The FCC must make certain universal service funding is “adequate and predictable” to support broadband in rural areas, said Senate Communications Subcommittee Chairman Roger Wicker, R-Miss., at a hearing Tuesday on advancing rural IoT opportunities. To thrive, IoT technologies must have reliable and secure broadband services, Wicker said, urging the FCC to collect accurate information on broadband programs before making new funding decisions. Funding should be targeted to “communities in need,” he said.
States with dwindling intrastate USF revenue aren't waiting for the FCC to decide how to revamp federal contribution. The Nebraska Public Service Commission this week became the second state regulator to adopt connections-based contribution to replace a revenue-based model. A representative for small rural companies applauded and said it’s time for the FCC to act. The Utah PSC previously adopted a connections mechanism that will take effect Jan. 1 (see 1710240042). The New Mexico Public Regulation Commission may soon hold stakeholder discussions about moving to connections.
States with dwindling intrastate USF revenue aren't waiting for the FCC to decide how to revamp federal contribution. The Nebraska Public Service Commission this week became the second state regulator to adopt connections-based contribution to replace a revenue-based model. A representative for small rural companies applauded and said it’s time for the FCC to act. The Utah PSC previously adopted a connections mechanism that will take effect Jan. 1 (see 1710240042). The New Mexico Public Regulation Commission may soon hold stakeholder discussions about moving to connections.
FCC commissioners approved temporary rules providing immediate relief to schools and libraries contending with “devastation” caused by Harvey, Irma and Maria. It makes "available targeted support to schools and libraries that are forced to rebuild facilities and replace equipment damaged by the Hurricanes, and provide increased flexibility for eligible services to be restored through service substitutions,” said a Monday order in docket 02-6. “We also make additional E-rate support available for schools that are incurring additional costs for eligible services, e.g., for increased bandwidth demand, because they are serving students that have been displaced by the storms, even though they may not be contending with substantial physical damage.” The storms together caused an estimated $150 billion-$200 billion in damage to areas of Texas, Florida and Georgia “and to virtually all of Puerto Rico and the United States Virgin Islands,” the agency said. Commissioner Mike O’Rielly said the FCC should work with Congress to determine whether the USF programs could be reimbursed through funding targeted to hurricane relief. “Because of our budget limitations, providing additional funding from universal service generally comes at the expense of other recipients,” O’Rielly said.
FCC commissioners approved temporary rules providing immediate relief to schools and libraries contending with “devastation” caused by Harvey, Irma and Maria. It makes "available targeted support to schools and libraries that are forced to rebuild facilities and replace equipment damaged by the Hurricanes, and provide increased flexibility for eligible services to be restored through service substitutions,” said a Monday order in docket 02-6. “We also make additional E-rate support available for schools that are incurring additional costs for eligible services, e.g., for increased bandwidth demand, because they are serving students that have been displaced by the storms, even though they may not be contending with substantial physical damage.” The storms together caused an estimated $150 billion-$200 billion in damage to areas of Texas, Florida and Georgia “and to virtually all of Puerto Rico and the United States Virgin Islands,” the agency said. Commissioner Mike O’Rielly said the FCC should work with Congress to determine whether the USF programs could be reimbursed through funding targeted to hurricane relief. “Because of our budget limitations, providing additional funding from universal service generally comes at the expense of other recipients,” O’Rielly said.
