FCC Rural Broadband Report Calls for USF Overhaul, Spectrum Audit

The rural report is “a prelude to, and building block for, the national broadband plan, which will address in greater detail and on a vastly more complete record, the input of all stakeholders and the steps the nation must take to achieve its broadband goals,” Copps wrote. “The likely success of rural initiatives is intimately linked to a sound national broadband policy that reflects the complex interdependencies of regulatory policies, economic issues, and technological innovations.”

Though the report doesn’t necessarily reflect the views of the full commission, Commissioner Jonathan Adelstein praised many of the conclusions in a short written statement. “This isn’t a report that just talks about interagency coordination,” he said. “It has already served as a catalyst for encouraging greater discussion across the federal government that is unprecedented in my time on the Commission.”

The report envisions an active role for government in efforts to increase broadband availability in rural America. “A complementary government role in broadband deployment can yield advantages that a free market solution cannot achieve alone,” wrote Copps. “For example, government involvement in rural broadband may increase the efficiency and reliability of local services, such as law enforcement and emergency services; promote job growth and economic development by attracting and retaining businesses and increasing use of technology in a community; provide educational benefits, both for local schools and those seeking education online; and generally generate the indirect benefits to America that private deployers may not consider in their cost-benefit profit assessments.”

Copps recommended increased coordination among federal agencies; tribal, state and local governments; and community groups and individuals. The FCC and other federal agencies should develop their own rural broadband agendas, hold more joint hearings, and coordinate definitions of key terms like “rural” across programs, he said. Federal agencies should streamline existing broadband programs, and review non-broadband programs to see what opportunities exist to promote deployment, he said.

Rural broadband policy should be technology neutral, Copps said. “The solutions for rural broadband should reflect consideration of the full range of technological options available, and should not elevate the need for short-term progress over longer-term objectives,” he said. “However the rural networks are configured, they should be designed on principles of durability, reliability, openness, scalability, and interoperability so that they can evolve over time to keep pace with the growing array of transformational applications and services that are increasingly available to consumers and businesses in other parts of the country.”

Copps again called for comprehensive reform of the USF. “It is time for universal service to meet the communications challenge of the 21st century -- broadband deployment -- just as it did the communications challenge of the 20th century -- telephone service,” he said. “Adding broadband to both the contribution and distribution sides of the ledger, eliminating the identical support rule, and conducting effective auditing and oversight, along with a Congressional change to include intrastate as well as interstate revenue as part of the fund, would accomplish a great deal in addressing the sustainability and integrity of the fund for the long term and promote broadband in the areas served by the fund.”

The acting chairman also urged the addition of a nondiscrimination principle to the FCC’s Internet Policy Statement. The agency should establish a “systematic, expeditious, case-by-case process for adjudicating claims of discrimination,” he said. “The positive externalities and network effects of ubiquitous broadband will not be realized if consumers are all constrained by careful bundling, packaging, and discriminatory practices that whittle away the end-to-end structure of the public Internet.”

The FCC should consider the impact of special access prices on rural broadband deployment and affordability, Copps said. Competitive carriers have argued that current prices are excessive, he noted. The commission should also consider actions to address middle-mile connectivity, he said. And it should finish a proceeding on pole attachments, he said. “Timely and reasonably priced access to poles and rights of way is critical” to broadband buildout, he said.

Wireless to Play Big Role

The report mentioned wireless 123 times, suggesting that efforts to build out wireless service in rural America have been a mixed bag at best. “In particular, parties have noted that there remains a lack of available, affordable, and suitable spectrum for rural wireless broadband; that our secondary market rules do not always promote spectrum trading and re-use; and that backhaul costs between wireless points of presence are prohibitively high,” the report said.

The report recommends that the FCC undertake a “thorough inventory” of all the spectrum it has licensed. The inventory should look at “how, why, and where it is used” and identify “distinct geographic areas where service has not been deployed or where the spectrum is being used inefficiently.” Where used ineffectively, the report recommended possible fixes. “The Commission could then consider various ways to redeploy this spectrum for more efficient use, including possible modifications to secondary markets rules,” it said. “For example, the Commission could examine whether requiring licensees to make ‘good faith’ efforts to negotiate with potential spectrum lessees, particularly in rural areas, would promote the development of broadband service in rural markets.”

The report devotes a single three-sentence paragraph to tower siting, an area of recurring concern to wireless carriers. The report does not specifically address CTIA’s petition seeking a siting shot clock to speed up decisions by local authorities or make any specific recommendations. “One study concludes that, in order to achieve ubiquitous mobile broadband coverage, approximately 16,000 new towers will need to be constructed, disproportionately in rural areas,” the report said. “We note that there are several open Commission proceedings that may affect the pace or cost of tower construction.”

Government Web sites should be used to enhance coordination, the report said. The FCC site, as well as the commission and Agriculture Department’s “Broadband Opportunities for Rural America” site, should be expanded to include links to all federal government programs related to rural broadband, he said.

To better assess U.S. broadband needs, the FCC should collect more data on availability and subscribership, speeds, prices, demand and infrastructure, Copps said. The agency and the administration should continue efforts to coordinate broadband mapping efforts, he said. To spur demand, government and private companies should develop consumer education and training and establish broadband affordability programs, Copps said.

The report also makes a pitch for satellite broadband. “With its near ubiquitous coverage and downstream data rates between 512 kbps and 5 Mbps, [satellite] can provide a much-needed connection in rural areas, especially where other broadband solutions are not viable for technical or other reasons,” the report said.