[Senate Hearing 113-307]
[From the U.S. Government Publishing Office]
S. Hrg. 113-307
BROADBAND ADOPTION: THE NEXT MILE
=======================================================================
HEARING
before the
SUBCOMMITTEE ON COMMUNICATIONS, TECHNOLOGY, AND THE INTERNET
of the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
FIRST SESSION
__________
OCTOBER 29, 2013
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
______
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED THIRTEENTH CONGRESS
FIRST SESSION
JOHN D. ROCKEFELLER IV, West Virginia, Chairman
BARBARA BOXER, California JOHN THUNE, South Dakota, Ranking
BILL NELSON, Florida ROGER F. WICKER, Mississippi
MARIA CANTWELL, Washington ROY BLUNT, Missouri
MARK PRYOR, Arkansas MARCO RUBIO, Florida
CLAIRE McCASKILL, Missouri KELLY AYOTTE, New Hampshire
AMY KLOBUCHAR, Minnesota DEAN HELLER, Nevada
MARK WARNER, Virginia DAN COATS, Indiana
MARK BEGICH, Alaska TIM SCOTT, South Carolina
RICHARD BLUMENTHAL, Connecticut TED CRUZ, Texas
BRIAN SCHATZ, Hawaii DEB FISCHER, Nebraska
MARTIN HEINRICH, New Mexico RON JOHNSON, Wisconsin
EDWARD MARKEY, Massachusetts JEFF CHIESA, New Jersey
Ellen L. Doneski, Staff Director
James Reid, Deputy Staff Director
John Williams, General Counsel
David Schwietert, Republican Staff Director
Nick Rossi, Republican Deputy Staff Director
Rebecca Seidel, Republican General Counsel and Chief Investigator
------
SUBCOMMITTEE ON COMMUNICATIONS, TECHNOLOGY,
AND THE INTERNET
MARK PRYOR, Arkansas, Chairman ROGER F. WICKER, Mississippi,
BARBARA BOXER, California Ranking Member
BILL NELSON, Florida ROY BLUNT, Missouri
MARIA CANTWELL, Washington MARCO RUBIO, Florida
CLAIRE McCASKILL, Missouri KELLY AYOTTE, New Hampshire,
AMY KLOBUCHAR, Minnesota DEAN HELLER, Nevada
MARK WARNER, Virginia DAN COATS, Indiana
MARK BEGICH, Alaska TIM SCOTT, South Carolina
RICHARD BLUMENTHAL, Connecticut TED CRUZ, Texas
BRIAN SCHATZ, Hawaii DEB FISCHER, Nebraska
RON JOHNSON, Wisconsin
C O N T E N T S
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Page
Hearing held on October 29, 2013................................. 1
Statement of Senator Pryor....................................... 1
Statement of Senator Wicker...................................... 2
Prepared statement of Tom Koutsky, Chief Policy Counsel,
Connected Nation submitted by Hon. Roger F. Wicker......... 60
Statement of Senator Klobuchar................................... 50
Statement of Senator Rubio....................................... 52
Statement of Senator Ayotte...................................... 56
Witnesses
Hon. John E. Sununu, Co-Chair, Broadband for America and former
U.S. Senator from New Hampshire................................ 4
Prepared statement........................................... 6
Aaron Smith, Senior Researcher, Pew Research Center's Internet
Project........................................................ 9
Prepared statement........................................... 11
Bernadine Joselyn, Director, Public Policy and Engagement,
Blandin Foundation............................................. 13
Prepared statement........................................... 14
Sunne Wright McPeak, President and Chief Executive Officer,
California Emerging Technology Fund............................ 22
Prepared statement........................................... 24
David L. Cohen, Executive Vice President, Comcast Corporation.... 37
Prepared statement........................................... 38
Appendix
Hon. John D. (Jay) Rockefeller IV, U.S. Senator from West
Virginia and Chairman, U.S. Senate Committee on Commerce,
Science, and Transportation, prepared statement................ 71
Follow-up Submission to Testimony Submitted by Sunne Wright
McPeak, President and CEO, California Emerging Technology Fund. 71
Letter dated November 11, 2013 to Hon. Mark Pryor and Hon. Roger
Wicker from Lilian P. Coral, Director, 2-1-1 California........ 75
Letter dated November 8, 2013 to Hon. Mark Pryor and Hon. Roger
Wicker from Alicia Orozco, Project Manager, Get Latinos
Connected, Chicana/Latina Foundation........................... 76
Letter to Hon. Mark Pryor and Hon. Roger Wicker from Luis
Granados, Executive Director, Mission Economic Development
Agency (MEDA).................................................. 77
Letter to Hon. Mark Pryor and Hon. Roger Wicker from Mike Dozier,
Executive Director, California State University, Fresno........ 79
Letter to Hon. Mark Pryor and Hon. Roger Wicker from Martin O.
Gomez, Ph.D., Instructional Leader, Santee Education Complex... 80
National Hispanic Media Coalition, prepared statement............ 80
Letter dated October 29, 2013 to Senator Mark Pryor and Senator
Roger Wicker from Javier Palomarez, President and CEO, United
States Hispanic Chamber of Commerce (USHCC).................... 82
Response to written questions submitted by Hon. Amy Klobuchar to:
Aaron Smith.................................................. 84
Bernadine Joselyn............................................ 84
Response to written questions submitted by Hon. Marco Rubio to
Hon. John Sununu............................................... 89
BROADBAND ADOPTION: THE NEXT MILE
----------
TUESDAY, OCTOBER 29, 2013
U.S. Senate,
Subcommittee on Communications, Technology, and the
Internet,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Subcommittee met, pursuant to notice, at 10:30 a.m., in
room SR-253, Russell Senate Office Building, Hon. Mark Pryor,
Chairman of the Subcommittee, presiding.
OPENING STATEMENT OF HON. MARK PRYOR,
U.S. SENATOR FROM ARKANSAS
Senator Pryor. I'll call our Subcommittee to order. I want
to thank everyone for coming to the Subcommittee on
Communication, Technology, and the Internet.
Our hearing today is entitled ``Broadband Adoption: The
Next Mile.'' Again, I want to thank all of our witnesses for
coming. And some traveled to be here, and we appreciate that.
I want to especially thank our former colleague, Senator
John Sununu. It's great to see you again this morning. You
know, back when he was in the Senate, he used to always remind
me that he was the youngest Senator in the Senate. You know?
So, that's what we had to deal with all the time. So, maybe we
can ask him some real hard questions today. What do you think
about that?
[Laughter.]
Senator Pryor. No, really, thank you all for being here.
And this is a story where you see the public and private sector
who have done a tremendous job in trying to make sure that
Americans have access to broadband. There has been a great deal
of progress there. Lots of investments. Our providers,
nonprofits, private entities have all been working very, very
hard to achieve that goal of access. And the Federal Government
has done some things with Universal Service Fund, BTOP, and
other programs. And certainly, as we have the hearing today, we
don't want to diminish the progress that we've made; we also
don't want to forget about the millions of Americans who have
access but still maybe need faster access. But, today our
focus--today our focus is on broadband adoption, which is a
little different than just access.
Nearly 30 percent of all Americans who have access to
broadband do not subscribe to those services. That is, millions
of Americas who--Americans who risk being on the wrong side of
the digital divide. So, today the Subcommittee will look at the
various barriers to broadband adoption and the strategies for
overcoming these barriers.
And just as the public and private sectors have worked so
hard and invested billions of dollars toward broadband
deployment, they're also putting significant time and effort
and resources to encouraging Americans to take advantage of
this very important resource.
So, I want to commend our witnesses today, but also the
private sector and others for doing all that they've done to
get us where we are today.
But, I also hope that today we'll hear some of the lessons
learned on the ground, to understand how to encourage more
people to sign up to this, what is now becoming, and has
become, just critically important and necessary infrastructure
for the 21st century. We, in Congress, hear every day about
success stories from individuals and communities where
broadband has made significant impacts. And, of course, our
providers have a lot of firsthand stories about improvements
and benefits to homes, schools, businesses, et cetera. However,
for many Americans, those successes remain hidden.
So, I think there are probably three reasons why some
Americans don't sign up, but we want to hear from the witnesses
about their thoughts. One would be--a lot of Americans just
don't understand the relevancy and why they should do this. A
lot of Americans feel like they're not capable or they don't
have the skills to do it. And then there are some Americans who
say they just can't afford it.
So, today we'll hear from a provider and various nonprofit
organizations that have been working to identify who is and who
is not online, why Americans are or are not connecting, and
developing and implementing strategies to encourage Americans
to adopt broadband Internet. I want to hear from our panelists
about the most effective ways that we can do this, policies
that maybe we need to support, the role of the Federal
Government in improving broadband adoption rates.
And so, again, I want to thank you. And we'd like to hear
from Senator Wicker and then from our witnesses.
STATEMENT OF HON. ROGER F. WICKER,
U.S. SENATOR FROM MISSISSIPPI
Senator Wicker. Thank you, Mr. Chairman, for holding this
important hearing on the state of broadband adoption in
America.
Over the past year, this subcommittee, under the Chair's
leadership, has done a great job of providing a forum for
education and discussion on the state of communications policy
in our nation, covering a broad array of topics. However, the
common denominator in all of our hearings has been the emphasis
on the importance of broadband for all Americans.
As I've mentioned before, we, as policymakers, must ensure
that any digital divide that exists between Americans--whether
that divide is urban or rural, young or old, high income or low
income--must be bridged. Our goal should be that all consumers
be able to take full advantage of our 21st century broadband
economy.
The deployment of broadband via cable, DSL, fiber,
wireless, and satellite has been a success. According to NTIA
at the end of 2012, nearly all American consumers had access to
some form of high-speed broadband. However, there are still
challenges to be examined, particularly in regard to consumer
adoption of broadband services, which brings us to our hearing
today.
According to the FCC, the broadband adoption rate in the
United States stands between 62 and 68 percent, meaning
approximately one-third of Americans who have access to
broadband choose not to subscribe to the service. Of particular
interest is the agency's finding that the broadband adoption in
non-urban areas is significantly lower than in urban areas.
So, while tens of millions of Americans now have access to
broadband, they choose to remain offline. The primary reasons
for non-adoption include the lack of digital literacy,
questions regarding the relevancy of broadband in their lives,
and the cost of equipment and service.
Mr. Chairman, you and I both know the importance of
broadband adoption. Our fellow citizens in Mississippi and
Arkansas have perhaps not taken to the Internet quite like our
colleagues in Minnesota, for example, or New Hampshire. I fear
this lack of adoption may hold our states back as we move
deeper into the 21st century, but I also see this as a great
opportunity to bring more of our great people to the online
world to share their interests and talents and improve their
lives.
Assembled here today are witnesses with a broad and varied
knowledge of broadband adoption in America. We have
representatives of Internet service providers, like Comcast,
which is celebrating its 50th anniversary this year and, I'm
proud to say, was founded in Tupelo, Mississippi, where I
reside. We also have a private philanthropic organization in
Minnesota's Blandin Foundation, a nonprofit from California,
and the Pew Research Center, which has provided valuable
reports and data for us to consider.
I also would like to welcome John Sununu back to this
committee, and note, Mr. Chairman, that, according to his
nameplate, one can leave the Senate and this committee and
still remain ``Honorable.'' And that is good to know.
[Laughter.]
Senator Wicker. Senator Sununu served here on this
committee with distinction for a number of years.
So, I look forward to hearing all of our witnesses.
Thank you, again, Mr. Chairman, for holding this important
hearing.
Maximizing broadband adoption needs to be a top priority of
this subcommittee. This hearing will provide a good opportunity
for our members to learn about not only the successes of
broadband adoption, but, more importantly, what can still be
achieved.
Thank you, sir.
Senator Pryor. Thank you.
And what we'll do is, we'll make all of the members, here,
their opening statements, part of the record. And we also, for
all of our witnesses today, your full statements will be made
part of their record, so feel free to summarize those. And we'd
ask you to keep all your statements to 5 minutes, and we look
forward to the round of questions.
Let me just introduce the entire panel, then I'll just call
on you, one by one.
First, of course, we have Senator John Sununu. He's the
Honorary Co-Chair of Broadband for America. Second, we have Mr.
Aaron Smith, Senior Researcher, Pew Research Center, Pew
Internet & American Life Project. Next, we have Ms. Joselyn,
Director of Public Policy and Engagement, Blandin Foundation.
And next, we'll have Ms. McPeak, President and Chief Executive
Officer, California Emerging Technology Fund. And last, and
certainly not least, we have Mr. David Cohen. He's the
Executive Vice President of Comcast Corporation.
So, without any further ado, let me recognize Senator
Sununu for your opening statement. Thank you for being here.
STATEMENT OF HON. JOHN E. SUNUNU, CO-CHAIR,
BROADBAND FOR AMERICA AND FORMER U.S. SENATOR
FROM NEW HAMPSHIRE
Senator Sununu. Thank you very much, Mr. Chairman. It
really is a pleasure to be here. Happy to be on this side of
the witness stand, which is, obviously, new for me. I don't
think I've been in this room in five years. And, well, it's not
a complaint, my only observation is, these chairs are much
lower than I expected them to be.
[Laughter.]
Senator Sununu. But, happy to be here, nonetheless. And
nice to see former colleagues here; and, in particular, Senator
Ayotte, who's doing such a great job for the people of New
Hampshire.
I'm, as you indicated, Mr. Chairman, the honorary co-chair,
along with former Congressman Harold Ford, of Broadband for
America. It's an organization--a coalition of 300 or so
members--whose mission is focused on encouraging broadband
investment, deployment, access, and adoption. So, happy to be
here to talk about what we see happening in those areas and to
talk a little bit about adoption initiatives, as well. But,
we've got a great panel here of many who are working in
different regions of the country, in different programs, and
who can share their experience, as well.
It's hard not to focus on broadband investment when you're
talking about this topic. It's different than adoption, but it
has got to start somewhere, and oftentimes it starts with
money. And over the last several years, I think there's a very
positive story to talk about in America on broadband
investment--$250 billion invested by the broadband industry
over the past 3 years. I think the Progressive Policy Institute
highlights just the six largest broadband providers investing
$50 billion in the last year.
And, let's face it, the broadband infrastructure, it's not
the be all and end all, but it is the foundation for a lot of
innovation and economic growth that's going on out there. In
particular, companies like Google or Apple, but even more
prominently and more recently, the applications industry. The
apps industry now employs 750,000 people. It didn't exist five
years ago. Investment then leads to competition. Very
important. The OECD ranks the U.S. third in broadband
competition in the world. We--as was mentioned, I think, by
Senator Wicker, 94 percent of people in the country have access
to one or more wired broadband providers, 82 percent have
access to four or more wireless broadband providers. So, the
competition is there, and access, in many parts of the
country--most parts of the country--is there.
And it's interesting to look at the growth in access. Over
the last 10 years, we've gone from 15 percent of the country
having access to broadband to 98 percent of the country having
access to broadband. That's great progress. Ninety-six percent
having access to networks that are capable of 10 megabits per
second or more, 85 percent of the country having access to
technology that can give 100 megabits per second or more. And
speeds, similarly, have increased by about 20 percent over the
past year.
So, investment, we've got better and growing competition.
We have access. What about adoption? Because adoption isn't the
same as access.
Pew--and we're fortunate to have Aaron here from Pew --
they've done a lot of study and research in this area. Right
now, we've got about 70 percent of the country with wired
broadband access--or, wired broadband service--that is, they've
adopted it; 80 percent with wireless broadband service. So,
we've made progress, but we can do better.
And, in particular, we've got a gap. You know, among whites
that adoption rate is 75 percent; among African Americans, it's
65 percent, roughly; and among Hispanics, it's 55 percent. Now,
the gap is closed--over the last 4 years, the gap has closed by
roughly half for African Americans, but that doesn't mean we
can't or shouldn't do better in those underserved or areas of
the country that haven't taken up adoption like we would want
them to.
There are lots of reasons. Both of you--the Ranking Member
and the Chairman mentioned relevancy, that the computers, the
equipment is expensive, and, of course, the cost of
connections. It's all about digital literacy. It's about
education. And it's about having people understand the value to
them.
I would close by emphasizing that, in this case, there's no
single solution that's right for the entire country. There's a
corporate involvement and responsibility, there's a government
role, there are partnerships. It could be Big Brothers, Big
Sisters, or the Boys and Girls Clubs, or the United Way
undertaking local programs. It could be companies like Comcast
in their Internet Essentials Program. AT&T, 250 million in
their Aspire Program. Bright House is a $2 million program
that's reached out to 1,500 schools.
Finally, in terms of the role of government, because that's
what you're interested and focused on, the light touch
regulatory approach has been very important in providing an
atmosphere that encourages and incentivizes investment in
innovation. The NTIA has done a great job with their toolkit
for digital literacy that focuses on all of these issues--
pricing and the cost of equipment and in educating consumers.
And then, finally, from a regulatory perspective, I think
you need to continue to allow providers to experiment and
innovate in the way they package and price the product,
especially in an age when there are more and more different
ways to get access to content over the top and other ways.
So, I appreciate the work that you've done here. I
apologize that I've gone over time. I said to Senator Wicker,
``That's my only fear, is that, in an effort to summarize my
remarks, I exceed the 5-minute time limit.'' I have failed.
But, hopefully, the minute is something we'll get back.
Thank you for your interest in the topic, and I look
forward to your questions.
[The prepared statement of Senator Sununu follows:]
Prepared Statement of Hon. John E. Sununu, Co-Chair, Broadband for
America and former U.S. Senator from New Hampshire
Chairman Pryor, Ranking Member Wicker and distinguished Members of
the Subcommittee, good morning. Thank you for inviting me to join you
today and thank you for bringing attention to this important national
priority.
My name is John Sununu, a former member of this chamber, proudly
representing New Hampshire from 2003 to 2009. Along with my friend and
former Congressman Harold Ford, I am co-chair of Broadband for America.
I have a long interest and extensive professional experience in the
high-tech and broadband-related industries. I currently serve as
director of Time Warner Cable and Boston Scientific Corporation. Before
my career in government, I served as Chief Financial Officer of
Teletrol Systems. I also received my master's degree in electrical
engineering from the Massachusetts Institute of Technology.
Broadband for America promotes well-informed public policy choices
to create the right incentives for the private sector to build advanced
networks and offer innovative services throughout the nation, and to
encourage all Americans to become digitally literate and adopt
broadband Internet. Our members include national and state-based
community organizations, education and medical professionals, religious
and minority groups, and stakeholders in the broadband Internet
industry. Since our founding, Broadband for America has been dedicated
to improving broadband adoption throughout the country; this is
something our more than 300 members care passionately about.
Today, I would like to focus on two topics:
The U.S. broadband success story, marked by vibrant
competition and remarkable levels of sustained investment, and;
How we can all work together to help further shrink the
broadband digital divide and increase broadband adoption.
The Ongoing Broadband Success Story
Broadband for America believes broadband is for everyone. As the
National Broadband Plan states, ``broadband is a foundation for
economic growth, job creation, global competiveness, and a better way
of life.'' Today's broadband networks enable an array of services--
voice, video, e-commerce, and more--over high-capacity wired and
wireless connections. This platform is revolutionizing our lives:
improving educational outcomes, delivering better health care, and
creating a new world of jobs and commercial opportunities.
A Broadband Nation. Today, 98 percent of American consumers have
broadband access with 96 percent of households capable of accessing
speeds 10 Mbps or higher. Only a decade ago, just 15 percent of
households had broadband access of any kind. Over that time, billions
have been poured into our economy and broadband networks to build this
robust infrastructure across technologies. In just the last 3 years,
broadband providers overall have invested more than $250 billion. In
2011 alone, 18 million miles of optical fiber were installed in the
U.S. This laudable level of investment in difficult economic times has
pushed broadband deeper into communities at higher and higher speeds,
driving competition and benefiting consumers.
Broadband providers compete vigorously today on price,
availability, and speed, providing consumers with constantly innovating
services, devices, and digital options. Thanks to a light-touch
regulatory framework based on a long-standing bipartisan approach to
incent next-generation investment, the U.S. remains a global leader in
broadband opportunity and competition. In fact, the Organization of
Economic Co-operation and Development (OECD) ranks the U.S. third for
competition among carriers of different technologies. The Federal
Communications Commission (FCC) reported that in 2012, 82 percent of
the U.S. population had access to four or more wireless broadband
services, up from 68 percent in 2010. Internet service providers (ISPs)
deliver broadband via phone lines, cable, fiber, satellite, and fixed
and mobile wireless connections--all capable of delivering speeds
unthinkable a decade ago. These speeds continue to escalate: the
average U.S. broadband speed has increased by 22 percent over the past
year, and the fastest wired Internet speeds available are 19 times
faster than speeds available six years ago.
Broadband providers have delivered these faster and faster speeds
while keeping prices static: the U.S. has the second lowest entry-level
pricing for broadband among OECD countries. And entire new industries,
like the mobile apps sector, have emerged from the innovation engine
that is the Internet economy. Not even in existence five years ago, the
mobile app industry now employs 750,000 Americans while generating $18
billion in revenue last year. Investment in the broadband space has led
to new technologies at a rate faster than ever before. Better broadband
technologies encourage innovation and adoption of broadband by
consumers. Higher adoption rates lead broadband providers to further
invest in their networks. This cycle of innovation and investment has
propelled broadband services forward faster than any other technology.
