This edition of Broadband Bytes includes ISP discount plans, USF instead of ACP?, ISP joins in training the next generation of techs, asset-backed securities/Frontier, AT&T Wins and losses: fiber satisfaction survey and carrier of last resort, rip-and-replace funds, NTCA BEAD tips, FCC LOC Review, Charter RDOF pull back, replacing copper with fiber and how one state approaches BEAD decision process.1. Internet providers agree to continue discounted plans through the end of 2024 as federal subsidies end. More than a dozen internet service providers have agreed to continue offering discounted internet plans to low-income households through the end of 2024, as the federal program subsidizing the discounts comes to an end. AT&T, Comcast, Cox, Spectrum, Verizon and nine other providers will continue offering their $30 or less plans to those currently enrolled in the Affordable Connectivity Program (ACP) and other eligible households. Other participating providers include Allo Fiber, Altafiber (and Hawaiian Telcom), Astound Broadband, IdeaTek, Mediacom, MLGC, Optimum, Starry and Vermont Telephone Company. Read more.2. Could the ACP push the Feds to resolve festering USF issues? For years, the federal government has avoided any attempt to resolve a long-standing problem: how to sustain funding for the Universal Service program. But perhaps that could change now that the lack of funding for the Affordable Connectivity Program (ACP) has gained substantial mindshare with the American public. Some stakeholders believe both problems can be solved by funding the ACP through the Universal Service Fund (USF) and expanding the types of entities that are required to pay to support the program. Read more.3. ISP in Washington is assisting a nearby technical school to cultivate the next generation of fiber-optic technicians. As officials in Washington prepare to utilize more than $1.2 billion awarded to the state by the Broadband Equity, Access, and Deployment (BEAD) Program, one local ISP, Whidbey Telecom, is taking the initiative to make sure the state’s labor force is ready to handle the job. A new partnership forged between the ISP, the Fiber Broadband Association (FBA), and the Sno-Isle TECH Skills Center, a free, public school that serves high-school students from Snohomish and Island counties based in Everett, will help make the school’s planned offering of Optical Telecom Installer Certification (OpTIC Path) courses a reality. Earlier this month, nearly $4.5 million was allocated for Whidbey Telecom by the Washington State Public Works Board. The money will go towards constructing 44 miles of fiber to reach over 1,500 end users in the Clinton area. Read more.“Among fiber-only providers, AT&T Fiber topped the customer satisfaction ranking for the second year in a row with an ACSI score of 80.”4. Frontier Communications said it has garnered an additional $750 million in asset-backed security (ASB) funding. ABS is a type of financial investment that uses income-generating assets as collateral and is an alternative to other ways of raising capital. The notes will be secured by certain of Frontier’s fiber assets and associated customer contracts in North Texas. The company is leading the charge on ABS funding. Last August, it inked a $2.1 billion ABS deal, making it the first public company in the U.S. to secure funds backed by its FTTH assets. Earlier this year, the analysts at TD Cowen wrote that “FTTH ABS has been a game changer for Frontier and Ting, creating a new source of capital to help fund their builds.” Read more.5. AT&T Win. AT&T retained its top spot in ACSI’s fiber customer satisfaction ranking. The American Customer Satisfaction Index (ACSI) just released its annual Telecommunications Study, which provides a snapshot of how consumers perceive the big-name ISPs. Among fiber-only providers, AT&T Fiber topped the customer satisfaction ranking for the second year in a row with an ACSI score of 80. Following AT&T was “all others” (77), which ACSI indicated is a smaller group of fiber ISPs, Verizon Fios (77) and Lumen’s CenturyLink Fiber (76). AT&T’s placement wasn’t too surprising, according to ACSI Research Director Forrest Morgeson, as the company “continue[d] to score well in most individual aspects of fiber ISP satisfaction.” The operator in 2023 grew its fiber base by 1.1 million net adds. Read more.6. AT&T Loss. A judge at the California Public Utilities Commission (CPUC) rejected a petition by AT&T to walk away from its carrier of last resort obligations for voice service. In the petition in California, AT&T requested to be relieved of the carrier of last resort obligations, which would give it the ability to stop providing telephone service in rural areas. The judge rejected the AT&T petition. He ruled that he was unable to ignore the existing California rules that require carrier of last resort.He also ruled against the AT&T claim that California rules would require AT&T to keep copper. He noted that there is nothing in the California rules that would stop AT&T from decommissioning copper wires. The ruling notes that there is nothing in the California rules that would stop AT&T from replacing copper with fiber, wireless, or other technologies. The ruling says that AT&T is allowed to kill copper networks, but that carrier of last resort obligations require the company to provide an alternative technology that can bring service to households. Read more.