Connected Nation Statement on FCC's Plans to include Broadband Services in Lifeline Program

From Tom Koutsky, Chief Policy Counsel, Connected Nation

"Only thirty-seven percent of low-income households adopt and use broadband -- a rate barely half the national average. Every day, this broadband adoption gap limits economic opportunity, education, and healthcare for low-income Americans. This broadband adoption gap needs to be closed, and closed quickly before it becomes a perpetual chasm.

As an organization working to increase broadband adoption for the past ten years, Connected Nation supports the migration of existing voice subsidy programs to broadband and welcomes the Federal Communications Commission's adoption of a broadband low-income pilot program targeted at studying this problem. Our research led us early on to work directly with disadvantaged communities and key digital literacy partners like public libraries. We look forward to working with our government and provider partners to develop unique and innovative programs that are effective, actionable, and quickly scalable to close the low-income gap."


Learn more with this USF FAQ. 

FCC to Create $4 Billion Connect America Fund

By Tom Koutsky, Chief Policy Counsel, Connected Nation

Every year, the FCC's Universal Service Fund provides over $4 billion for telephone companies to provide voice service in "high-cost" areas. A companion program compensates providers for completing telephone calls, with rates that vary based on technology used to make the call, be it a wireless phone, a traditional telephone, or an Internet service like Skype.

Forms of this program have been in place for over 95 years - a time when about 13 percent of U.S. households had a telephone, about 7 million dialtone lines - about the same number of iPhones that Apple expects to sell this month.

As consumers and businesses have adopted broadband, cracks in those creaky voice service subsidies are widening. The result is that while over $8 billion per year - funded by a 15 percent fee on everyone's phone bill - is spent on this program, immense gaps have emerged:

•18 million Americans do not have access to broadband networks. In places like Alaska and Tribal Lands, these access gaps are wide.

•Over 100 million Americans have not adopted broadband at home - one-third of the country. For low-income households, adoption is nearly half that rate, 38 percent. In Puerto Rico, the vast majority of schoolchildren do not have home broadband service.

•High-speed broadband by Community Anchor Institutions is not keeping pace. For example, according to the American Library Association, 45 percent of all public libraries say their broadband connection speed is insufficient for needs. Only one in five rural libraries have a fiber optic connection - and only two-thirds of urban libraries have such connectivity.

•Create a $150 million Tribal wireless fund, which will include Native Villages in Alaska, and propose to create a dedicated remote area fund.

Today, the FCC is attempting to start to close the access gap, particularly in high-cost, rural areas. The federal USF funnels approximately $4.7 billion per year in subsidies for carriers to provide voice service. Shifting that program to support broadband networks instead will be complicated, messy, and contentious. Essentially, the FCC's goal is to re-cut the pieces of that $4.7 billion-sized pie and redistribute it among broadband and voice segments.

We will be following the FCC's decision today and summarizing it here. We expect that the FCC will announce:

•A plan to use broadband mapping data to identify areas of the country without broadband and shift $4 billion away from voice subsidies to fund network construction in those areas in the next five years.

•Create a $300-400 million per year Mobility Fund that will fund wireless infrastructure projects in communities without adequate wireless data service, and

•Transition the current per-minute intercarrier regime to a uniform rate system.

Stay tuned here for more details as the FCC takes its vote and releases more information.

Connected Nation Joins National Coalition to Boost Digital Literacy

FCC's Chairman Julius Genachowski announces broadband adoption initiative called “Connect to Compete.” 

Today, Connected Nation was named by the FCC as a key strategic advisor and partner in a national public-private broadband adoption initiative called “Connect to Compete” aimed at boosting digital literacy and skills training and job creation.

The program involves a dozen private and nonprofit partners and includes a national “digital literacy corps” working to close the broadband adoption gap, and initiatives by private sector firms that are donating training opportunities, software, and creating digital content that will help job seekers.

“Our data show that nearly 32 million rural Americans don’t have broadband at home. Across all areas, approximately 6.7 million unemployed Americans don’t have home broadband service. We can’t compete when our players are sitting on the sidelines without the right equipment,” said Brian Mefford, CEO of Connected Nation.

