Pai Creates Broadband Deployment Advisory Panel Targeting Regulatory Barriers

Telecom trade group reaction was positive; Free Press was less impressed. “It’s a great signal to industry and consumers that what the commission is doing will play a role in the infrastructure agenda of President Donald Trump,” said telecom consultant Grant Seiffert. Free Press Policy Director Matt Wood tweeted that Pai's digital divide vows were laudable but questioned the substance of his proposals and said the FCC needs to address broadband affordability.

Pai said he made clear he has "no higher priority than closing the digital divide," referring to his Jan. 24 remarks to FCC staff after becoming chairman (see 1701240064). "Access to broadband is increasingly critical for all Americans, no matter who they are or where they live," he said in Tuesday's news release. "It's becoming the 21st century gateway to jobs, health care, education, information, and economic development everywhere, from the smallest town to the largest city. That makes it imperative for us to remove regulatory barriers."

At the meeting, Pai noted the "digital empowerment agenda" he proposed in a September speech backing efforts to create gigabit opportunity zones, boost rural mobile broadband, remove broadband regulatory barriers, and promote entrepreneurship and innovation (see 1609130061). At a news briefing Tuesday, he noted some of his tax and other proposals require congressional action, saying he's seeking comprehensive solutions that use all policy tools. He also noted his meetings last week with consumer groups and small ISPs (see 1701260042) and his initial actions as chairman to approve federal Connect America Funding for a New York broadband subsidy auction (see 1701260047) and to circulate a draft order to give small ISPs relief from net neutrality disclosure requirements (see 1701270058).

The BDAC will seek to devise recommendations to boost broadband deployment, including by further reforming pole-attachment rules, "identifying unreasonable regulatory barriers," encouraging local governments to promote deployment, and other measures, said the FCC release. Pai said one of the panel's first tasks would be to draft a template for localities to ensure a broadband-friendly regulatory environment. "This model code will cover topics like local franchising, zoning, permitting, and rights-of-way regulations," he said. "Building, upgrading, and deploying broadband networks isn’t easy, and red tape often can make the task harder than it needs to be."

The new chairman said the FCC already took steps to create the BDAC and planned to hold the first meeting this spring. He encouraged interested parties to provide input on the panel, with the agency planning to have 15 members from diverse sectors. The PN said the categories include: rural ISPs; urban ISPs; independent network builders and installers; other entities involved in broadband deployment; industry trade groups; federal, state, local and tribal authorities; consumer and community groups; and other interested stakeholders and relevant parties. BDAC member nominations should be submitted by Feb. 15, said the PN, which also outlined the panel's mission, procedures and expected activities.

Industry trade groups on different sides lauded the announcement. "Chairman Pai’s focus on practical, nuts and bolts issues that will spur broadband investment and reduce the digital divide makes great sense," said USTelecom President Jonathan Spalter in a statement. "CTIA and the wireless industry applaud Chairman Pai’s leadership," said President Meredith Baker, citing an estimate of $275 billion in planned investment over a decade to build 5G systems. "As we plan for this investment, the wireless industry welcomes the opportunity to work collaboratively with communities, consumers and government at every level on effective ways to streamline and accelerate wireless infrastructure deployment." Incompas welcomed Pai's move and believes broadband deployment must be a national priority, CEO Chip Pickering's said. "New competitive network builders have shown the path to success. In communities with more choices and access, broadband speeds increase, prices drop and new businesses thrive."

Free Press said the FCC needs to do more to make broadband affordable. Noting Pai's recent comments to staff, the group said in a release that it wrote the FCC to commend Pai's focus on closing the digital divide while cautioning about his track record as a commissioner. “No matter how laudable the new chairman’s sentiment may be, his proposals to close that divide could be ineffective -- and even harmful,” the Free Press letter said. “The Commission must not subsidize build-out that is already occurring in the market, and yet not even address the primary structural barrier keeping tens of millions of people offline: affordability of the services already available to them," it wrote. "The adoption gap is an affordability gap."

Pai said the FCC is reviewing its Lifeline policies and had made no determinations, when asked by a reporter about possible changes to the USF subsidy program for low-income consumer broadband/voice services.