ACP Serving More Than 20M, Ohio’s $162.5M CPF Funding, Lumos Gets $1.1 Billion in Financing

Aug 22, 2023

The program has added two million Americans since June.

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August 15, 2023 – The Federal Communications Commission on Monday revealed that over 20 million households, out of a total of 48.6 million eligible, have registered for the Affordable Connectivity Program.

The administration revealed in June that it had onboarded over 18 million households, meaning the program has added more than 2 million since.

“Enrolling more than 20 million eligible households is no small feat—and wouldn’t be possible without the partnership of organizations in rural, suburban, and urban communities across the country who are getting the word about this powerful program,” said FCC Chairwoman Jessica Rosenworcel. “We’ve made too much progress in helping families get online to turn back now.”

As part of the Joe Biden administration’s effort to address the digital divide, ACP was established under the Infrastructure, Investment and Jobs Act and provides low-income Americans with a $100 one-time discount for internet devices and monthly internet discounts of $30 or $75. The $75 discount is reserved for tribal lands and high-cost locations.

The FCC said it has committed over $72 million with 228 ACP outreach grants to state, local, tribal governments and community partners. In June, the FCC, along with the Department of Education and the nonprofit Civic Nation, joined the White House’s “Online for All” campaign to raise awareness about ACP benefits.

Many have forecast the program’s funding will be exhausted by early 2024, prompting worry among internet providers and industry experts about its potential impact on ongoing broadband expansion and efforts toward digital equity.

Despite multiple calls for funding replenishment, Congress has still remained inactive on the matter.

The Department of Treasury on Monday awarded Ohio $162.5 million from the Capital Projects Fund to expand internet access to unserved and underserved communities.

As detailed in the press release, a total of $75 million is allocated to support broadband infrastructure projects under the Ohio Residential Broadband Expansion Grant Program, which the state estimates would connect 15,000 homes and businesses.

Ohio is also investing an extra $85 million to the Appalachian Community Innovation Campuses Program, aimed at building multi-purpose facilities to increase access to education, community health services, and workforce development opportunities.

These combined fundings account for 61 percent of the state’s total allocation under the CPF program, read the announcement.

“Bringing modern high-speed broadband internet infrastructure to our communities will allow them to compete regionally, nationally, and globally and ensure students in rural areas will have access to 21st century technology,” said Congresswoman Marcy Kaptur, D-Ohio. “Building our economy from the bottom up and middle out, means leaving no Ohio community behind and this investment helps fulfill that pledge.”

“The Capital Projects Fund Award for Ohio proves how the Biden-Harris Administration is working hard to improve the livelihoods of Central Ohioans,” said Congresswoman Joyce Beatty, D-Ohio, adding that Ohio was recognized as a key workforce hub under President Joe Biden’s Investing in America agenda.

According to the Department of Treasury, the Capital Projects Fund has disbursed almost $8 billion of the allocated $10 billion for broadband, digital technology, and multi-purpose community center initiatives across 47 states, which these states predict will impact over two million locations.

Internet service provider Lumos Fiber on August 8 announced it has secured a $1.1 billion sustainability-linked infrastructure financing from private equity firm EQT to fund its fiber roll-outs and debt repayment.

The company stated this is the first US sustainability-linked financing project for an existing fiber-to-the-home platform, a high-speed internet technology that directly connects residences to the internet through optical fiber cables for faster and more reliable data transmission.

“Today’s announcement is truly exciting and will enable Lumos to achieve our long-term fiber roll-out plans,” said Brian Stading, CEO of Lumos. “We are thrilled to partner with financial institutions that share our company’s mission to build future-proof infrastructure and improve the quality of life for those in our communities.”

The new financing would reinforce Lumos roll-out machine and scalability as well as the company’s continued commitment to environmental, social and governance standards, read the press release.

“We are proud to support the Lumos team in its mission to provide high quality fiber broadband in underserved markets across the Mid-Atlantic and Southeastern US and appreciate the support from our financing partners to also help support Lumos’ mission,” said EQT Partner Nirav Shah.