These broadband deployment efforts in the U.S. are remarkable--with
broadband providers leading in U.S. investment. Last year alone, the
Progressive Policy Institute found the top six broadband providers
invested over $50 billion. But we need to develop solutions to deploy
broadband in those rural areas where there is not a market based
solution. The Administration's policies and the FCC's Connect America
Fund are designed to help ensure that all Americans have broadband
access.
Adopting Broadband. From that remarkable technological foundation
it should come as no surprise that Americans have quickly embraced the
benefits of broadband connectivity. American consumers' adoption of
high-speed broadband technology is simply unprecedented. A report from
the Pew Internet and American Life Project found that 70 percent of
homes have a broadband connection. If you include mobile broadband
devices, 80 percent of U.S. households subscribe to broadband services.
Perspective is helpful here. Thirteen years ago--when just half of
all adults were ``online'' in some fashion--only 3 million households
subscribed to broadband at home. Today, the Administration reports that
88 million households have chosen to take advantage of the
opportunities presented by the digital economy. Americans have embraced
broadband-enabled smartphones at an even faster pace. While the U.S.
has just five percent of the world's population, we have over 50
percent of global 4G mobile broadband subscribers. In fact, the U.S.
adoption rates for wired and mobile broadband eclipse--in some cases by
decades--the comparable adoption timeframes for personal computers,
cable television, or the landline telephone.
These positive trend lines extend to communities previously on the
wrong side of the digital divide. Rural communities tend to adopt
technologies later than urban and suburban areas. Through increased
wired and wireless technology, rural areas will develop economically
through GPS powered equipment, apps that help farmers more efficiently
track their work and online retail to allow rural businesses to reach
customers around the world. More of the rural population is able to
access broadband every day through technologies like satellite and
wireless. The Pew study on adoption found that 70 percent of the U.S.
rural population currently has a home or mobile broadband connection.
Since 2009, the percentage of African Americans that subscribe to
broadband access has increased from 46 percent to 64 percent, while the
broadband gap between whites and African-Americans declined from 19
points to 10 points in that same period, according to Pew. And 49
percent of African Americans own a smartphone, compared with 45 percent
of whites.
The Latino community has also taken great strides forward in
broadband adoption, and programs by groups like the League of United
Latin American Citizens (LULAC) have helped in this effort. LULAC
sponsors technology centers in 25 states across the country, helping
Latinos with computer training, job searches, and other digital skills
that are necessary in today's high-tech world. Broadband for America
believes in programs like this and early on provided financial support
for LULAC's digital literacy campaign.
Partnering to Bridge the Digital Divide
In the past few years, we have learned that building and deploying
broadband--however complex and expensive--is the relatively simple part
of this equation. As the pool of non-adopters shrinks, the challenge
this Nation faces is to ensure that all Americans benefit from the
broadband economy.
The Adoption Challenge. Broadband for America applauds this
Subcommittee for its efforts and leadership to support a sustained
focus on broadband adoption. As the Nation's ISPs continue to deploy
broadband, policymakers should concentrate on solutions aimed at
encouraging all Americans to get online. To succeed, we will need all
stakeholders to contribute.
Despite the successes described above, too many Americans still
face a digital divide--a divide with serious ramifications. The
statistics are well documented. Fifteen percent of Americans choose not
to use the Internet at all. The adoption challenge extends beyond
apartments and homes. The digital divide is just as often a local
issue, although not often framed as one.
While the national adoption story is a promising, albeit incomplete
one, these national figures can obscure regional and community-specific
challenges. In some areas, broadband adoption dips to 50 percent. These
pockets of non-adoption reinforce the need for locally targeted efforts
that address the unique challenges of individual communities. Broadband
can serve as a great equalizer, opening opportunities to all people
regardless of economic background, geography, or age. But first, high-
speed Internet must not only be available, but also relatable.
People choose not to go online at home for complex and intertwined
reasons, making one-size-fits-all public policy solutions challenging.
Pew has done important work in this area. In September, they recently
released some valuable findings as to why people use the Internet but
do not adopt a broadband connection at home:
26 percent find the Internet is not relevant or usable;
20 percent think computers are too expensive or do not have
a computer;
9 percent think an Internet connection is too expensive, or
it is cheaper elsewhere.
This shows that relevance and digital literacy are central to
solving the broadband adoption problem and Internet connection cost is
lower on the order of importance.
I note that the FCC will be considering digital literacy and
adoption issues at its open meeting on November 14. The Commission will
hear updates on several innovative programs focused on improving
digital literacy.
The Path Forward. A multifaceted problem requires a multifaceted
solution, and one that need not--and should not--be carrier or
government-centric. This is first and foremost a challenge of inclusion
and outreach. For broadband adoption efforts to succeed, we need
persistent and sustained efforts. We need community engagement, through
developing partnerships with groups like the United Way and Big
Brothers/Big Sisters. We need to empower partners in our neighborhoods
and direct relevant messages to underserved communities. Working
together, we can solve the question of how to connect the dots in each
non-adopting home and business in a smart and focused manner.
Targeted government action can play a role in improving broadband
adoption by specifically engaging community leaders, providing the
necessary tools, and sharing best practices to get non-adopters online.
The government's core role is one of facilitator. For example, earlier
this year, NTIA released its Broadband Adoption Toolkit. NTIA
recognized that non-adoption is often driven by multiple, interwoven
factors--perception, access, cost, skills, and relevance--that together
can form a complex barrier to broadband connectivity. The Toolkit
emphasized ``concrete, field-tested'' methods and practices in areas
like curriculum development and training delivery to improve digital
literacy and engage those not yet online. This effort and many other
promising outreach models recognize that different communities will
need different adoption strategies as well as a sustained dialogue with
community leaders.
Other aspects of adoption need attention by both government leaders
and private companies. To many people the Internet does not play a
large enough role in their life to deem purchasing a broadband
connection necessary. By incorporating broadband into areas like health
care, education, transportation and the smart grid, more people will
find reasons to adopt broadband connections. In many cases, adopting
broadband is beneficial for consumers. Telemedicine saves money by
preventing costly hospital stays. For instance, the Department of
Veterans Affairs' home telehealth program resulted in a 25 percent
reduction in in the average number of days hospitalized and a 19
percent reduction in hospitalizations. Smart grid systems save
consumers money every month. Initiatives by the government and private
companies will make these programs and technologies relevant to the
lives of more Americans.
Government can also help maintain--and facilitate--innovative and
affordable broadband packages geared to non-adopters. Common sense
policies, like permanently extending the Internet Tax Moratorium, will
help ensure broadband prices stay reasonable. This historic
legislation, first introduced by former Senator Dan Inouye and myself,
banned states and localities from placing discriminatory taxes on
broadband access. Over the next decade, this tax moratorium was
extended twice with bipartisan support. As a result, Internet adoption
has increased and more entrepreneurs have accessed new markets
increasing their consumer reach across America.
The government should also ensure that regulations do not hinder or
crowd out investment in the broadband and Internet industries. The
largest private investors in the U.S. are broadband providers; their
work building out our networks is preparing the U.S. for the economy of
tomorrow. Deviating from the light touch regulatory model that has been
in place since the Clinton administration would likely reduce
investment that helps extend faster broadband services to more people
across the country.
Changes in broadband providers' pricing models could also bring
more people online through a more equitable system. The current
unlimited-use pricing model has light and moderate users paying the
same as heavy users, essentially subsidizing heavy broadband use. A
system that charges customers on the amount of data used would begin to
reverse this trend. This pricing model would also help close the
adoption gap by offering additional choices for consumers that more
closely match their needs and ability to pay.
Further, the FCC should continue to recognize the pro-consumer
benefits of new pricing and packaging models. Experimentation with
speeds, data allowances, and price points is fundamental to providers'
ability to deliver broadband that is right sized for all consumers and
businesses.
Relatedly, the Nation must make a commitment to digital literacy.
For the country's sustained global competitiveness, digital literacy
should be a part of every American's rite of passage. As a father of
three, I have seen firsthand the power of broadband and technology on
kids. As broadband connectivity transforms our educational system,
schoolchildren increasingly need broadband access both in the classroom
and at home.
Broadband providers are addressing adoption issues head on.
Broadband for America members, such as Comcast and CenturyLink, offer
Internet packages for $9.95 per month, along with a low priced
Internet-ready computer and free digital literacy classes. Only 22
months after inception, Comcast's Internet Essentials program is being
used by over 900,000 low-income Americans. Verizon and Time Warner
Cable both have programs that encourage students to get involved in
Science, Technology, Engineering, and Math (STEM)-related activities in
their communities. Verizon's Innovative App Challenge offers prizes to
teams of students who develop mobile and tablet based apps for use in
middle and high school STEM classes. Time Warner Cable has invested
$100 million into its Connect a Million Minds campaign, the program
helps students get involved in STEM activities through innovative
online resources, affordable after-school activities, and grants to
nonprofits that support STEM education. AT&T has contributed and
committed $350 million as part of its Aspire program since 2008. Aspire
specifically helps kids stay on track to graduate high school and be
ready for the hi-tech future which awaits them--and includes digital
literacy as it reaches kids in our underserved neighborhoods. Bright
House Networks is providing $2 million of in-kind support to 1,667
schools through its Cable in the Classroom program. These wrap-around
solutions will continue to help address the core challenges of non-
adoption.
We appreciate the opportunity to share our views on this important
issue. Broadband for American looks forward to working with Congress to
help promote increased broadband adoption and utilization. I look
forward to answering any questions you may have.
Senator Pryor. Thank you.
Mr. Smith.
STATEMENT OF AARON SMITH, SENIOR RESEARCHER,
PEW RESEARCH CENTER'S INTERNET PROJECT
Mr. Smith. Thank you for having me here today. My name's
Aaron Smith. I'm a Senior Researcher at the Pew Research
Center's Internet Project. We're a nonprofit research
organization, here in D.C., funded by the Pew Charitable
Trusts, and my project has been conducting national consumer
surveys of Internet use and broadband adoption since early
2000. And my organization does not promote specific policy
positions, but I hope that my comments can provide a better
understanding of the current state of broadband adoption, which
groups have low levels of broadband use, and also the major
factors that are preventing people from adopting broadband.
So, when we first conducted our survey of broadband
adoption in 2000, just 3 percent of Americans had some sort of
broadband connection at home. And, as John noted, that figure
has risen to 70 percent of Americans, as of our most recent
survey, in May of this year. But, despite this long-term growth
trend, the pace of broadband adoption has slowed substantially
in recent years. After increasing by an average of nearly 7
percentage points per year from 2000 through 2009, the national
broadband level--adoption level increased by a total of just 7
percentage points from 2009 through 2013.
Although 70 percent of the American public has a high-speed
Internet connection at home, that figure is lower among certain
groups than among others. Broadband adoption levels are
especially low among three demographic groups in particular.
The first group is older adults. Just 43 percent of Americans
age 65 and older have a broadband connection at home. The
second group is people with low levels of educational
attainment. Among Americans who have not received a high school
diploma, just 37 percent are broadband adopters. And the third
group is people with low household incomes. Fifty-four percent
of Americans with a household income of less than $30,000 are
broadband adopters.
Now, these are not the only group--these are not the only
groups for whom broadband adoption levels are low. As John also
mentioned, rural residents are less likely to have broadband
than urban and suburban residents, and African Americans and
Latinos are less likely to have broadband than whites. Also,
broadband adoption is low among people with physical
disabilities or with chronic health conditions. But, overall,
age and socioeconomic status are the demographic factors that
are most strongly correlated with whether someone has broadband
or not.
So, since 70 percent of the public does have some sort of
broadband connection at home, that means that 30 percent of the
adult population does not have high-speed home access. That 30
percent of Americans includes two distinct groups, each of
which faces distinct challenges and barriers to adoption.
The first of those groups are the 15 percent of the adult
population that do not use the Internet at all. This group is
significantly older than the population as a whole, with a
median age of 64 years old. These non-users tend to have little
connection to the online world and often face significant
challenges, in terms of their comfort level with technology.
Just 17 of these non-users feel confident that they could go
online without assistance if they chose to do so in the future.
And when we asked these non-users to tell us the main
reasons why they don't go online, they tend to point to their
perceptions of the relevance of online content and their
challenges using technology, in general. One-third of these
non-users say things like they just aren't interested in going
online, don't need to go online, or think the Internet is a
waste of time. And a similar number mention usability-related
issues, such as finding it difficult or frustrating to go
online, saying they don't know how to go online or are too old
to learn, or that they're physically unable to use a computer.
The second group of nonbroadband adopters, which also makes
up 15 percent of the population, includes people who do use the
Internet from one location or another but do not have high-
speed access within their home. In contrast to the non-Internet
user population, this group is much younger. Around half of
them are under the age of 45. They also tend to have relatively
low incomes, relatively low levels of educational attainment,
and include a relatively large number of non-whites.
Also in contrast to the non-Internet users I discussed a
moment ago, issues related to price and affordability are this
group's primary barrier to adoption. When we asked them why
they don't have Internet service at home, 42 percent of
Internet users who lack home broadband cite financial issues,
such as not having a computer, not being able to afford
Internet service, or having a cheaper option for access outside
of the home.
In summary, three out of every ten Americans currently do
not have broadband service at home, and many of these
individuals face substantial hurdles to adoption. Some,
especially working-age adults at the lower end of the income
spectrum, see the value of broadband but simply lack the
necessary financial resources. But, others face significant
challenges using technology or do not see the benefits of
broadband access in the first place. For this group of non-
adopters, a lower price may be necessary, but not sufficient.
They will likely require a great deal of coaching and
encouragement before they are ready to join the broadband
world.
Thank you again for your time and for inviting me to speak
on the subject. I look forward to any questions you have.
[The prepared statement of Mr. Smith follows:]
Prepared Statement of Aaron Smith, Senior Researcher,
Pew Research Center's Internet Project
Mr. Chairman and Members of the Committee, thank you for the
opportunity to testify today.
My name is Aaron Smith, and I am a senior researcher with the Pew
Research Center's Internet Project. The Pew Research Center is a non-
profit research organization funded primarily by the Pew Charitable
Trusts, and its Internet project has been conducting national surveys
of Internet use and broadband adoption since early 2000.
The Pew Research Center and its experts do not promote specific
policy positions, but I do hope that my comments can provide a better
understanding of the current state of broadband adoption; which groups
have low levels of broadband use; and the major factors preventing
people from adopting.
National trends in broadband adoption
When we conducted our first survey of broadband adoption in early
2000, just 3 percent of American adults had some sort of broadband
connection at home. That figure has risen to 70 percent of Americans as
of our most recent survey in May of this year.
But despite this long-term growth trend, the pace of broadband
adoption has slowed substantially in recent years. After increasing by
an average of nearly seven percentage points per year from 2000 through
2009, the national broadband adoption level increased by a total of
just seven percentage points from 2009 through 2013.
Demographic differences in broadband adoption
Although 70 percent of the American public has a high-speed
Internet connection at home, that figure is lower among some groups
than among others. Broadband adoption levels are especially low among
three demographic groups in particular.
The first group is older adults. Today just 43 percent of Americans
age 65 and older have a broadband connection at home, which is roughly
half the adoption rate for those between the ages of 18 and 49.
The second group is people with low levels of educational
attainment. Among Americans who have not received a high school
diploma, just 37 percent are broadband adopters. By comparison, nine in
ten college graduates have broadband at home.
The third group is people with low household incomes. 54 percent of
Americans with an annual household income of less than $30,000 are
broadband adopters.
These are not the only groups for whom broadband adoption levels
are low. Rural residents are less likely to have broadband than urban
or suburban residents; African Americans and Latinos are less likely to
have broadband than whites; and broadband adoption is also low among
people with physical disabilities or severe chronic health conditions.
But overall, age and socio-economic status are the demographic factors
most strongly correlated with whether someone has broadband or not.
Non-broadband users and their reasons for non-adoption
Since 70 percent of the public does have some sort of broadband
connection at home, that means that 30 percent of the adult population
does not have high speed home access. That 30 percent of Americans
includes two distinct groups, each of which faces different challenges
and barriers to adoption.
The first group is the 15 percent of the adult population that does
not use the Internet at all. This group is significantly older than the
population as whole, with a median age of 64 years old.
These non-users tend to have little connection to the online world,
and they often face significant challenges in terms of their comfort
level with technology. Just 17 percent of these non-users feel
confident that they could go online on their own if they chose to do so
in the future, while 63 percent say that they would need someone to
assist them.
When we ask these non-users to tell us the main reason why they
don't go online, they tend to point to their perceptions of the
relevance online content and their challenges using technology in
general. One third of these non-users say things like: they just aren't
interested in going online; don't need to go online; or think the
Internet is a waste of time. And a similar number mention usability-
related issues such as: finding it to difficult or frustrating to go
online; saying that they don't know how to go online or are too old to
learn; or are physically unable to use a computer.
The second group of non-broadband adopters, which also makes up 15
percent of the population, includes people who do use the Internet from
one location or another, but do not have high speed access within their
home.
In contrast to the non-internet-user population, this group is much
younger--around half of them are under the age of 45. They also tend to
have relatively low incomes, relatively low levels of educational
attainment, and include a relatively large number of non-whites.
Also in contrast to non-internet-users, issues related to price and
affordability are this group's primary barrier to adoption. When asked
why they do not have Internet service at home, 42 percent of Internet
users who lack home broadband cite financial issues such as: not having
a computer; not being able to afford Internet service; or having a
cheaper option for access outside the home.
Summary
In summary, three out of every ten Americans currently do not have
broadband service at home, and many of these individuals face
substantial hurdles to adoption. Some--especially working-age adults at
the lower end of the income spectrum--see the value of broadband but
simply lack the necessary financial resources. But others face
significant challenges using technology, or do not see the benefits of
broadband access in the first place. For this group of non-adopters, a
lower price may be necessary but not sufficient--they will likely
require a great deal of coaching and encouragement before they are
ready to join the broadband world.
Thank you again for inviting me to speak on this subject.
Senator Pryor. Thank you.
Ms. Joselyn.
STATEMENT OF BERNADINE JOSELYN, DIRECTOR, PUBLIC POLICY AND
ENGAGEMENT, BLANDIN FOUNDATION
Ms. Joselyn. Good morning, Chairman Pryor, Senator Wicker,
members of the Committee.
I bring you, today, the voices and experiences of rural
community leaders. These are the people who create vibrancy
across the American landscape.
They are hopeful people, and they can make a little support
go a long way. For example, Janice Gale, Director of the Leach
Lake Band of Ojibwe's Temporary Employment Program, saw, every
day, how temporary tribal members without work struggled with
technology when applying for jobs. She worked with us and
partners to create sustainable systems for creating culturally
relevant online job search and work skills and to expand
computer and Internet access on her reservation. Tribal members
who upgrade their digital literacy skills now qualify for
higher pay. Janice smiles with pride when she tells of the
workers in her program who have been inspired to pursue a GED.
Multiply Janice Gale times hundreds and the stories
continue to roll in from communities all across rural
Minnesota, where broadband adoption is not just a policy
imperative, it's a community imperative.
Blandin Foundation works with rural communities in
Minnesota. We have made broadband adoption a priority, because
we believe that broadband is the indispensable infrastructure
of the 21st century, and rural communities need broadband
access, and the ability to use it, in order to thrive in this
globalized economy.
One of our projects, the Minnesota Intelligent Rural
Communities Initiative, MIRC, had the support of the American
people through the American Recovery and Reinvestment Act.
Blandin Foundation administered MIRC on behalf of a coalition
of 19 statewide partners and 11 rural communities. Our work was
funded partially through the federally-funded Broadband
Technology Opportunity Program, BTOP, one of 44 sustainable
adoption grants awarded nationwide. Through MIRC, we sought to
support and encourage broadband adoption as a strategy for job
growth and wealth creation, to increase the culture of use of
broadband services, and to improve efficiency and effectiveness
of digital literacy training. In sum, helping rural communities
keep up globally was our real task.
MIRC set measurable goals. All were accomplished or
exceeded, and the details have been submitted for the record.
Here's just one highlight:
Broadband adoption in participating MIRC communities grew
15 percent faster than in the rest of rural Minnesota. But,
subscription rates tell only part of the story, and not even
the most important part. Here are just a few examples:
The town of Thief River Falls launched a collaboration
between local broadband providers and a nonprofit to supply
refurbished computers, subsidized broadband subscriptions, and
digital literacy courses to low-income families. And 84 percent
of these first-time computer owners have continued their
broadband subscriptions after the subsidies ended.
In the small town of Akeley, Minnesota, the business
community built a series of peer-led technology workshops that
have helped entrepreneurs bring their businesses to the next
level using more sophisticated Internet-based tools.
An immigrant center in Winona, Minnesota, launched digital
literacy training in Hmong and Spanish for recent immigrants.
A consortium of nine districts in Stevens County in
southern Minnesota developed a broadband-based distance
learning service for students with disabilities.
This is complex work, with many moving parts. But, I can
state succinctly the policy implications. Access to broadband
is key, but so is adoption, and community-based community-
engagement efforts work.