“NTCA’s 3rd recommendation was to use the most future-proof technology possible. Although the association did not use the word ‘fiber,’ that is clearly what it had in mind.”7. Summit Ridge Announces $500 Million FCC Reimbursement. The money will reimburse ISPs affected by the FCC’s rip-and-replace program. Finance and business consulting firm Summit Ridge Group announced that it secured over $500 million in approved reimbursements for its clients through various FCC programs. The rip-and-replace program requires internet service providers to remove Chinese-manufactured equipment from their networks, specifically products from Huawei Technologies Company and ZTE, as the U.S. government has raised significant concerns about the potential for espionage and other malicious activities emanating from the Chinese government. Read more.8. NTCA Recommends Four Steps Toward Successful BEAD Projects. The Rural Broadband Association advises stakeholders to heed four recommendations regarding the $42.5 billion BEAD program. NTCA’s 1st recommendation advised providers to “monitor and participate in challenges.” The association also had some advice about the size of project areas that could apply to state broadband offices. Smaller, right-sized project areas target funds to the areas that most need them and will encourage program participation by those best able to serve them.  NTCA’s 3rd recommendation was to use the most future-proof technology possible. Although the association did not use the word “fiber,” that is clearly what it had in mind. NTCA’s 4th recommendation applies to legislators and advocates for not taxing broadband grants. Read more.9. FCC Looking to Alter LOC Financial Rules to Spur Rural Broadband. At issue is the FCC’s reliance on Weiss ratings to evaluate the safety and soundness of banks that have issued letters of credit to ISPs. Federal regulators are planning to review financial policies that could be hindering the rollout of broadband in rural America. At the same time, regulators want to be sure that a different approach will not expose taxpayers to losses. Read more.“The FCC voted unanimously to consider new rules sought by financial institutions and broadband Internet Service Providers that claimed current policy is frustrating the effort to close the digital divide.”10. Charter Communications is looking to hand back more than 1,400 more locations it had committed to serve as part of RDOF. The company says it has been unable to get the go-ahead from three tribal governments that oversee the locations themselves or necessary rights-of-way. Two tribes, Charter said, refused to grant the company access because they are pursuing fiber broadband projects owned directly by the Tribe or in partnership with local providers. The company is asking the FCC to waive any penalties for handing back the locations, since “Charter pursued the relevant rights-of-way in good faith, and no public interest would be served by penalizing Charter for stepping aside now.” Read more.11. FBA Quantifies Benefits of Replacing Copper with Fiber. The Fiber Broadband Association issued a new report analyzing the benefits of replacing copper with fiber. The report quantifies potential cost savings, which could be particularly useful for providers wanting to build a business case for the copper-to-fiber move. Read more.12. Insight on how one State Broadband Director will approach BEAD decision-making. Read more.    Broadband Bytes is a regular feature by David Levine of UCL Swift. David is a graduate of Northern Illinois University, a certified BICSI RCDD,and a 35-year industry veteran in fiber and copper solutions.He currently works as a Business Development Manager for UCL Swift.

This edition notes the nexus of politics and broadband, including Net Neutrality—will SCOTUS rule?, The Politics of ACP, NY mandates low-income $15/month internet service, Altice surrenders more RODF, Acquisition and JV news, Fact Sheet on Municipal Broadband Growth, Nokia OLT BEAD production in WI, BEAD News and Initial Proposal Progress Dashboard.1. The FCC voted 4/25/24 to classify broadband services as a Title II telecommunications service, restoring net neutrality. A long-anticipated vote to restore net neutrality has forbidden internet service providers from blocking, throttling, or engaging in paid prioritization of lawful content. The vote reclassified broadband as a common carrier service, and subjected broadband service to regulatory oversight regarding consumer pricing. Read more.2. But will the US Supreme Court rule otherwise? The FCC’s new net neutrality rules likely have a rendezvous with the U.S. Supreme Court. A trip to the Supreme Court would not be unprecedented, seeing as the nine Justices decided a major net neutrality-related case involving cable broadband providers in 2005. The judicial scenario suggested isn’t inevitable. Congress could pass a new law, taking the issue from the FCC, and a Republican-controlled FCC could take power and gut the net neutrality rules adopted under FCC Chairwoman Jessica Rosenworcel. While Rosenworcel is highly confident in the lawfulness of her Internet rulebook, her agency will face an uphill battle to win five votes on a conservative-controlled Court that favors placing new limits on the reach of administrative state actors like the FCC. Read more.3. On the final day that full program benefits are offered under the Affordable Connectivity Program, officials in Washington rallied April 30th to emphasize the grave repercussions of the program’s imminent end. The internet subsidy program, which has been providing low or no-cost internet to 23 million American households for roughly two years now, was hailed by officials for addressing long-neglected affordability barriers that prevent some people from accessing the internet. One in six U.S. households has utilized the program since its inception. Of these, nearly half are military families. Over half are above age 50, and four million are seniors living on a fixed income. The program has bipartisan support among voters, and urban-rural backing. However, starting May 1st enrolled households will only receive a partial credit towards their monthly internet costs through May. In a month, these families will have to notify their provider on whether they are able to afford to continue their internet subscription or are opting to face disconnection. Altice USA, the third-largest cable ISP in the