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Quinn Nghiem studied communications and business at Villanova University, where she also participated in news reporting and video production for the university’s newspaper. Additionally, she covered economic and political issues for Vietnam Television, the national television broadcaster of Vietnam.

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The ECF funds will go to 184 schools and 13 libraries serving over 100,000 students.

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WASHINGTON, August 28, 2023 – The Federal Communications Commission announced on Aug. 23 that it will be disbursing a new round of over $68 million through its Emergency Connectivity Fund Program.

The money will go to 184 schools, 13 libraries, and two consortia – groups of schools and libraries that apply for funds together – across seven states serving over 100,000 students. It will be used to provide devices and internet connections to support nightly homework assignments and online summer programs.

The fund was opened to applicants as part of the 2021 American Rescue Plan Act, with $7.17 billion set aside to close the “homework gap,” a lack of internet access and devices preventing low-income students from doing assignments and accessing learning materials outside of school.

“A good night’s sleep, a hearty breakfast, and access to digital tools are essential for a good day at school,” said FCC Chairwoman Jessica Rosenworcel in the commission’s announcement.

This latest announcement puts the total committed ECF funds at $6.93 billion.

In May, the FCC granted in part a request to extend implementation deadlines for ECF funds. First and second round applicants who received funding commitments for recurring services like temporary hotspots after July 1, 2022 will now have 14 months from the date of approval to use their funds. Those who received funding for equipment after January 1, 2023 will have 180 days to use theirs.

The extensions are designed to give more time to applicants who would have had difficulty meeting the default deadline for all services of June 30, 2023.

All third window applicants will have until June 30, 2024 to allocate their awards.

The National Telecommunications and Information Administration announced on Aug. 24 that it was awarded an additional $3.45 million through its Tribal Broadband Connectivity Program.

The money will go to seven tribes across five states. About $3 million will be used for deploying infrastructure like towers and fiber. The rest will go to engineering and regulatory planning for a future project aimed at bringing broadband access to unserved Tribal lands in Oregon.

The program, part of both the Infrastructure, Investment and Jobs Act and the Consolidated Appropriations Act of 2021, has now awarded over $1.79 billion of its $3 billion.

“We are happy to receive this award and it will go a long way towards providing high-speed internet to our Tribal members,” said Jenelle Roybal, governor of the Pueblo of Pojoaque. “Reliable, high-speed internet is no longer a wishlist item for them. It has become a staple utility along with electricity and water.”

All Tribes were awarded ‘equitable distribution grants,’ smaller grants up to $500,000 instead of the full amount they requested. The Government Accountability Office has pushed the NTIA to provide feedback to applicants who received these grants to help them improve future funding requests.

Applications for the program’s latest round of funding will be open until January 2024. The agency says it plans to prioritize applicants who did not receive an award in the first round of funding and whose projects are cost-effective.

Broadband Breakfast CEO Drew Clark appeared Thursday in an expert interview on CBS Streaming.

CBS News anchor John Dickerson spoke to Clark about the impact of broadband access in rural communities and the $667 million that the Biden administration committed on Aug. 21 to network expansion projects through its ReConnect Program.

“Lots of rural America is realizing that if they don’t get that kind of high speed connectivity, they’re going to be left out of the 21st century economy,” Clark said.

The ReConnect Program funds will be distributed across 37 projects in 22 states and the Marshall Islands. About $493 million will be in the form of grants and the remaining $174 million will be loaned.

The program, additional funded for which was provided by the Infrastructure, Investment and Jobs Act, has awarded more $3 billion to rural broadband projects and plans to allocate another $260 million in the coming months. Clark also addressed the IIJA’s $42.5 billion Broadband Equity, Access and Deployment program.

The minimum requirement for the ReConnect program projects is 100 Mbps symmetrical, according to White House officials. This ensures projects will be able to handle increased demand in the future. BEAD, but contrast, is funding deployments to address the “unserved” who lack broadband at 25 * 3 Mbps, and the “underserved” who lack broadband at 100 * 20 Mbps.