I'd like to close with just one more voice, that of Kristen
Fake, a small-business owner in Akeley, Minnesota when she was
describing the impact of MIRC on her town. She said, ``We've
turned a corner and become a community that's actually growing
and thriving.''
And persuaded by the effectiveness and impact of these
efforts, and mindful of the critical role that broadband access
and adoption plays in the economic and social life of rural
places, Blandin Foundation's Board of Trustees has committed an
additional $1.5 million to continue to support broadband
adoption efforts in rural Minnesota in 2013 and 2014, and we
look forward to continued opportunities to partner with the
Federal Government in that important work.
Thank you. [The prepared statement of Ms. Joselyn follows:]
Prepared Statement of Bernadine Joselyn, Director, Public Policy and
Engagement, Blandin Foundation
Chairman Pryor, Senator Wicker, Members of the Committee
I bring to you today the voices of rural community leaders. These
are the people who are engines of vibrancy across the American
landscape. They are strong, hopeful people and they can make a little
support go a very long way.
When we met Kristin Fake, a sole proprietor in tourism-dependent
Akeley, Minnesota, it was a leap of faith for her to come to the
workshop hosted by the University of Minnesota Extension Service, one
of our partners in our broadband work. Like so many, she couldn't
imagine how technology might benefit her home staging business. At the
workshop she quickly discovered that her clients were being misdirected
by Google maps, how keywords drive inquiries, and how she might use a
smart phone to dramatically improve her customer service. Her annual
sales now are much higher than before she took the class and products
she advertises on Facebook often are purchased before she even gets
them displayed in her shop. Kristin is poised to take her business to a
new level as Akeley continues to recover from a very tough economic
patch.
Kristin went from not being able to imagine how technology might be
helpful to her business to creating demand for products and services
that the marketplace hadn't yet imagined. Empowering people through
technology also was the focus of our partnership with the Leech Lake
Band of Ojibwe.
Janice Gale, director of the Leech Lake Band's Temporary Employment
Program, long had seen the digital challenges that her neighbors and
workers faced in seeking even temporary employment. She quickly put to
work the resources and relationships available through our network of
partners to teach online job search and work skills, and to expand the
availability of computers on the reservation. A computer lab at the
Boys and Girls Club, for example, attracts 250 students each month.
Refurbished computers, training and subscriptions for kids and families
were distributed through Head Start. Temporary workers who participate
in the digital literacy program upgrade their skills and qualify for
higher pay. Temporary Employment Program student workers help learners
in the computer labs, which is a great benefit to both trainers and
learners. Janice, in her quietly passionate way, grins when she tells
how many participants have been inspired to pursue their GED.
Multiply Kristin Fake and Janice Gale times hundreds. And the
stories continue to roll in from communities all across rural
Minnesota, where adoption is not just a policy imperative, but a
community imperative.
Blandin Foundation is a private foundation that has the unique
privilege of working exclusively with rural communities in Minnesota.
Based in Grand Rapids, Minnesota, we are one of only a handful of
foundations nationwide so focused on rural communities, and we are the
state's largest foundation located in a rural community.
What we have learned over 75 years is that thriving communities are
built on hard work. On the hard work of leadership, inclusion, reaching
across differences and building lasting connections. On commitments,
and on belonging--that indelible sense of place that is home.
That's the fertile soil that healthy communities grow in. And
that's what Blandin Foundation is about--helping people imagine, lead
and grow vibrant, resilient, rural communities.
From our experience, realizing the promise of the Internet is as
much about investing in human capacity as it about investing in
technological capacity. Maybe more.
After a career in the Foreign Service, I became Blandin
Foundation's first-ever public policy director in 2003. When I looked
out over the rural landscape, one issue that stood out as having great
potential to help rural communities thrive into the new century: access
to high-speed Internet, and the capability to take advantage of its
many social and economic benefits.
Today the digital divide remains far too real for rural America.
And especially real for those who face other types of barriers--
poverty, language, isolation. The work of bringing the promise of the
Internet to all Americans clearly is not done.
We believed in 2003, and still do today, that
1. Broadband is the indispensable infrastructure of the 21st
century, and
2. Rural communities need broadband access, and the ability to use
it, in order to thrive--and even survive--in an ever more
globalized world.
To this end, Blandin Foundation has invested in a body of work
focused on strengthening community broadband leadership and adoption.
One of these projects, the Minnesota Intelligent Rural Communities
Initiative (MIRC), had the support of the American people through the
American Reinvestment and Recovery Act, which connected our work to
national goals.
Blandin Foundation administered MIRC on behalf of a coalition of 19
statewide partners--regional development commissions, state workforce
and education institutions, etc.--and 11 rural demonstration
communities. Our work partially was funded through the Federal
Broadband Technology Opportunity Program (BTOP), one of 44 sustainable
adoption grants awarded nationwide.
MIRC began in 2010 and was largely completed by the end of 2012,
putting to work $4.8 million of Federal grant dollars, $1.8 million in
matching funds and countless hours of work by community leaders to
create a network of resources and support to rural Minnesota
communities, business owners, students, health care facilities, local
governments, the poor and un-and under-employed.
Our aims were ambitious: to support and encourage vibrant rural
economies through broadband adoption as a strategy for job growth and
wealth creation; and to accelerate broadband adoption.
Specifically, we sought to:
Support and encourage vibrant rural economies through
broadband adoption as a strategy for job growth and wealth
creation.
Increase ``culture of use'' of broadband services.
Improve efficiency and effectiveness of digital literacy
training service delivery.
Accelerate broadband adoption by two percent over its
statistically anticipated growth (increasing broadband
subscribers by 38,556 more than could otherwise be expected).
In sum, helping rural communities keep up globally was our real
task. Thanks to the Federal funding we received we were able to take on
an ambitious, comprehensive, multi-sector effort that wove together
work at the local community level, all the way up to state-wide
engagement.
MIRC set measurable goals. All were accomplished or exceeded:
----------------------------------------------------------------------------------------------------------------
Outcome Goal Accomplished
----------------------------------------------------------------------------------------------------------------
New households subscribed to broadband 38,000 (2 percent above 40,496
statistically anticipated growth)
----------------------------------------------------------------------------------------------------------------
Number of public-access computer sites 0 60
----------------------------------------------------------------------------------------------------------------
Number of people who participate in at 3,640 9,000
least 16 hrs of training/
education
----------------------------------------------------------------------------------------------------------------
Refitted and licensed computers 1,000 2,067
distributed to first-time computer
owners
----------------------------------------------------------------------------------------------------------------
Number of people reached through 160,000 250,000
outreach and awareness
----------------------------------------------------------------------------------------------------------------
Overall, broadband adoption in participating communities grew close
to 15 percent faster than in the rest of rural Minnesota. And
communities that reported the highest rates of participation in MIRC
activities also experienced the highest rates of broadband subscription
growth.
These data show that, without a doubt, rural communities across
Minnesota moved the needle on project outcomes, especially with
underserved residents and businesses.
Dr. Jack Geller of the EDA Center at University of Minnesota-
Crookston and lead researcher for MIRC, concluded in his final
evaluation that, ``It's hard not to connect the MIRC project . . . as a
contributor to Minnesota's leading position in rural broadband
adoption.''
Persuaded by the effectiveness and impact of these efforts, and
mindful of the critical role that broadband access and adoption play in
the economic and social life of rural places, Blandin Foundation's
Board of Trustees has committed an additional $1.5 million to continue
to support broadband adoption efforts in rural Minnesota in 2013 and
2014.
Our Approach to the Challenge of Broadband Adoption
Blandin Foundation's community-based efforts take many forms,
driven by the unique needs and interests of participating communities.
Our strategies include:
Offering individuals training in computer literacy and
knowledge worker career development strategies.
Providing technical assistance and customized training to
small businesses and entrepreneurs.
Distributing refurbished computers to low-income, rural
Minnesota residents.
Partnering with Internet service providers to offer
subsidized subscriptions to connect those computers to the
Internet.
Helping communities identify their unique goals and
providing the technical assistance and grant funding needed to
turn those goals into accomplishments.
At the heart of our approach is high-touch, multi-sector, sustained
community engagement. This includes community-wide visioning and goal
setting and a community-driven grant proposal solicitation process to
generate project ideas and community commitment upfront.
To help drive home the recognition that broadband is a necessary
but not sufficient element of economic development and community
vitality, MIRC used indicators developed by the New York-based
Intelligent Community Forum (ICF) to help communities baseline and
measure their competitiveness in the broadband economy. These
indicators include: ensuring broadband infrastructure, developing a
``knowledge workforce'', supporting innovation, redressing the digital
divide, and effectively using marketing and advocacy to tell the
community's technology story.
Community leaders used the ICF indicators to identify and select
community projects that best fit local needs and focus their efforts on
short term achievable goals that would have meaningful impact over the
long term. More than 100 community-identified projects have been funded
so far. Here are a few examples:
Ensuring the Availability and Use of Broadband Infrastructure
Thief River Falls launched ``Computers for Our Community,'' a
collaboration between local broadband providers and MIRC partner PCs
for People. Over 18 months, the project delivered 126 refurbished
computers, 91 reduced-rate broadband subscriptions, and nine multi-week
digital literacy courses for low-income families. Most (84 percent)
recipients continued their broadband subscriptions even after subsidies
ended.
Lac qui Parle County created a mobile computer lab that brings
broadband access to one of Minnesota's most sparsely populated regions.
A local partner testified: ``The Computer Commuter. . .connects patrons
to people and places they had no idea they could connect to!''
Fostering Innovation
An immigrant resource center in Winona launched digital literacy
training in Hmong and Spanish for more than 60 recent immigrants. The
project ``. . . built bridges among cultures and organizations'' and
led to the realization that a ``connected city helps everyone.''
A consortium of nine school districts in Stevens County developed a
broadband-based system to provide specialized distance learning
services for students with disabilities. Their takeaways:
``[Realization] that the world is able to communicate and work
cooperatively using technology; and, that the world is not limited to
Stevens County.''
Benton County added new computers in libraries, schools, and senior
housing and created 13 new Wi-Fi access points in a variety of
businesses and community sites, including an elder care facility.
According to the county's economic director, ``Our elected officials
now see the importance of broadband for economic development and
community vitality.''
Deleting the Digital Divide
MIRC partner and nonprofit PCs for People, in addition to
surpassing their goal to refurbish and redistribute 1,000 computers to
low-income rural households, opened affiliate storefronts in four rural
Minnesota communities in each corner of the state. Said one computer
recipient: ``I've gone back to school; I have two kids and now I don't
have to go to the library and find a sitter to do research. . .I can
stay home with my kids.'' When expressing her appreciation for
receiving a computer and Internet connection, another recipient
explained that the computer was going to be a Christmas present for her
child; receiving it meant that she wouldn't have to choose between
buying gifts or feeding her kids over the Christmas break.
Building a Knowledge Workforce
Cook County opened a computer lab as part of a higher education
distance learning partnership. During the project's 18 months, the site
provided 21 training sessions attended by 185 people in this remote
community with a population of 1,351. The lab continues to be available
to all community residents and is used as a public Internet-access site
and distance learning resource. The partnership offers credit courses
from more than 25 institutions of higher learning.
Marketing and Advocacy (The capacity to advocate for change within the
community and market themselves to the world)
A local-access television station in Itasca County upgraded its
software, hardware and website interface to live stream and archive
public meetings online. The move has improved access to these meetings
for permanent and seasonal residents. Several other communities
enhanced their government and business online presence, including
Windom in far southwest Minnesota, which planned, launched and
continues to maintain the ``Finding Windom'' community portal web
presence.
Here is a sampling of some the voices of rural Minnesotans who
participated in MIRC reflecting on the impact of these broadband
adoption efforts on their overall community vitality:
``We've turned a corner and become a community that's actually
growing and thriving instead of stagnant and dying, with what
we've learned from the MIRC program.''--Kristin Fake, owner,
Just a Stage/Second Stage home staging, Akeley, MN
``This project has permanently changed the way we think and the
way we work together.''--Della Schmidt, Winona Area Chamber of
Commerce, Winona, MN
``These technology classes have encouraged our Hispanic and
Somali immigrants to interact, really for the first time.''--
Fatima Said, Project FINE, Winona, MN
``This effort has helped us develop wonderful community
connections. We have reached out to our whole community.''--
Keri Bergeston, Principal, Dawson/Boyd (MN) High School
``MIRC efforts have really contributed to creating a 'Culture
of Use' amongst tribal members. Overall, MIRC has helped the
Leech Lake Reservation increase the economic vitality of our
community. Tribal community member are more familiar with the
tools of broadband and the economic opportunities that are
available.''--Mike Jones, Chief of Staff to Tribal Chair, Leech
Lake Band of Ojibwe, Walker, MN
``This framework brings people together that have not always
worked together--technology advocates, workforce, social
service agencies, and economic development professionals.''--
Danna MacKenzie, Cook County (MN) IT Director
``The families in our community will see benefits for many
years to come as a result of everyone's hard work and
dedication on this project.''--Kristen Lee, Independent School
District #381, Two Harbors, MN
Lessons Learned: Key Elements of Successful Adoption Efforts
I. Communities know best.
Involve citizens directly in articulating their community's
broadband adoption and utilization goals to catalyze long-term
engagement needed to increase adoption.
II. Local Leadership matters.
Help local broadband champions get and use skills to frame issue,
build and sustain relationships and mobilize people to build a
community's capacity to achieve its broadband goals.
III. Broadband is not an end in itself.
It is a means to the higher ends of increased economic vitality and
improved quality of life. Framing it this way helps.
IV. High touch outreach works.
Effective recruitment strategies are intra-community, hyper local,
and personalized. Change follows relationship lines.
V. Peers make great teachers.
Peer-based learning formats are popular, low cost and easily
sustainable tools to build a community's technological savvy.
VI. Cross-community communication is key.
Signage, local media support, and aligned social media are
effective low-cost ways to spur and sustain energy and excitement for
community projects.
VII. Engage tomorrow's leaders today.
Recognize and authentically engage the talents of young people.
This generation of leaders brings energy and sustainability to any
community initiative.
VIII. Connect the economic dots.
Framing increased sustainable broadband use as a necessary but not
sufficient ingredient in a ``whole systems'' approach to strengthen
community vitality can help communities see and leverage the connection
between the technology and benefits to community life.
IX. Have patience.
This work takes time. Look for and celebrate early and easy
``wins,'' but think long term and build capacity and energy for the
long haul. Money and other resources follow vision and commitment.
Conclusions and Policy Implications
In service to the work of this committee and anyone working to
strengthen rural communities, Blandin Foundation commends to you these
key conclusions that we have drawn from our experience:
Broadband access alone is not enough: without concerted,
community-based efforts to ensure that all citizens are able to
take advantage of the Internet, the digital divide will
continue to grow and to undermine America's promise as a
democracy where equal opportunity is available to all.
Community-based broadband literacy and market development
efforts can and do help ensure that all Americans can
participate fully in our Nation's economy and civic and
cultural life.
Eliminating the digital divide is an urgent challenge that
must be part of our national agenda. States and communities
need the Federal Government and its resources as a partner in
this work.
Federal investment in broadband access and adoption made
available to Minnesota through the American Recovery and
Reinvestment Act have made a significant positive difference to
rural Minnesota communities' ability to be globally competitive
and ensure a high quality of life for their residents.
NTIA has been a very helpful partner in our efforts to bring
to rural Minnesota communities the full benefits of the
broadband-enabled economy. NTIA's ``Broadband Adoption
Toolkit,'' released in May of this year, is an especially
powerful tool for shining a light on best practices, and making
them available to community champions across the country.
In sum, access to broadband is key: Evidence abounds that high-
speed Internet access has economic benefits (positive impact on median
household income, employment, and business growth).
But so is adoption. According to the report, ``Broadband's
Contribution to Economic Health in Rural Areas: A Causal Analysis,'' by
B. Whitacre, S. Strover, and R. Gallardo (March 26, 2013), ``Non-metro
counties with high levels of broadband adoption in 2010 had
significantly higher growth in median household income between 2001 and
2010 compared to counties that had similar characteristics in the 1990s
but were not as successful at adopting broadband.''
This point was eloquently echoed in a recent edition of ``The Daily
Yonder,'' published on the web by the Center for Rural Strategies, a
non-profit media organization based in Whitesburg, Kentucky, and
Knoxville, Tennessee.
``While most government broadband policies have traditionally
focused exclusively on providing infrastructure, there is a
case to be made for focusing on demand. . . . Investments in
people, education and training are essential to achieve
meaningful use of the Internet.''
On behalf of Blandin Foundation, our partners, and the people of
rural Minnesota and rural America who work at broadband adoption every
day, it is our honor to share our work with you and others. I trust
that we have demonstrated how, in rural communities especially, support
for broadband adoption can be stretched a very long way.
_______________________________________________________________________
[The witness also submitted Minnesota Intelligent Rural Communities
Program--Demonstration Communities final report
by Robert Bell
Intelligent Community Forum
A report commissioned by the Blandin Foundation to support the work
of the Minnesota Intelligent Rural Communities Coalition and Funded by
the American Recovery and Reinvestment Act http://
blandinfoundation.org/--uls/resources/MIRC_ICF_Final_Report-04-08-
13.pdf ]
Senator Pryor. Thank you.
Ms. McPeak.
STATEMENT OF SUNNE WRIGHT McPEAK, PRESIDENT
AND CHIEF EXECUTIVE OFFICER, CALIFORNIA EMERGING
TECHNOLOGY FUND
Ms. McPeak. Thank you for inviting me to share the
experience from California. In California, which has some of
the most challenging terrain for broadband deployment of any
state and the largest population of people who were not online
when we began the effort, we have made very significant
progress, with bipartisan leadership.
The California Emerging Technology Fund that I represent
was established by the California Public Utilities Commission
as a result of mergers of telecom companies in 2005. But, in
addition, our Governor and legislature first had a broadband
task force and now have established a broadband council in
statute.
The CPUC has established a fund converted from high-cost
subsidies for telephony to support broadband deployment. And
recently, the legislature and the Governor allowed that fund to
be used to support broadband connectivity in publicly
subsidized housing. In addition, through executive order, our
Governor has said digital literacy is a priority for our state.
So, we're committed to closing the digital divide.
When we began, however, it was like having five states
inside California, with respect to the geography that wasn't
covered with deployment and who hadn't adopted. We had the
national average for adoption at 55 percent, and Internet use
overall at 75 percent. We've now increased that to having
broadband use at 76 percent at home, and Internet use that
exceeds 80 percent. Very significantly, we've increased low-
income households by 20 percentage points, Latino households by
18 percentage points, people with disabilities by 20 percentage
points, and our rural adoption has caught up with urban,
because we couple adoption with deployment in California.
However, those now left offline, left to adopt, are largely
urban poor and those in rural areas that have no access at all.
With all of this effort in California, we need to have an
increasing partnership--set of partnerships between the Federal
Government and the State, public and private partnerships, and
provider and community partnerships. To be sure, California has
benefited from being a partner with the Federal Government. We
received, from the FCC, over $22 million for a Telehealth
network. We were a grantee, under the NTIA BTOP program, of
$14.3 million for 19 community-based organizations. And I
should hasten to say, we met or exceeded our contract
obligations, achieving more than 200,000 adoptions, people who
actually adopted broadband for the first time subscribed, and
generating more than 2700 jobs. So, we have been, I think--
benefited greatly by this partnership from the Federal
Government.
I come here today to share with you what more you can do.
Clearly, there is a huge resource in the FCC with their powers
and their resources, and NTIA Director Larry Strickling and his
team have a wealth of knowledge about what works and
relationships with states and nonprofits throughout the country
that you've already invested in, that is an asset that should
be capitalized upon.
In terms of our learnings and recommendations for action,
here's what we want to suggest:
First, there is no substitute for leadership and for
Congress setting explicit goals, with performance metrics and a
timetable to achieve them, on adoption. A focus on getting
results is essential.
Second, there is a need to connect the dots at the Federal
level across bureaucratic silos and to encourage each of the
Federal departments to optimize the use of broadband and
information technology in every one of their programs. We have
provided you very specific examples that we can elaborate upon.
Next, broadband needs to be integrated into every program.
And I dare say that we're probably not going to be able to
achieve adoption in low-income communities without a broadband
lifeline program that is established at the FCC.
We also have huge benefit in the investment already through
NTIA BTOP grants, and would suggest that an additional prudent
investment in broadband adoption that is done in partnerships
with the states, with the private sector and community
organizations, who are the trusted messengers and honest
brokers, would go a long ways to closing the digital divide.
And last, we would hope that it would be the hallmark of a
congressional directive on closing the digital divide and
improving, increasing adoption, that, indeed, we do it, as I've
said before, through partnerships with states, with the private
sector, and with community organizations.
[The prepared statement of Ms. McPeak follows:]
Prepared Statement of Sunne Wright McPeak, President and Chief
Executive Officer, California Emerging Technology Fund
Closing the Digital Divide is an Imperative
Imagine if you were not able to communicate instantaneously with
others using your smart phone, digital tablet, or computer. That is the
reality for more than 9 million Californians who live in remote rural
communities, on tribal lands, in low-income neighborhoods, or who have
a disability. Those of us who have the benefit of a personal computing
device coupled with high-speed connections to the Internet--referred to
generically as ``broadband'' that includes both wireline and wireless
technologies--have come to depend on this connectivity for our work,
staying in touch with family and friends, and making our daily lives
easier.