A member of Best Buy's Geek Squad addresses the crowd at Wednesday's FCC announcement.

At Connected Nation, we have been working for more than a decade to boost digital inclusion and broadband adoption, access, and use. And, tomorrow, Connected Nation is releasing its 2011 Residential Technology Assessment revealing the barriers to broadband adoption across vulnerable sectors. The research shows the vital need for efforts such as Connect to Compete.

Check back on www.connectednation.org tomorrow to learn more.

FCC: Competition is in the Eye of the Beholder

By Chris McGovern, Manager of Research Development for Connected Nation

The Federal Communications Commission (FCC) just released its 15th Annual Mobile Wireless Competition Report. A lot of people have been waiting with bated breath for this report to be made public, some looking for a stamp of approval for provider activities (like changes in price models and mergers) while others were hoping the report would portray wireless providers as robber barons that have successfully quashed all competition. This 308-page behemoth, though, paints a more complicated picture of a mobile wireless environment where both successes and reasons for concern can be found.

According to the report, about 92% of Americans (or about 262 million people) can choose from two or more mobile broadband providers, but fewer than seven out of ten (67.8%, or about 193 million people) have four or more mobile broadband choices. There is also a rural/urban divide, as only 69% of rural residents have two or more mobile broadband choices, and only 17.3% of rural residents have four or more options. In fact, a measurement of market concentration (the Herfindahl-Hirschman Index, or HHI) finds that the wireless market is “Highly Concentrated,” with four major national providers serving over 90 percent of the nation’s mobile wireless subscribers.

Yet not all is gloom and doom. As the FCC report points out, measures of concentration are not necessarily synonymous with a non-competitive market. It turns out the United States is following a global pattern, as mobile markets in many industrialized nations have just 3-4 major providers each. In the U.S. there is little variance in competition between census tracts with different median household incomes; tracts whose median household incomes are below $25,000 have an average of 3.3 mobile broadband providers, compared to 3.7 providers in tracts with median household incomes of $150,000 or more. The consumer price index (CPI) for the cellular market has decreased or remained the same every year since 1999, while the CPI for all goods and services has increased every year but one during that time period. In addition, mobile broadband providers show evidence of both price and non-price competition, a sign of healthy competition between carriers.

I suspect that in the end everyone will pick and choose some data out of this report, depending on the argument they want to make. Are there indicators that mobile competition can be improved upon? Yes, there are. Is there evidence that points to a competitive mobile market? That’s in there, too. Does this report show a market that is too complicated to resort to bumper sticker competitive analysis? Most definitely.

FCC Moves Forward With National Broadband Plan Objectives: Eight of Twenty “Learning on the Go” Recipients are From Connected Nation States

Last week, the Federal Communications Commission named 20 institutions that will take part in its pilot “Learning on the Go” program. These institutions submitted innovative project plans that promote mobile broadband connectivity among their students, and the FCC will fund those pilot projects through the federal E-Rate program. Eight of the 20 chosen institutions are located in states served by Connected Nation. They include:

• Clay Hill Elementary in Jacksonville, FL.
• Foxfire Center for Student Success in Zanesville, OH.
• Katy Independent School District in Katy, TX.
• Michigan Technical Academy in Redford, MI.
• Mohican School in the Out-of-Doors, Inc. in Butler, OH.
• Sioux City Community School District in Sioux City, IA.
• Summit Academy Community School for Alternative Learners in Canton, OH, and
• Westwood Community Schools/Cyber High School in Dearborn Heights, MI.

Connected Nation congratulates these inventive programs that will employ mobile tools like smart phones, tablet computers, and laptop computers to help students take their educational experience beyond the classroom walls.

Connected Nation also applauds the FCC in taking this early step toward revamping the Universal Service Fund, of which the E-rate program is a part. As part of the National Broadband Plan, the FCC recommended expanding online learning by permitting more online instruction, supporting research and development of online learning systems, and funding broadband-enabled online learning solutions, all of which can be accomplished through the Learning on the Go program. As Blair Levin pointed out last week, “[Broadband subscription] cost is an issue. But it is just one issue.”

