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Congressman Clyburn Plans to Reintroduce $100 Billion Rural Broadband Expansion Fund Bill

Clyburn

Congressman James Clyburn (D-S.C.) plans to reintroduce a bill offering $100 billion dollars to provide rural high speed internet service in unserved and underserved parts of the United States and to provide subsidies as needed to ensure that internet service is affordable.

The return of the Accessible, Affordable Internet for All Act will be welcomed by the House Rural Broadband Task Force and other groups appealing for rural broadband funding to resolve the pervasive lack of high-speed internet access in unprofitable service areas.

Clyburn notes that in his home state, one in ten rural South Carolinians lack access to suitable broadband service, despite years of more modest funding programs. His bill went nowhere in the 2020 session as part of the Democrats’ $1.5 trillion infrastructure bill, dubbed the Moving Forward Act. With the election of President Joe Biden and the razor thin Democratic majority control of the U.S. Senate, some form of expanded infrastructure spending bill is likely to emerge in Congress this spring, which will include rural broadband funding.

Like last year’s bill, the 2021 version will likely include:

  • $80 billion in direct subsidy funds to build out high-speed rural internet access to homes and businesses.
  • $5 billion set aside for low interest broadband deployment loans
  • $5 billion for distance learning programs
  • Funding for Wi-Fi service in school buses
  • The creation of the Office of Internet Connectivity and Growth within the National Telecommunications and Information Administration to monitor, promote, and assist rural communities and those economically disadvantaged in getting affordable high-speed internet service established in their community.
  • Funding for digital equity programs to train those not yet connected in how to use the internet.
  • A requirement that the FCC track and analyze national broadband pricing and ensure price transparency.

Clyburn’s 2020 bill also knocked down state barriers on building and expanding municipal broadband networks.

According to the FCC, 21 million Americans and 10 million school-age children do not have internet access. Low-income households are the least connected in America, and, not surprisingly, rural communities are the least served. What might surprise us all is that the data reveals a 75% correlation between median household income and broadband access In 2019, US Representative Jim Clyburn (D-S.C.) created the Rural Broadband Task Force to close the digital divide, with the goal of all Americans having high-speed internet access by 2025. The digital era is to the 21st century what electricity was to the 20th, argues Clyburn. Bridging the digital divide is something we must address if we are going to reset the US economy for all. Featuring Jim Clyburn in conversation with Naomi Nix. (9:21)

Fiber to the Home Customers Only Cancel “If They Move or Die”

Customer satisfaction with fiber to the home internet service is so high, one industry leader says the only time customers cancel service is if they move or die.

Carl Russo, CEO of internet equipment vendor Calix, says phone companies are relying on fiber optic networks to turn their struggling businesses around except in the most rural areas of the country.

“Fixed wireless will sometimes be the right choice and Calix’s software supports it. But our telco customers with fiber will lose very few customers. If they provide strong, customer-focused service, no one will have a reason to switch,” Russo told Dave Burstein’s Fast Net News. “It’s only a slight exaggeration to say customers only churn if they move or die. This is provided the service provider chooses to ‘own’ the subscriber experience. A service provider that invests in fiber but doesn’t further invest in an excellent subscriber experience is still vulnerable.”

Russo argues that fiber to the home service has been the right choice for most of the developed world for several years now, at least where there is hearty competition between providers.

Where competition is lacking, phone companies often still rely on archaic DSL service, which is increasingly incapable of competing with even smaller cable operators. Phone companies are now up against the wall, forced to recognize that existing, decades-old copper wire infrastructure cannot sustain their future in the broadband business. Companies that drag their feet on fiber upgrades are bleeding customers, and some companies are even in bankruptcy reorganization.

Russo

Fiber networks are future-proof, with most offering up to gigabit speed to consumers and businesses. But upgrading to 10 Gbps will “add little to the cost” once demand for such faster speed appears, Russo said.

Fast Net News notes that France Telecom, Telefonica Spain, Bell Canada, and Telus have all proven successful using fiber to the home service to compete with cable companies to market internet access. Companies that approved less costly fiber to the neighborhood projects that relied on keeping a portion of a company’s legacy copper network, including AT&T, BT in the United Kingdom, and Deutsche Telekom in Germany, have had to bring back construction equipment to further extend fiber optic cables to individual customer homes — a costly expense.

