Investment in Broadband Infrastructure: Still Work to Be Done

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By Steven K. Berry, President & CEO, CCA

While many Americans enjoy near-ubiquitous access to mobile broadband service, many others, especially those residing in rural and remote areas, do not.  Competitive carriers are working every day to connect these Americans to robust, 21st century networks.   But, for these carriers to provide top-notch service to their customers, it is essential that they have access to the right inputs.  While policymakers remain focused on ways to spur investment in broadband infrastructure, including holding a recent Congressional hearing, continued bipartisan focus can support continued expansion of mobile broadband networks.

Broadband access is a critical component of modern life, and mobile carriers are often the most reliable, cost-effective provider of broadband connectivity to otherwise unserved and underserved areas of the United States.  Government policies being set today will have a direct impact on the continued expansion and availability of mobile connectivity tomorrow, especially in rural parts of the country.

Mobile broadband availability has spurred broad benefits across the country, including access to telemedicine, education and employment opportunities, and enabled precision farming and agricultural advancements.  Today, nearly half of all United States households are “wireless only,” and PEW Research recently found that “nearly two-thirds of Americans are now smartphone owners, and for many, these devices are a key entry point to the online world.”

Because mobile provides the most efficient means for ensuring that all Americans can connect, pro-competitive policies regarding, in particular, tower siting, Universal Service funding, and access to spectrum, are absolutely essential to promoting growth and investment in the industry.  Let’s face it – we are talking about  providing quality wireless services to the most difficult and sometimes most costly areas of our nation, and for safety, economic, educational and health related benefits, it is worth the effort.  US telecom policies should recognize and accommodate these realities.

Tower Siting

Streamlined tower siting policies are key to encouraging the development of wireless broadband services.

Wireless infrastructure providers deserve prompt responses from state and local governments on siting applications. Failing to provide carriers with adequate information, clear reasons for denying a siting application, or timely responses ties up limited resources better used to expand mobile broadband services.  The Supreme Court’s ruling in T-Mobile South LLC v. City of Roswell, which requires local and state governments to act expeditiously and clearly state their objections to a tower siting application, is a step in the right direction.  CCA successfully supported this decision, participating as a friend of the court.

Additionally, towers can only be built after gaining access to rights-of-way and clearing other regulatory hurdles.  Policies to eliminate red tape, as well as increase access to federal lands, will increase investment and spur additional infrastructure deployment—particularly in rural and remote areas.

Infrastructure is a major capital expense for carriers, especially smaller carriers with limited resources, and it’s important to provide as much certainly to carriers as possible, so they can continue to provide and expand highly-desired services to consumers.

Universal Service Funding

Congress created the Universal Service Fund (USF) to facilitate deployment of reasonably comparable services in urban and rural areas, requiring that support be predictable and sufficient. The major goals of USF are to:

  • Increase nationwide access to advanced telecommunications services;
  • Advance the availability of such services to all consumers, including those in low income, rural, insular, and high-cost areas, at rates that are reasonably comparable to those charged in urban areas;
  • Increase access to telecommunications and advanced services in schools, libraries and rural health care facilities; and
  • Provide equitable and non-discriminatory contributions from all providers of telecommunications services to the fund supporting universal service programs.

Uncertainty regarding existing and future support has the potential to delay or prevent deployment of broadband infrastructure in rural and high-cost areas.

USF support provides wireless carriers opportunities to invest significant resources to expand service.  Uncertainty around future support can stall deployments and force carriers to make difficult decisions regarding service roll-outs in rural areas, especially in some of the most challenging terrain.  Even worse, uncertainty regarding future USF support has the potential to strand existing investments, leaving behind a legacy of rusty towers and reduced services.  Policymakers should continue work to ensure that USF support is sufficient and predictable to support wireless services in rural America.

Access to Spectrum

Scheduled for early 2016, the FCC plans to hold a first-of-its-kind incentive auction – encouraging TV broadcasters to sell some of their spectrum to commercial carriers for mobile broadband use.  Competitive carriers are particularly hungry for this “low-band spectrum” because of its unique propagation characteristics, and as such, it is much more cost-effective to build-out in rural areas.

Spectrum is the lifeblood of the wireless industry, and it is absolutely critical for policymakers to ensure that all carriers, large and small, have a meaningful opportunity to access additional spectrum in the incentive auction.  More carriers means more competition, which benefits the entire wireless ecosystem, particularly infrastructure companies that are in the business of helping carriers enhance and expand their networks.

Conclusion

The infrastructure industry has a key role to play in the continued build-out of broadband services, and government must enact pro-competitive policies that help both carriers and infrastructure providers to extend these services.  Delays and uncertainty on decisions regarding tower siting, USF support and the incentive auction harms not only wireless carriers and the infrastructure community, but ultimately consumers.  The entire wireless ecosystem benefits from pro-competitive policies.  The job is not done until every American, whether in rural or urban areas, has access to high speed mobile broadband service.

 

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