Broadband is essential 21st century infrastructure for global
competiveness. It is a key factor in attracting capital investment to
generate jobs. Communities without broadband are being left behind in
the Digital Age--remote rural areas, poor urban neighborhoods, and
people with disabilities are even more disadvantaged without broadband
availability and computing devices to access the Internet. Closing the
Digital Divide with public policies and strategies to achieve
ubiquitous broadband deployment and to accelerate broadband adoption is
an imperative for economic prosperity, quality of life, and family
self-sufficiency. Fortunately, it is a goal that can be achieved with
inspired vision, focused leadership, alignment of existing resources,
and enlightened investment of a modest amount of additional public
funding to encourage partnerships--federal-state, public-private, and
provider-community. There is ample research and empirical evidence
about what it takes to get the job done.
The California Experience and Progress in Closing the Digital Divide
California has some of the most challenging terrain in the Nation
for broadband deployment and the largest populations of disadvantaged
residents as priority communities for broadband adoption. When
California began to focus on closing the Digital Divide, the number of
``unconnected'' residents was the equivalent of having 5 other states
within our boundaries. Approximately 94 percent of all residents had
broadband access--however the 6 percent of residents totally unserved
represented 768,000 households (about 2 million residents), more than
the population of the State of Nebraska spread out over more than
44,000 square miles of inhabited area, the size of the State of
Kentucky. Almost 13 million residents (largely urban poor) were not
connected, more population than the State of Illinois.
In addition, 1.9 million people with disabilities were off-line,
the population of the State of New Mexico. And, 680,000 Native
Americans were not connected, larger than the population of the State
of Alaska. It should be noted that California has the largest
population of Native Americans than any other state with 111 federally-
recognized tribes. Most of the tribal lands lack broadband connectivity
and want broadband access according to recent consultations of Tribal
Leaders being convened by Judge Cynthia Gomez, the Governor's Liaison
to Tribal Governments and the Executive Secretary of the California
Native American Heritage Commission in collaboration with the
California Emerging Technology Fund and the Corporation for Education
Network Initiatives in California (CENIC).
The California Emerging Technology Fund (CETF) was established at
the direction of the California Public Utilities Commission (CPUC) in
the orders approving the 2005 mergers of SBC-AT&T and Verizon-MCI. The
successor companies agreed to provide a public benefit by contributing
a total of $60 million into this new non-profit with the mission to
close the Digital Divide in California. CETF became operational in
2007, working in partnership with the Governor and State
Administration, Legislature, CPUC, local governments, and a network of
more than 80 community-based organizations (CBOs) to systematically
implement a Strategic Action Plan to close the Digital Divide in
California, tackling both broadband deployment and adoption challenges.
CETF reports to the Legislature through the CPUC.
In addition to establishing CETF, California policymakers have
taken other key steps to close the Digital Divide, including:
In 2007 the Governor with the support of the Legislature
convened the California Broadband Task Force which produced the
base report to focus attention on the issues.
In 2008 the CPUC and the Legislature established the
California Advanced Services Fund (CSAF) to subsidize broadband
deployment to unserved and underserved areas by converting a
high-cost fund for telephone service to support broadband
infrastructure while also significantly reducing the annual
amount collected from consumers. Through subsequent legislation
the total amount authorized to be collected for CASF has been
increased to $315 million.
In 2009 the Governor issued an Executive Order to advance
digital literacy that sets forth official State policy and
requires agencies to develop and implement an action plan.
In 2010 the Legislature and Governor established the
California Broadband Council in statute to sustain State
attention and leadership to close the Digital Divide.
In 2013 the Legislature and Governor authorized CASF funds
to be used for broadband connectivity in publicly-subsidized
multi-unit affordable housing.
The sum total of this collective effort is significant progress in
the last 6 years. In 2008, California's statewide adoption rate for
Internet use was 70 percent with 55 percent having broadband use at
home--the same as the national average. Today, 86 percent of
Californians use the Internet and 75 percent access the Internet at
home with a high speed connection (including 6 percent that access the
Internet only by a mobile ``smart phone''). Also, there have been
significant increases in broadband adoption by priority consumer
populations:
--Low-income households up 20 percentage points (from 33 percent in
2008 to 53 percent in 2013).
--Latino households up 18 percentage points (from 34 percent in
2008 to 52 percent in 2013).
--People with disabilities up 20 percentage points (from 36 percent
in 2008 to 56 percent in 2013).
The Role of the California Emerging Technology Fund
The California Emerging Technology Fund (CETF) has been a pivotal
partner in driving this progress on closing the Digital Divide, serving
as a catalyst for focus, action and results by: (a) setting the goals
for broadband deployment and adoption; (b) delineating the strategic
framework to achieve the goals with regular reports on progress to
foster accountability; and (c) making targeted and leveraged
investments in public policy initiatives and grants to CBOs. CETF is
performance-driven and outcomes-focused. The CETF Strategic Action Plan
is based on research and fact finding about ``what works'' and sets
forth the overall approach and strategies to close the Digital Divide,
including the metrics for accountability that provide the disciplined
focus on results. CETF set the following goals for achieving success by
2017--10 years after CETF began operations--which have been embraced
widely by policymakers and stakeholders.
Broadband Supply--98 percent Deployment
Access for At Least 98 percent of All Households
Robust Rural-Urban California Telehealth Network (CTN)
All Tribal Lands Connected and Part of CTN
Broadband Demand--80 percent Adoption
Overall Statewide Adoption At Least 80 percent by 2015 and
90 percent by 2020
All Regions and Socioeconomic Groups within 10 Percentage
Points of Overall Adoption (At Least 70 percent)
Increased Overall Accessibility and Universal Design
Broadband Global Leadership--Within Top 3 Rankings
Appropriate and Sufficient Speeds for Consumer Applications
that Drive Adoption
Increased Economic Productivity
Reduced Environmental Impacts
There is not a ``silver bullet'' to closing the Digital Divide--no
one strategy or action will get the job done. However, there is
``silver buckshot''--a ``critical mass'' of inter-related and mutually-
reinforcing strategies and actions that do succeed. To achieve the
optimal impact and a higher return on investment of the original seed
capital, CETF employs 5 overarching strategies to drive progress on the
broadband deployment and adoption goals:
1. Civic Leader Engagement
2. Venture Philanthropy Grantmaking
3. Public Policy Initiatives
4. Public Awareness and Education
5. Strategic Partnerships
Successful implementation of these strategies requires engaging and
partnering with ``trusted messengers'' and ``honest brokers'' who know
their local communities and target neighborhoods, including local
government officials, regional civic organizations, and successful
CBOs. CETF has focused on 3 priorities for grantmaking: rural and
remote areas; urban disadvantaged neighborhoods; and people with
disabilities. CETF has awarded more than $31 million in grants to
community-based organizations (CBOs) and public agencies as
``partners'' in achieving the broadband deployment and adoption goals.
Leadership and Strategic Investments by the Federal Government
California's progress in closing the Digital Divide has been
significantly advanced by the leadership of the California
Congressional Delegation and strategic investments by the Federal
government. The Federal Communications Commission (FCC) awarded $22.1
million from the Rural Health Care Pilot Program (matched by $3.6
million from CETF) to connect a network of more than 800 facilities in
rural and urban medically-underserved communities that comprise the
California Telehealth Network (CTN). Telehealth is a major public
policy initiative in California to drive both broadband deployment and
adoption. Thus, the FCC Healthcare Connect Fund is a vital resource for
the future, although the program needs some refinement. In addition,
California has benefited greatly from partnerships with the U.S.
Department of Commerce National Telecommunications and Information
Agency (NTIA) under the American Recovery and Reinvestment Act (ARRA)
Broadband Technology Opportunities Program (BTOP).
NTIA awarded 13 ARRA BTOP grants for broadband infrastructure
deployment exceeding $428 million and 17 grants for broadband adoption
totaling almost $122 million, including support for CTN operations and
development of services. NTIA provided 2 grants to CETF for a total of
$14,359,476 (matched by CETF $2,551,796) to support 19 CBOs (sub-
awardees) resulting in more than 200,000 broadband adoptions and more
than 2,700 jobs, which met and exceeded the contractual performance
objectives. These grants were concluded as of June 2013 and are
summarized below.
Broadband Awareness and Adoption
The Broadband Awareness and Adoption (BAA) project mobilized the
expertise and resources of 8 partners (sub-awardees) to reach
communities most impacted by the Digital Divide: low-income families,
limited English-speaking Latinos, rural residents and people with
disabilities. BAA partners worked with schools, churches, health
clinics, job training programs, and social service providers to develop
model ``service ecosystems'' which included technical support, low-
price computers, and affordable broadband connections. Key
accomplishments include:
Increased awareness about the benefits of broadband among
13,296,068 low-income residents (266 percent).
Provided 719,255 low-income individuals with basic Digital
Literacy skills to use broadband technology (106 percent goal).
Achieved 198,714 new broadband subscriptions by low-income
households (149 percent goal) and distributed 6,866 computers
to low-income households (172 percent goal).
------------------------------------------------------------------------
------------------------------------------------------------------------
Total BAA Budget $9,360,672
NTIA Grant $7,251,295
CETF Match Funds $979,476
Partner Cash Match $882,667
Partner In-Kind Match $247,234
------------------------------------------------------------------------
Access to Careers in Technology
The Access to Careers in Technology (ACT) project engaged 11
partners (sub-awardees) to establish scalable workforce development
programs while expanding access to broadband and 21st Century jobs in
low-income communities throughout the state. Individuals with multiple
barriers to employment--ranging from the homeless to former drug
addicts--completed Information and Communications Technology (ICT)
training to obtain jobs in a spectrum of major industries from
engineering to entertainment with pathways to living-wage careers in
high demand. Key accomplishments include:
Trained 24,675 low-income youth and adults and 12,044 small
business owners and employees with Digital Literacy skills (101
percent goal).
Secured 2,745 ICT career-path jobs for low-income residents
(107 percent goal).
Achieved 9,331 new broadband subscriptions by low-income
households and distributed 5,547 computers to low-income
households (101 percent goal).
------------------------------------------------------------------------
------------------------------------------------------------------------
Total ACT Budget $11,081,130
NTIA Grant $7,108,181
CETF Match Funds $1,572,320
Partner Cash Match $2,379,839
Partner In-Kind Match $20,790
------------------------------------------------------------------------
Lessons Learned
The successful implementation of the NTIA grants by CETF and our 19
partners was led by Senior Vice President Susan Walters, who prepared a
report Lessons Learned from the Field which has been submitted as part
of this testimony for the Congressional record.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
CETF Lessons Learned from ARRA NTIA BTOP Grants
Grantee executive leadership and staff management capacity are essential.
Coaching and the ``learning community'' were key to reaching goals.
Thoughtful work plans in advance led to faster recognition of problems.
Anchor institutions and community organizations need to work to ensure that
clients actually obtain broadband (information and encouragement alone are not
sufficient).
Integrating digital literacy training and broadband adoption into existing
programs is the best way to ensure sustainability and continually narrow the
Digital Divide.
----------------------------------------------------------------------------------------------------------------
The experience of all NTIA grantees has been incorporated into the
NTIA Took Kit which is a very useful compilation of data and
recommendations for accelerating broadband adoption. NTIA Administrator
Larry Strickling and his team (Laura Breeden and colleagues) have a
wealth of knowledge about ``what works'' and established working
relationships with state agencies and non-profit organizations
throughout the Nation that are valuable assets that should be supported
and leveraged for sustained progress in closing the Digital Divide.
Broadband Empowers People and Transforms Lives
The California Emerging Technology Fund (CETF) has amble evidence
about the ways in which broadband access and information technology
empowers people and transforms lives. This is particularly effective
when broadband is integrated into services and programs that have
relevance to everyday living, such as in school, job training, housing,
and healthcare.
For example:
CETF has developed School2Home to turn around low-performing
middle schools through the integration of broadband and
computing technology into the teaching and learning processes
with significant parent engagement. Not only is School2Home
improving academic performance above district and statewide
gains, but also driving broadband adoption: Spanish-speaking
parents increased broadband adoption at home from 48 percent to
76 percent (a 58 percent increase) and English-speaking parents
increased from 84 percent to 94 percent (a 12 percent
increase).
CETF partner The Stride Center has a significant track
record in training and securing employment for individuals with
multiple barriers to employment, demonstrating that ICT
workforce preparation can result in 90 percent of the clients
obtaining jobs with a median wage double the overall regional
labor market average.
The power of the statistics on closing the Digital Divide and
performance data on the grants comes to life with the stories of the
people who are becoming self-sufficient and productive taxpayers
because of these public and private investments. Consider the
experience of these real people who have benefited from broadband
access and information technology:
--Daniel made the honor roll once he had broadband at home and was
able to keep up with his homework assignments and navigate
the Internet to gather information.
--Yanira was as a grocery delivery driver when she injured her back
and couldn't work in that job any longer. With an online
course she learned how to write a resume and cover letter,
search for job listings, and e-mail applications to
companies--when she began she didn't even know how to send
e-mails. After just a month, she started a new job in the
delivery business making nearly $3 more per hour.
--Henri recently landed his first job as a digital animator after
receiving job training and now is on a career pathway with
living wages.
--Rosa is getting her high school equivalency diploma after
completing two computer skills certification classes to
earn a free refurbished computer and signing up for
broadband at home.
--Alicia used to struggle to find work, but now works fulltime
after learning how to use electronic job boards in a
digital literacy class.
--Deborah was able to keep up with her high school homework with
the benefit of broadband access and graduated with a 4.0
GPA. She searched the Internet for the right college and
was able to apply online for admission and a full
scholarship.
--Maria's flower shop has blossomed since attending a computer
training class and learning how to manage and market her
business.
--Sheryl turned her live around from drug abuse and losing her
children after learning computer skills at a non-profit
that received ARRA funds from NTIA BTOP. Today she has a
full-time job, which allowed her to regain custody of her
children.
Conclusions for Closing the Digital Divide and Accelerating Broadband
Adoption
Although there has been a steady rise in the number of people
adopting and using broadband at home, it is becoming increasing harder
to reach those who remain off-line because they are remote rural
residents without access and urban poor residents without digital
literacy skills nor the means to afford market prices. However, all the
data and experience indicates that the vast majority of people who do
not have or use broadband at home want to adopt the technology when
they understand the value proposition and have access. Thus, it is very
important to understand what actually works to reach these consumers
who should be regarded as ``prospective customers in emerging
markets.''
Dr. John Horrigan (who helped develop the National Broadband Plan
and has worked for the Pew Charitable Trusts and Joint Center for
Political and Economic Studies) concludes that the cost of digital
exclusion is real and rising and that the broadband adoption challenge
has three primary dimensions: cost, relevance, and digital literacy. He
further finds increasing broadband adoption requires sustaining
capacity and scale of strategic initiatives with states and local
communities involved in the ``ground game'' to focus on ``digital
readiness'' in unserved and disadvantaged communities. He provides
valuable insights to guide the work in accelerating broadband adoption.
The following are the major conclusions from the experience of the
California Emerging Technology Fund and our community-based partners
who have been on the ground in unserved rural communities and
disadvantaged urban neighborhoods.
It is essential to set goals with quantified metrics and
accountability for performance in order to drive broadband
deployment and adoption to close the Digital Divide and to
regularly report to the public and stakeholders to ensure
continued focus on the goals.
Optimizing impact of any investment requires engaging public
officials at all levels of government and civic leaders in
regional consortia and local communities. There is no
substitute for leadership, but leaders need to be involved in
developing the strategies and supported in systematically
implementing a coherent, integrated plan.
Broadband adoption will succeed by working in partnership
with community-based organizations that are the ``trusted
messengers'' and ``honest brokers'' for the unserved and
disadvantaged populations.
Affordable broadband offers are required to increase
adoption among low-income households. This is likely to require
an Affordable Broadband Lifeline Rate Program given that
voluntary efforts to date have had modest market penetration
for a variety of reasons, with the most extensive program
reaching less than 10 percent of eligible participants.
Sustainable broadband adoption requires a comprehensive
approach that targets and aligns resources in low-income
communities with an integrated, comprehensive ``neighborhood
transformation'' strategy that incorporates broadband adoption
into other services, such as education, workforce preparation,
and healthcare.
Recommendations for Continued Federal Government Leadership in
Broadband Adoption
There is a foundation of leadership and expertise in the Federal
government on which to launch the next generation of work to accelerate
broadband adoption to close the Digital Divide in America. In
particular, the powers and resources of the FCC coupled with the
experience and relationships of NTIA in collaboration with the other
Federal departments is a solid platform for action. Congress can
greatly augment this foundation by the following actions:
Set national goals and performance metrics for broadband
deployment and adoption along with a timetable and assigned
responsibilities for achieving them to encourage implementation
of the National Broadband Plan and utilization of the NTIA Took
Kit. Institute regular Congressional oversight proceedings to
ensure performance and accountability.
Integrate broadband and information technologies into all
Federal policies and programs through funding incentives to
align efforts across departments. There is a need to ``connect
the dots'' with a set of coherent strategies that transcend
``bureaucratic silos'' to optimize access to and use of the
Internet with high-speed connections. For example:
--U.S. Department of Health and Human Services (HHS) should build
upon the ARRA Health Information Technology for Economic
and Clinical Health Act (HITECH) framework to encourage
stronger linkages and purposeful collaboration of health
exchanges and ``meaningful use'' to the telehealth networks
funded by the FCC Rural Health Care Pilots and/or the new
Healthcare Connect Fund. HHS and the FCC should make a
concerted joint effort to connect all state and local
government public health services, federally-qualified
health centers (FQHCs), critical care hospitals, tribal
healthcare facilities (if desired by Tribal Leaders) to
these telehealth-telemedicine networks. This kind of an
effort will need to be coordinated with other departments
and programs, such as the U.S. Department of Agriculture's
Distance Learning, Telemedicine and Broadband Program to
ensure rural communities are connected.
--U.S. Department of Education should aggressively encourage the
integration of broadband and computing technologies into
the teaching and learning processes in all Federal grants
to improve education, particularly to turn around low-
performing schools because of the ability of the technology
to engage and involve low-income parents with an approach
similar to School2Home. Implementation nationwide of Common
Core Standards will require a major effort on a scale not
yet contemplated by educators and policymakers. Promise
Neighborhoods grantees should be encouraged to promote
``smart communities'' by incorporating broadband adoption
strategies into their programs.
--U.S. Department of Labor should encourage integration of digital
literacy and ICT skills training into all existing
workforce preparation programs through Workforce Investment
Act allocations to states and all other grants.
--U.S. Department of Housing and Urban Development should promote
``smart housing'' in all publicly-subsidized multi-unit
complexes by allowing the installation of an advanced
communications system with broadband connectivity in each
residence to be included in construction costs and the
maintenance of such a system to be included in operating
budgets. Choice Neighborhoods grantees should be encouraged
to incorporate broadband adoption strategies into their
programs.
--U.S. Department of Agriculture (Rural Utility Service and all
other rural economic development programs) should encourage
larger-scale integrated proposals for existing grant funds
that combine broadband deployment and adoption. There
should be consideration of easements for broadband
deployment in National Forests to support public safety,
emergency response, and homeland security.
--U.S. Department of Interior should identify all resources to
assist Tribal Leaders (who request such assistance) in
providing broadband service to Tribal Lands. There should
be consideration of easements for broadband deployment in
National Parks to support public safety, emergency
response, and homeland security.
--U.S. Department of Homeland Security should become a proactive
partner in FirstNet to accelerate broadband deployment and
adoption to support public safety, emergency response, and
homeland security.
Request and support the FCC to accelerate reform the
Universal Services Fund (USF) and to incorporate best practices
for sustainable broadband adoption. With limited resources,
priority consideration for funding and/or subsidies to
broadband providers should be given to companies that: (a) have
a coherent, explicit program with quantified goals and metrics
to increase broadband adoption; (b) partner with CBOs that have
a proven track record as the ``trusted messenger and honest
broker'' in broadband adoption; and (c) target low-income
communities in collaboration with other stakeholders pursuing
``digital inclusion'' and ``neighborhood transformation''
strategies (such as digital literacy in schools, workforce
training, or publicly-subsidized housing).
--An Affordable Broadband Lifeline Rate Program should be
established within the next year and made available to
residents in low-income census tracts in which there is a
coherent ``digital inclusion'' component of a
``neighborhood transformation'' initiative with responsible
local governments, key stakeholders, and respected CBOs.
--Renewal and reform of eRate should prioritize low-performing
schools and libraries in low-income neighborhoods that have
established a coherent program with quantified goals and
accountability to increase broadband adoption, especially
as part of an overall ``neighborhood transformation''
initiative.
--Connect America Fund and other programs to subsidize broadband
infrastructure should give priority funding to deployment
projects with plans and partners to promote broadband
adoption.
Provide additional funding to NTIA as a prudent investment
in global competitiveness to establish the ``next generation''
broadband adoption program that builds upon the ARRA BTOP
experience, aligns with other existing efforts, and leverages
Federal resources through partnerships to achieve explicit
adoption goals and outcomes by 2020.
