Fiber Day on the Hill

On April 11, 2024, FBA will host our second annual “Fiber Day on the Hill” in Washington, DC. Last year, this event brought over 200 bipartisan attendees from Congress and the Administration and was an incredible, interactive educational opportunity to learn about fiber broadband. This year’s Fiber Day on the Hill will bring exciting new demos, while maintaining a focus on the fundamentals of fiber and the opportunity to learn to splice fiber as part of the event. Fiber Day on the Hill provides an opportunity for participants to see demo stations presented by FBA members that explain what fiber is and how it improves U.S. households, communities, and the economy. We hope you will participate in this event. Please reach out to FBA to learn more about this opportunity.

Quarterly Overview

Broadband Equity, Access, and Development (BEAD) Grants 

On December 15, 2023, Louisiana became the first state to receive approval for its Broadband Equity, Access, and Deployment (BEAD) program proposal and this quarter brought additional approvals of proposals. With much anticipation, FBA is working to help our members navigate grant criteria and continues to advocate for ongoing BEAD priorities.

The National Telecommunications and Information Administration’s (NTIA) BEAD timeline predicts that most funding distribution will start by late 2024 into early 2025. As a reminder, NTIA has a great BEAD proposal tracker on the Internet for All website: www.internetforall.gov.

Letter of Credit Requirement

An important issue that FBA advocated for on behalf of our membership was the irrevocable standby Letter of Credit (LOC) requirement for subgrantees receiving support under BEAD.

FBA supports assuring that all parties have the financial capabilities to complete projects, yet the initial proposal reached beyond what we believed necessary to achieve that goal. NTIA responded to stakeholder input by issuing a programmatic waiver on November 1, 2023, that will ensure more midsize and small providers, which have long supported underserved communities, have a fair opportunity to participate in the historic BEAD program and connect Americans to high-speed fiber broadband. The waiver modifies the LOC requirement for subgrantees of all Eligible Entities in the following ways: Allow Credit Unions to Issue LOCs; Allow Use of Performance Bonds; Allow Eligible Entities to Reduce the Obligation Upon Completion of Milestones; and Allow for an Alternative Initial LOC or Performance Bond Percentage.

Uniform Guidance

NTIA released a policy notice on December 26, 2023, providing “tailoring” on the application of the Uniform Guidance in the BEAD program. The Uniform Guidance is the federal government’s framework for grants management, providing rules and requirements for federal grant programs. NTIA guidance addresses program income; fixed amount subgrants, enables service providers to make network upgrades without prior approval; and establishes a ten-year Federal Interest period for broadband infrastructure projects after the network is constructed.

Availability of Advanced Telecommunications Capability to all Americans

FBA submitted comments on December 1, 2023, to the Federal Communications Commission’s (FCC) Section 706 Notice of Inquiry (“NOI”) “concerning the ‘availability of advanced telecommunications capability to all Americans.’” The FCC is required to conduct this inquiry on an annual basis to evaluate the state of broadband across the country and consider many characteristics of broadband deployment, including affordability, adoption, availability, and equitable access when determining whether broadband is being deployed in a reasonable and timely fashion. FBA encourages the FCC to create a long-term gigabit symmetric, low latency benchmark in tandem with other federal agencies.

Open Internet Regulation

The FCC has proposed classifying broadband internet access services as a telecommunications service and imposing common carrier and “open internet” regulations on broadband service providers. FBA believes this is both unwarranted and will undermine broadband investment, particularly in fiber infrastructure and service innovation. In December, FBA filed comments in opposition to this proposal. Congress, not the FCC, should address this issue.

Affordable Connectivity Program (ACP)

In early January, Chairwoman Rosenworcel and the FCC communicated wind-down guidance for the ACP to industry and households subscribed to the program. With over 20 million households subscribed to this program, FBA encourages Congress to appropriate funding to continue this program, which has been integral in keeping Americans connected to the internet and allows them to participate in all aspects of the economy and society. We appreciate the bipartisan, bicameral leadership on this issue and support the legislation introduced in early January that would allocate $7 billion in additional funding for the ACP. The legislation was introduced by Senators Peter Welch (D-VT) and J.D. Vance (R-OH) and Representatives Yvette Clarke (D-NY) and Brian Fitzpatrick (R-PA) and we appreciate their leadership. This is an issue that impacts every congressional district and while Congress looks for long-term reforms, the ACP should continue to be funded. 

Fiber Broadband Association Public Policy Leadership

FBA’s Public Policy Committee is led by co-chairs Chris Champion, Vice President, Government Affairs, C Spire; and Jordan Gross, Manager of Federal Government Affairs, Corning. Ariane Schaffer, Government & Public Policy, Google Fiber, is the FBA Board Liaison. If your company is interested in joining the public policy committee, please email mmitrovich@fiberbroadband.org to join.

