Tag: unserved

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Regulation - What is it Good For?

Hidden Unserved Locations

There is a mountain of complaints to be made about the new FCC maps. In some parts of the country there are a lot of missing rural locations, including entire subdivisions. Various ISPs have continued to exaggerate both coverage areas and broadband speeds. But even with all of the flaws there is a lot of interesting information in the new maps.

I live in Asheville, North Carolina. In the previous version of the FCC mapping the whole city and a lot of the surrounding areas were shown as having broadband available from Charter. There is also parts of the city that have fiber provided from AT&T. As you might imagine, the old maps didn’t tell the real story. The FCC mapping protocol showed an entire Census block covered by a given ISP that has even one customer in the Census block. It’s mostly this mapping rule that showed everybody here able to buy broadband from Charter.

The new maps are far more granular. If you search the map throughout the city you can find homes, businesses, and whole streets where Charter doesn’t claim to offer broadband. The AT&T coverage on the new maps shows how AT&T typically builds small fiber networks that cover only a few blocks in a given area.

Close analysis of the map shows what folks in the broadband world have always known, but were unable to prove, that the big cable companies and telcos don’t cover everybody. It is these unserved folks in the middle of cities that I call the hidden unserved locations. Such locations cannot buy the same broadband as nearby neighbors.

These little pockets came about for a variety of reasons. Some are costly to serve and the cable company decided not to reach them when the initial network was built. The cable company might not have been unable to obtain the needed rights-of-way for some reason. A house might be sitting inside of a park or other land that makes it complicated to pursue an easement. ISPs also don’t always automatically build to reach newly constructed homes, which can be a real shock to the new tenants.

In many of these cases where the cost to connect a drop is high, and an ISP often refuses to connect the location unless the customer pays for the cost of the connection. Everybody in the industry has heard the horror stories where an ISP quotes a cost of thousands, or even tens of thousands of dollars to make a connection, even inside of a city. Many homes and businesses in this situation cannot afford the big connection fee.

It’s not always the ISPs fault that the broadband isn’t available. It’s not unusual for the owners of privately-owned road not to give permission to an ISP or others to dig up the streets. There are apartment buildings where the owner decided not to allow a given ISP into the building. There are homes where the owner doesn’t want a connection and refuses to provide an easement.

In looking around Asheville I found a surprising number of such locations. I found individual homes or pockets of homes that are not claimed as served by Charter. But the real surprises came when looking at the outer portions of the city. There are parts of neighborhoods that have been bypassed for some reason, even though homes further outside of the city have service. It also looks like neighborhoods with large lots and long driveways have been selectively bypassed.

This version of the FCC maps likely still has a lot of reporting errors. Some of the homes shown as not being served might have a connection available, while some homes shown as having broadband might not be able to get it. Over time it’s hopeful that a lot of these local issues will be resolved as people use the FCC map challenge to fix the maps. But I think a lot of these situations are real. It’s not worth the effort yet with this first iteration of the maps to dig too deeply. But cities are going to be able at some point to make an inventory of locations that don’t have good broadband. At that point cities will be able to work to close the gap of the hidden unserved locations.

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Regulation - What is it Good For?

BEAD – The $42.5 Billion Infrastructure Grants

The new acronym used in the title of this blog refers to the official name of the new $42.5 billion grant program just approved by Congress last Friday – The Broadband  Access, Equity, and Deployment program. Another new acronym is IIJA, for Infrastructure Investment and Jobs Act – the name of the bill just passed by Congress. Today’s blog will talk about a few high-level rules governing the BEAD grants. I’ll cover other issues of the IIJA in upcoming blogs – things like middle-mile grants and broadband adoption. Since the following provisions are in the legislation they will be in the grant – but there are always tweaks made for final grant rules that will emphasize some points and downplay others.