Among households with children, monthly subscription costs are the most often-cited barrier to broadband adoption, but programs that address other barriers like digital literacy and computer ownership are needed to attract non-adopters. In the states/territories served by Connected Nation, over 7,000 households with children do not subscribe to home broadband service, and the lack of a home computer is the sole barrier to broadband adoption in approximately 1,000 of those households.

Connected Nation Applauds FCC’s Proposal to Direct Broadband Funds Using National Broadband Map

Washington, DC – The following is a statement from Connected Nation in response to today’s USF reform proposal by the FCC to use the national broadband map to determine unserved areas eligible for USF funds.

“The FCC's proposal to distribute broadband support subsidies to unserved areas identified on the national broadband map is a landmark development that will help bring broadband to all Americans.

Connected Nation has been working with states and the NTIA to make the national broadband map a comprehensive, accurate, and transparent tool for policymakers and the public. We look forward to working with the FCC, NTIA, and our states to maintain a high standard of excellence in developing and cultivating this unprecedented data resource.”

Download statement

FCC Holding Open Meeting to Rule on Universal Service Fund reforms

On Tuesday, February, 8, the Federal Communications Commission will hold an open meeting in Washington, D.C., in which it will vote on proposed Universal Service Fund reforms.

Tom Koutsky, Connected Nation’s Chief Policy Counsel, will be attending and live tweeting from the meeting, which is scheduled to begin at 10:30 a.m. EST. In adding, the FCC will be live streaming the meeting FCC.gov/live.

For more information, read FCC Chairman Julius Genachowski's proposal to shift federal universal service subsidies to connect America to broadband.

Follow us on Twitter at www.twitter.com/connectednation to see our take on the meeting.

Related Articles
News: FCC Seeks Overhaul on Rural-Telecom Fund (Wall Street Journal, 2/7/2011)

FCC Chairman Julius Genachowski Calls Closing the Digital Divide “One of the Most Important Civil Rights Issues Of Our Time.”

By Chris McGovern, Manager, Research Development, Connected Nation

Last week, the Minority Media and Telecom Council (MMTC) hosted its 2011 Broadband and Social Justice Summit. Among the many high-profile speakers at this conference, FCC Chairman Julius Genachowski called closing the Digital Divide for every socioeconomic group “one of the most important civil rights issues of our time,” affecting individuals’ ability to apply for jobs and access healthcare. Connected Nation research shows that there are adoption gaps among every socioeconomic and demographic group, but these gaps are broader among particular racial/ethnic lines. For example, Connected Nation research shows that in the states/territories that CN serves, 28.3 million adults do not have home broadband service. This includes approximately 3.2 million African Americans, 6.2 million Hispanics, and 400,000 Native Americans. Altogether, minorities make up a much larger share of non-adopters than adopters.


The factor that remains consistent across all of these racial/ethnic groups is that the top barriers to broadband adoption are the lack of a home computer and the belief that they do not need home broadband service. This belief that home broadband is just an unnecessary luxury highlights the need for locally-driven digital literacy programs that help families see the importance of having home broadband service because, as Chairman Genachowski pointed out, “the costs of digital exclusion are rising.”

Chairman Genachowski’s comments can be found here: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-304191A1.pdf.

To increase home broadband adoption in Ohio, Connect Ohio recently launched the Every Citizen Online program that showcases the many educational, healthcare, economic, and communication benefits of home broadband adoption.

State Broadband Inventories and FCC Estimates

By Sarah Graham, Communications Specialist, Connected Nation

With the national broadband map on its way for release next month, a wealth of never-before gathered information on the state of broadband in America will be open for discussion. Speed data, we believe, will be particularly important to examine.

The FCC estimates that 95% of national households have access to – or will soon have – broadband at the national target speeds of 4 Mbps download and 1 Mbps upload. At Connected Nation, our advertised speed data for 10 states and Puerto Rico show a different picture, varying greatly from state to state.