Quarterly Overview

Broadband Equity, Access, and Deployment (BEAD) Grants 

Initial proposals for BEAD have begun to stream into the Commerce Department’s National Telecommunications and Information Administration (NTIA). While we assess these initial Volume One and Volume Two submissions, FBA continues to advocate on critical aspects of these proposals to ensure that all unserved and underserved locations are connected to high-performance, affordable broadband infrastructure, with a preference for fiber. Some of this advocacy includes expanding the Letter of Credit (LOC) requirement, clarifying the application of Build America, Buy America (BABA) provision for fiber, and improving the Extremely High-Cost Threshold.

BEAD Letter of Credit Requirement

FBA sent NTIA a letter requesting that they reconsider the irrevocable standby Letter of Credit (LOC) requirement for subgrantees receiving support under BEAD. Many FBA members will face challenges raising the collateral to meet this requirement and it will likely cause providers to divert capital away from fiber deployment. FBA supports assuring that all parties have the financial capabilities to complete projects, but the proposed goes beyond what is necessary to achieve that goal. We are most concerned that requiring a LOC will minimize competition and participation in the BEAD program ultimately disadvantaging communities and their residents.

Build America, Buy America (BABA)

On August 22nd, NTIA issued a proposed waiver for the BABA requirements. FBA and our members reviewed the waiver and submitted comments to NTIA about it. The proposed waiver is broken down into three parts, addressing optical fiber and fiber optic cable (considered construction materials), electronics, and enclosures (both categories considered manufactured materials). FBA has weighed in with recommendations on all three of these areas and our members have submitted their own individual comments. Our proposals included a limited waiver – “for non-optic-glass inputs (e.g., an overclad cylinder) to preforms used to manufacture optical fiber and fiber optic cable in BEAD program projects.” This need is due to supply chain concerns at peak building times. We also suggested the waiver include a more precise definition of the “covered” electronics or clarification of the scope of the waiver. We recommended the Commerce Department issue a more expansive nonavailability waiver for enclosures. Should Commerce decide not to adopt such a general waiver for all enclosures, FBA proposed that the Department provide a limited waiver that permits multiple options for achieving compliance. All submitted comments are currently being reviewed by NTIA.

BEAD Threshold Financial Model

FBA, in partnership with research firm Cartesian, unveiled a financial model in August 2023 that helps states calculate their extremely high-cost per location threshold (EHCT) for fiber broadband deployments using their BEAD funding. The sophisticated tool leverages geospatial analysis to build a financial model that states can use to develop their own cost thresholds for fiber deployments. NTIA’s BEAD Notice of Funding Opportunity (NOFO) directed states to expend program funds for all-fiber deployments except in the highest-cost areas, where alternative broadband technologies can be used. Importantly, no single EHCT threshold will universally meet program goals for each state’s specific allocations because the economics of deploying broadband technologies vary greatly across the country. 

The model allows states to test various inputs and visualize the implications of different thresholds. It considers the extent of fiber coverage, the extent of alternative broadband technology coverage, and whether any funds remain. What is most valuable about this model, is that there are many ways to calculate a cost per location and to maximize fiber coverage for the greatest population while still ensuring universal connectivity.

Broadband Infrastructure Playbook 3.0

In August, FBA in partnership with NTCA—The Rural Broadband Association and Cartesian, launched a series of new modules for FBA’s Broadband Infrastructure Playbook. These modules were developed to further assist state broadband offices in their ongoing development of BEAD infrastructure funding administered by NTIA. FBA published “Playbook 3.0” modules on the following topics: Permitting, Extremely High-Cost Threshold, Challenge Process, and Cybersecurity/Supply Chain. These Playbook 3.0 modules are fundamental to key elements of each state’s BEAD funding implementation plan, and a resource to ensure that each state broadband office gets these critical policy elements right. Additionally, this group hosted a webinar on these important topics in mid-October that may still be viewed on the FBA website.

A Full FCC

In September, Anna Gomez was confirmed to be an FCC Commissioner, bringing the Commission to full capacity. Brendan Carr and Geoffrey Starks were both also reconfirmed for additional five-year terms. FBA supports the confirmation of all three nominees. The U.S. remains in the midst of an enormous investment cycle to bring high-performance broadband service, especially fiber connectivity, to every household, business, and anchor institution, as well as to support 5G/6G, smart cities and grids, and other advanced technologies and applications. A full complement of FCC Commissioners will be critical to ensure a functional and effective regulatory landscape.

