Update 7/7/20:

The U.S. House of Representatives passed the Moving Forward Act, which includes the Accessible, Affordable Internet for All Act, on Wednesday, July 1. The bill is currently in the Senate, where Majority Leader Mitch McConnell has announced his opposition to the legislation, calling it "pointless political theater," and saying, "this nonsense is not going anywhere in the Senate."

Original article:

Earlier this week, Democrats in the U.S. House of Representatives introduced the Accessible, Affordable Internet for All Act, a sweeping bill that would take major steps toward closing the digital divide.

We reported on the legislation yesterday, but today we want to take a closer look at the bill text [pdf]. Below, we examine some details of how the act would fund broadband deployment and affordable connections for Americans across the country.

Grand Plans to Build Broadband, Connect the Unconnected

Among the investments proposed in the Accessible, Affordable Internet for All Act, the largest is $80 billion to fund the construction of broadband networks in unserved and underserved areas. That amount dwarfs the Federal Communications Commission’s (FCC’s) upcoming $20.4 billion Rural Digital Opportunity Fund (RDOF).

Update 7/7/20:

The U.S. House of Representatives passed the Moving Forward Act, which includes the Accessible, Affordable Internet for All Act, on Wednesday, July 1. The bill is currently in the Senate, where Majority Leader Mitch McConnell has announced his opposition to the legislation, calling it "pointless political theater," and saying, "this nonsense is not going anywhere in the Senate."

Original article:

Yesterday, representatives in the U.S. House introduced the Accessible, Affordable Internet for All Act, which calls for the federal government to invest $100 billion to ensure all Americans have access to affordable, high-quality Internet access — a need that has been exacerbated by the ongoing Covid-19 crisis.

The proposed legislation would fund broadband deployment in unserved and underserved areas and provide affordable home Internet access, among other measures meant to reduce the digital divide in both rural and urban communities. It would also remove state restrictions on community-owned broadband networks.

“This bill is an historic effort to address all the causes of our persistent digital divide,” said Angela Siefer, Executive Director of the National Digital Inclusion Alliance, in a statement.

Contact your House representative this week to ask them to support the Accessible, Affordable Internet for All Act and to sign on as a cosponsor. Find your representative and their contact information using this online search tool. Keep reading for more details on the legislation and a short example of what you can say to your representative.

"A Major Leap" Toward Connecting Everyone

At the end of 2019, Congress passed the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act, fixing a tax law change that threatened to raise rates and delay the expansion of broadband for rural cooperative members across the country.

Passage of the RURAL Act ensures that cooperatives can accept federal funds for broadband deployment, disaster relief, and other efforts without risking their nonprofit tax exempt status. A change in the 2017 tax law would have labeled these funds as revenue for the first time, potentially causing co-ops to exceed the allowable percentage of non-member income they must maintain to remain tax exempt.

After Senators Tina Smith (D-Minn.) and Rob Portman(R-Ohio) and Representatives Adrian Smith (R-) and Terri Sewell (D-Ala.) introduced the bipartisan bill in April, it attracted 55 additional cosponsors in the Senate and more than 300 in the House. It was eventually incorporated into the consolidated appropriations act and signed into law in December.

“Obstacles From the Federal Government”

We described the possible impact of the 2017 tax law change on rural cooperatives over a year ago, when Senator Smith first brought the issue to our attention.

Failure to remedy it would have forced some co-ops to choose between continuing with desperately needed broadband and disaster recovery projects and increasing their members’ rates. Northwestern Electric Cooperative CEO Tyson Littau described the difficulty of that decision to the National Rural Electric Cooperative Association (NRECA):

Do we rebuild and try to strengthen our distribution system and pay the taxes, or do we delay the mitigation project that would improve 1,200 miles of line throughout our territory? I think we have a responsibility to the membership to improve the system for the future.

As federal, state, and local leaders increasingly recognize the need to make Internet access universal, they are also realizing that adoption is a separate issue. Programs such as the ReConnect and Connect America Funds I and II Auction have helped to expand infrastructure, but even in places where Internet access has been available for years, 100 percent of households do not subscribe. In an effort to better understand digital equity, the House Subcommittee on Communications & Technology of the Committee on Energy and Commerce recently sat down to listen to experts on digital equity. They discussed common misconceptions, hurdles that make wide-scale adoption difficult, and offered policy recommendations to help us achieve digital equity.