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Consumer willingness to pay extra for faster broadband is much greater at lower speeds, said a Technology Policy Institute paper discussed at a Thursday event. "All the action" in fixed terrestrial and satellite services is in improved data speeds up to 50 Mbps, said TPI President Scott Wallsten, one of the three authors. After that, he said, consumer willingness to pay more drops, flattening out on a graph. "Households’ valuation of bandwidth is highly concave, with relatively little added value beyond 100 Mbps," said the paper, based on two surveys of more than 1,400 people nationwide (one including latency as a factor, the other not). "Households are willing to pay about $2.34 per Mbps ($14 total) monthly to increase bandwidth from 4 Mbps to 10 Mbps, $1.57 per Mbps ($24) to increase from 10 to 25 Mbps, and only $0.02 per Mbps ($19) for an increase from 100 Mbps to 1000 Mbps." Consumers are "willing to pay about $8.66 per month to reduce latency from levels obtained with satellite Internet service to levels more common to wired service," added the paper. "Household valuation of increased data caps is also concave as caps increase from 300 GB to 1000 GB, although consumers place a significant premium on unlimited service." The data suggests the FCC set broadband performance tier bid weights about right in a planned Connect America Fund Phase II auction of broadband support for fixed services, said Jeffrey Prince, an Indiana University business economics and public policy professor. But he said the data suggests the auction's latency penalty is too severe.
Consumer willingness to pay extra for faster broadband is much greater at lower speeds, said a Technology Policy Institute paper discussed at a Thursday event. "All the action" in fixed terrestrial and satellite services is in improved data speeds up to 50 Mbps, said TPI President Scott Wallsten, one of the three authors. After that, he said, consumer willingness to pay more drops, flattening out on a graph. "Households’ valuation of bandwidth is highly concave, with relatively little added value beyond 100 Mbps," said the paper, based on two surveys of more than 1,400 people nationwide (one including latency as a factor, the other not). "Households are willing to pay about $2.34 per Mbps ($14 total) monthly to increase bandwidth from 4 Mbps to 10 Mbps, $1.57 per Mbps ($24) to increase from 10 to 25 Mbps, and only $0.02 per Mbps ($19) for an increase from 100 Mbps to 1000 Mbps." Consumers are "willing to pay about $8.66 per month to reduce latency from levels obtained with satellite Internet service to levels more common to wired service," added the paper. "Household valuation of increased data caps is also concave as caps increase from 300 GB to 1000 GB, although consumers place a significant premium on unlimited service." The data suggests the FCC set broadband performance tier bid weights about right in a planned Connect America Fund Phase II auction of broadband support for fixed services, said Jeffrey Prince, an Indiana University business economics and public policy professor. But he said the data suggests the auction's latency penalty is too severe.
Consumer willingness to pay extra for faster broadband is much greater at lower speeds, said a Technology Policy Institute paper discussed at a Thursday event. "All the action" in fixed terrestrial and satellite services is in improved data speeds up to 50 Mbps, said TPI President Scott Wallsten, one of the three authors. After that, he said, consumer willingness to pay more drops, flattening out on a graph. "Households’ valuation of bandwidth is highly concave, with relatively little added value beyond 100 Mbps," said the paper, based on two surveys of more than 1,400 people nationwide (one including latency as a factor, the other not). "Households are willing to pay about $2.34 per Mbps ($14 total) monthly to increase bandwidth from 4 Mbps to 10 Mbps, $1.57 per Mbps ($24) to increase from 10 to 25 Mbps, and only $0.02 per Mbps ($19) for an increase from 100 Mbps to 1000 Mbps." Consumers are "willing to pay about $8.66 per month to reduce latency from levels obtained with satellite Internet service to levels more common to wired service," added the paper. "Household valuation of increased data caps is also concave as caps increase from 300 GB to 1000 GB, although consumers place a significant premium on unlimited service." The data suggests the FCC set broadband performance tier bid weights about right in a planned Connect America Fund Phase II auction of broadband support for fixed services, said Jeffrey Prince, an Indiana University business economics and public policy professor. But he said the data suggests the auction's latency penalty is too severe.
The National Hispanic Media Coalition and other public interest groups urged the FCC to do more to address the communications meltdown in Puerto Rico and the U.S. Virgin Islands (see 1710040046). Chairman Ajit Pai, meanwhile, said he appointed a staff task force on hurricane recovery. Addressed to Pai, the letter also was signed by the Center for Media Justice, the Color of Change, Free Press and Public Knowledge.