INCOMPAS News -- February 22, 2022

Vol. 18, No. 8

February 22, 2022

Competition Comes to the Condo

FCC's MTE Action is a Win for

Families and Broadband Deployment

The FCC last week unanimously approved rules to open apartment buildings, condominium complexes, affordable housing and commercial properties to broadband competition and end monopoly practices that have blocked competitive providers offering lower prices and new, faster networks from reaching millions of Americans living and working in multiple tenant environments (MTEs).

“Finally, competition comes to the condo. I feel like we just knocked down an old monopoly skyscraper at the FCC," said INCOMPAS CEO Chip Pickering. “Introducing more broadband choice will unlock lower prices, faster speeds and better customer service for tens of millions of Americans living in apartment buildings and other multi-tenant environments. By ending broadband monopolies in buildings and enabling greater competition, we can kickstart a deployment revolution for fiber and faster speed services that cost less and deliver more to one third of American families living, working and studying from an apartment they call home."

He added: “INCOMPAS has fought this battle for the last half decade, and we would like to thank the bipartisan leaders who helped make it happen including President Joe Biden, FCC Chairwoman Jessica Rosenworcel and Commissioners Brendan Carr, Nathan Simington and Geoffery Starks. We would also like to thank former Chairman Ajit Pai who made this item an important component of his broadband strategy. We are eager to review the details, and will continue to fight for improvements that prevent monopoly tactics that block new competition from knocking on the door."

To Save USF: FCC Must

Adopt USForward Report Recommendation Immediately

INCOMPAS is pressing the FCC to make the smart, transparent and expedient choice to save the Universal Service Fund (USF). By evolving USF to include contributions from broadband internet access service providers, which the FCC could do immediately without an act of Congress, INCOMPAS says low-income families, schools and rural hospitals would all benefit from this renewed commitment to ongoing affordability solutions.

In comments filed last week, INCOMPAS warns that the USF program is spiraling toward disaster, with contribution levels set to rise to nearly 40%. To save USF, INCOMPAS offers detailed suggestions that would promote four key elements: competition, coordination, affordability and transparency.

“The reality is the FCC needs to act fast or the USF program, the hallmark of dependable affordable internet access solution for millions of families and schools who access E-rate funding, will be in serious jeopardy,” said Angie Kronenberg, general counsel and chief advocate for INCOMPAS. “Evolving USF to include broadband internet access service is a natural progression that promotes stability and transparency, and would deliver immediately to help families in need and make the Fund more equitable.”

The INCOMPAS filing highlights the need for competition in the USF program and asks the FCC to make competition one of the universal service goals, pointing to the Restoring Internet Freedom Order, which states: “The more competitive the [ISP] market, the larger the net gains to subscribers and edge providers . . . [i]nnovation by ISPs may take the form of reduced costs, network extension, increased reliability, responsiveness, throughput, ease of installation and portability.”

The filing lays out steps the FCC should include in its Report to Congress on the Future of USF. INCOMPAS emphasized the need to assess each USF program and to work with states and other agencies on long-term solutions to better track the program and ensure quality service remains available at reasonable and affordable rates.

INCOMPAS also blasted attempts by critics of internet and streaming innovators who are seeking to delay and derail USF reform by placing new taxes and fees on competitive alternatives to expensive big cable bundles.

“Suggesting new taxes and fees on internet and streaming competition is a stalking horse that is designed to delay reforms and destabilize the USF program. It’s also a slap in the face to consumers, who suffered for decades under skyrocketing prices and poor service before cord cutting competition and innovation set them free from higher prices and customer service abuse,” Kronenberg added.

INCOMPAS has been a leading advocate for USF reform and released the USForward report in 2021 with NTCA – The Rural Broadband Association, SHLB Coalition and Public Knowledge.

USForward: 332 Groups Send Letter to FCC

as Pressure Builds to Save Universal Service Fund

The pressure is building on the FCC to save the Universal Service Fund (USF), which provides critical assistance for rural and low-income families seeking affordable internet connectivity, as well as schools, libraries, and rural healthcare providers.

Last week 332 entities sent a letter to the FCC calling for rapid action to help stabilize the funding mechanism that supports the USF program from skyrocketing costs, poised to reach a staggering 40%. The 332 organizations signing the “Call to Action” letter represent a broad and diverse group of stakeholders, including public interest groups, communications companies, anchor institutions and consumers.

The “Call to Action” letter urges the FCC to expand the services that pay into the USF to include broadband internet access services (BIAS) revenues, pointing out that the FCC has the power to take this action now. As explained in the USForward Report, including BIAS revenues in the contribution base is smart and equitable public policy that the FCC can implement quickly.

“Our recommendation would reduce regulatory uncertainty, would better reflect evolving uses of services, would be straightforward to administer, and would be more equitable and nondiscriminatory for residential and business consumers than the current system. Moreover, the FCC could make this change under its existing authority without requiring new legislation,” the letter states.

