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Big Telecom Will Soon Get $42 BIllion In Taxpayer Subsidies, But Balk At Providing Affordable Broadband To Poor People

Od: Karl Bode
2. Srpen 2024 v 14:34

Broadband providers poised to receive $42 billion in taxpayer broadband subsidies from the infrastructure bill are ramping up complaints about a small requirement affixed to the massive handout: they have to try to make broadband affordable to poor people.

Earlier this month we noted that the GOP, in lockstep with the telecom industry, had launched an “investigation” into the low-income requirements attached to the Broadband Equity Access And Deployment (BEAD) subsidy program and the agency overseeing it (NTIA).

The requirements are not onerous: the NTIA delegates most authority for how the money is to be spent to the states, which are “strongly encouraged” (according to BEAD program guidelines) to provide a slower, cheaper service tier somewhere between around $30 and $48 per month. And only to families that qualify for existing low-income assistance programs.

But in a new letter to Commerce Secretary Gina Raimondo (hat tip, Ars Technica), telecom lobbying organizations (most of them directed by AT&T) vaguely threaten that they’ll take their ball and go home if the requirements for a low-cost option aren’t eliminated:

“Without significant and immediate changes of approach toward its implementation, we are concerned the program will fail to advance our collective goal of connectivity for all in America. We and our members sincerely want this program to work, but we believe that your agency’s administration of the low-cost service option requirement in particular risks putting the overall success of BEAD in jeopardy.”

To be clear I’m not sure that federal or state lawmakers are even able to enforce this requirement with any consistency, given the rank corruption and feckless careerism that abounds in telecom regulatory oversight. But just the faintest hint that they might have to make their product affordable greatly upsets regional monopolies, who’ve spent decades working to undermine competition and oversight in a bid to keep U.S. broadband prices artificially inflated.

Telecom giants like AT&T have grown fat and comfortable ripping off captive local subscribers and effectively telling regulators what to do. They’re so comfortable, in fact, that the barest bone efforts asking them nicely to provide a less expensive option to poor people is being treated like some kind of draconian, radical and illegal effort at unchecked “rate regulation.”

This wouldn’t be quite such a contentious issue if most of these companies didn’t have a 40 year track record of gobbling up taxpayer dollars for broadband deployments they never quite seem to finish. Or if they hadn’t made U.S. broadband so patchy and expensive due to relentless efforts at anti-competitive regional monopolization.

BEAD money is poised to start flowing to the states this fall, but big telecoms, if they wanted, could throw a wrench in the process over these modest requirements (AT&T’s already apparently doing this in Virginia). At which point, telecom giants (and the politicians bribed into a near-mindless fealty to them) will absolutely blame government for the entirely avoidable delay.

  • ✇Techdirt
  • Republicans Are Angry The FCC Admitted Broadband Deployment Discrimination ExistsKarl Bode
    Last December I wrote a feature for The Verge exploring the FCC’s long overdue effort to stop race and class discrimination in broadband deployment. For decades, big telecoms have not only refused to evenly upgrade broadband in low income and poor areas (despite billions in subsidies for this exact purpose), they’ve provably charged poor and minority neighborhoods significantly more money for worse service. To be clear the FCC’s plan doesn’t actually stop such discrimination. Regulators didn’t e
     

Republicans Are Angry The FCC Admitted Broadband Deployment Discrimination Exists

Od: Karl Bode
24. Červen 2024 v 14:26

Last December I wrote a feature for The Verge exploring the FCC’s long overdue effort to stop race and class discrimination in broadband deployment. For decades, big telecoms have not only refused to evenly upgrade broadband in low income and poor areas (despite billions in subsidies for this exact purpose), they’ve provably charged poor and minority neighborhoods significantly more money for worse service.

To be clear the FCC’s plan doesn’t actually stop such discrimination. Regulators didn’t even have the moral courage to call out big telecoms with a history of such practices (see: AT&T’s “digital redlining” in cities like Cleveland and Detroit). The FCC simply acknowledged that this discrimination clearly exists and imposed some loophole-filled rules stating that big ISPs shouldn’t discriminate moving forward.

As with the FCC’s restored net neutrality rules, I highly suspect the historically feckless and captured FCC ever actually enforces the guidelines with any zeal. But the effort to acknowledge that such discrimination exists (as it has been documented in both electrical utility deployments and highway location selection) was viewed as progress by civil rights groups. And also enough to send the GOP into a multi-month tizzy.

Last February, 65 US House Republications submitted a resolution of disapproval claiming, falsely, that the Biden administration was using the pretense of “equity” to “expand the federal government’s control of all Internet services and infrastructure.” And last week, the Federalist Society hosted a function at which GOP officials (including Trump appointed FCC Commission Nathan Simington) gathered to make up claims the rules were already having a “chilling effect across the broadband industry“:

“Out of fear of running afoul of the rules, companies will certainly avoid otherwise planned investments,” said Erin Boone, chief of staff and wireless advisor for Republican FCC Commissioner Nathan Simington.”

As you might recall, this was the same claim Republicans made about some modest net neutrality rules. For a decade the GOP proclaimed that modest and largely unenforced FCC net neutrality rules would have a devastating impact on broadband investment. But if you looked at earnings reports, public data, and even CEO statements, it was patently obvious the claim was absolute bullshit.

The U.S. Chamber of Commerce is also positively flummoxed that a telecom regulator acknowledged that digital broadband discrimination exists, penning a lengthy missive falsely stating that the FCC’s half-assed effort would most assuredly harm poor Americans:

“These rules undermine public and private sector efforts to build modern broadband networks—jeopardizing connectivity for all Americans.”

This is the perpetual doom cycle U.S. telecom policy has inhabited for 30 odd years.

Democrats weakly propose long overdue but meekly enforced rules to address a problem they’ve ignored for the better part of thirty years. Republicans pop up to proclaim these bare-minimum efforts are somehow a “radical socialist takeover of the internet” (or some variant), which “both sides” news outlets parrot without much in the way of skepticism, giving the GOP unearned credibility on telecom policy.

It doesn’t matter whether it’s broadband privacy, net neutrality, racial discrimination, or even very basic efforts to stop your cable company from ripping you off with bullshit fees. It doesn’t matter how basic the proposal is or if it ever even sees enforcement.

The pretense is always the same: that the government doing the absolute bare minimum is, in reality, a “radical government running amok” and “chilling all investment in the broadband industry.”

It makes me wonder how the AT&T earlobe-nibbling politicians of today would respond to a Democratic party and regulators with an actual antitrust enforcement backbone. In lock step with GOP whining, major telecom policy and lobbying groups have also sued to block the modest digital discrimination rules in the U.S. Court of Appeals for the Eighth Circuit in St. Louis, claiming falsely it’s akin to “rate regulation.”

The goal of most Republicans (and a not insubstantial number of Democrats) is a market in which regional, highly consolidated monopolies like AT&T and Comcast are allowed to freely run amok, taking bottomless advantage of the one-two punch of feckless oversight and limited competition while being slathered with subsidies. All dressed up as some kind of noble defense of free markets and the little guy.

I’ve been seeing some variation of this for the better part of 25 years of covering the broadband industry, and it’s utterly remarkable how utterly impervious the whole corruption-fueled dynamic is to both reason and meaningful change.

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