country, informed federal regulators on 4/19/24 that it intends to surrender broadband subsidy grants in three states, saying its decision would allow affected locations to become eligible for funding in other broadband support programs. Read more.4. With ACP gone, what impact will a new NY law have on other states? New York $15 Internet Mandate Has Providers Worried. Associations representing large and small broadband providers are presenting a united front in opposition to New York’s requirement that providers offer low-income internet service for $15 a month. …they are “disappointed” by the Second Circuit Court of Appeals decision to uphold New York’s mandatory $15-a-month offering. The associations said the mandate is rate regulation and implied that it isn’t needed because the industry is competitive. Read more.5. Altice USA to surrender RDOF Awards in three more states. Altice USA, the third-largest cable ISP in the country, informed federal regulators on 4/19/24 that it intends to surrender broadband subsidy grants in three states, saying its decision would allow affected locations to become eligible for funding in other broadband support programs. Altice told the FCC that it was giving up locations won in the RDOF reverse auction in 2020. The company listed 22 census block groups (CBGs) in all, including 12 in Kentucky, nine in Arkansas, and one in West Virginia. In March Altice relinquished RDOF awards in 18 CBGs in Louisiana, bringing to four the number of states in which the company has decided to give up broadband deployment subsidy projects. Read more. 6. Grain Management LLC has agreed to acquire a majority interest in 123NET, a fiber Internet, colocation, and business voice provider that serves Michigan. 123NET’s management team will remain in place and hold “a meaningful” ownership position, the companies said. Grain Management has emerged as a fiber network consolidator in recent years. Among its acquisitions: Last April the company acquired Quintillion, a provider of connectivity in the American Arctic. In May 2021, it acquired Tachus LLC, a fiber broadband provider in Texas. Read more.According to Nokia, its OLTs and ONTs already power 70% of fiber broadband lines in North America.7. T-Mobile, EQT unveils fiber Joint Venture, with plans to acquire Lumos. T-Mobile and investment firm EQT announce joint venture to expand the carrier’s fiber broadband footprint. As part of the deal, the companies will acquire Mid-Atlantic FTTH provider Lumos. T-Mobile will invest an initial $950M in the JV, plus another $500M sometime between 2027-28. T-Mobile and EQT’s transaction is expected to close in late 2024 or early 2025, subject to customary closing conditions and regulatory approvals. Once the deal closes, T-Mobile plans to invest $950 million in the JV to acquire a 50% equity stake as well as all of Lumos’ existing fiber customers. Read more.8. As the municipal broadband movement continues to gain momentum, Community Networks created a new fact sheet to highlight the dramatic surge in the number of communities building publicly owned, locally controlled high-speed Internet infrastructure over the last three years. In January, they announced an updated tally of municipal broadband networks across the U.S., which showed that between January 2021 and January 2024 at least 47 new municipal networks had been lit up for service. Read more.Learn more about the dramatic surge in the number of communities building publicly owned, locally controlled high-speed Internet infrastructure over the last three years in the Rising Tide of Municipal Broadband Fact Sheet.9. And in Wisconsin news: With their first pick in the 2024 NFL draft the Green Bay Packers select Jordon Morgan, OT Arizona. Protect that young QB! As for industry-related Wisconsin news: Nokia makes its first Buy America products at a Wisconsin factory. Nokia’s new manufacturing plant in Pleasant Prairie, Wisconsin, is now open and producing optical line terminals (OLTs) and optical network terminals (ONTs). Nokia is working with the manufacturer Sanmina to produce the products after the NTIA determined that OLTs and ONTs must be made in America to qualify for use in BEAD fiber projects. According to Nokia, its OLTs and ONTs already power 70% of fiber broadband lines in North America. Read more.10. More States Gain Full Approval of BEAD Proposals: $2 Billion in Funding Coming Their Way. Initial Proposals, including both Volumes 1 and 2, in the BEAD program from Kansas, Nevada and West Virginia have been approved, according to the National Telecommunications and Information Administration (NTIA). The three states can now request access to funding and begin implementing the program. Kansas was authorized to receive $451.7 million, while Nevada will get $416.6 million and West Virginia will get $1.2 billion. The FCC has asked the US units of Chinese carriers, China Telecom, China Unicom, and China Mobile to discontinue offering fixed or mobile broadband internet operations in the country.11. ​This dashboard allows anyone to track how BEAD Eligible Entities are progressing through the major milestones* necessary to earn NTIA approval of their Initial Proposal. FCC bars Chinese carriers from offering broadband services in US. The FCC has asked the US units of Chinese carriers, China Telecom, China Unicom, and China Mobile to discontinue offering fixed or mobile broadband internet operations in the country. The service providers would be required to stop offering services within 60 days of the order being passed on April 25, 2024. The new order will also impact Pacific Networks and its wholly-owned subsidiary, ComNet. Read more.    Broadband Bytes is a regular feature by David Levine of UCL Swift. David is a graduate of Northern Illinois University, a certified BICSI RCDD,and a 35-year industry veteran in fiber and copper solutions.He currently works as a Business Development Manager for UCL Swift.