Click on image to enlarge

For example, in Alaska, approximately 76 percent of Alaska households have access to 3 Mbps download speeds and approximately 73 percent have access to 6 Mbps download speeds. Comparatively, in Ohio, nearly 98 percent of households report 3 Mbps download speeds and just under 95 percent have access to 6 Mbps download speeds.

Because of the differences, states and the federal government can use this information to determine how the current Universal Service Funds reforms under consideration by the Federal Communications Commission will affect individual states.

Related Links:

Download ‘The State of the Broadband Market’ (pdf)

Blog: Broadband Mapping Key to Informing the USF Debate

Blog: Broadband Infrastructure Varies Greatly By State

Blog: Connected Nation at 2011 State of the Net Conference: Day 1

CN’s Data-Rich Broadband Maps Helping Shape National Policy

Reliable broadband data is critical to building a faster, more connected nation. Yesterday, CN filed comments with the FCC detailing how the broadband data it has collected is helping answer many of the important broadband policy challenges that face America.

Comments were submitted to the FCC’s Seventh Broadband Deployment Notice of Inquiry that serves as a progress report for the status of broadband deployment in the nation. Key to this regulatory oversight is an assessment of whether “advanced telecommunications services” are being deployed to all Americans in a timely manner. This year the FCC assessment will count for the first time comprehensive, granular data collected across the nation through the State Broadband Data and Development (SBDD) mapping initiative. Connected Nation is the largest mapping partner under this program working in the states of Alaska, Florida, Illinois, Iowa, Kansas, Michigan, Minnesota, Nevada, Ohio, South Carolina, Tennessee, Texas, and the Territory of Puerto Rico. These states and territories account for 34% of the U.S. population and 42% of the land mass of the U.S.

The data collected through the SBDD program is available to the FCC and other federal agencies. These data will be instrumental for policy making at the FCC and state level. For example, using these data, Connected Nation released last month an Iowa Broadband report analyzing the broadband inventory data in order to address policy concerns such as the penetration of broadband deployment at multiple speed tiers ranging from 786 Kbps to 1 Giga, Universal Service Fund reform, measuring the adoption gap across the state, and more. Connected Nation is in the process of providing similar analyses for other jurisdictions.

Connected Nation to Give Testimony on Capitol Hill on May 13

Connected Nation is slated to provide testimony on Capitol Hill Thursday about its comprehensive efforts to increase broadband availability and adoption.

In testimony before a Congressional subcommittee on Communications, Technology, and the Internet Thursday, Connected Nation Chief Policy Officer Laura Taylor will address the barriers to high-speed Internet access and adoption and how Connected Nation’s programs are helping eliminate those barriers.

A recent FCC report on broadband adoption shows that only 65% of adults are home broadband adopters and only 50% of rural American adults adopt broadband, compared to 68% of non-rural American adults.

Taylor is slated to offer testimony about Connected Nation’s unique programs that have produced demonstrated results.

“Public-private partnerships, such as those that Connected Nation works to foster, have proven themselves as the most effective vehicle for improving broadband availability and adoption,” according to prepared remarks Taylor will deliver to the subcommittee.

The hearing is scheduled for 10 a.m. (EST). The subcommittee will be providing a live webcast of the hearing. Visit http://energycommerce.house.gov for details.

Project GOAL Aims at Getting Grandparents Online

Annie Woodsen, 91, shows off her graduation certificate which she earned from a senior computer training class sponsored by the Tennessee Community Foundation in Mt. Pleasant, Tennessee.

Worrying about an aging loved one seems as American as apple pie.

Wishing grandpa had easier access to doctors and medical information;
Wishing grandma was better able to do the grocery and gift shopping that always gave her a sense of purpose;
Wishing they both could talk to their distant loved ones face-to-face more often.

These are the kind of wishes that can easily come true immediately by simply hooking up a computer to the Internet and teaching them how to use it. And now, a new organization is taking aim at accomplishing just that.