  • You don’t need to rush to be ready to file for BEAD grants. This funding is going to flow between the NTIA and the States before going to specific grant projects. The Act gives the NTIA 180 days to come up with a plan for inviting states to apply for the funding. After the NTIA approves state plans, the states will have to develop and announce grant programs. I find it highly unlikely that there will be any grant applications due to states until the end of 2022, more likely in early 2023. States will get at least $100 million each, with the rest distributed based upon the number of unserved households in each state. This is a good time to remind those who think that the lousy FCC maps don’t matter that the States with the worst FCC maps are going to lose funding.
  • Cross your fingers that your State is competent because there are several crucial steps that states must adhere to before funding is provided.
  • As expected, grants must adhere to two key definitions of broadband. Unserved are places with broadband speeds under 25/3 Mbps. Underserved are areas with speeds between 25/3 and 100/20 Mbps. Grants must first go to unserved areas before being used for underserved areas. Funding for anchor institutions is only to be considered after serving underserved areas.
  • Grant projects must provide speeds of at least 100/20 Mbps, but faster broadband speeds must be given priority. States must give priority to grants that are deployed in counties with persistent poverty. Projects that are shovel-ready will be given priority. Projects that pledge to pay Davis-Bacon wages will get priority.
  • States will likely not award all of the grants immediately, and the Act asks states to provide a 5-year plan for the use of the funds.
  • Grants don’t have to all go for broadband to unserved and underserved areas. States can use the money for data collection, broadband mapping, and planning. Funding can be used to bring low-cost broadband or WiFi to qualifying multi-family apartments.
  • Unlike the recent NTIA grant program, BEADA doesn’t give priority to any class of grant recipients. The grants can’t exclude cooperatives, nonprofit organizations, public-private partnerships, private companies, public or private utilities, public utility districts, or local governments from eligibility – but none get a preference.
  • There is a challenge process where incumbent ISPs can challenge the validity of a grant area. Interestingly, the NTIA can override States in these challenges.
  • Grant applications must provide at least a 25% matching for the cost of the project. Matching funds can include CAREs funding and ARPA funding – so hang on to those funds for a while! Matching can also come from state grants.
  • Deployed technology must only meet two 9’s reliability, meaning that a network can be out for two days per year and still be considered adequate – that’s a low standard for the industry.
  • Grants must cover every home in a grant coverage area within four years of receiving the grant.
  • Grant recipients must provide at least one low-cost broadband option for eligible households. The NTIA is expressly forbidden to regulate rates in any manner.
  • Interestingly, any fiber built along highways must include access points at regular and short intervals. This money is not for middle-mile fiber.
  • Grant recipients must carry out public awareness programs in grant areas extolling the benefits of better broadband.
  • There is plenty of paperwork. Grant recipients must file semiannual reports tracking the effectiveness of the grant funding.

This grant program dwarfs all previous grant programs combined, so there is going to be a lot of money coming to every State. What is still to be determined is how States will administer these grants – and there will be differences. But the legislation provides enough detail for communities and ISPs to start looking at how to be positioned for these grants.

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Regulation - What is it Good For?

Time to Stop Talking about Unserved and Underserved

I work with communities all of the time that want to know if they are unserved or underserved by broadband. I’ve started to tell them to toss away those two terms, which are not a good way to think about broadband today.

The first time I remember the use of these two terms was as part of the 2009 grant program created by the American Recovery & Reinvestment Act of 2009. The language that created those grants included language from Congress that defined the two terms. In that grant program, unserved meant any home or business that has a broadband speed of less than 10/1 Mbps. Underserved was defined as homes having speeds above 10/1 Mbps but slower than 25/3 Mbps.

As far as I can tell, these terms have never been defined outside of broadband grant programs. However, the terms began to be widely used when talking about broadband availability. A decade ago, communities all wanted to know if they were unserved or underserved.

The terms began to show up in other grant programs after 2009. For example, the FCC’s CAF II grant program in 2015 gave money to the largest telephone companies in the country and funded ‘unserved’ locations that had speeds less than 10/1 Mbps.

The same definition was used in the ReConnect grants created by Congress in 2018 and 2019. Those grants made money available to bring better broadband to areas that had to be at least 90% unserved, using the 10/1 Mbps definition.

The biggest FCC grant program of 2020 has scrapped the old definition of these terms. This $20.4 billion Rural Digital Opportunity Fund (RDOF) grant program is being made eligible to Census blocks that are “entirely unserved by voice and with broadband speeds of at least 25/3 Mbps”. That seemingly has redefined unserved to now mean 25/3 Mbps or slower broadband – at least for purposes of this federal grant program.

There are also states that have defined the two terms differently. For example, following is the official definition of broadband in Minnesota that is used when awarding broadband grants in the state:

An unserved area is an area of Minnesota in which households or businesses lack access to wire-line broadband service at speeds that meet the FCC threshold of 25 megabits per second download and 3 megabits per second upload. An underserved area is an area of Minnesota in which households or businesses do receive service at or above the FCC threshold but lack access to wire-line broadband service at speeds 100 megabits per second download and 20 megabits per second upload.

It must also be noted that there are states that define slower speeds as unserved. I’m aware of a few state broadband programs that still use 4/1 Mbps or 6/1 Mbps as the definition of unserved.

The main reason to scrap these terms is that they convey the idea that 25/3 Mbps broadband ought to be an acceptable target speeds for building new broadband. Urban America has moved far beyond the kinds of broadband speeds that are being discussed as acceptable for rural broadband. Cable companies now have minimum speeds that vary between 100 Mbps and 200 Mbps. Almost 18% of homes in the US now buy broadband provided over fiber. Cisco says the average achieved broadband speed in 2020 is in the range of 93 Mbps.

The time has come when we all need to refuse to talk about subsidizing broadband infrastructure that is obsolete before it’s constructed. We saw during the recent pandemic that homes need faster upload speeds in order to work or do schoolwork from home. We must refuse to accept new broadband construction that provides a 3 Mbps upload connection when something ten times faster than that would barely be acceptable.