--Encourage states to adopt broadband adoption strategies and plans
by giving priority consideration for funding to projects
that align with and complement state programs that have
explicit adoption goals with accountability for
performance.
--Facilitate collaboration among successful BTOP grantees to join
forces with state governments to develop broadband adoption
strategies and plans.
--Request assistance from the National Association of Regulatory
Utility Commissioners (NARUC) to engage states and convene
information forums on development of broadband adoption
strategies and plans.
Foster public-private partnerships to accelerate broadband
deployment and adoption. There is no substitute for the
innovation and efficiency of the private sector when engaged as
sincere partners motivated to achieve explicit goals. Public-
private partnerships can significantly leverage public
resources for a higher return on investment to taxpayers and
ratepayers.
--Request the FCC and NTIA to engage broadband providers in helping
design the ``next generation'' broadband adoption program
to achieve explicit goals and outcomes.
--Encourage providers to partner with EveryoneOn (formerly Connect-
to-Compete) by setting adoption targets coupled with
affordable broadband offers that can be made available
without undermining profitability. There needs to be market
competition for low-income consumers to become sustainable
broadband customers.
--Request the FCC to structure USF reforms for a Broadband Lifeline
Rate Program and eRate to encourage and reward providers
who partner with non-profit intermediaries (such as
EveryoneOn) and trusted CBOs with a proven track record and
align with state plans. Reimbursement and subsidies from
the USF should reward public-private partnerships that
drive to and achieve explicit broadband adoption goals.
_______________________________________________________________________
[The witness also submitted U.S. Department of Commerce National
Telecommunications and Information Administration and California
Emerging Technology Fund, Lessons Learned from the Field: Connecting
Californians to Broadband and Digital Care (http://www.cetfund.org/
files/1301_Field-Lessons-Learned%20-Connecting_Californians.pdf)]
______
______
______
______
______
______
Senator Pryor. Thank you.
Mr. Cohen.
STATEMENT OF DAVID L. COHEN, EXECUTIVE VICE PRESIDENT, COMCAST
CORPORATION
Mr. Cohen. Thank you, Mr. Chairman, Ranking Member Wicker,
who does represent our birth state in 1963. And Senator Wicker,
you'll be pleased to know that we'll be celebrating that 50th
birthday on November 20, so just about 3 weeks from now. And
also, all members of the Subcommittee, thank you for the
opportunity to testify today.
The Internet has the potential to fundamentally transform
our society and our economy, to equalize access to education,
healthcare, vocational opportunities, and even to news,
information, and entertainment. But for this to happen, we need
to have ubiquitous broadband deployment and full broadband
adoption.
Broadband deployment in the United States has been a great
success story. Critics who bemoan America's allegedly second-
rate broadband infrastructure are simply mistaken. To
paraphrase the late Senator Moynihan, they are entitled to
their own opinions, but not their own facts. The reality is
that America's broadband companies have invested more than $1.2
trillion to deploy world-class broadband networks which now
reach 98 percent of Americans. Three of the ten companies that
invested the most inside the U.S. last year are broadband
infrastructure companies: Comcast, Verizon, and AT&T. For our
part, Comcast has built out its broadband plant to over 99.5
percent of the homes in our footprint. We have increased
network speeds 12 times over the past 11 years, and, earlier
this year, we demonstrated that our existing network, right
here in Washington, can deliver speeds up to 3 gig down.
Concededly, the broadband deployment picture is not
perfect. There are still unserved rural areas in our nation,
and we need to encourage innovative solutions to fill those
gaps. But, the larger problem affecting many more Americans is
the lack of broadband adoption in areas where broadband is
available. Research by the FCC, Pew, and others, has
demonstrated that a bucket of digital literacy issues--lack of
understanding of relevance or value, fear of the Internet, and
lack of understanding how to access and use the Internet--are
the main barriers to adoption. The National Broadband Plan
found that 41 percent of non-adopters cited these as the main
barriers. It also found that only 15 percent of non-adopters
cited the monthly ISP price as the main obstacle. These trends
were confirmed by Pew's most recent survey, which Aaron
summarized, which found that only 9 percent of people who don't
go online at home cited the price of connection as the main
barrier to adoption.
Addressing the broadband adoption gap is a personal
priority for me and for Comcast. That is why Comcast created
the program we now call ``Internet Essentials.'' This was a
voluntary commitment we offered during the regulatory review of
Comcast's acquisition of NBCUniversal. But, Comcast has
expanded and strengthened Internet Essentials since its launch
so many times and in so many different ways that the program
today barely resembles what is required under the FCC's order.
In addition to providing low-cost broadband service, Internet
Essentials delivers access to low-cost computers and to digital
literacy training; thus, hitting the touch point of every
barrier to adoption that you've heard about on this panel
today.
And I'm pleased to make an announcement today. And that is
that Comcast recently connected our one millionth Internet
Essentials user. In just over 2 years of the program's
existence, we have connected more than 250,000 families to the
Internet, most for the very first time. Now a million is a very
big number, more than the entire population of the City of San
Francisco and about the size of the entire state populations of
states like Delaware or Montana.
We measure our success, though, not just by how many people
are connected to broadband at home, but also by how they are
using it. And what they have told us as we survey them is
incredibly encouraging. Ninety-eight percent of those Internet
Essentials customers surveyed say their kids use the Internet
for doing homework, and 94 percent of them feel that Internet
access has had a positive impact on their child's grades; 59
percent say that the Internet has helped someone in their
household find a job. So, yes, broadband adoption through a
program like Internet Essentials really does work.
I'd also like to say that Comcast supports an improved role
for broadband in education. Every student deserves access to an
integrated, always-on digital learning platform, a continuum of
connectivity that begins in the classroom, follows the child to
after-school programs, and ends with broadband connectivity at
home. Updates to the E-Rate program and the administration's
ConnectED initiative will advance these goals and can be done
in a cost-effective and efficient manner. I commend Chairman
Rockefeller, members of this subcommittee, and the
administration for their leadership in these areas.
When we look at broadband in America, there is much to be
proud of, but there is much work that still needs to be done,
particularly with adoption. Comcast is committing to doing its
part and to working with you on these issues.
So, thank you for this opportunity, and I look forward to
your questions.
[The prepared statement of Mr. Cohen follows:]
Prepared Statement of David L. Cohen, Executive Vice President,
Comcast Corporation
Mr. Chairman, Ranking Member Wicker, and Members of the
Subcommittee:
Thank you for inviting me to testify today. I welcome the
opportunity to discuss the critical importance of expanding the
adoption of broadband Internet service throughout our great nation. The
Internet is an incredible technology that is unparalleled in its
ability to level the playing field and equalize access to education,
health care, and vocational opportunities, as well as news,
information, and entertainment. People who are not on the Internet,
however, are shut out from these benefits. Comcast, together with
thousands of community partners, has made extraordinary efforts to
address this challenge, but much work remains to be done.
At the outset, let me commend the Subcommittee for focusing on the
issue of broadband adoption. Since 1996, America's broadband providers
have invested over a trillion dollars to deploy world-class broadband
networks throughout the United States. Thanks to these investments, the
Internet has become a platform for innovation unlike any the world has
ever seen. Entire industries that would otherwise have been impossible
have flourished, and American companies like Google, Netflix, Facebook,
Amazon and so many others continue to thrive at home and around the
globe because broadband providers like Comcast have invested to bring
the Internet to nearly every American household. While there are still
areas of the United States--particularly remote, rural areas--that
remain unserved, the United States' broadband deployment story is a
story of success.
But there is a cruel irony at play. Because of the digital divide,
the Internet actually exacerbates, rather than narrows, the differences
in opportunities available to those who access the Internet versus
those who do not. This hearing can help shine a light on this issue of
fundamental fairness.
The issue of broadband adoption has been a priority for me and for
Comcast. We care deeply about this issue. Rigorous survey results,
including by the FCC (as part of the National Broadband Plan), the Pew
Research Center, and others, consistently show that the main reasons
why Americans do not adopt broadband are the perceived lack of
relevance--the absence of understanding the value of the Internet--and
the lack of digital literacy. In other words, the people who do not
subscribe to broadband Internet services often do not see the benefits
of broadband and do not have the skills or tools to use broadband. The
cost of computer equipment and the monthly cost of a broadband
connection are also factors, but when Americans who have not adopted
broadband are asked to cite the main reason they have not done so, they
consistently cite these factors less frequently than they cite
relevance and digital literacy.
My colleagues and I at Comcast viewed these facts as a challenge
and an opportunity to develop a program that could begin to address
these obstacles of digital literacy, relevance, and cost in areas that
Comcast serves. Working in concert with community partners and local
elected officials, we developed the Internet Essentials program to
address the main reasons that Americans do not adopt broadband.
As I detail later on, we are very proud of our results so far. In
its first 22 months, Internet Essentials has connected over 220,000
households--that's over 900,000 low-income Americans--to the Internet,
most for the first time. That's about 40 percent more people than the
entire population of Washington, D.C., and about equivalent to the
entire population of the City of San Francisco. While we are pleased
with these results, we know that our work is not done. We continue to
improve and expand the program, and have redoubled our efforts to
target the barriers to adoption and to bring even more non-adopters
online.
The barriers to universal broadband adoption in the United States
are complex and deep-rooted, and often connected to the deep
socioeconomic and poverty-driven problems that impact other areas like
education and health. Overcoming these obstacles will require
commitment and persistence from all stakeholders. Comcast is ready and
willing to do our part, and we look forward to working with others who
share these goals.
I. Broadband Deployment Has Been A Remarkable Success in the United
States
One part of bringing the promise of broadband to all Americans is
deploying broadband infrastructure throughout the Nation. Some critics
still insist on belittling broadband in America by citing selective
statistics to support the unfounded charge that our broadband Internet
service is second-rate. To paraphrase the late Senator Moynihan, they
are entitled to their own opinions, but not their own facts.
The facts are that Americans are getting world-class broadband from
competing companies, and it is getting better every day. Today, more
than 94 percent of Americans have access to one or more wired broadband
Internet services,\1\ and over 85 percent of Americans have access to
networks capable of delivering speeds of 100 Mbps and higher.\2\ More
than 300 million Americans have access to 4G LTE mobile broadband,
offering speeds up to 20 Mbps.\3\ Consumers in the United States have
the third-lowest entry-level broadband prices in the world and the
third-lowest price per GB of data.\4\
---------------------------------------------------------------------------
\1\ See Eighth Broadband Progress Report, 27 FCC Rcd 10342 60
(2013) at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-12-
90A1.doc (``Eighth Broadband Progress Report'') (indicating that
``overall, more than 94 percent of Americans have access to fixed
broadband''); National Broadband Map, Broadband Statistics Report,
Access to Broadband Technology by Speed, at 3 http://
www.broadbandmap.gov/download/Technology%20by%20Speed
.pdf (``National Broadband Map Report'') (indicating that 93.92 percent
of Americans have access to wireline broadband speeds in excess of 3
Mbps downstream and 768 kbps upstream) (last visited Oct. 25, 2013).
When wireless broadband service is included, 98.75 percent of Americans
have access to broadband speeds in excess of 3 Mbps downstream and 768
kbps upstream. See National Broadband Map Report at 3.
\2\ See NCTA, Industry Data, http://www.ncta.com/industry-data
(indicating that DOCSIS 3.0-enabled networks, which are capable of
delivering speeds of 100 Mbps and higher, pass 85 percent of American
households) (last visited Oct. 25, 2013).
\3\ Verizon, News Center, LTE Information Center, http://
www.verizonwireless.com/news/LTE/Overview.html (last visited Oct. 25,
2013).
\4\ See Int'l Telecomm. Union, Measuring the Information Society
2012, at 88, available at http://www.itu.int/ITU-D/ict/publications/
idi/material/2012/MIS2012_without_Annex_4
.pdf (last visited Oct. 25, 2013); International Broadband Data Report,
27 FCC Rcd 9884 33 (2012) (``The United States is ranked third out of
16 countries with an average price of $0.76/GB.'').
---------------------------------------------------------------------------
These data are particularly remarkable given some of the geographic
and topographical challenges we face in the United States that make
broadband deployment more challenging here than elsewhere. We rank 28
out of 34 OECD countries on ``urbanicity,'' which is a measure of
concentration in high density urban areas.\5\ Because of these
differences, it may be more appropriate to compare the broadband
situation in individual states to that in other countries. For example,
current speed data from Akamai shows that, if U.S. states were ranked
against countries worldwide, six of the top ten areas in the world with
respect to average connection speed would be U.S. states.\6\
---------------------------------------------------------------------------
\5\ Richard Bennett et al., ITIF, The Whole Picture: Where
America's Broadband Networks Really Stand, at 60 (Feb. 2013), available
at http://www2.itif.org/2013-whole-picture-america-broadband-
networks.pdf (``The Whole Picture''). By way of comparison, the United
States' urbanicity score was 5.2, as compared with South Korea, which
has an urbanicity score of 67.1. Id.
\6\ See Akamai, The State of the Internet, at Khttp://
www.akamai.com/dl/documents/akamai_soti_q213.pdf?WT.mc_id=soti_Q213
(last visited Oct. 25, 2013).
---------------------------------------------------------------------------
Moreover, America's policy of fostering robust broadband
competition by encouraging the build-out of competing networks has
worked. The United States ranks third in the OECD in the percentage of
households with access to two or more competitive wired broadband
providers.\7\ And new entrants like Google Fiber, Gigabit Squared, and
DISH Network, as well as new innovative technologies like VDSL2
vectoring, promise to make the broadband marketplace even more dynamic.
That's investment, innovation, and competition at work.
---------------------------------------------------------------------------
\7\ The Whole Picture at 17.
---------------------------------------------------------------------------
In less than two decades, the American broadband industry has
invested over $1.2 trillion to bring multiple forms of broadband
infrastructure to nearly every corner of the country.\8\ Even during
this country's recent economic troubles, when job growth stalled and
private investment tumbled, American broadband companies poured some
$250 billion in private investment into broadband.\9\ So it is no
surprise that when the Progressive Policy Institute (``PPI'') issued a
list of their ``Investment Heroes''--companies that have invested the
most money here in the United States--three of the ten largest domestic
investors that were not financial companies were broadband
infrastructure companies: Comcast, Verizon, and AT&T.\10\ According to
PPI, ``telecommunications and cable companies are a major driver of
U.S. investment today.'' \11\ Of course, this substantial investment
translates not only into better and more widespread broadband networks,
but also innovation, economic growth, and jobs.
---------------------------------------------------------------------------
\8\ USTelecom, Broadband Industry Stats, Broadband Investment, at
http://www.ustelecom
.org/broadband-industry/broadband-industry-stats/investment (last
visited Oct. 25, 2013).
\9\ Broadband for America, Blog, ``Broadband Investment from Trade
Groups Tops $250 Billion,'' http://www.broadbandforamerica.com/blog/
broadband-investment-trade-groups-tops-250-billion (May 19, 2011).
\10\ Diana G. Carew & Michael Mandel, Progressive Policy Institute,
U.S. Investment Heroes of 2013: The Companies Betting on America's
Future, at 5 (Sept. 2013), available at http://www
.progressivepolicy.org/wp-content/uploads/2013/09/2013.09-Carew-
Mandel_US-Investment-Heroes-of-2013.pdf.
\11\ Id. at 2.
---------------------------------------------------------------------------
For our part, Comcast made all these massive investments with
private, at-risk capital--we received no government subsidies or
guaranteed loans. As a result, today Comcast's facilities deliver
world-class cable, voice, and broadband Internet services. We have made
broadband Internet available to over 99.5 percent of the homes within
our ``footprint,'' and our fiber backbone stretches across 141,000
fiber route miles--that's enough to wrap around the Earth more than
five times. We have increased the speeds available over that network 12
times over the past 11 years, and we will continue to do so because our
network is capable of evolving to meet all types of demand. This year,
we demonstrated that our network is capable of delivering 3 Gbps.\12\
And just last week, we successfully trialed the first 1 Terabit
connection on a portion of our network from Ashburn, Va. to Charlotte,
NC.\13\ This is believed to be the first trial in which live data
traffic was carried at this speed on an existing, commercial
network.\14\ All this is possible because of the investment that I
mentioned earlier. We do not sit still; the marketplace simply will not
allow it.
---------------------------------------------------------------------------
\12\ See News Release, Comcast Corp., ``The Future of Broadband
Speed and 4K Ultra HD Video'' (June 11, 2013), at http://
corporate.comcast.com/news-information/news-feed/comcast-demonstrates-
the-future-of-broadband-speed-and-4k-ultra-hd-video.
\13\ See News Release, Ciena Corp., ``Comcast Conducts Industry's
First Live 1Terabit Network Trial with Ciena's 6500 Converged Packet
Optical Solution'' (Oct. 22, 2013), at http://www
.ciena.com/about/newsroom/press-releases/Comcast-Conducts-Industrys-
First-Live-1Terabit-Net
work-Trial-with-Cienas-6500-Converged-Packet-Optical-Solution.html.
\14\ Id.
---------------------------------------------------------------------------
I certainly would not claim the deployment picture is perfect.
While nearly all Americans have access to satellite broadband,\15\
which provisions speeds as fast as 25 Mbps,\16\ more wireline and
wireless broadband deployment is needed in remote parts of rural
America.\17\ We should not downplay the geographical and logistical
challenges of addressing this problem, and we need to be more focused
on facilitating creative technology solutions.\18\ But, on the whole,
the speeds and range of choices available to the vast majority of
Americans are light-years beyond what anybody reasonably would have
anticipated just 10 or 15 years ago. This is great news for our
country.
---------------------------------------------------------------------------
\15\ Connecting America: The National Broadband Plan, FCC, at 137
(rel. March 16, 2010), http://download.broadband.gov/plan/national-
broadband-plan.pdf (``National Broadband Plan'').
\16\ See Exede Internet, Internet Packages, at http://
www.exede.com/internet-packages-pricing/service-availability (last
visited Oct. 25, 2013).
\17\ See Section 706 Fixed Broadband Deployment Map/FCC.gov, at
http://www.fcc.gov/maps/section-706-fixed-broadband-deployment-map
(last visited Oct. 25, 2013).
\18\ There are promising proposals and initiatives underway in this
regard. See, e.g., Ben Leubsdorf, ``UNH to test `Super Wi-Fi'
technology that could expand broadband access in rural areas,'' Concord
Monitor, Sept. 24, 2013, available at http://www.concordmonitor.com/
news/politics/8640947-95/unh-to-test-super-wi-fi-technology-that-could-
expand-broadband-access-in-rural-areas; Richard Bennett, ``Public-
Private Partnerships will Close Rural Broadband Gap,'' Billings
Gazette, Aug. 7, 2013, available at http://billingsgazette.com/news/
opinion/guest/guest-opinion-public-private-partnerships-will-close-
rural-broadband-gap/article_0add8e93-4478
-5ec7-897e-aff16bc406a2.html.
---------------------------------------------------------------------------
II. Broadband Adoption Has Skyrocketed, But Many Americans Are Still on
the Wrong Side of the ``Digital Divide''
The key to empowering Americans through access to the Internet is
to persuade them that adopting broadband is worth their time, effort,
and money. We have come a long way in the last 20 years. In 1996, just
a small percentage of Americans accessed the Internet from their
homes,\19\ and the vast majority of those who did used dial-up
connections. Thankfully, we have moved beyond the slow speeds available
over dial-up and have widely adopted broadband. Today, according to
surveys conducted by NTIA and the Pew Research Center, about 70 percent
of Americans subscribe to wired broadband.\20\ Millions more have
tablets and smartphones that use mobile wireless connectivity to access
a wide range of Internet services for work and pleasure.\21\
---------------------------------------------------------------------------
\19\ See Pew Internet--Trend Data (Adults), Internet Adoption,
1995-2013, at http://www.pewinternet.org/Trend-Data-(Adults)/Internet-
Adoption.aspx (last visited Oct. 25, 2013).
\20\ See Pew Research Center, Home Broadband 2013 (Aug. 26, 2013),
available at http://pewinternet.org/ /media//Files/Reports/2013/
PIP_Broadband%202013_082613.pdf (``Pew Home Broadband 2013''); Nat'l
Telecomm. & Info. Admin., ``Exploring the Digital Nation: America's
Emerging Online Experience,'' (June 7, 2013) at http://
www.ntia.doc.gov/files/ntia/publications/exploring_the_digital_nation_-
_americas_emerging_online_experience.pdf (``Approximately 69 percent of
households used broadband Internet at home (72 percent if including
dial-up) in July 2011.''). Pew's data show that, except for just one
year between 2010 and 2011 when we think general economic factors
played a role, broadband adoption has increased every year by an
average of over five percentage points.
\21\ See Pew Research Center, Tablet and E-Reader Ownership Update,
at http://pewinternet.org/Reports/2013/Tablets-and-ereaders.aspx (Oct.
18, 2013) (``The number of Americans ages 16 and older who own tablet
computers has grown to 35 percent.''); Pew Research Center, Smartphone
Ownership--2013 Update, at 2 (June 5, 2013) available at http://
pewinternet.org/ /media//Files/Reports/2013/
PIP_Smartphone_adoption_2013_PDF.pdf (``56 percent of American adults
are now smartphone owners'').