Project Get Older Adults onLine, or Project GOAL, has just been launched with its mission aimed at providing technology training resources for older adults and for organizations that serve older populations and their members. The training is meant to get senior citizens past the technology fear factor and plug them into the benefits of broadband. Project organizers point out how the Internet can reduce social isolation for seniors, help them stay connected to family members, keep their minds sharp, assist them in research on health or other information, connect them directly with doctors and medical monitoring, and help them accomplish chores like shopping without ever leaving home.

The fact is, high-speed Internet can greatly enrich the lives of older people, yet only 35 percent of Americans over the age of 65 have broadband at home. Project GOAL will work with seniors groups to match them with technology training in their area and help give them the resources they need to teach the elderly how to tap into the world of broadband.

The Federal Communications Commission (FCC) is championing the new initiative and Project GOAL is backed by a number of technology companies like AT&T, Comcast, Facebook, Microsoft, T-Mobile, Time Warner Cable, Verizon, and The National Cable & Telecommunications Association (NCTA). Connected Nation is serving as an advisory member along with AARP and the American Telemedicine Association.

Staff from the Jefferson County, Tenn. Office on Aging stand with a student during a recent senior citizens technologically training course.

Related Articles:
News Article: Elderly Encouraged to Reap Benefits of Broadband (AOL News, 04/06/2010)
News Article: Tech Titans Encourage Seniors to Go Online (PC Magazine, 04/06/2010)

Connecting America: FCC Releases National Broadband Plan

Today, the Federal Communications Commission sent its National Broadband Plan to Congress. The 376-page document outlines a national broadband imperative to get America connected, including goals to ensure every American has affordable access and a 90 percent adoption rate by 2020.

Over the past year, Connected Nation has offered rich data and insights in support of the FCC’s effort to develop an informed national broadband policy. Connected Nation’s comments are based on nearly 10 years of experience working with hundreds of communities in 30 states and territories to address the challenges of expanding broadband to all citizens, particularly those who are currently unconnected. These filings are accessible on Connected Nation’s FCC filings webpage.

Read the National Broadband Plan here: www.broadband.gov/plan/

Download Connected Nation’s NBP Summary Filing

Tell us what you think about the plan

Follow the conversation on Twitter - #bbplan

Connected Nation Applauds FCC Recommendations for Broadband Adoption

Members of the FCC's Omnibus Broadband Initiative including, (L to R) Blair Levin, Executive Director; Brian David, Program Director; and Elise Kohn, Adoption Director address questions during Tuesday’s Digital Inclusion Summit.

Connected Nation welcomes the FCC’s agenda for driving broadband adoption, particularly among certain vulnerable demographics such as the elderly, low-income Americans, adults with disabilities, minority citizens, and those residing in rural areas. We know broadband has the power to transform lives, yet millions of Americans remain unconnected. Today’s Digital Inclusion Summit marks an important step leading up to the release of the National Broadband Plan – to call attention to this imperative for our nation’s prosperity.

The Federal Communications Commission identified, in the 2009 Broadband Service Capability Survey, a significant factor in the digital inclusion equation – that non-adopters face multiple barriers to adoption. Cost relief works effectively for many non-adopters, but only when accompanied by training programs to bolster their digital skills and information about content that is relevant to their lives.

Connected Nation has proactively addressed this need by designing programs to help vulnerable populations overcome top barriers to adoption – broadband awareness and training, computer ownership, and subscription affordability.

The FCC underscores the importance of public-private partnerships to increase broadband use at the local level. We strongly agree. Through public-private partnerships, Connected Nation has completed eight comprehensive statewide broadband maps and launched development of 13 more, while donating over 6,000 computers to schools, libraries, and community centers and formed local technology teams in more than 300 counties.

"The Federal government can’t do this alone. We need to work in partnership with nonprofits and private industry," HUD Secretary Shaun Donovan said during Tuesday’s Digital Inclusion Summit.

During today’s Digital Inclusion Summit, Secretary of Housing and Urban Development Shaun Donovan stressed the importance of dedicating resources to helping equip low-income communities with technology.