Not Only a Rural Problem

Angela Siefer, Executive Director of the National Digital Inclusion Alliance (NDIA) described how her experience as a digital equity warrior has changed from working with people to learn the basics of computer use to the additional problem of helping people get online. Angela's statement addressed some of the most common myths associated with the digital divide that NDIA, through boots-on-the-ground research, has discovered, including:

The digital divide is a rural problem: Census results show that populations in urban areas do not have Internet access subscriptions of any kind; these are often low-income households.

5G will bridge the digital divide: Lack of infrastructure and devices deployed in areas where existing problems with digital inclusion continue with regards to this new technology.

People don't subscribe because they don't think the Internet isn't valuable: Accomplishing day-to-day tasks often require access to the Internet, which is a fact not lost on those who don't subscribe, but the cost is out of reach for many of those same people.

While 97 percent of Georgia’s urban population has access to broadband, the urban-rural digital divide in the state remains stark and only 70.9 percent of the rural population has that access. Considering estimates are based on self-reported data from incumbent providers and determined broadly by census block, the data overstates the reality on the ground. Representative Doug Collins from Georgia’s 9th congressional district is now leading the charge to mitigate this disparity, not only in his home state but in rural regions throughout the country. In a recent “Dear Colleague” letter, the top Republican on the House Judiciary Committee stated his intentions of introducing the CAF (Connect America Fund) Accountability Act at the start of the 116th Congress. Collin, a Republican representing Georgia's 9th District, introduced H.R. 427 on January 10th. If passed, the bill will create stricter requirements for the Federal Communications Commission (FCC)’s broadband infrastructure funding under CAF.

Reaching for Accountability

CAF was designed to subsidize network deployments in unserved rural areas, which have often been overlooked due to the high expense of constructing infrastructure for few and scattered populations. While many providers that have received this funding have used it properly, as Collins stated, “others have taken taxpayer dollars but failed to fulfill their obligations to their consumers… instead using taxpayer dollars ineffectively or inappropriately – turning their backs on those families at the last mile.”

Currently, CAF recipients are required to provide speeds of at least 10 Mbps download and 1 Mbps upload. While this threshold is well below the current FCC definition of “broadband” service of at least 25 Mbps/3 Mbps, Collins noted that in his home district of Northeast Georgia, a region where a majority of ISPs are CAF recipients, consumers report speeds that are “consistently abysmal, sometimes not even reaching 3 Mbps downstream and 1 Mbps.”

For many rural Americans, the local electric or telephone cooperative is their best hope for finally obtaining modern-day connectivity. With the support of government funding, rural cooperatives have brought electricity, telephone service, and more recently broadband access to some of the most rugged and sparsely populated places in the country.

However, recent tax code changes might prevent co-ops from connecting more rural communities. Cooperatives could potentially lose their tax exempt status if they accept government grants for broadband expansion and disaster recovery — an unintended yet foreseeable consequence of the Republican “Tax Cuts and Jobs Act” passed late last year. In a press release, Senator Tina Smith called attention to the oversight, noting, “This uncertainty has caused cooperatives significant concern and frozen some of their grant applications.”

Who’s Ready for Some Tax Policy?

As nonprofit membership corporations, rural electric and telephone cooperatives are exempted from paying taxes under section 501(c)(12) of the Internal Revenue Code (IRC). To maintain this tax exempt status, cooperatives must derive at least 85 percent of their income from members (e.g., from selling electricity). This is sometimes referred to as the the member income test or the income source test.

It’s May 16th and today is the day the Senate will vote on whether or not to reverse last December’s repeal of network neutrality rules by FCC Chairman Ajit Pai and other Republican FCC Commissioners. As a reminder, we thought this was a good day to pull out the maps we created that illustrate how that decision to repeal the federal policy put at least 177 million Americans at risk. Without network neutrality protections in place, these folks are limited to obtaining broadband Internet access only from providers that have violated network neutrality or have admitted that they plan to violate network neutrality tenets in the future.

Visualizing the Risks

Back in December 2017 when the current FCC made it’s misguided decision, we decided to take a look at the data and create visualizations to paint a picture of what they had done. We used Form 477 data, which tends to overstate coverage, so the problem in the field is likely more severe than the maps indicate. The results aren’t pretty.

At least 129 million people have only a single provider from which they can subscribe to broadband Internet access. The FCC defines broadband as 25 Mbps download and 3 Mbps upload. Out of those 129 million Americans, about 52 million must turn to a company that has violated network neutrality protections in the past and continues to do so.

In some places, the situation is a little better. There are 146 million Americans with the ability to choose between two providers, but 48 million of those Americans must choose between two companies that have a record of violating network neutrality.

For a larger image, download this version [18 MB png]. 