“Unfortunately, it isn’t a quick or instant process,” Clark said, adding it will take a few years “to get these kinds of robust connections to everywhere in the country.”

Stockholders claim AT&T and Verizon failed to disclose harmful effects of lead-clad cables.

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August 24, 2023 — AT&T announced the launch of its new fixed wireless home internet service, called Internet Air, in 16 new markets across the United States on Tuesday.

The technology will use “available network capacity in areas that are less densely populated while still providing a strong connection,” said president of broadband and connectivity initiatives Erin Scarborough.

The product emphasizes the Wi-Fi aspect of the device and is touted for its easy and fast installation.

Markets that will get the service first include cities in California, Pennsylvania, Ohio, Nevada, Arizona, Illinois, Michigan, Connecticut, Minnesota, Oregon, Utah, Washington and Florida.

AT&T executives said in a second-quarter earnings call in July that adding fixed wireless technology will be key to connecting hard-to-reach areas of the country. They estimated that fixed wireless services will be in demand following the allocation of Broadband Equity, Access and Deployment funds despite the program’s preference for fiber builds.

CEO John Stankey said that AT&T’s fixed wireless offerings will be a competitive offer in broadband builds for decades to come.

In February, however, AT&T’s chief financial officer said the company doesn’t see fixed wireless as a great long-term solution and is focusing on deploying fiber.

“Fixed wireless in certain cases is kind of nice, it’s a nice catch product where we have a copper customer that we’re going to get to in the next 12 to 24 months,” said Pascal Desroches during Deutsche Bank’s annual media, internet and telecom conference.

“But long term, it’s not a solution we want to put a lot of resources behind. Why? It’s because it’s not a great product and the customer ultimately is going to reject it,” he said.

Lawsuits filed in Pennsylvania federal court on behalf of shareholders allege that Verizon and AT&T misled the public about the environmental and health risks of lead-clad cables.

In July, a Wall Street Journal report alleged that lead-clad telecom cables in Lake Tahoe and elsewhere raise a significant health concern. In response, AT&T claimed that the cables “pose no danger to those who work and play in the waters of Lake Tahoe” and halted removal of the cables, which it began in 2021 “simply to avoid the expense of litigation.”

Verizon was similarly under fire when it was revealed that the two companies own over 2,000 such cables across the country, which would have been installed many years ago.

Now, the companies are facing litigation from shareholders who claim that Verizon and AT&T failed to disclose that they own cables around the country that are highly toxic and which harm employees and residents alike, and that it was warned about the risks but did not disclose the threat.

“As a result, defendants’ statements about its business, operation, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant time,” read the allegation against Verizon. It notified shareholders to register in the class action by October 2.

AT&T’s stocks reached the lowest level in 30 years by 7 percent and Verizon down by two percent, TD Cowen reported. The company reassured investors in an earnings call in July that it will work with the Environmental Protection Agency to investigate the potential harm that lead-clad cables present to communities and employees.

Verizon likewise told investors that it is conducting its own internal and third-party investigation into the thousands of lead-sheathed cables. It said it will take these concerns seriously and will take a “fact and science-based approach” in the assessment of the danger the cables pose.

South Dakota’s Governor’s Office of Economic Development announced that it will award as much as $27 million to support rural high-speed internet in its final round of funding through the ConnectSD program.

“We are revitalizing small towns in America with this investment. And we are preserving our way of life,” Governor Kristi Noem said at the South Dakota Telecommunications Association Conference this week. “My vision is to bring high-speed internet to every home and business in South Dakota. No one should have to choose between the modern economy and a life in their hometown. It’s time to finish the job.”

According to Noem, the ConnectSD program has already connected tens of thousands of households and businesses to high-speed broadband with a total of $269.5 million invested since she took office in 2019. The office has awarded 104 grants that are in the process of connecting almost 31,000 locations.

Of the money invested, 57.9 million is state funds, $89.6 million is federal funds and $122.3 million is private funds. Grant applications will be available soon for this last round of funding.

