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Funding, Muni-Broadband Tension

House Subcommittee Members Agree on Rural Broadband Needs, Seek Various Solutions

Congress must do more to encourage rural broadband deployment, House Communications Subcommittee members said at a hearing Tuesday. There was general bipartisan agreement on the need to promote various technological solutions and on certain ongoing legislative efforts to remove deployment barriers. Discord was heard on federal infrastructure spending and municipal broadband.

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"We cannot rest on our laurels. Rural broadband remains a challenge, and there are still unserved areas that need to be connected," said Chairman Marsha Blackburn, R-Tenn., noting the House Commerce Committee cleared the Advancing Critical Connectivity Expands Service, Small Business Resources, Opportunities, Access and Data Based on Assessed Need and Demand Act (HR-3994) and Precision Agriculture Connectivity Act (HR-4881) last week (see 1807120063). Calling broadband a "force multiplier" for jobs, committee Chairman Greg Walden, R-Ore., hailed the "bipartisan bills" and hopes "we can continue to work together to expand broadband."

The House should bring HR-3994 to the floor "as soon as possible," said committee ranking member Frank Pallone, D-N.J., noting it would create an NTIA Office of Internet Connectivity and Growth to help ensure broadband programs "get the most bang for the buck." He lamented that Republicans put infrastructure spending "on the back burner" behind their "tax scam." He said Democrats offered "bold proposals that will actually drive broadband deployment in all 50 states" in a "technologically neutral" manner. Blackburn said funding must be targeted where most needed: "We simply cannot afford to allow overbuilding to take place while so many areas are left completely unserved."

Blackburn told us she's aiming to consolidate language from several outstanding broadband bills into her draft NTIA Reauthorization Act before a subcommittee markup. The draft, circulated last month, already includes language from HR-3994. Walden noted other House Commerce telecom priorities in an interview, confirming House Communications will hold an FCC oversight hearing July 25, as expected (see 1806290037).

House Communications Vice Chairman Leonard Lance, R-N.J., and ranking member Mike Doyle, D-Pa., plugged their Advancing Innovation and Reinvigorating Widespread Access to Viable Electromagnetic Spectrum Act (HR-4953) to dedicate 10 percent of spectrum auction proceeds to rural broadband. "Had this rural dividend been in place during the previous two spectrum auctions, over $6 billion would have been raised for rural buildout," Lance said. Communications industry officials and lobbyists told us before the hearing there's not much time left to enact legislation this year (see 1807160064).

Witnesses touted their services, products and proposals. Satellite broadband service offers up to 100 Mbps to the entire country, said Satellite Industry Association President Tom Stroup. Providers need new spectrum and technologically neutral policies, he said, noting industry has about 1,700 satellites operating, with applications at the FCC for 18,000 more. CEO Claude Aiken said Wireless ISP Association members can provide high-speed, low-latency services at one-seventh the cost of fiber and one-fourth the cost of cable. The fixed-wireless providers need more access to licensed and unlicensed spectrum covering smaller geographic areas, he said. Midcontinent Communications is providing internet, cable TV and other services, including fixed wireless, said Justin Forde, senior director-government relations. He said government broadband funding and efforts should target unserved areas. Rural broadband needs to cover farms and ranches, said John May, Deere president-ag solutions, hopeful HR-4881 can be enacted in farm legislation or on its own.

Broadband-enabled telehealth services offer many advantages but face obstacles in Medicare payment policies, state licensing requirements and capital costs, said Jenni Word, chief nursing officer of the Wallowa Memorial Hospital in rural Enterprise, Oregon. She and Walden welcomed the FCC's recent decision to increase an annual USF rural healthcare cap by 43 percent to $571 million. Suzanne Coker Craig, a former commissioner in Pinetops, North Carolina, detailed her town's broadband efforts to overcome state legislation that was pre-empted by FCC regulation before the agency was reversed in court.

Blackburn objected to the Community Broadband Act, calling HR-4814 a legislative version of the FCC's "failed" muni-broadband pre-emption regulation: "Encourage states to find solutions that best suit their needs." Bill sponsor Rep. Anna Eshoo, D-Calif., said that with one-third of the country either unserved or underserved, policymakers should encourage communities to develop "bottoms-up" solutions. Asked by Eshoo who was behind the North Carolina municipal restrictions, Coker said it's her understanding it's the "big telecom" providers. "You got it," Eshoo said. "The very large interests, very large money hold sway." She said about 20 states have municipal broadband bans.

Doyle expressed concern about possible FCC changes to 3.5 GHz band rules to make license areas larger for citizens broadband radio service. He asked if WISPA members would be able to bid successfully if the license areas were enlarged. "The short answer is no," said Aiken, who backed keeping census-tract level licenses and cited WISP undertakings relying on the existing rules.

Rep. Bill Johnson, R-Ohio, voiced frustration with the pace of rural broadband progress, calling improved high-speed access for his rural district a top priority: "We must figure this out." He said a "one-size solution doesn't work" and the first order of business is to identify unserved and underserved areas. He pointed to his Mapping Now Act (HR-4810) to reinstate NTIA as the lead broadband mapping agency.