Title II Reform

In early October, FCC Chairwoman Jessica Rosenworcel issued a Notice of Proposed Rulemaking (NPRM) to reclassify broadband under Title II of the Communications Act. The NPRM was voted on and adopted at the October 19th FCC Open Meeting by a 3-2 vote. There will be a 60-day initial comment period and FBA will participate in this comment process. FBA has always and continues to maintain that there must be a measured approach to regulation in this space, ensuring that the market is able to function in order to continue extensive investment and deployment of our nation’s critical fiber broadband infrastructure, as well as affordable connectivity for all Americans.

Under the Dome

In September, the federal government avoided a shutdown at the 11th hour by passing a stopgap bill that was signed into law by President Biden just before the expiration of current appropriations. At the time of this column being drafted, uncertainty is the theme of this Congress and that shows no prospect of abating. 

Rural Broadband

The House Energy & Commerce Committee’s Communications and Technology Subcommittee held a hearing on rural broadband and broadband funding on September 21, 2023. FBA submitted a letter for the record to voice our support for increased coordination and funding for broadband deployment and adoption programs to ensure unserved and underserved locations in all areas, including rural communities, have access to high-quality and affordable fiber broadband services.

Permitting Legislation

In September, Senators John Barrasso (R-WY) and Kyrsten Sinema (I-AZ) introduced the CLOSE THE GAP Act. This bipartisan bill brings solutions to the table that will contribute to long-needed reforms to help streamline permitting and facilitate fiber broadband deployment. FBA fully supports this legislation and hopes to see similar solutions introduced in the House and ultimately enacted into law.

Fiber Broadband Association Public Policy Leadership

The FBA Public Policy Committee is led by co-chairs Chris Champion, Vice President, Government Affairs, C Spire; and Jordan Gross, Manager of Federal Government Affairs, Corning. Ariane Schaffer, Government & Public Policy, Google Fiber, is the FBA Board Liaison. If your company is interested in joining the public policy committee, please email mmitrovich@fiberbroadband.org to join.

• FBA and its members support the Build America, Buy America Act (BABAA) and its domestic manufacturing objectives
• We are now reviewing with our members the details for each of the proposed limited applicability waivers and will file comments next month.
• We appreciate the work of NTIA and this Administration to continue to bring the country closer to fiber connectivity for all.”

-Marissa Mitrovich, Vice President of Public Policy, Fiber Broadband Association

And none of these technologies can work without fiber.

Without it, we wouldn’t have access to the basic services we take for granted today, such as doctor’s visits on our laptops, remote education, work from home, and ordering dinner without having to leave the couch – not to mention the ever-expanding availability and utility of 4G and 5G cellular services.  

But not everyone in the U.S. has access to fiber in their homes today. The past Congress and the Biden-Harris Administration took a large step in closing the digital divide a year ago by passing and signing into law the Bipartisan Infrastructure Law. The law includes a once-in-a-generation investment of $65 billion in broadband, updating decades-old telecom systems with 21st Century infrastructure to ensure every American has access to reliable high-speed internet.  

Fiber is the only broadband technology that provides a future-proof growth path for multiple gigabit symmetrical speeds today and into the future. But speed is only one parameter of what will be required in the future. Fiber also delivers ultra-low latency, symmetric bandwidth, and brings superior resilience compared to all other technologies, along with increased physical security, and a more sustainable footprint – a key theme of CES 2023. Based on FBA’s recent studies, when every home is connected with fiber the carbon footprint reduction will be equivalent to taking 11 million cars off the road.

We know what is defined today as “sufficient” for internet bandwidth will soon be considered not enough and “underserved.” Some argue that certain locations are too expensive to be serviced with fiber. This approach is penny-wise and pound foolish. It puts communities at risk of having to ask policymakers for funding to upgrade in a few years and miss out on years of economic benefits in the meantime.

The greatest benefit that fiber delivers is as an engine for economic development and growth. Since Chattanooga, Tennessee, became the first “gigabit city” a decade ago, providing fiber connectivity to all its residents, the network has delivered nearly $2.7 billion in economic benefits, including creating an estimated 9,500 jobs.  

Chattanooga is not a fluke. Douglas County in Oregon has a fiber network that delivers over $28 million in cost savings and revenue per year, and it supports critical seasonal firefighting activities. The City of Westfield, Massachusetts, has realized over $88 million annually in job-related benefits from its network.  

Businesses looking to relocate or expand often ask, “Is fiber available?” Similarly, households want high speed internet to work from home, operate their own businesses, and have adequate educational resources available for their children. This is why communities of all sizes need fiber. 

The newest and latest innovations that emerged from the halls of CES 2023 share in common the need for future-proof broadband networks. Networks capable of delivering low-latency, high bandwidth symmetrical speeds. Networks that can easily scale to meet the needs of households, small businesses, and enterprises. Fiber is the technology upon which today’s modern society functions. Fiber provides the literal glass strands that power today’s information-based economy. And fiber will provide the essential foundation for this year’s innovations and those that will emerge for decades to come.  

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