it offers internet access.

Behind the controversy is what company ultimately controls Germany’s fiber optic telecom future. DT argues since it has spent the most money necessary to bring limited optical fiber connectivity to Germany, it should not have to share access to that network equally with its competitors. Hoettges said that would allow companies like United to profit from his company’s investments. To attract additional investment, DT wants control over the fiber optic network it is slowly building.

Dommermuth argues the country cannot wait the significant number of years it will take DT to expand that network on its own, which is why he proposes a consortium, with each member company paying a portion of the costs relative to its market share.

Broadband growth is slowing in the United States as internet service providers have an increasingly hard time finding new subscribers who do not already have internet service in their homes and businesses.

In 2017, telecom companies attracted 2.1 million new customers, in contrast to 2.7 million in 2016.

Leichtman Research Group reports that among 14 ISPs which control 95% of the U.S. market, cable companies are about the only ones still growing, mostly at the expense of their phone company competitors. Cable companies now provide access for 61.2 million customers, representing almost two-thirds of the market. Phone companies continue to lose market share but still have 33.9 million internet customers.

Some statistics:

Cable Companies

• Charter Communications was the marketplace leader in broadband net additions, picking up 1.3 million new internet access customers in 2017. Spectrum is the second largest broadband provider in the country, with 23.9 million customers.
• Comcast retained its position as the country’s largest provider, picking up an additional 1.2 million internet access customers in 2017. It now serves 25.9 million broadband customers.
• Altice, which operates as Cablevision/Optimum and Suddenlink, saw particularly weak growth in 2017, adding only 83,700 customers.
• Mediacom added 47,000 new internet customers to its roster of 1.2 million current customers and WOW picked up 11,100 new broadband subscribers last year.

Phone Companies

• Only AT&T added net new customers in 2017, picking up 114,000 new subscribers to add to its 15,719,000 current internet customers.
• Verizon lost 79,000 customers and is down to just short of seven million subscribers.
• CenturyLink lost 283,000 customers and is now down to 5,662,000 customers.
• Frontier dropped 333,000 customers from its roster of 3.9 million current internet customers.
• Windstream ended 2017 with 44,500 fewer internet customers, retaining just over one million subscribers.