Even public broadband projects like Australia’s National Broadband Network (NBN) paid dearly for a political decision to downsize the NBN’s original fiber optic design to save money. The NBN was hobbled by a more conservative government that came to power just as the network was being built. Many NBN customers ended up with a more advanced form of DSL supplied from oversubscribed remote terminals, which delivered just 50 Mbps to some subscribers. For-profit companies have also been pressured to keep costs down and limit fiber rollouts by Wall Street and investors. Verizon FiOS is the best known American example, with further network expansion of the fiber optic service essentially shelved in 2010 at the behest of investors that claimed the upgrades cost too much.

Underfunded upgrades often bring customer dissatisfaction as speeds cannot achieve expectations, and many hybrid fiber-copper networks are less robust and more subject to breakdowns. In the United Kingdom, BT’s “super fast” broadband initiative has been a political problem for years, and communities frequently compete to argue who has the worst service in the country. BT’s fiber-to-the-village approach supplies fiber internet service to street cabinets in smaller communities that link to existing BT copper phone lines that are often in poor shape. Customers often get less than 50 Mbps service from BT’s “super fast” service while a few UK cable companies are constructing all-fiber networks in larger cities capable of supplying gigabit internet speed to every customer.

Calix is positioned to earn heavily by selling the equipment and infrastructure that will power future fiber network upgrades that are inevitable if companies want to attract and keep customers. A new round of federal rural broadband funding will help phone companies pay for the upgrades, which means many rural Americans will find fiber to the home service in their future.

Wilson, N.C.’s Fight for Better Internet Found Lots of Opposition from Big Telecom and Republicans

If you’ve ever lived in small-town America, you know how bad the internet can sometimes be. So one town in North Carolina decided: If we can’t make fast internet come to us, we’ll build it ourselves. And they did, despite laughter and disbelief from Time Warner Cable (today known as Spectrum).

When the city started installing fiber optics, the incumbent cable and phone companies did not like the competition and fought back, hiring an army of 40 lobbyists. The telecom companies enlisted the support of the now Republican-controlled state legislature, often with the help of the American Legislative Exchange Council (ALEC) and other conservative groups. Together, they hammered home scare stories with suspect studies critical of municipal broadband written by not-so-independent researchers ghost-funded by many of the same big cable and phone companies.

National Public Radio’s “Planet Money” looks at what happened when the City of Wilson decided to try and start its own internet provider, and how it started a fight that eventually spread to dozens of states, a fight about whether cities should even be allowed to compete with big internet providers, and what the effect the outcome might have on working remotely. But the citizens of Wilson seem to love Greenlight Community Broadband, right down to its well-regarded customer service, which includes dropping by elderly customers’ homes during lunch to troubleshoot set-top boxes and nefarious remote control confusion. (22:47)

This Internet Provider Earned a 94% Customer Satisfaction Score, and It Isn’t Comcast or Spectrum

One of America’s internet service providers managed to achieve a customer satisfaction score of 94%, an unprecedented vote of approval from consumers that typically loathe their cable or phone company.

What also makes this provider different is that it is owned by the public, and administered by the City of Fairlawn, Ohio. Fairlawn is a suburb of Akron, with a population of around 7,400 people. Akron is dominated by Charter Spectrum for cable and AT&T for telephone service. But the suburbs have been underserved by both companies for decades. As with many northeastern cities, the economic shift away from manufacturing towards high-tech businesses requires robust connectivity. But many communities are stuck with a cable company that will not service less populated areas in town and a phone company that is willing to leave many customers with low-speed DSL and nothing better.

When a community finds it cannot get gigabit fiber optic service for residents, it can either live with what is on offer instead or decide to do something about it. Fairlawn decided it was time to establish FairlawnGig, a municipal broadband utility that would provide gigabit fiber service to every resident in town, if they wanted it.

Broadband Communities reports local residents love the service they are getting:

The online survey results reveal overall satisfaction with FairlawnGig at an astoundingly high number of 94% with more than 3 out of 4 (77%) saying they are “very satisfied.”

Additionally, FairlawnGig 94% of residential customers rated the service they receive from FairlawnGig as “excellent” or “very good.”

FairlawnGig offers two plans to residents: 300/300 Mbps service for $55 a month or 1,000/1,000 Mbps service for $75. Landline phone service is an extra $25 a month, and the municipal provider has pointed its customers to online cable TV alternatives like Hulu and YouTube TV for television service. Incumbent cable and phone companies usually respond to this kind of competition with cut-rate promotions to keep the customers they have and lure others back. Spectrum has countered with promotions offering 400 Mbps internet for as little as $30/mo for two years. Despite the potential savings, most people in Fairlawn won’t go back to Spectrum regardless of the price. FairlawnGig’s loyalty score is 80, with 85% of those not only sticking with FairlawnGig but also actively recommending it to others.