---------------------------------------------------------------------------
But there is much more work to be done. Too many Americans do not
yet enjoy the benefits of broadband Internet access. A broadband
adoption rate of around 70 percent means that there are still about 30
percent of Americans who do not subscribe to a fixed broadband Internet
connection at home (and only about one-third of this group has Internet
access via a smartphone).\22\ More troubling still, clear divisions
have emerged between the broadband ``haves'' and ``have-nots.'' Starkly
different broadband adoption rates are evident across educational,
racial, ethnic, socioeconomic, and geographic lines. For example, the
Pew Research Center tells us that 74 percent of White Americans have
high-speed broadband connections at home, but only 64 percent of
African Americans and 53 percent of Hispanic Americans have high-speed
broadband.\23\ In addition, one of the most important determinants of
low adoption is education--only 37 percent of Americans without a high
school diploma have adopted broadband, while college graduates have an
89 percent adoption rate.\24\ So, nearly two decades after then-
Representative Ed Markey warned about the ``digital divide,'' we still
have one.
---------------------------------------------------------------------------
\22\ Pew Home Broadband 2013 at 4.
\23\ Id. at 3.
\24\ Id.
---------------------------------------------------------------------------
Doing something about the persistent adoption gap requires
understanding the root causes. Rigorous survey-based analysis over the
past several years has established that the main reasons why a large
portion of Americans do not adopt broadband are a lack of digital
literacy, a lack of understanding of the value of the Internet, and a
belief that the Internet is not relevant to their lives. The National
Broadband Plan found that nearly half--41 percent--of broadband non-
adopters cited either a lack of digital literacy or a lack of perceived
relevance as the main reason for non-adoption.\25\ Only 15 percent of
respondents cited the cost of a monthly broadband subscription as the
most important reason for not adopting broadband, with another 10
percent pointing to the cost of a computer. In its latest survey, Pew
reported similar results, finding that only 9 percent of Americans who
do not go online at home cited the expense of the Internet connection
as the reason for not doing so.\26\
---------------------------------------------------------------------------
\25\ John B. Horrigan, OBI Working Paper Series No. 1, Broadband
Adoption and Use in America, at 5 (rel. Feb. 2010), available at http:/
/hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-296442A1.pdf.
\26\ See Pew Research Center, Who's Not Online and Why, at 12
(Sept. 25, 2013), available at http://pewinternet.org/ /media//Files/
Reports/2013/PIP_Offline percent20adults_092513.pdf. Although that Pew
study looked at Internet use, which is slightly different from at home
adoption, it does show that affordability is not the main driver.
---------------------------------------------------------------------------
So, we know what the problems are. Now we--private sector and
public sector alike--need to muster our collective resources to address
them.
III. Comcast Developed the Internet Essentials Program to Address and
Overcome Many of the Key Obstacles to Broadband Adoption
Comcast has long been committed to addressing the challenges to
broadband adoption. One of the earliest cable industry efforts was a
program known as Cable in the Classroom, which brought the first
Internet connections to many American schools for free, and promoted
the responsible and effective use of cable's broadband technology,
services, and content in teaching and learning. The cable industry has
connected thousands of schools and libraries to the Internet under this
program.
Since 2009, we have supported the Comcast Digital Connectors
program, which gives young people, primarily from diverse, low-income
backgrounds, the opportunity to develop their skills in using
computers, applications, and the Internet. Almost 2,000 youth have
graduated from this program, contributing 100,000-plus hours of service
in their communities. We also support the Boys & Girls Clubs of
America's ``Club Tech'' program, which provides young people with
access to technology, software, curriculum, and training, helping to
better prepare them for success both in their educational endeavors and
work careers. We support Club Tech at more than 2,000 club locations
across the country, serving about 500,000 students each year.
In 2011, we took our efforts to the next level. As part of our
acquisition of NBCUniversal, we offered up a voluntary commitment to
launch a low income broadband adoption program, and that commitment was
adopted in the FCC Order approving the NBCUniversal transaction. That
commitment has grown into Internet Essentials, which is the Nation's
largest and most comprehensive broadband adoption program and is
specifically designed to systematically address the primary barriers to
broadband adoption that have been identified in the National Broadband
Plan and subsequent survey results.
Since its launch almost 24 months ago, Internet Essentials has made
broadband Internet accessible to millions of low-income families across
the Comcast footprint for $9.95 per month--with no charge for the cable
modem, no installation charge, no contract required, and no obligation
to buy any other Comcast service. In addition to affordable broadband,
Internet Essentials gives eligible families the opportunity to purchase
an Internet-ready computer for under $150, heavily subsidized by
Comcast. The program also includes a comprehensive digital literacy
training component--in print, online, and in person--designed to
empower students and their parents to unlock the full potential of the
Internet.
We have been relentless in getting the word out about the program.
We have distributed 27 million brochures, in 14 different languages, to
school districts and community partners. We have fielded 1.5 million
phone calls in our Internet Essentials call center, and we have had 1.2
million visits to the Internet Essentials websites in English and
Spanish. We also have broadcast nearly two million public service
announcements with the help of well-known and respected public figures
like Super Bowl-winning coach Tony Dungy, and numerous governors,
mayors, school superintendents, and community leaders from across the
country who are committed to ensuring that all of their students have
the opportunity to connect to the Internet at home.
Comcast's extensive partnership with a diverse array of leaders
from the education, government, and non-profit sectors across the
Comcast service area continues to be a cornerstone of the Internet
Essentials program's success. Over the past three years, we have worked
hard to engage school administrators, teachers, and parents in the more
than 30,000 schools in more than 4,000 school districts across the
Comcast footprint to promote Internet Essentials to eligible families,
including distributing brochures with their National School Lunch
Program (``NSLP'') letters and report cards, providing presentations to
school stakeholders, and attending numerous back-to-school nights and
parent-teacher association meetings.
Comcast also has worked with thousands of community-based
organizations, faith-based organizations, libraries, and educational
associations, such as the National Urban League, the League of United
Latin American Citizens, and the National Council of La Raza, to spread
the word about Internet Essentials, to create and foster an atmosphere
of support and excitement about Internet Essentials, and to share
``best practices'' with each other to improve both the program and our
communications. Finally, state, local, and Federal officials, including
members of this Subcommittee, serve an important role in educating
their constituents about the importance of broadband and helping them
to find programs like Internet Essentials.
We are proud of the results. As I mentioned earlier, in the first
22 months of the program, we connected more than 220,000 families,
totaling more than 900,000 low income Americans, to the power of the
Internet at home--many for the first time. We have sold 18,000
subsidized computers at an affordable price point. And 20,000 people
have attended free, in-person digital literacy training.
We are also tremendously encouraged by data we have compiled based
on surveys of the families who have signed up for the program. In
particular:
90 percent of Internet Essentials customers surveyed are
``highly satisfied'' with the service, and 98 percent of those
surveyed would recommend Internet Essentials to others.
85 percent of respondents said they use Internet Essentials
to go online on a daily basis.
More importantly, 98 percent of survey participants reported
that their school-age children used the Internet Essentials
service for school assignments, and of that group, 94 percent
felt Internet Essentials had a positive impact on their child's
grades.
Other popular uses included general research (94 percent),
e-mail (85 percent), social networking (73 percent), health
care and government services (66 percent), online bill payment
(60 percent), and employment searches (58 percent). The
majority of those who said they used Internet Essentials for
employment searches felt that the program helped someone in the
household locate or obtain a job.
We have learned a lot over the first two years of the program, and
we have made improvements based on our direct interactions with
families. In fact, at this point, the program has gone far beyond the
original commitment we made in connection with the NBCUniversal
transaction. For example, we initially designed the program only for
families that have at least one child eligible for a free school lunch
through the NSLP. Last year, we extended eligibility to families
eligible to receive NSLP reduced-price school lunches, making 300,000
additional families eligible for the program. This year, we expanded
eligibility yet again, to include families with private, parochial, and
home-schooled students who otherwise meet the NSLP eligibility
criteria. This enhancement made nearly 200,000 additional families
eligible for Internet Essentials in Comcast's service areas--bringing
the total to nearly 2.6 million eligible families.
We also improved the service we are offering as part of the
program. When we launched the program we offered a 1.5 Mbps downstream
connection, but last year we raised that to 3 Mbps, and this year we
raised it again, to 5 Mbps, all without raising the price.
And we continue to find ways to make the process easier and faster
for qualified families to enroll. For example, we recently expanded the
instant approval process for families whose students attend schools
where 70 percent or more of the students are eligible to participate in
the National School Lunch Program.\27\ We also have set up an online
application request form, which is available in both English and
Spanish and can be accessed through any Internet-connected computer (at
recreation centers, libraries, and public computing labs, for example),
or on tablets or smartphones. In addition, we have implemented
innovative measures such as Internet Essentials Opportunity Cards, so
Comcast's non-profit partners and others can purchase up to a year of
Internet Essentials service for qualified families. We are confident
that these changes will make Internet Essentials even more attractive
to families, allowing us to bring the benefits of the Internet to even
more people--and, importantly, more children.
---------------------------------------------------------------------------
\27\ Previously, only families whose students attended schools
where 80 percent or more of the students are eligible to participate in
the National School Lunch Program could take advantage of the instant
approval process.
---------------------------------------------------------------------------
IV. A Comprehensive Solution to the Adoption Problem Must Involve
Efforts from All Stakeholders
We designed Internet Essentials to address the key barriers to
adoption. It has been a remarkable success, but our on-the-ground
experience has shown that improving broadband adoption in these
communities is more complicated than just addressing relevance, digital
literacy, and price. We have found that solutions must address the
impact of poverty, education, and a range of other deep socioeconomic
problems that are at the heart of the non-adoption issue. This is why
we believe that all stakeholders in this area must work together to
more effectively bridge the digital divide. The fact remains that no
one company and no single program will completely close the digital
divide in America. The challenges are certainly daunting, but progress
is being made, and will continue to be made if we all make this a
priority.
The education space is one area where several key broadband
adoption initiatives deserve our attention and support. Internet
Essentials is targeted to homes with school-aged children purposefully.
As a nation, we must recognize the importance of an educated and
technologically literate work-force ready to compete in the economy of
the 21st century. In many homes, it is often children who first develop
digital skills and understand the relevance of broadband to their lives
and education. Once children gain these skills, they are able to
demonstrate the benefits of broadband adoption to others in their
households and communities. All of this helps increase digital literacy
and reduce the apprehension about technology and broadband for both
children and adults.
Broadband at school complements broadband at home. We must all work
together to ensure America's classrooms have access to the advanced
broadband networks that will support a modern digital learning
environment.\28\ To that end, we share the ConnectED vision that ``our
schools [must be] an integral part of the broadband and technology
transformation'' to ensure that students ``can benefit from these
advances in teaching and learning.'' \29\ And I would be remiss not to
highlight this Committee's vision and role in identifying the critical
need to connect schools almost twenty years ago. Chairman Rockefeller
and former Senators Olympia Snowe, Jim Exon, and Bob Kerrey all deserve
enormous credit for the E-rate program, as does the Senator from
Massachusetts, Mr. Markey, who championed this cause while in the House
of Representatives.
---------------------------------------------------------------------------
\28\ ConnectED: President Obama's Plan for Connecting All Schools
to the Digital Age, The White House, at 2, (June 6, 2013) at Khttp://
www.whitehouse.gov/sites/default/files/docs/connected_fact_sheet.pdf
(``Our schools were designed for a different era. . . . This system
does not take into account the constant learning opportunities of
global connectivity[.]'').
\29\ Id. at 1-2.
---------------------------------------------------------------------------
Over the past two decades, the E-rate program has succeeded in
ensuring that many elementary and secondary schools have access to
basic Internet connectivity at discounted rates.\30\ However, as
Senator Rockefeller noted earlier this year, ``basic Internet
connectivity is no longer sufficient.'' \31\ Today's educational
environment requires not only the delivery of broadband Internet
service to schools, but also the deployment of the infrastructure
within the school, such as through robust Wi-Fi networks, in order to
meet the digital needs of each classroom.\32\ A modernized E-rate
program can help achieve these goals in a cost-effective and efficient
manner.
---------------------------------------------------------------------------
\30\ See, e.g., News Release, FCC, FCC Launches Modernization of E-
Rate Program to Deliver Students & Teachers Access to High-Capacity
Broadband Nationwide, at 1 (July 19, 2013), available at http://
transition.fcc.gov/Daily_Releases/Daily_Business/2013/db0719/DOC-322284
A1.pdf (``Over the past 15 years, support provided by the E-rate
program has helped revolutionize schools' and libraries' access to
modern communications networks, but the needs of schools and libraries
are changing.'').
\31\ See Press Release, U.S. Senate Committee on Commerce, Science,
and Transportation, Rockefeller Says E-Rate Should Expand to Connect
More Students to High Speed Broadband (June 6, 2013), available at
http://www.commerce.senate.gov/public/index.cfm?p=PressRel
eases&ContentRecord_id=5cb24ad3-281e-4abd-acd0-
afb699008e3e&ContentType_id=77eb43da-a
a94-497d-a73f-5c951ff72372&Group_id=4b968841-f3e8-49da-a529-
7b18e32fd69d&YearDisplay
=2013. See also, Modernizing the E-Rate Program for Schools and
Libraries, 28 FCC Rcd. 11304 (2013) (Statement of Commissioner Jessica
Rosenworcel) (``[W]e are quickly moving from a world where what matters
is connectivity to a world where what matters is capacity.'').
\32\ See Comments of Comcast Corporation, WC Docket No. 13-184, at
9-10 (Sept. 16, 2013). As Comcast has explained, more spectrum needs to
be provided for unlicensed use ``[i]n order to ensure that students get
the full capabilities of the underlying wired broadband connection the
Commission intends to support.'' Id. at 20.
---------------------------------------------------------------------------
In 1996, we could talk about connected learning in terms of the
school. When it comes to learning in the digital age, however, we need
an integrated, always-on digital learning platform that delivers
improved educational outcomes for every student--a continuum of
connectivity. It begins in the classroom and throughout the school with
access to an array of digital learning tools, but then follows the
child to after-school programs at public libraries, recreation centers,
and other community centers, and ends with at-home broadband. If we
want our children to succeed in this complex and connected world, it
really will take a coordinated effort to create these types of
continuous digital communities.\33\
---------------------------------------------------------------------------
\33\ To foster the development of these types of digital
communities, earlier this year Comcast and the City of Chicago
announced the development of Internet Essentials Learning Zones, a
concept that Comcast is now implementing in other Internet Essentials
communities. See News Release, Comcast Corp., ``Mayor Emanuel, Comcast
Announce that Chicago's Internet Essentials Enrollment Doubles to
14,000, More Than Any Other City in the Nation'' (Sept. 16, 2013),
available at http://www.businesswire.com/news/home/20130916006076/en/
Mayor-Emanuel-Com
cast-Announce-Chicago%E2%80%99s-Internet-Essentials (``The zones will
help bridge the digital divide and extend learning beyond the school
day by connecting the dots between Comcast, the United Way, the Smart
Chicago Collaborative, participating community organizations and
school-based leaders, all of which will work in partnership to enhance
access to broadband and provide technology training beyond school
walls.'').
---------------------------------------------------------------------------
Indeed, high-speed broadband Internet access throughout the day can
enrich curricula and enhance the learning process by permitting
students to use digital textbooks, work on multimedia projects, stream
educational video content, conduct Internet-based research, take online
courses that are not locally available, and interact with content
experts around the world or right next door.\34\ And when we extend the
broadband experience to the home, it even enhances the involvement of
parents in their children's education. These digital tools can improve
learning outcomes for our Nation's students and prepare the next
generation for success in an increasingly competitive digital
world.\35\ This only underscores the importance of today's topic and
how we need to keep working harder to ensure that all Americans have
access to broadband at home.
---------------------------------------------------------------------------
\34\ See generally The Broadband Imperative: Recommendations to
Address K-12 Educational Infrastructure Needs, State Educational
Technology Directors Association (rel. May 21, 2012), at http://
www.setda.org/web/guest/broadbandimperative (``SETDA Broadband
Imperative Report'').
\35\ See, e.g., National Broadband Plan at 226 (``Broadband can be
an important tool to help educators, parents and students meet major
challenges in education.''); U.S. Dept. of Education, Press Release,
Statement from U.S. Education Secretary Arne Duncan on FCC Action to
Connect More Students to High-Speed Internet (July 19, 2013), at http:/
/www.ed.gov/news/press-releases/statement-us-education-secretary-arne-
duncan-fcc-action-connect-more-students-hi (``The U.S. once led the
world in connecting our schools to the Internet, but our strongest
international competitors are surging ahead of us because they know
that giving students and teachers the right tools is vital to their
economic strength.'').
---------------------------------------------------------------------------
The efforts that those of us in this space have undertaken thus far
are certainly commendable, but they are only a piece of the overall
solution to the adoption gap. The focus needs to remain on increasing
Americans' adoption of broadband at home, so that families can benefit
from the innumerable benefits of the Internet. The existing obstacles
to adoption cannot be eliminated with any magic bullet. We look forward
to working with all stakeholders--within the broadband industry and in
other sectors--to address the complex problems that remain.
V. Conclusion
America's broadband past has been truly remarkable, and the future
of broadband is even brighter. Our infrastructure keeps getting faster
and better, as industry continues to invest in innovative new
technologies, expand network deployments, and increase speeds.
Consumers' choices have never been greater.
While adoption continues to grow, it is not at an acceptable pace,
and certain populations are still at a danger of being left behind.
Every American must have the opportunity to participate in the wonders
and practical benefits of the Internet. Making this a reality begins
with a firm understanding of why these people are not using the
Internet, and acting based on sound information to get the most return
on our public policy investments.
In particular, we need to continue public and private efforts to
promote awareness of the social and economic benefits of the Internet,
and to accelerate the development of digital literacy and computer
skills. We need to continue efforts to get low-cost computer equipment
into the homes of those who don't currently have it. We need to update
and revitalize the E-Rate program to ensure that our classrooms have
the bandwidth necessary to take advantage of the digital learning
platforms that will prepare our children for the digital economy of the
21st century. Finally, we need to continue to educate families about
the availability and benefits of programs like Internet Essentials, so
their children are connected at home just as they are at school.
Comcast is working hard to do our part, and we're partnering with
thousands of elected officials and community organizations to do so. I
look forward to working with members of this Subcommittee on this
important challenge. Comcast is firmly committed to engaging with
Congress, the Administration, the FCC, and stakeholders from across all
relevant industries to ensure that no American is left behind as we
stride boldly into our exciting future.
Thank you for the opportunity to testify today.
Senator Pryor. Thank you. And congratulations on your
millionth customer. That's big news.
Let me, if I may, start with Senator Sununu, and what we'll
do is 5-minute rounds here, and I'll try to actually keep my
first couple short so that we can get to our other colleagues.
But, Senator Sununu, I know that one of the things you are
concerned about is the Internet tax moratorium. And tell us how
you think lifting that moratorium--in other words, adding a tax
to the Internet--how you think that might hurt adoption rates.
Senator Sununu. Well, I think it's basic economic fact,
when you tax something, you get less of it. So, you tax
something, you raise the price; you tax something, you make it
a little less attractive to invest; you tax something, you make
it a little less attractive to put money behind the kind of
deployment and access and, ultimately, adoption that we're
talking about. So, we want to make sure that this
infrastructure is as economically sound and robust as possible,
and I think it certainly helps to prevent, not just the Federal
Government, but states, cities, towns, all from being able to
tax it.
I--and I'll draw an analogy to the wireless industry, where
this was a path that wasn't taken, and anyone can look at their
wireless bill and look--as a result, there are local taxes,
State taxes, Federal taxes that do affect the economic
viability and the economic incentive to continue investment.
Senator Pryor. Right. You mentioned, in your testimony,
that you like the, quote, ``light touch regulatory approach,''
which doesn't surprise me, knowing you. But, what else can
Congress do, or not do, that will help increase adoption rates?
Senator Sununu. Well, in terms of the light tough
regulatory approach, I mean, it's sort of a simple phrase, but
I think it's a meaningful one. That was an intentional approach
that really began under President Clinton. It has been largely
followed by Congresses, by the FCC, and by administrations ever
since. You know, things that might be done that would certainly
hinder investment and innovation are regulations regarding the
packaging, pricing and distribution of broadband services.
David Cohen just talked a great deal about the evolution of
the Internet Essentials Program. It's something that's changed
over time and over the years, and there's no question that the
private sector has much greater flexibility when it comes to
innovation and packaging. And it's especially important now,
frankly, within the broadband industry, as consumer habits are
changing dramatically. Right? Where they access broadband--is
it wireless, is it wired, is it for content, is it for
information, is it for education, is it for entertainment?
Being able to innovate and try different approaches in order to
encourage the adoption we're talking about is very, very
important.
On the ``What can government do that's helpful?'' I'd just
allude to, and let others expand on, the work that's been done
by--within government--FCC and NTIA, and looking at that
adoption toolkit, and highlighting the issues of perception and
skills relevant to access and cost, as NTIA did, and then look
for those partnerships, because everyone is challenged in a
different way--communities, families, urban versus rural--and
so that the way that you approach adoption in one particular
part of the country or one particular demographic is going to
be different. And so, you need to identify the problem you're
trying to address, come up with a partnership that can address
that problem.
