Calif. BEAD Plans for Wireless, Affordability Raise Industry Concerns

The California Public Utilities Commission should reject a proposed change to NTIA’s broadband, equity, access and deployment (BEAD) model rules that would affect how the state treats licensed fixed wireless (LFW) services, wireless industry groups said this week. The CPUC released comments Tuesday on volumes one and two of draft BEAD initial proposals (docket R.23-02-016). AT&T, CTIA and California’s cable association urged the commission to reject a cheap broadband requirement proposed in case Congress doesn’t renew the affordable connectivity program (ACP).

CTIA and the Wireless ISP Association (WISPA) balked at a CPUC staff proposal to treat as unserved those locations on the national broadband map that have licensed fixed wireless service with 30 Mbps download and 5 Mbps upload speeds or below. "This change is not valid as a modification to reflect ‘data not in the Broadband Map’ because it impermissibly relies on disagreements with definitions codified in federal law," said CTIA, predicting NTIA will disapprove California’s plan if the modification isn't removed. The state commission’s reasons for removing such locations "are invalid because they are based on inaccurate and incomplete information and analysis,” CTIA said. “To the extent that such shortcomings in network performance exist in specific cases, NTIA’s process anticipates that they will be removed through the evidence-based challenge process (based on actual testing) -- not before the challenge process even begins.”

The proposal inappropriately treats all LFW as unreliable, said WISPA. That "sharply deviates" from NTIA guidelines saying that locations served with licensed spectrum are reliably served, it said. The CPUC conflates fixed wireless provided by cellular providers with that of wireless ISPs, said the wireless group: And it fails "to distinguish between network architecture, which is the basis for reliability, and issues such as data capping or prioritization, which some cellular providers build into contracts and can be adjusted.” This summer’s FCC challenge process already identified areas not consistently receiving 100/20 Mbps, WISPA added.

Don’t count out fixed wireless access (FWA) in an expensive pursuit of fiber, cautioned WISPA. "CPUC makes clear that a fiber-only approach to its universal service goals will leave the state woefully short of funds for [digital equity] efforts," the association said. "This would be an unfortunate policy result of an inability to realize savings through FWA as a more prevalent alternative to fiber." Other states with funding challenges are considering “wide use” of unlicensed FWA, it said. Consumers don’t want or need symmetrical speeds, WISPA added.

The CPUC should keep the proposed change to consider 30/5 Mbps fixed wireless unserved, disagreed Communications Workers of America District 9 and other labor groups in joint comments. In addition, the CPUC should treat as underserved those areas that the national broadband map says are served by fixed wireless, wrote CWA. "This revision will limit the use of fixed wireless as an inferior bandaid for the lack of broadband availability."

Affordability Concerns

It would be "impermissible rate regulation" for the CPUC to require a $15 monthly low-cost option if ACP expires, commented AT&T. The same goes for possibly requiring a no-cost option for ACP-eligible customers and an affordable middle-class plan, the carrier said. CTIA agreed the CPUC should remove the proposed $15 plan. “The Commission offers no explanation for why broadband providers would be in a position to, or would be willing to, offer the same plan previously offered at $30 for half that price simply due to a change in regulations.”

But focusing on affordability is critical, said some consumer advocates. Adjust proposed rules to direct more money "to subgrantees who will provide meaningful affordability provisions for the built life of federally funded broadband infrastructure,” said the Greenlining Institute, supporting low- and middle-income requirements. Extend benefits to households that don’t qualify under federal standards but would be considered low-income under California thresholds, said the CPUC’s independent Public Advocates Office (PAO). It supports requiring funded networks to provide an affordable plan to the middle class. Also, California should fund projects in unserved parts of high poverty areas and persistent poverty counties first, PAO said.

The California Broadband and Video Association objected to affordability and other proposed conditions. The cable group said the CPUC risks deterring participation by experienced ISPs. The staff proposal "largely disregards a fundamental barrier to BEAD Program success in California: the anticipated multi-billion dollar gap between California’s BEAD funding allocation ... and the cost of connecting all unserved and underserved locations in the state,” the association said. Despite the CPUC finding in its five-year action plan that it lacks enough funds, the agency provides “little incentive for any applicant to go beyond the required 25% project match,” it said. “In so doing, the Commission would leave billions of dollars in private broadband co-investment on the table."

Don't leave out people living in multiple dwelling units (MDUs) without internet, commented San Francisco city and county. "Unserved and underserved residents of MDUs represent California’s most underrepresented communities, particularly low-income households and persons of color." CWA cautioned that the FCC map may overestimate MDU coverage. The CPUC should "reclassify all MDUs within high-poverty and highly unconnected census tracts as 'underserved,' until appropriately rebutted,” it said.

Other Factors

Consider treating all DSL-served locations as unserved, said Rural County Representatives of California. Don't require applicants to have provided a voice, broadband or electric service for at least two consecutive years, commented RCRC. "While this provision is likely intended to avoid nascent applicants from defaulting on their obligations," as seen in the FCC's Rural Digital Opportunity Fund program, "it will have severe negative impacts on public, tribal and non-profit applicants, the vast majority of whom are new entrants -- and indeed may effectively prevent those entities from accessing BEAD funding."

Don't preselect project areas based on large geographic units like census block groups, tribal lands or school districts that don't reflect existing network infrastructure resources, said AT&T. "Requiring providers to deploy to all locations in such a large state-defined project area will effectively disqualify some applicants or force them to extend beyond what they can manage from a financial, operational, or human resources perspective." Project area units should "be as geographically small as possible ... and in no case larger than a census block."

Require all projects to include 72-hour battery backup, and all middle-mile and wholesale last-mile projects to be open access, said The Utility Reform Network and Center for Accessible Technology.

The CPUC wants comments next on staff proposals to modify the commission’s broadband public housing account and tribal technical assistance program guidelines, Commissioner Darcie Houck ruled Tuesday in docket R.20-08-21. Comments are due Dec. 8, replies Dec. 13.