Residents appreciate the service, deemed very reliable, and that technicians are local and accessible. The City says it works hard to ensure that customer appointments are kept and on time and representatives are available to assist customers with their questions and technical support needs. FairlawnGig claims its technicians spend extra time teaching customers about their services.

City officials candidly admit they were willing to build and launch the municipal fiber service even if it did not recoup its original investment for years to come. That is because the municipal fiber network has benefited the city in other ways:

  • It has attracted new residents to town and kept them there.
  • Several businesses launched or moved to be within FairlawnGig’s service area. Most are white collar businesses, such as IT firms, software and hardware engineers, and consultants.
  • A new orthopaedic hospital is being developed in the town, in part because FairlawnGig can provide connectivity up to 100 Gbps for things like medical imaging and video conferencing.
  • As businesses move in, so do workers looking for a shorter commute. Property values in the town have increased and realtors make a point to alert would-be buyers when a property is within FairlawnGig’s service area.

In short, Fairlawn officials see providing internet access as more than just a profit center. It is a public service initiative that is paying back dividends that will eventually exceed the $10 million investment taken from the city’s general fund to build the network. Taxes did not increase as a result of FairlawnGig either. Now other towns around Fairlawn and the city of Akron itself are showing interest in how to join forces to expand the public service well beyond Fairlawn’s town borders.

WOIO in Akron covered FairlawnGig back in January 2019 in this report explaining how a publicly owned fiber to the home service was delivering gig speed to this northeastern Ohio community. (2:31)

Idaho Students Harmed by Unreliable Broadband; State Senator Wants Internet to Be Public Utility

Sen. Nelson

Idaho internet access is inadequate to support tele-learning services, hurting the state’s ability to move towards online education as a result of the COVID-19 pandemic.

State Sen. David Nelson (D-Boise) told his constituents that “now, more than ever, Idahoans need reliable broadband.”

At the moment, they are not getting it.

Nelson:

“The Moscow School District is providing instruction online for middle and high school students but about 20% of students don’t have strong enough Wi-Fi or can’t afford the internet access needed for classes at home. To make online learning available to all students, Moscow School District has turned school parking lots into Wi-Fi hot spots and is providing wireless hot spots to some students. In the Potlatch School District, they have distributed 300 laptops and Chromebooks, but 20% of kids don’t have internet access. Potlatch is also creating Wi-Fi hot spots for some families.

“In mountainous Benewah County, St. Maries School District has a harder job. Cell service is spotty and line-of-sight internet connections are hard to come by. More than 70% of St. Maries students and teachers do not have access to reliable internet. The school district found they must send home weekly packets because they cannot do online instruction. St. Maries teachers work in their classrooms daily because neither they nor their students have reliable internet for online teaching. Instead, the teachers spend their time creating the paper worksheets for families to pick up.

“St. Maries students only get packets, while other schools teach online. Does that live up to Idaho’s constitutional requirement of a general, uniform, and thorough system of public, free common schools? Idaho needs more investment in broadband infrastructure, but we aren’t going to be able to fix this in the midst of a crisis. I wish we had been investing in broadband infrastructure instead of cutting taxes significantly when times were good.

“Our limited, unreliable broadband is often overtaxed. Internet that was already struggling to serve our communities is now unable to keep up with the unprecedented demand from educators, people working from home, families ordering groceries online, and nearly every other Idahoan using the web to stay connected. Even the time to clear a credit card payment at a grocery store has increased.”

Internet access in rural states like Idaho is mostly a mixture of cable internet in larger cities and towns and DSL service in suburban areas. Rural communities often have to rely on wireless internet, where available, or satellite internet access. A few communities have a co-op utility that doubles as a broadband provider, but in most cases rural Idaho only gets what CenturyLink, Frontier, and other telephone companies are willing to provide.

“Last year, the governor’s Broadband Task Force found that North Central Idaho has the least access to functional broadband in the state,” Nelson noted. “Since schools have closed due to coronavirus, North Idaho school districts are experiencing the consequences of Idaho’s lack of investment in broadband infrastructure.”

After years of trying to convince private telecom companies to do the right thing by their customers and expand internet access, Nelson points out the current COVID-19 crisis is a perfect example of why states like Idaho can no longer afford to wait.

“The coronavirus pandemic has made it more obvious than ever that reliable internet access is a public utility that all Idahoans need,” Nelson said.

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