Senator Pryor. OK. Thank you.
Mr. Cohen, I just have a minute left. Let me ask--you
talked about your Internet Essentials Program, which sounds
like it's a great success for the company and for your
customers. You also talked about your idea of a continuum of
connectivity. And I know that, as part of this--and you
mentioned it in your testimony--you're doing digital literacy
training for thousands of people in your communities. And do
you see an increase in adoption rate after these folks have
that digital literacy training?
Mr. Cohen. So, this is one of the great struggles, and we
do try and survey our Internet Essentials customers about this.
And I don't think we have enough data yet for us to be able to
demonstrate that digital literacy training increases adoption.
But, all the data we've looked at, whether it's from the FCC or
from Pew, is crystal clear that, to the extent families
understand the Internet and understand the value of it and what
it means, this does increase adoption. And it's one of the
reasons we've focused on this school-aged population. The
eligibility for Internet Essentials is having a child living in
your household who's eligible to participate in the National
School Lunch Program, because this is an interesting
technology, in the sense that adoption may well be driven by
young people because they understand the importance. They see
other kids in their class going home and doing homework on the
Internet. So, they may drive adoption for their parents and for
their grandparents.
And anecdotally, I can tell you that I have absolutely seen
dozens of those stories, where parents have said, ``We didn't
understand this until we heard about this from our children,
from the teachers in the school, how important the Internet was
and it wasn't just for playing games and for Facebook.''
So, I think it's pretty clear that the digital literacy
barrier here is a big one and it's a complicated one. And I do
think--as Ms. McPeak said, there's a real role for the
government in this space. I think it's an educational
component, and I think the FCC and NTIA have helped to shine a
spotlight on this and facilitate digital literacy training, and
that, in the longrun, that is going to drive adoption.
Senator Pryor. Good. I'll ask you about E-Rate in a few
moments, but I want to first turn it over to Senator Wicker.
Senator Wicker. Thank you, Mr. Chairman.
And, Mr. Cohen, let me join our Chairman in congratulating
you on your announcement of your one millionth person. I
understand you've gone above and beyond the conditions imposed
on you by the merger with NBCUniversal. Let me just ask you to
comment on some testimony from Ms. McPeak.
She advocates a setting of goals, and one of the things
that struck me is, affordable broadband offers are required to
increase adoption among low-income households. This is likely
to require an affordable broadband lifeline rate program. Would
you comment about your opinion concerning such a program?
Mr. Cohen. So, I agreed with almost everything in Ms.
McPeak's testimony, and you found the one paragraph that I
probably----
Senator Wicker. That's my job.
Mr. Cohen.--don't fully agree with. So, congratulations.
[Laughter.]
Mr. Cohen. Now, for our company, I think we've demonstrated
that a governmentally-designed and governmentally-regulated
program is not the best way to go. And my concern would be that
if you created a government-regulated rate-set Lifeline
program, that what you'd have is a government-regulated, rate-
set program, but you wouldn't have anything to deal with the
cost of computers, you wouldn't have anything to deal with
digital literacy, you wouldn't have anything to deal with
helping to drive adoption through community partners. The
success of Internet Essentials has been based on this holistic
approach and, quite frankly, the commitment of this company to
doing what's right to drive adoption. And we've created that
web of partnerships with community that Ms. McPeak talks about.
And I can't underscore enough how important that is to be able
to drive adoption.
And if you try to regulate and, through government
intervention, try and hit only one element of this equation, I
don't think you'll end up with a successful program. I think
encouraging the rest of the private sector or others in the
private sector--and Senator Sununu noted, we're not in this
alone; we have AT&T and Time Warner Cable and Suddenlink and
Cox that all run programs--and I think encouraging those
programs and encouraging the holistic approach of private
sector, government, nonprofit sector, school boards, libraries,
faith-based community to work together to drive adoption is the
secret sauce that is going to move this needle.
Senator Wicker. Ms. McPeak, what do you say to that? Sounds
pretty good.
Ms. McPeak. Mr. Cohen is personally very passionate and
dedicated, and Comcast has done better than any other company.
What David just said is that you need this very holistic,
integrated approach. It's exactly what my testimony says, and
spells it out.
What I said about setting a goal is really important.
Comcast Internet Essentials is going to expire next year. With
all of the effort that has been invested by Comcast, they have
not reached more than 8 percent of the eligible recipients. So,
8 percent is not a success, when we have all of these people
offline.
We recommend that, in order to sustain that, because
affordability is an issue, access to a computing device is an
issue--Comcast has, for all intents and purposes, really set
the market, they've set the price point that will drive
adoption. It needs to be a much fuller engagement of community-
based organizations and digital literacy.
We do have the data. We got the 200,000 adoptions through
working with NTIA because of digital literacy, and we go back
and we survey and we know it is sustainable. We fully integrate
the use of technology, broadband and computing devices, into
teaching and learning in a program we call School2Home. It
fully engages the parents as one of those key elements of
turning around low-performing schools. The worst of the worst
schools are getting better academic performance today with the
use of the technology, largely because the parents can stay
connected with their kids' homework, with the teachers. The
technology allows them to overcome their inability to go to a
teacher conference because they might work two jobs or they
don't speak English. It really is the mechanism for engagement.
Senator Wicker. All without----
Ms. McPeak. And here's the data----
Senator Wicker.--all without a mandate.
Ms. McPeak. Pardon?
Senator Wicker. All without a government mandate.
Ms. McPeak. Absolutely. Absolutely.
But, let me, then, try to show the data and answer your
question on why. Why does it become important to have at least
either sustained partnerships--remember, I hit that over and
over again. Any public investment that we make should be
leveraged to the hilt, but partnerships between the Federal
Government and states, between the private sector and public
sector, and particularly providers in the community--it's that
trusted messenger, that honest broker on the ground that makes
a difference.
In our School2Home Program, after both integrating the
technology into the teaching and learning and improving
academic performance beyond the statewide average or the
district average in the lowest performing schools, we find
that. There is broadband adoption that increases for Spanish-
speaking parents by 58 percent and by English-speaking parents
by 12 percent. Those percentages that I just shared with you
exceed all of the effort, in terms of adoption, that we have
right now, in a voluntary sense.
If there is not, either through industry or through
government, an affordable broadband offer beyond next year, we
will hit the wall, and have in California, on broadband
adoption. So, somehow we need to figure this out.
And our point is that, if the FCC, which is looking at an
affordable broadband offer, makes that available, it should be
with the encouragement incentives to have the partnerships that
Mr. Cohen and I have talked about.
Senator Wicker. Thank you.
Senator Pryor. All right, thank you.
Let's see. Senator Klobuchar.
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. Thank you, Mr. Chairman. Thanks for
doing this hearing.
And thank you, Senator Sununu, for coming back on this
important topic.
And I really do appreciate the work that Comcast is doing
in this idea of partnerships. But, Senator Wicker was noting
that there was no mandate, but there has been a lot of
government funding. And I was just looking at this, you know,
$4 billion alone out of the NTIA and the hope that we can use
some more Universal Service funding for this. So, do you see,
Ms. Wright McPeak, that we could just do this with the private
sector?
Ms. McPeak. Oh, I think that any public investment, whether
it's at the Federal level or the state level or the local
level--and nobody finds somebody that is more frugal than I am;
they--everybody thinks I am actually much too frugal, and I
come out of a business sense.
May I add that, on NTIA's broadband adoption program, it
was $450 million, so most of the funding in BTOP through ARRA
was actually deployment, it wasn't adoption. So, it was modest,
in the sense of an investment in adoption, which I think makes
sense if we're trying to close the digital divide. We cannot be
globally competitive with the 20, 30 percent of our citizens
left behind in the Digital Age.
There are many ways to leverage partnerships. It begins
with, ``Can, in fact, the Federal Government connect dots in
your own program, or programs?'' May I suggest just a couple of
examples? And it goes to, then, the partnership question.
The FCC funded pilots for Telehealth. There is now a $400
million annual fund for the Healthcare Connect Fund for
Telehealth. Over on HHS side, there is not an active pursuit of
getting all federally qualified health centers or critical care
hospitals or public health facilities onto a Telehealth
network.
I gave you the example about education. It's not, today,
the policy of the Department of Education to say every grant we
put out should optimize the use of technology and computing
devices.
The HUD does not require that publicly subsidized housing
encourage the connectivity of broadband.
Those are examples.
When those kinds of policy dots are connected through the
Federal Government and, on top of that, you say, ``We want to
give priority or incentives to those programs that have
partnerships--partnerships with the state that align their
efforts, partnerships with the private sector''--now we finally
have optimized what Congress can do in directing broadband
adoption.
Senator Klobuchar. So, you say that, given that we still
are clearly having issues with adoption, that----
Ms. McPeak. Oh----
Senator Klobuchar.--a few requirements here and there might
make a difference.
Ms. McPeak. It--but, what I----
Senator Klobuchar. OK, I've got to--I want to move on to my
hometown witness, here, but, would that be correct, that the
requirement----
Ms. McPeak. Yes, I am saying that.
Senator Klobuchar.--should be helpful----
Ms. McPeak. I am saying that.
Senator Klobuchar.--whether you call them mandates or
requirements?
OK. Ms. Jocelyn, thank you for coming, and thank you for
your incredible work that you're doing with Blandin. At the end
of McPeak's questions with Senator Wicker, she was talking
about schools. And I think the numbers that I have here is
that, according to the study by the Federal Reserve Board,
graduation rates for students with computers at home are 6 to 8
percent higher than students without them.
Ms. Joselyn. That's right.
Senator Klobuchar. Your experience in Minnesota, especially
on the tribal reservations, what have you seen when kids don't
have computers?
Ms. Joselyn. Well, thank you for the opportunity to address
that question. In terms of the quality of education and having
a level playing field for all children of America so that the
quality of your educational experience is not dependent upon
where you live, broadband is absolutely essential. And I can
give you a specific example in our home county of Itasca
County, up in north central Minnesota, where we have very
small, spread out school districts that are the size of some
States, and it's just not physically possible to offer the
quality and breadth and depth of educational opportunities that
are available in more urban centers. We are now, through
availability of broadband access and adoption education
efforts, to offer to our students a stunning array of
educational opportunities that would otherwise be unavailable
to them, including Ojibwe language training, physics, high
level math, specific literature courses that, through a
consortium effort, when school districts come together and use
this technology platform, they are able to offer world-class
educational opportunities that would otherwise be unavailable
to our students. And we certainly believe, I'm sure, that, in
our nation, we want equal opportunity for all. And growing up
in a rural area should not prejudice your educational
opportunity.
Senator Klobuchar. Thank you. And the other thing I
remember from those northern Minnesota counties is how, with so
few people having the Internet access--and still a lot of them
don't even have access, much--good access--is that the
libraries became increasingly important, because there--
literally would have waiting lines for people to try to apply
for jobs. And I think that's something else we have to
remember, especially--our state now is down to 5.1 percent
unemployment, and yet a lot of people are having trouble
getting trained for or accessing jobs. And I would like that,
instead of having the brinkmanship we've been engaging in, in
the last few months, to be engaged in discussions about the
workforce training and how we get people trained for the jobs
so we can actually compete in the economy that's in front of
us.
Ms. Joselyn. Thank you.
Senator Klobuchar. So, thank you.
Ms. Joselyn. Thank you, Senator. And I would just add, if I
may, that in Minnesota, we are program rich and systems poor.
And part of what the Federal investment in this BTOP effort has
allowed us to do is to align systems at the state level with
community-based efforts, in partnership with the Federal
Government. And the return on investment for our Nations and
our children's future has been very impressive.
Senator Klobuchar. Thank you.
Senator Pryor. Thank you.
Senator Rubio.
STATEMENT OF HON. MARCO RUBIO,
U.S. SENATOR FROM FLORIDA
Senator Rubio. Thank you.
Thank you all for being here today. This is an incredibly
important issue, I think, for the future of the country, even
though it's not going to be on the headlines tomorrow morning.
So, that's why I wanted to ask you.
So, if I went back home now--and I know the answer to this,
although I'm not sure I can fit it on a bumper sticker--but, if
I went home today and I explained to somebody, ``This is a
really important issue, 30 percent of the population has no
access to broadband, and it's bad for the country, bad for our
economy, and bad for them, for the folks that don't have
access,'' how would you say that I'm trying to figure out how I
can make this issue more relevant to people, in terms of why it
is that it's good for the country that we get more people to
have access to broadband.
Mr. Cohen?
Mr. Cohen. So, Senator, I'll tell you, the two items that
came out of our research on this that would be drivers to cause
people to want to sign up for the Internet, one is almost a
bumper sticker. Eighty percent of Fortune 500 companies today
only accept job applications online. So, if you want to apply
for a job--and it goes to what Senator Klobuchar was just
talking about--you need to have access to the Internet to be
able to apply for a job.
And the second, a slightly different population but I think
equally compelling, is to peg this to educational achievement
and attainment. Twenty-first century education today is vastly
enriched by digital learning platforms, by digital curriculum
that is offered in schools but that is integrally tied to being
able to work on the Internet after school and at home, to
enable parents to communicate with teachers, teachers with
parents, to track what their kids are doing, what their
strengthS are, and what their strengths are not.
There's another Pew study which says that 79 percent of
teachers today are assigning homework that requires access to
the Internet out of school and after school to be able to do
that homework.
So, if you want your kids to be competitive for 21st
century jobs, to have 21st century job skills, you need to have
Internet access at home to be fair to your kids and enable them
to keep up with other kids in their classrooms and other kids
elsewhere in the state, in the country, and in the world.
I think those are two big motivating factors for parents:
getting a job and educating your kids.
Senator Rubio. So, now the number is 70 percent. And I
would imagine there's some cohort out there that's never going
to--for example, my mom is in her mid-80s. She's never going to
be Internet savvy, for all the reasons you've outlined--but,
that's not who we're talking about. Beyond that, what is a
realistic goal for the country?
So, if we said--and obviously it's a different issue, but,
you know, when President Kennedy said we'd be on the Moon by
1969 and return someone safely--what is a realistic goal for 5
years, 10 years from now, in terms of the number--the
percentage of Americans that we would have, beyond the 70
percent?
Ms. McPeak. I can share with you what we have said in
California, which is 80 percent by 2017. Eighty percent
adoption, statewide----
Senator Rubio. By 2017?
Ms. McPeak. 2017. And no one region and no one demographic
group less than 70 percent. And we started really low. I mean,
we were at 55 percent nation--statewide. Low-income families
were at 33 percent.
Senator Rubio. And then I guess my last question is--
obviously, I've heard, or read, basically in all of your
testimony, about the need for a multifaceted plan, that there's
not one singular thing that we can do to move people, to get
those numbers up. It will require a host of different issues.
Probably the most interesting one--and I forget whose testimony
it was; I read them all--was how--and this is the one issue
where it's the children and the younger, you know, Americans
that are bringing the rest of the family in, in some way,
shape, or form.
So, I guess going back to--on the educational front--it's
one of the things I'm really interested in, how we can
incentivize Internet literacy. I mean, if you're talking about
teaching kids things that are relevant for the 21st century, it
is unimaginable that one of--that you could have an educational
system that isn't teaching Internet literacy and technology
literacy as part of a curriculum that is relevant to the 21st
century.
A lot of the focus we have here as policymakers is on
infrastructure. I think that's important, too. And I think I'm
really interested in wireless, for a second, because I think
that we've focused a little bit today on access at home, but
we're an increasingly mobile society, not just in how we live
our lives, but, you know, the equipment that we use to access
the Internet.
In full disclosure, nowadays I very rarely go online on a
laptop; it's always on a mobile device. And I think a growing
number of Americans are going to find themselves in that
position. Hence, these wireless networks are incredibly
important. And, to that, the availability of competition in
broadband is a key part of it.
And again, when I describe that to people and I talk about
broadband, their eyes glaze over a little bit, because no one's
made the connection. But, how critical is that, the wireless
component?
Mr. Cohen. First of all, I do think wireless is important,
and I include in wireless Wi-Fi, just so we're clear. But, I do
think devices are increasingly mobile. And, by the way, even if
you don't use a laptop, I think we could do a show of hands of
how many people use a wireline connection even when they are
using a laptop, because even people using a laptop are most
frequently on wireless or Wi-Fi or some wireless technology.
So, I do think wireless is important. And Senator Pryor I
actually referred briefly, in my oral statement, to the fact
that we need innovate solutions to deal with the deployment
gap. And I think technology is increasingly going to be the way
in which we reach the millions of Americans who don't have
broadband deployed to them. Because I think wireless deployment
may well be less expensive, more capable--more capable of
closing that gap in a more efficient and a faster way. So, I
think a variety of wireless technologies is going to be very
important to closing the deployment gap, and having--allowing
people to have wireless access to their broadband connection is
very much going to be a part of society, going forward.
I'm sorry, Senator, I just have to say one thing. This
comes more anecdotally, in discussions with teachers, with
parents, et cetera. It is still really hard to write a term
paper on even a tablet. One of my horrible----
Senator Rubio. That's true.
[Laughter.]
Mr. Cohen.--stories is that I met a mother in Atlanta who
was signing up for Internet Essentials, and she came up to me,
crying, thanking me for the program. And I said, ``You're very
welcome.'' And she said, ``Mr. Cohen, you don't understand what
a difference this is going to make in our lives.'' And I said,
``What do you mean?'' She says, ``I''--she had two kids. She
says, ``I'm deeply committed to their education. We couldn't
afford Internet at home. I do have a smartphone from work. And
what I used to do is, 4 nights a week after dinner, I would
drive to a McDonald's and park in the parking lot, where they
have free Wi-Fi, and I would hand my smartphone into the
backseat, and my kids would share the smartphone and do as much
of their homework as they could.''
Senator Rubio. Yes.
Mr. Cohen. But, you can't--and she said, ``You can't write
a term paper on a smartphone.''
Senator Rubio. And that's just an indication--I don't write
a lot of term papers these days.
Mr. Cohen. Right. So, I just----
Senator Rubio. But, all my kids are working off----
Mr. Cohen. Right. So, all I'm saying is, I think----
Senator Rubio. No, that's true.
Mr. Cohen.--it goes, really, again, to the integrated
needs, here, that you have to cross the entire spectrum and
have deep partnerships and have multiple technologies and
multiple ways for people to be able to access the Internet,
just like all of us have.
Senator Rubio. Right.
Senator Pryor. Thank you.
Mr. Cohen, let me follow up with that a little bit. You
mentioned technology may be the solution. And obviously, your
company has seen a rapid change in technology, rapid
development. And you guys have been an innovator there. But,
also, I was going to ask about E-Rate for our schools. And it
kind of goes back to what you were saying a moment ago, with
the story--this anecdotal story you had in Atlanta.
But, the FCC currently is looking to update the E-Rate
program. You know, I personally feel like it's been pretty
successful. But, they want to look at it and evaluate it and
see if they can make it better, maybe expand it. And I'm
curious about your thoughts about should we try to find ways to
get more E-Rate dollars and make those available to schools,
and even libraries?
Mr. Cohen. OK. So, a really important question---- and if I
could pair the FCC's E-Rate proceeding with the President's
ConnectED initiative, because I actually think they're related
to each other. Obviously, the President announced a goal--he
was listening to Ms. McPeak--and said that 99 percent of the
schools in America should have ultra-high speed Internet
connections within the next 5 years. And I think that's an
important goal, because, with the digital learning platforms
that are out there, I think it is essential that all of our
schools have the capacity to be able to offer the educational
enhancements within the school to all students in this country,
regardless of the communities where they live.
E-Rate has obviously been the primary funding mechanism for
Internet connections to schools and to libraries. And so, I
think the FCC's recent proceeding to looking at the E-Rate
program and to ask the question how is it working? How could it
be retooled? What are improvements that could be made in the
program?--will be essential to accomplishing the objectives
that are set forth by the President in the ConnectED
initiative.
Now, I'm not a critic of the E-Rate program. I would agree
with you that it has done a lot of good in this country. But,
it has been around for a long time. And it was created, quite
frankly, in a time where a completely different set of
technologies ruled. And so, we're very supportive, as a
company, of that proceeding and think that there are
enhancements that could be made to the program.
I'll just note one issue, because I know we're in a tight
timeframe, but I'm happy to come back to it. I think the most
critical item that I would focus on around the educational
aspects of technology is that it's important, not only to bring
ultra-high speed Internet service to the school, but to
disseminate that service throughout the school. So, it's not
enough--I mean, Comcast delivers, to thousands of schools, 100-
meg-plug connections of Internet, yet we know, in most of those
schools, that service is not being disseminated throughout all
the classrooms in that school. Maybe it goes to the central
office or computer lab, maybe there to two or three computer
labs, maybe to a small pocket of classrooms. But, if you're
going to accomplish the educational attainment objectives,
which is what we're all interested in--we're not interested in
connectivity for connectivity's sake; we're interested in
improving student achievement, improving graduation rates,
improving the delivery of 21st-century skills--you've got to
disseminate that high-speed data service throughout the school.