Words have power, and the FCC still frames the national broadband discussions in terms of the ability to provide speeds of 25/3 Mbps. The FCC concentrated on 25/3 Mbps as the primary point of focus in its two recent FCC broadband reports to Congress. By sticking with discussions of 25/3 Mbps, the FCC is able to declare that a lot of the US has acceptable broadband. If the FCC used a more realistic definition of broadband, like the one used in Minnesota, then the many millions of homes that can’t buy 100/20 Mbps broadband would be properly defined as being underserved.

In the last few months, the FCC decided to allow slow technologies into the $16.4 billion RDOF grant program. For example, they’ve opened the door to telcos to bid to provide rural DSL that will supposedly offer 25/3 Mbps speeds. This is after the complete failure in the CAF II program where the big telcos largely failed to bring rural DSL speeds up to a paltry 10/1 Mbps.

It’s time to kill the terms unserved and underserved, and it’s time to stop defining connections of 10/1 Mbps or 25/3 Mbps as broadband. When urban residents can buy broadband with speeds of 100 Mbps or faster, a connection of 25/3 should not be referred to as broadband.

Categories
Regulation - What is it Good For?

Testing the FCC Maps

USTelecom has been advocating the use of geocoding to make broadband maps more accurate. As part of that advocacy, the association tested their idea by looking at the FCC mapping in parts of Virginia and Missouri.

What they found was not surprising, but still shocking. They found in those two states that as many as 38% of households in rural census blocks were classified as being served, when in fact they were unserved. In FCC-speak, served is a home that has broadband available of 25/3 Mbps or faster. Unserved means homes having either no broadband available or that can buy broadband slower than 10/1 Mbps.

This distinction has huge significance for the industry. First, it’s been clear that the FCC has been overcounting the number of homes that have broadband. But far worse, the FCC has been awarding grants to provide faster broadband in unserved areas and all of the places that have been misclassified have not been eligible for grants. We’re about to enter the biggest grant program ever that will award $20.4 billion, but only to places that don’t have 25/3 Mbps speeds – meaning these misclassified homes will be left out again if the maps aren’t fixed soon.

The USTelecom effort is not even complete since several cable companies in the state did not participate in the trial – and this might mean that the percentage of homes that are misclassified is even larger. The misclassified homes are likely going to be those in census blocks that also contain at least some homes with fast broadband. Homes just past where the cable company networks start might be listed as being capable of buying a gigabit, and yet have no broadband option.

The existing FCC maps use data that is reported by ISPs using the Form 477 process. In that process, ISPs report speed availability by census block. There are two huge flaws with this reporting method. First, if even one customer in the census block can get fast broadband, then the whole census block is assumed to have fast broadband. Second, many ISPs have been reporting marketing speeds instead of actual speeds, and so there are whole census blocks counted as served when nobody can get real broadband.

The trial also uncovered other problems. The ISPs have not been accurate in counting homes by census block. Many ISPs have never accurately mapped their customers, and so the test found numerous examples of customers reported in the wrong census blocks. Additionally, the counts of buildings by census block are often far off, due in part to the confusing nature of rural addresses.

The bottom line is that the FCC has been collecting and reporting highly inaccurate data concerning rural broadband. We’ve known this for a long time because there have been numerous efforts to test the maps in smaller geographic areas that have highlighted these same mistakes. We also have evidence from Microsoft that shows that a huge number of homes are not connected to the Internet at speeds of at least 25/3 Mbps. That’s not just a rural issue, and for the Microsoft numbers to be true there must be a massive number of urban homes that are getting speeds slower than what is being reported to the FCC.

As dramatic as this finding is from USTelecom, it doesn’t tell the whole story. Unfortunately, no mapping strategy is going to be able to truthfully report the broadband speeds for DSL and fixed wireless. The speed of these products varies by home. Further, there is no way to know if a given home can utilize these technologies until somebody tries to connect them. Perhaps this isn’t important for DSL since there is almost no rural DSL capable of delivering 25/3 Mbps broadband. But any mapping of the coverage area of fixed wireless is going to be suspect since many homes are impeded from seeing a tranmitting antenna or else receive slower speeds than their neighbors due to impediments. The USTelecom effort is mostly fixing the boundary issues where homes are assumed to have broadband today but don’t. The 38% misreporting would be much higher if we could somehow magically know the real capabilities of DSL and fixed wireless.

The current FCC didn’t create this problem – it goes back several FCCs ago to the start of the 477 reporting system. However, I have to wonder if this FCC will change its mind about the status of rural broadband in the country even with better maps. The current FCC released broadband data for 2016 that included a huge error. A new ISP, Barrier Free had reported serving 25/3 broadband in census blocks covering 62 million people, when in June of that year the company didn’t yet have any customers. The FCC gleefully reported that the number of homes without broadband had dropped by 25%, mostly due to this reporting error. Even after correcting the error the FCC still declared that broadband in rural America was on the right trajectory and didn’t need any extraordinary effort from the FCC. I’m sure they will decide that rural broadband is fine, even if the number of unserved homes jumps significantly due to better mapping.

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