“South Dakotans should never be left behind because of the small-town way of life they’ve chosen to build for themselves and for their families,” said GOED Commissioner Chris Schilken. “More and more South Dakotans are reaping the benefits of expanded opportunities in education, entertainment, and commerce.”

This is the state’s eighth round of funding in broadband grants since 2019. In May, ConnectSD awarded nine service providers a total of $32.5 million. The three biggest awardees were Venture Vision at $8.6 million, Golden West with $7 million and Alliance Communications Cooperative at $5.1 million.

Ubiquity’s open access networks launched in Carlsbad, California and Mesa, Arizona.

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August 23, 2023 – Communications company Ubiquity announced Wednesday the launch of open-access fiber networks across cities in California and Arizona, as well as new footprints in Nebraska and Iowa.

The launch of the new networks will run through Carlsbad, California and Mesa Arizona, and the new footprints will reach Omaha, Nebraska and Council Bluffs, Iowa. The open-access model allows multiple internet service providers and entities to use the network to compete on and provide service.

In Mesa, the company said it will be using a combination of active and dark fiber – that is, fiber that isn’t yet active – to serve residents and businesses. The company said it will drive the last mile to customers on the active route, while tenants on the dark fiber will use Ubiquity’s infrastructure to bring their own equipment to drive the last mile.

“This level of deployment diversification highlights the power of fiber and the uniqueness of Ubiquity networks,” the company said in the release.

“Ubiquity is committed to bringing high capacity, sustainable digital infrastructure to the last mile,” the company’s co-CEO Jamie Earp said in the release.

“That mission is critically important to the rise of Smart Cities and delivering the benefits and services that these networks facilitate.”

Ubiquity partners with ISPs, wireless carriers, utilities, and municipalities to deliver connectivity in underserved communities.

Satellite company Hughes, a subsidiary of EchoStar, announced Tuesday it has signed a five-year contract to deliver low earth orbit satellite-based services to the U.S. Space Force, the space branch of the armed forces.

The $900-million contract will allow agencies to use the communications capacity of two constellations of satellites, including from EchoStar Lyra and OneWeb, which has a distribution deal with Hughes.

“As government and defense agencies explore the power and potential of LEO services in delivering capabilities to the warfighter faster and at lower cost, we’re proud to offer not one, but two compelling solutions,” Leslie Blaker-Glass, vice president of Hughes, said in a press release. “Our OneWeb offering – with our low-power, light-weight, flat panel antenna – and our next-generation EchoStar Lyra S-band IoT system position us to deliver customers in the DoD and federal government robust and resilient low-latency connectivity at a competitive price.”

LEO satellites fly closer to the earth’s surface than traditional satellites, allowing for faster communications. It is also used to deliver connectivity to areas of the country that are economically difficult to connect.

“These important LEO capabilities will give the DoD cost-effective solutions and added reliability and resiliency in satellite communications across all domains and we look forward to addressing upcoming requirements for procurement of these services,” Rick Lober, Hughes’s vice president and general manager of Defense and Government Systems Division, said in the release.

Charter’s senior executive vice president is moving over to an advisory role, according to a Monday press release.

David Ellen, an industry veteran, will report in that new role to Charter’s president and CEO Chris Winfrey beginning on the first of December.

Ellen oversaw several businesses and corporate functions at Charter, including Spectrum Networks, human resources, communications, corporate physical security, community impact and legal oversight for programming, product and regulatory.

“David’s broad contributions have made a lasting impact on the Company,” said Winfrey in the release. “He was instrumental in the successful restructuring and repositioning of many of our corporate and business functions following the TWC and Bright House transactions. I am pleased David will continue to support me and Charter in an advisory role and wish him well as he pursues his outside endeavors.”

Ellen joined the company in 2016 from Cablevision, where he was executive vice president and general counsel until the company was purchased by Altice. The Harvard Law grad had previously been in general counsel positions at internet companies IAC and Eureka Broadband.

He was previously a former special counsel to the Federal Communications Commission working on the implementation of the Telecommunications Act of 1996.

Next fall, he will also begin an adjunct teaching position at New York University’s Wagner School of Public Service.

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