Lacking fiber to the prem #FTTP infrastructure standard, report highlights folly of U.S. grant funding policy to boost broadband speed

GAO calls for cohesive federal strategy to curb fragmented broadband funding | Fierce Telecom:

The GAO further added minimum required broadband deployment speeds vary among programs and continue to change. In 2016 for instance, recipients of USDA’s Rural Utilities Service (RUS) Community Connect program were required to deploy broadband speeds of at least 10/1 Mbps. That required speed increased to 25/3 Mbps by 2018.

Meanwhile, the FCC’s High Cost Connect America Fund Phase II program, which ran from 2015 through 2020, maintained the 10/1 threshold. And under FCC’s Rural Digital Opportunity Fund Phase 1 auction, 25/3 Mbps was the benchmark for areas to be considered unserved and thus eligible for funding.

The report's findings indicate agencies are still figuring out what the standard for broadband service should be. The FCC’s long-anticipated, revamped broadband maps are set to be released sometime this fall, and they may help more precisely allocate broadband funds where they’re needed.

Advanced telecommunications fraught with heightened political peril with enactment of infrastructure bill

Due to excessive reliance on privatized advanced telecommunications infrastructure and weak regulatory and market incentives, the United States is many years behind where it should be when it comes to replacing ubiquitous copper telephone lines built for an era of voice telephone service with fiber for today’s Internet-protocol enabled services. That became painfully apparent with public health social distancing measures during the COVID-19 pandemic that made households very reliant on advanced telecommunications for work, education, purchasing goods and services, virtual medical care and entertainment. Impatience with lack of reliable, affordable access -- present pre-pandemic -- reached a boiling point.

The enactment of advanced telecommunications infrastructure subsidies in the Infrastructure Investment and Jobs Act last November has raised expectations of rapid relief after years of dashed political promises by elected officials to address the issue. The billions in subsidies set aside for advanced telecommunications infrastructure has been characterized as a once in a lifetime investment to finally put it to rest.

But the legislative provisions of the subsidies to be granted states as well as recently issued rules governing the grants will likely introduce additional delay even before any infrastructure is built. Expect months if not years of delays as incumbent investor-owned telephone and cable companies battle states, smaller upstarts and publicly owned projects over eligibility rules governing the subsidies and how they can be used.

Unlike transportation infrastructure such as roads, highways and airports that are expected to take many years to plan and build, voters may well have far less patient expectations. They’ll want to see fast, tangible progress when it comes to advanced telecommunications infrastructure. Especially with neighbors just down the road or around the bend who have fiber connections, envious while they try to get by on DSL over aged copper and wireless workarounds. Or fiber on a nearby utility pole but no affordable residential service in the case of Vermonter Claudia Harris. They’ll naturally think since they’ve been waiting for years for fiber, all those billions in federal subsidies should easily bridge the gap to their homes in short order. When it doesn’t quickly materialize, elected officials at all levels of government could face angry blowback from voters. They are well aware of the high level of concern among their constituents, noting complaints about Internet access and affordability are among the top issues raised by them.

NTIA chief's comments on subsidizing non-fiber telecom infrastructure as "escape hatch" raises questions

Do the BEAD rules mean satellite and other non-fiber services won’t be eligible for funding?

Again, no. It’s true the NTIA in its BEAD rules said it will count areas covered only by satellite broadband or service based on unlicensed spectrum as unserved and also expressed a preference for fiber. However, Davidson said he expects satellite and other non-fiber technologies will receive plenty of funding.

“This is an infrastructure project that’s designed to last for years. And we do put our thumb on the scale on the most resilient, future-proof technologies that we can,” he said. But NTIA knows “there has to be an escape valve for states. And for the really high-cost areas we fully expect that there will be states who have significant portions of other technologies.”

Source: NTIA chief answers 5 burning broadband funding questions

Alan Davidson, the NTIA administrator, didn't elaborate in this piece as to what those other non-fiber to the premise (FTTP) technologies will be. States can authorize Broadband Equity, Access, and Deployment (BEAD) Program grant funding for up to 75 percent of project costs in high cost areas, with the 25 percent match waivable. These are defined in the rules as areas with higher than average construction costs for projects where at least 80 percent of homes and businesses cannot order service with minimum throughput of 25Mbps down and 3Mbps up.

Davidson is quoted as specifying satellite as one of the fiber alternatives. But satellite has been around for years in these areas, calling into question why it would need subsidization to expand it. Moreover, it's a substandard, costly option that no one really wants to rely upon for connectivity. Satellite is also omitted from the BEAD rules as a form of reliable service where it is the only service option.

The other possible technology is fixed terrestrial wireless. The BEAD rules implicitly allow funding of fixed wireless using licensed spectrum or a mix of licensed and unlicensed spectrum as they recognize it as "reliable" service. As with satellite, fixed wireless has been around for many years in areas of the nation as a stopgap until FTTP can be deployed, calling into question the need to subsidize its expansion. It's best suited to areas of the nation with relatively flat terrain and modest tree growth since it utilizes frequencies that require a clear line of sight to end users -- areas because of these attributes are also likely to be less costly to build FTTP.