At the Institute for Local Self-Reliance, we recognize the power of small businesses in local communities. As federal lawmakers consider where they stand on the issue of network neutrality protections, small businesses can join forces to let Congress know that they need network neutrality to stay strong. Fight For The Future (FFTF) has launched a campaign that takes advantage of “Small Business Week” and its proximity to a crucial vote involving the Congressional Review Act (CRA).

Sign, Host, Deliver, Speak

FFTF encourages business owners to express their support for network neutrality by signing a short letter they’ve prepared that succinctly addresses the issue for small businesses:

Dear Member of Congress,

We are companies who rely on the open Internet to grow our business and reach customers online. We are asking Congress to issue a “Resolution of Disapproval” to restore net neutrality and the other consumer protections that were lost when the Federal Communications Commission (FCC) voted to repeal the 2015 Open Internet Order in December 2017.

Users and businesses need certainty that they will not be blocked, throttled or charged extra fees by Internet service providers. We cannot afford to be left unprotected while Congress deliberates.

We will accept nothing less than the protections embodied in the 2015 order. Please ensure the FCC keeps its tools to protect consumers and business like ours.

Thank you for considering our views.

Sincerely,

Fight for the Future

Thousands of businesses have already signed on to the letter to be delivered to members of Congress on May 2nd, the high point of “Small Business Week.”

FFTF also offers suggestions, resources, and media materials for local folks who want to attend an event happening in their area or who want to organize a local event. If you want to organize a letter delivery, FFTF offers a package of resources that includes steps to take, graphics and media for outreach, recruitment ideas, and points to consider when talking to the press. It’s all you need in one place — you add the energy.

Maple syrup, the Green Mountains, and network neutrality. On February 15th, Vermont Governor Phil Scott signed Executive Order No. 2-18, the Internet Neutrality in State Procurement, following closely the actions of four other Governors over the past few weeks. You can read the E.O. here.

States Take A Stand 

Like similar actions in Montana, New York, Hawaii, and New Jersey, Vermont’s executive order applies to contracts between ISPs and state agencies. The order directs the state Agency of Administration to change its procedures so that any ISP it contracts with doesn't throttle, engage in paid prioritization, or block content. The Agency of Administration has until April 1st to make the changes to Vermont’s procedures. 

If a state agency cannot obtain services from an ISP that agrees to comport with network neutrality policy, the state agency can apply for a waiver. The E.O. is silent as to what would allow a waiver; presumably the Agency of Administration would need to establish criteria.

Action In The State Chambers

In early February, the State Senate passed S.289 with only 5 nays and 23 yeas. The executive order Scott recently signed reflected the intention behind the language of S.289 regarding state contracts. When Sen. Virginia Lyons introduced the bill, she described it as a necessary tool to ensure transparency in government. “We don’t want to see information held back or slowed down or deviated in any way when it relates to our state or local government,” Lyons said.

After the FCC chose to overturn federal network neutrality protections on December 14th, 2017, open Internet advocates and elected officials that favor network neutrality have sought avenues past the Commission to reinstate the policy. In Louisiana, four groups of citizens organized together to form Team Internet and stage Louisiana rallies in four cities in January. Their goal was to bring attention to the overwhelming opinion that network neutrality benefits Internet users and to convince Senator John Kennedy that he should vote to block the harmful FCC decision.

Fight for the Future (FFTF), Free Press Action Fund, and Demand Progress worked together to form Team Internet, which organized protests in Lafayette, Shreveport, Baton Rouge, and New Orleans at Kennedy’s offices. At the Lafayette office, a group of advocates led by Layne St. Julien presented petitions with more than 6,000 signatures to Kennedy’s deputy state director, Jay Vicknair. The petitions urged Sen. Kennedy to use his vote to overturn the FCC action.

According to Vicknair, constituents have called and emailed the office in numbers rivaled only by last year’s healthcare debates.

Advocate Tool, The CRA

Proponents of network neutrality — mostly people, companies, and entities that aren’t big ISPs — consider the FCC’s order harmful. In order to regain network neutrality protections, which would remove the threat of paid prioritization and better ensure an open exchange of ideas online, advocates hope to use the Congressional Review Act (CRA). Under the CRA, Congress can reverse the FCC decision within 60 legislative days of it being published in the Federal Register as long as there is a majority vote. At last count, 50 Senators had committed to supporting a reversal. Public Knowledge has created a quick video describing the process:

At the recent Team Internet protest, attendees called on Kennedy to “be a hero” and be the 51st.

In A Net Neutrality Zone