Stating that “the perfect should not be the enemy of the better,” the Call to Action letter makes it clear how dire the situation is for families who depend on affordable connectivity and encourages the FCC to take those reasonable and productive steps it can right now to address these concerns. “Unfortunately, this universal service system is in danger of collapse because the mechanism that funds it has not been updated since it was adopted nearly 25 years ago. As a result, the USF fee has spiraled from about 7% in 2001 to over 30% in 2021 and could exceed 40% in the coming years. The existing system is also inequitable and discriminatory because some consumers pay a disproportionate amount compared to others, even when using similar services,” the letter reads.

FCC, NTIA Establish Spectrum Coordination Initiative

On February 15, the FCC and NTIA announced a new initiative to improve U.S. government coordination on spectrum management. The Spectrum Coordination Initiative will involve actions by both agencies to strengthen the processes for decision making and information sharing and to work cooperatively to resolve spectrum policy issues.

The FCC and NTIA jointly manage the nation’s radio spectrum resources, and the agencies have a long history of working together to ensure that spectrum policy decisions foster economic growth, ensure our national and homeland security, maintain U.S. global leadership and advance other vital U.S. needs.

Specifically, they have committed to the following initial actions:

Reinstate High Level Meetings. For the first time, the Chair of the FCC and the Assistant Secretary will hold formal, regular meetings, beginning monthly, to conduct joint spectrum planning.
Reaffirm Roles and Responsibilities. Building on NTIA’s statutory role as manager of the federal government’s use of spectrum, the FCC and NTIA will update the nearly twenty-year-old Memorandum of Understanding between the agencies to address gaps in government coordination.
Renew Efforts to Develop a National Spectrum Strategy. The FCC and NTIA will collaborate to help inform the development of a national spectrum strategy, increase transparency around spectrum use and needs, and establish long-term spectrum planning and coordination.
Recommit to Scientific Integrity and Evidence-Based Policymaking. The FCC and NTIA will work cooperatively to develop processes for spectrum engineering compatibility analysis. These will include a compilation of principles, guidelines, accepted technical standards, interference protection criteria, propagation models, and other characteristics.
Revamp Technical Collaboration. The FCC and NTIA will foster proactive technical exchange and engagement with industry and other federal agencies by participating in cross-agency advisory groups.

NTIA to Host Pre-NOFO Technical Assistance Webinars

NTIA will host a pre-Notice of Funding Opportunity (NOFO) technical assistance webinar series starting next month through May in connection with the five new broadband grant programs authorized and funded by the Infrastructure Investment and Jobs Act (IIJA): The Broadband Equity, Access, and Deployment Program; the Enabling Middle Mile Broadband Infrastructure Program; and the Digital Equity Act Programs, which include the State Digital Equity Planning Grant Program, State Digital Equity Capacity Grant Program, and Digital Equity Competitive Grant Program.

These pre-NOFO technical assistance webinars are designed to help prospective applicants understand NTIA’s IIJA broadband grant programs and to assist applicants to prepare high quality grant applications.

NTIA Webinar Schedule

Webinar #1: Wednesday, March 9, 2022, from 2:30 p.m.-4:00 p.m. ET
Webinar #2: Wednesday, March 23, 2022, from 2:30 p.m.-4:00 p.m. ET
Webinar #3: Wednesday, April 6, 2022, from 2:30 p.m.-4:00 p.m. ET
Webinar #4: Wednesday, April 27, 2022, from 2:30 4:00 p.m. ET
Webinar #5: Wednesday, May 11, 2022, from 2:30 p.m.-4:00 p.m. ET.

These webinars will be hosted via NTIA’s virtual platform and conducted as live webinars. NTIA will post the registration information on its BroadbandUSA website as soon as the virtual platform is finalized.

NARUC Approves Federal-State Collaboration Resolution

NARUC’s board of directors approved a resolution at its winter policy summit last week, ensuring federal and state entities collaborate, share data and track progress on closing the digital divide utilizing various federal programs, including the Infrastructure Investment and Jobs Act and the American Rescue Plan Act of 2021.

USDA Extends Application Deadline for Reconnect Program

U.S. Department of Agriculture Rural Development Under Secretary Xochitl Torres Small announced an extension of the application deadline for the ReConnect Program from February 22, 2022, to March 9, 2022. Up to $1.15 billion in loans and grants from the program will be made available to expand the availability of broadband in rural areas.

To be eligible for funding, an applicant must serve an area without broadband service at speeds of 100/20 Mbps and commit to building facilities capable of providing broadband service at speeds of 100 Mbps to every location in its proposed service area.

The USDA said in the coming months it plans to begin making available an additional $2 billion in rural broadband funding allocated to USDA by the Infrastructure Investment and Jobs Act.