“You and I both know the barriers that face low income households – from the cost of buying computers to how much it costs for monthly internet service. Federally-assisted housing offers a platform to reduce these barriers through local outreach and training that educates people on specific ways that technology can improve their lives, and on how to use it. Through digital literacy training to get people comfortable with technology. And through workforce development and financial literacy training so that they can get the most out of it,” Donovan said during the summit. “The Federal government can’t do this alone. We need to work in partnership with nonprofits and private industry.”

Connected Nation, through its ConnectKentucky program, will soon establish such a project. In April, ConnectKentucky will use a Kentucky Housing Corp. grant to provide low-income residents with computers and training in the redeveloped Equestrian View neighborhood of Lexington’s East End. Lexmark is donating printers.

By establishing such a program, Equestrian View residents will be provided with the opportunity to explore the world outside of their immediate community. The benefits — from educational to economical — are tremendous and we are encouraged the FCC’s national broadband plan addresses the importance of these programs.

“We applaud the FCC’s efforts to positively impact the digital inclusion imperative in the National Broadband Plan and we will continue to collaborate with members of the nonprofit sector and the ICT industry to reduce the barriers to broadband adoption. We proudly join our partners on a letter to FCC Chairman Genachowski expressing our support for the broadband adoption recommendations proposed today,” said Brian R. Mefford, Connected Nation’s chief executive officer.

UPDATE: NextGenWeb to live stream FCC Field Hearing Featuring Connected Nation State-level Digital Inclusion Work

At 7 p.m. Eastern, NextGenWeb will live stream the Federal Communications Commission’s Field Hearing in Memphis. The digital inclusion work of Connected Tennessee, a Connected Nation state-level initiative, will be highlighted during the event.

Connected Tennessee’s executive director Michael Ramage will speak at one of a series of FCC’s public hearings promoting an open discussion between the commission and the public on the development of a national broadband plan.

View the live feed here.

In addition, Connected Nation has submitted a number of comments to the FCC, adding its voice to the public discussion. The filings cover a variety of topics including education, healthcare, economic opportunity and broadband adoption.

To view the filings, click here.

Connected Nation Provides FCC with Teleworking Research

In a recent public notice, the Federal Communication Commission said that broadband is “transforming the way we work, enabling employees to work wherever and, often, whenever.”

That includes opportunities for the nearly 35 million that are eager to telework, according to Connected Nation research recently filed with the Federal Communications Commission.

Also, according to Connected Nation’s research,

• An estimated 17.5 million Americans who do not currently work would join the country’s workforce if given the opportunity to telework through a broadband connection. This includes more than 3.9 million retirees, 2.4 million homemakers and approximately 3.9 million adults with disabilities who report that teleworking would make employment compatible with their lives.

Connected Nation applauds the FCC in its recognition that home broadband service is not only a means of entertainment, but also a vital tool to empower America’s 21st century workforce. Connected Nation’s research has shown that teleworking can provide new opportunities for the American workforce, but to do so, home broadband availability and adoption must both increase in order to realize the full potential growth.

Connected Nation filed this research and other comments with the FCC, providing valuable information on the financial, personal, educational and environmental impacts of teleworking.


Key findings include:

• Nearly nine out of ten teleworkers rely on a broadband connection to work from home, and the broadband connection speeds of teleworkers are significantly higher than the average broadband user.

• The increased income earnings of these 17.5 million potential new teleworkers is estimated at $739 billion annually, including an additional $163 billion for retirees, $103 billion for homemakers and an additional $166 billion for adults with disabilities.

• With the addition of a potential 17.5 million newly employed teleworking Americans, net federal revenue is estimated to increase by more than $256 billion annually – and this accounts only for income tax revenue, social security revenue and federal disability savings.

• CO2 emissions are expected to drop by an additional 105 billion pounds a year if those interested in teleworking had the opportunity to do so. When combined with the emissions reductions from current teleworkers, this is more than the CO2 emissions produced by every passenger car in the states of New York and California each year.

• Nationally, teleworkers save approximately $5.7 billion annually in fuel alone. If every American worker who would like to telework were enabled to do so, that would result in additional fuel savings of nearly $13.6 billion per year for these Americans. Such a reduction in fuel consumption will significantly contribute to the national goal of energy independence.

To view the entire filing, click here .