Some Fear Emergency Broadband Fund Problems

The FCC will disburse $3.2 billion in emergency broadband assistance as the pandemic has boosted broadband demand and usage (see 2012220061). How the money will be spent and whether it will reach the hardest-hit communities remain uncertain, said experts in interviews this month. Some telecom stakeholders are optimistic, however.

USTelecom CEO Jonathan Spalter suggested the commission “keep it simple” and allow eligible telecom carriers to verify their eligibility for the program by relying solely on the Lifeline national eligibility verifier, because “time is of the essence.” In a letter Monday, Spalter urged the FCC to start thinking about how to transition providers in and out of the program, because there's a finite amount of money to be spent without a clear deadline. Commissioner Geoffrey Starks tweeted Tuesday he spoke with Spalter and urged broadband providers to “get involved so that we reach every eligible American we can.” Starks said Thursday he also spoke with NCTA CEO Michael Powell on how to maximize participation.

The fund will let ISPs provide monthly discounts of up to $50 per household, $75 for tribal households, and be reimbursed. Providers are eligible for up to $100 per device sold to customers for $10-$50, one per residence. Comments are due Jan. 25 on how to best administer the money (see 2101040056).

Commissioner Jessica Rosenworcel said in a statement to us that getting the mechanisms of the program right is "vitally important" and must include efforts to raise awareness so eligible households and those in need can easily participate. “If we truly want to close the digital divide, we need to talk about broadband affordability," Rosenworcel said. "The cost of service can be a hardship, especially for those struggling during the ongoing crisis. The Emergency Broadband Benefit represents a new way to help."

NTCA members hope the program will "build upon, enhance, and expand the reach" of Lifeline, said Senior Vice President-Industry Affairs Michael Romano. There's a need to promote awareness, he said. "It will be important for the FCC to demand comparable accountability from participants in this new program both with respect to raising such awareness and ensuring proper use of program funds to serve eligible recipients."

Incompas thinks the program could help consumers hurt by the pandemic, said General Counsel Angie Kronenberg. "It's really important that the commission take into account that there are small companies that are out there now to help customers in this pandemic and who should be eligible for this program, It's a lot of money, right? But there's a lot of need out there right now [and] that subsidy is a huge step."

Fiber Broadband Association CEO Gary Bolton had concerns about the way the funds came together, saying it lacked investments in infrastructure. "What we're looking for is an infrastructure bill with the Biden administration," Bolton said, putting the price tag at around $100 billion.

Free Press General Counsel Matt Wood hopes the money is used up, and "there’s a long way to go to make sure the implementation is good and the publicity about its availability is out there.” Wood said it’s unlikely any funds will go unspent. It remains unclear where or whether there's a mechanism in the recent stimulus bill to address unused money, he said: “That is a bit more complicated, just because of the kind of fights we’ve seen over unused money in the Cares Act.”

Delivering low-price broadband to poor communities could be impossible without infrastructure, said Electronic Frontier Foundation Senior Legislative Counsel Ernesto Falcon: “The government’s ability to help people is constrained significantly, and it won’t be because of industry’s lack of willingness. It’ll just be feasibility.” Although the program is essential during the pandemic, “it will not matter how much the government subsidizes access if there aren’t the means of delivering that,” Falcon said. The commission is considering working with schools, libraries and other public institutions to promote awareness and ensure eligible households have access to the program.