In the current E-Rate program, Internet connections to the
school are known as Tier 1, and then the dissemination
programs, getting that high-speed data connectivity throughout
the school, are known as Tier 2. Just the way they define it
tells you everything you need to know about the service. The
priority has been on Tier 1. Tier 2 has been underemphasized,
has not really been a focus of the E-Rate program. And, to make
this work with the modern technology--and Senator Rubio was
talking about that--the mobility of devices--you've got to
disseminate the speed within the schools, which is going to
require a reallocation of attention between so-called Tier 1
funding and Tier 2 funding. That's just one example.
Senator Pryor. Thank you.
Senator Ayotte, you ready?
STATEMENT OF HON. KELLY AYOTTE,
U.S. SENATOR FROM NEW HAMPSHIRE
Senator Ayotte. Yes. Thank you very much, Mr. Chairman.
First of all, I want to thank all of you for being here.
It's really an honor to have Senator Sununu, given
everything that he did for our state. I want to ask you about
New Hampshire, because I think, having served admirably on this
committee and with all the great work you're doing now on
broadband issues, you appreciate very much the challenges that
we face, particularly in some of the more rural counties of
Coos, Grafton, and Sullivan with this issue of broadband
deployment and access.
So, I just wanted to get your thoughts on how, in a state
like New Hampshire, we really can do better, particularly when
we think about the North Country, the economic development
opportunities there with broadband.
Senator Sununu. Well, you know, in New Hampshire, we
generally have higher levels of deployment, access, and
adoption than the national average, but, without question,
there are still communities that are underserved, and there are
still the same challenges that we have with adoption that other
parts of the country see. So, you know, it's an indication of
the pervasive challenges that are faced, even in a part of the
country that's considered relatively high-tech and has
relatively high levels of access or deployment, adoption's a
challenge.
I think it gets back to the kind of partnerships we've been
talking about. You know, providers working with community
organizations to understand why is adoption lagging, providers
working with the school systems to identify opportunities to
improve digital literacy. Time Warner Cable, obviously a
company that I've worked with now for almost 5 years, is a big
promoter of Connect a Million Minds initiative, over $100
million in the last 4 or 5 years to drive digital literacy in
the schools. So, you know, that's the adoption side.
On the access side, though, as you point out, northern New
Hampshire, we don't have the speeds that you'd like to see. You
don't necessarily have the infrastructure that you'd like to
see. Some communities are still served by legacy infrastructure
that might even meet the technical definition of broadband, say
over 3 or 4 megabits per second, but isn't driving the
community into the 10 or 20 megabits per second----
Senator Ayotte. Right
Senator Sununu.--per second that's so important to the
economy.
So, there, it's a question of, you know, funding, in part,
and, again, both by the private sector--so, the local
provider--but, in many cases, some of those rural communities
have benefited from their effort to work with the Federal
Government, whether it's FCC, NTIA, or other programs.
Senator Ayotte. And one of the issues that I've been very
critical of here in the Committee is, frankly, the Universal
Service Fund, because New Hampshire is a net donor of nearly
$25 million annually to the fund, and the reality is, as you
just identified, Senator Sununu, there are real needs in New
Hampshire. And so, I've been very concerned that this doesn't
make economic sense for a state like New Hampshire, the way the
distribution is done. So, I certainly wanted to get your
thoughts on that issue, because, when we talk about funding, I
think that rises to the top of my mind.
Senator Sununu. Well, thank you very much for drawing me
into an issue that's, generally speaking, outside the purview
of broadband for America.
[Laughter.]
Senator Sununu. But, I will offer a few thoughts, because
look, it's a really important----
Senator Ayotte. Well, you know how hearings are.
[Laughter.]
Senator Sununu.--it's a really important issue. I'm
obviously joking a little bit, but it--look, it's an important
issue because of the amount of money you're dealing with,
because of the potential to reform and revise the program and
make it work better.
And I'll couple this response to the E-Rate response, in
that I would argue both of these programs, E-Rate and Universal
Service, they were originally targeted for very specific goals.
Right? Universal Service obviously bringing phone service to
all parts of the country. The E-Rate for that Tier 1
connectivity on schools--that was the original goal.
And today, as we look at the landscape, the needs are very,
very different. And I think, in both cases, those programs have
lost their focus, the resources are not well targeted, so
they're really not effectively targeted at communities that
have greater economic need, not very well focused at
communities that have greater infrastructure need. And so, in
the case of Universal Service, I think you can fairly argue
that much of the money is being used to provide subsidies to
parts of the country that are already served by----
Senator Ayotte. Correct.
Senator Sununu.--two or three or four wireless carriers
very effectively, and, in effect, almost universally.
In the case of the E-Rate, I think you can very fairly
argue that a good deal of the resources go to subsidize the
Internet connectivity of fairly well off suburban school
systems. And we're all concerned about education, but that is
not an effective targeting of those resources, when you have
all of the challenges that are both economic, demographic,
associated with adoption.
So, in both cases, Universal Service and E-Rate, I would
encourage you to roll up your sleeves, because it's not easy,
there are a lot of politics here. I--you know as well or better
than I. But, it's a lot of money at stake that could be used
far more effectively to deal with the issues of adoption,
literacy, improving perception, and helping to drive the
digital economy that we know is so important in the 21st
century.
Senator Ayotte. Thank you.
I know that my time is expired, but I could not agree more.
I do hope that we do roll up our sleeves on USF and E-Rate so
that we are making sure that those dollars are accomplishing
what we all want to accomplish, and particularly given the
nature of technology, so we're acknowledging the changes that
are made. So, I really hope that we're able to take that up,
Chairman.
Thanks.
Senator Pryor. Thank you.
Senator Wicker.
Senator Wicker. Ms. McPeak, you were nodding vigorously
during Senator Sununu's answer to the final question. Would you
elaborate, briefly?
Ms. McPeak. I would. And we have it in our testimony. We
said, ``Reform E-Rate and Universal Service's Fund, target it
to the most needed areas.'' So, that's basically unserved areas
that tend to be rural and urban poor neighborhoods. Target
those resources and leverage them to partnerships. That's what
we said.
We have a lot in common with New Hampshire, if I might just
comment, Senator. We, too, are a donor state. You've named
three counties. We've got 16 that have a population of 2
million, exceeds the population of New Hampshire, and they're
spread out on 44,000 square miles. That's a state of Kentucky
inside California. And these are communities that, if I were
answering Senator Rubio, ``Why do this?''--because economic
development will go there, and they will be able to pay more,
even if we are a donor state. And all of the disadvantaged
residents in my state will actually get an education, get a
decent living, and become taxpayers to contribute to the
overall well-being of America.
Senator Wicker. Now, having found some agreement and like-
mindedness between Ms. McPeak and Senator Sununu, let me ask
you, Senator Sununu: when there was an exchange between Senator
Klobuchar and Ms. McPeak about requirements and mandates, did
you begin to worry that we were intruding on the light
regulatory touch that you advocated?
Senator Sununu. Yes, a little bit.
Senator Wicker. And would you care to elaborate?
Senator Sununu. Sure. I feel self-conscious, because I feel
like I've eaten up too much of Senator Ayotte's time and your
time, my longer answers. But, there's no question that that
raises some concerns.
And the fundamental reason is because things are changing
very quickly in this space. So, let's talk about, for example,
a hard target for adoption rates. Well, first and--if you had
set that target just a couple of years ago, the exclusive focus
would have been on wired broadband connections. But, as we just
heard, 80 percent of the country has actually adopted wireless
broadband connections and America is leading the world, in
terms of technology and deployment of 4G--well, high-speed
wireless broadband. So, if you had set that target and focused
exclusively on--set that target thinking about wired broadband,
you might have limited or inhibited both investment of that
wireline and maybe of the wireless.
It's hard to say where we'll be 2 or 3 years from now. Not
that we should promote the adoption, but I don't think there's
a magic number. I don't think there's one specific technology.
I don't think there's one specific price point. You know, if we
were to say, ``Here's what the Internet Essentials price point
has to be,'' that's not going to be right for every company in
every part of the country with every demographic, because you
have questions about what's included with--does that include e-
mail? Or do you have flexibility what you can package with
that? You know, what is your customer? What other hurdles do
they have? You know, whether it's $9.95 or $10.95 or $12.95,
that might not make any difference to someone that doesn't have
that computer.
So, the hard mandate on price or packaging or the magic
number adoption rate, I think risks limiting innovation and
flexibility in this area, and, as a result, can potentially
become counterproductive.
Senator Wicker. Thank you, Senator Sununu--Mr. Cohen, is
Internet Essentials going to go away in a year?
Mr. Cohen. So, I don't have an answer to that yet. And I
would say, by the way, that it is a weakness, if you will, to
the extent there is a weakness, of governmentally-defined
programs, because the only evidence that anyone would cite that
it's going to go away is that the FCC order, in connection with
the NBCUniversal transaction, obligates us to offer the program
for 36 months after we launch the program.
So, I'm not trying to be cute. We have not made a
definitive----
Senator Wicker. You have not made----
Mr. Cohen----decision.
Senator Wicker.--a decision.
Mr. Cohen. We love the program. I think the passion for the
program that the whole company has demonstrated has been
crystal clear, and we'll have an announcement, in due time, and
then maybe we'll never have to make an announcement again
because there won't be any ambiguity that the program is a
Comcast program that we're doing because we're passionate about
it and it's the right thing to do. It----
One thing I will add, because it's important to say this,
is, one of our commitments has been that, if we were ever to
stop this program after 3 years, everyone who's in the program
gets the benefit of the 9.95 price for as long as they have a
child eligible to participate in the National School Lunch
Program. Not the same child they have today, necessarily. So,
20 years from now, if you have a child who's eligible to
participate in the National School Lunch Program, you'd still
be eligible for the $9.95 price. So, in that extent, the tail
of this program, regardless of what we decide, is a 15-,
20-, 25-year tail for eligible families.
Senator Wicker. Thank you.
Mr. Chairman, at this point, I have a unanimous consent
request. Connected Nation has been delivering to the NTIA data
on broadband availability and adoption for some 10 states.
This--they have prepared some testimony, which they would have
given, had they been included. This brings to the Committee's
attention several of the findings of their work. The testimony
provides state-specific broadband adoption information from
States such as Minnesota, Nevada, and South Carolina, and also
includes data they have collected on broadband adoption by
businesses in the United States, an important aspect of
broadband adoption that we should remember--the connection
between broadband and the economy.
And I would like to ask unanimous consent that this
testimony on--prepared by Connected Nation be accepted as part
of the record.
Senator Pryor. Without objection, it'll be accepted.
Senator Wicker. Thank you very much.
[The information referred to follows:]
Prepared Statement of Tom Koutsky, Chief Policy Counsel,
Connected Nation
Contents
I. Introduction
II. Current State of Broadband Adoption
A. Residential Adoption
B. Business Adoption
III. The Challenges That Remain
IV. Conclusion
______
I. Introduction
Connected Nation applauds the Senate Commerce Committee and its
Subcommittee on Communications, Technology, and the Internet for
holding this important hearing on broadband adoption and welcomes this
opportunity to submit written testimony on this topic of national
interest. Chairman Pryor, Full Committee Chairman Rockefeller, Ranking
Member Wicker, and Members of the Subcommittee are to be commended for
keeping this issue in the spotlight, as Connected Nation and its state
programs across the United States have consistently asserted that
broadband adoption and use is as important as the ubiquitous
availability of broadband.
Connected Nation is a nonprofit organization that works with
states, local communities, and technology providers to increase
broadband adoption and digital literacy for all Americans--both urban
and rural. For over 10 years, Connected Nation has worked directly with
states, local leaders, consumers, and broadband providers to build
public-private partnerships to identify gaps in broadband service;
understand broadband and computer adoption barriers in communities;
develop grassroots technology planning teams in communities for
improved broadband adoption, and provide computers along with
technology literacy programs for low-income and disenfranchised people.
We work on behalf of American consumers, and we continue to find, time
and again, in communities across our nation, that unserved and
underserved people can and will overcome broadband challenges when the
public and private sectors work together toward meaningful solutions.
Connected Nation also has the privilege of working through the
United States Department of Commerce, National Telecommunications and
Information Administration (NTIA)'s State Broadband Initiatives (SBI)
program in nine states and the territory of Puerto Rico. The SBI
program was authorized by the Broadband Data Improvement Act of 2008
(Public Law 110-385), legislation that originated in this committee and
would not have passed without the Committee's leadership on this issue.
As technology evolves, broadband's impact has extended into every
aspect of our society including education, government, healthcare, and
economic development. A citizen's or business's ability to effectively
use a computer, software applications, and the Internet are essential
in ensuring that they, regardless of their demographic, location, or
income, have the skills needed to be competitive in today's employment
market. According to the FCC, over the next 10 years, it is estimated
that 80 percent of jobs will require digital literacy skills making
broadband adoption absolutely vital.
The expansion of broadband adoption among U.S. residents will lead
directly to a more educated and trained workforce, a stronger economy,
and healthier citizens. For this reason, Connected Nation is focused on
equalizing digital opportunities so that all Americans can get access
to high speed Internet and all it has to offer. Broadband is a tool,
and like any other it must be used to produce results--this is the
measure by which we will gauge the true success or failure of our
efforts.
Through the SBI, Connected Nation has been delivering to the NTIA
data on broadband availability and adoption for 10 states and
territories (Alaska, Iowa, Michigan, Minnesota, Nevada, Ohio, Puerto
Rico, South Carolina, Tennessee, and Texas).
In this testimony, I will bring to the Committee's attention
several of the findings of this work. In each of these states,
Connected Nation has placed an emphasis on the topic of broadband
adoption as State Programs work daily to research, map, and implement
community-based projects centered on adoption.
II. Current State of Broadband Adoption
Connected Nation and its programs have been most successful at
stimulating broadband adoption by inspiring and empowering communities
to lead local initiatives that both reach out to disadvantaged
populations and non-adopters and also spur the creation of local
applications, which generates a higher level of relevancy that in turn
spurs adoption.
However, these adoption programs do not and are not designed to
function alone and should be part of a comprehensive and larger
statewide or regional broadband initiative for maximum effectiveness
and sustainability.
When we examine the state of U.S. broadband through the prism of
demand (adoption) and supply (infrastructure), it is abundantly clear
that the Nation's ``demand gap'' is significantly larger than the
``access gap.'' And yet, until the Broadband Data Improvement Act of
2008, the Sustainable Broadband Adoption grant program implemented in
2009, and the National Broadband Plan completed in 2010, very little
national attention had been placed upon broadband adoption as a
national policy challenge. Since that time, we have seen significant
movement and attention to broadband adoption at the national level.
Approximately 30 percent of the adult population does not subscribe to
broadband, and this gap is wider for minorities, for the low-income
population, and for the elderly. And we are beginning to understand the
barriers and challenges to adoption--digital literacy, cost, privacy,
and others.
A. Residential Adoption
Connected Nation's 2012 research surveys conducted as part of our
Iowa, Michigan, Minnesota, Nevada, Ohio, South Carolina, Tennessee, and
Texas programs estimate an aggregate household broadband adoption of 70
percent. Minnesota and Nevada lead this group of states, with the
highest broadband adoption rates at 78 percent and 75 percent,
respectively.\1\ Figure 1 shows the adult adoption rate in each of
these states surveyed. The rates of adoption among certain demographic
groups are even lower, as shown in Figure 2.
---------------------------------------------------------------------------
\1\ State Broadband Data and Development Grant Program Notice of
Funding Availability defines broadband as ``Data transmission
technology that provides two-way data transmission to and from the
Internet with advertised speeds of at least 768 kilobits per second
(kbps) downstream and at least 200 kbps upstream to end users . . .''
http://www.ntia.doc.gov/frnotices/2009/
FR_BroadbandMappingNOFA_090708.pdf
______
The challenges that remain, five years after the enactment of the
Broadband Data Improvement Act and over four years after the creation
of the Broadband Technology Opportunities Program at NTIA and the
Broadband Initiative Program (BIP) at the Department of Agriculture, do
not mean that progress has not been made. In fact, Connected Nation
has, as a benefit of conducting its research in multiple years, been
able to track significant gains in household broadband adoption rates,
with an average increase in household adoption between 2011 and 2012 of
five percentage points. (See Figure 3).
B. Business Adoption
Whether businesses are adopting and using broadband technology to
the maximum extent is frequently overlooked by researchers--and it
should not be, given the important impact broadband can have on small
business productivity and job growth. As part of our SBI programs,
Connected Nation frequently surveys business establishments to assess
their adoption and use of broadband. That research has demonstrated
that there are significant gaps in broadband adoption and use in
various business sectors. In 2013, our research indicated that in the
states surveyed, only 76 percent utilize broadband, meaning that nearly
one in four business establishments do not utilize broadband. (See
Figure 4).
There are plenty of missed opportunities for economic growth and
job creation if the United States were to close this business broadband
adoption gap. Connected Nation has found that annual median revenues
for businesses that use broadband are $300,000 higher than those
businesses not using high-speed Internet service.\2\ Small businesses
that have adopted broadband report annual revenues that average
$100,000 higher than those not connected, and based on Connected
Nation's data, we estimate that there are 1.8 million businesses across
the U.S. today not using broadband to create efficiencies that lower
costs, increase revenues, and help them, grow and create jobs.
---------------------------------------------------------------------------
\2\ Connected Nation 2013 Business Survey: http://
www.connectednation.org/survey-results/business
---------------------------------------------------------------------------
III. The Challenges That Remain
It is one thing to identify the broadband adoption gaps--it is
quite another thing to explain them. Based on the findings of various
business and residential surveys, Connected Nation engaged in a series
of research projects aimed at more fully understanding some basic
barriers to broadband adoption: Cost, Location, Digital Literacy and
Education, and Demographic.
When analyzing all the states in which Connected Nation is engaged,
the main barrier to broadband adoption was found to be relevance (see
Figure 5). Relevance represents a non-adopter's feeling that there is
little of interest to them on the Internet. This barrier to adoption
can be addressed through campaigns to educate the public on the
benefits of broadband, digital literacy training, and lifelong learning
initiatives. The nation's public libraries are frequently at the
forefront of all of these efforts, and Connected Nation works closely
with the library community to help make sure that these facilities have
adequate facilities and staff to meet this growing demand.
Our research shows that the barriers to home broadband adoption
vary significantly by state, as Figure 6 demonstrates. For example, in
Minnesota, the largest barrier to adults that have not adopted
broadband is overwhelmingly relevance. However, in South Carolina and
Nevada, the largest barrier to adoption is cost.
Below are descriptions and links to various papers analyzing each
topic in various states:
A. Cost
23 percent of respondents state that the cost of broadband is
the main reason they do not currently purchase and/or use
service. However, our data indicate that this sensitivity to
price varies across different vulnerable demographic groups. As
we show in Figure 7 below, 53 percent of non-adopters indicate
that they would not subscribe to broadband even if it was
offered at a price they considered ``acceptable.'' To be
effective, then, programs aimed at addressing the cost barrier
to adoption need to be targeted to groups and demographics that
will respond to these price signals.
This research, and white papers on it produced by Connected
Nation titled ``Late to the Party: How New Broadband
Subscribers Compare to Early Adopters'' (2011) and ``Let's Make
a Deal: Price Sensitivity and Willingness to Pay in the
American Broadband Market'' (2012), were the focus of a
Connected Nation presentation to the FCC in February of 2013,
as a part of the Commission's 2013 Broadband Summit: Broadband
Adoption and Usage--What Have We Learned?''
Because the receptivity to price incentives will vary by
demographic group, Connected Nation therefore recommends that
policy makers or marketing strategists should complement price
incentive strategies with programs addressing other barriers to
entry such as awareness campaigns, and digital literacy
training.
The Federal Communications Commission is taking this approach
as to how it has structured its Lifeline broadband adoption
pilot projects, which combine price subsidies with efforts
designed to conquer other barriers to broadband adoption.
a. Connected Nation, ``Late to the Party: How New
Broadband Subscribers Compare to Early Adopters,''
http://papers.ssrn.com/sol3/papers.cfm?ab
stract_id=1995130
b. Connected Nation, ``Let's Make a Deal: Price
Sensitivity and Willingness to Pay in the American
Broadband Market,'' http://papers.ssrn.com/sol3/
papers.cfm?abstract_id=2033415
c. Connect South Carolina, ``Cost as a Barrier to
Broadband Adoption: Structuring Subsidy Programs That
Work,'' http://www.connectsc.org/sites
/default/files/connected-nation/South%20Carolina/files/
sc_willingness_
finaloct032012.pdf
d. Connect Minnesota, ``Worth the Cost: Broadband
Prices in Minnesota,'' http://www.connectmn.org/sites/
default/files/connected-nation/Minnesota
/files/mn_price_barriers_final.pdf
B. Location (Rural vs. Non-rural)
Location has consistently been a factor in broadband adoption
rates in states and localities where Connected Nation has
conducted research. Simply put, broadband adoption rates are
lower in rural areas of the United States, a problem compounded
by more extensive broadband availability challenges. Detailed
and state specific research results are available in the
documents below:
a. Connected Texas, ``The Texas Digital Divide: An
Assessment of Rural and Non-Rural Texans,'' http://
www.connectedtx.org/sites/default/files/connected-
nation/Texas/files/tx_rural_non_rural_final.pdf
b. Connect South Carolina, ``Technology Adoption among
Agribusiness and Rural Businesses,'' http://
www.connectsc.org/sites/default/files/connected-nation/
South%20Carolina/files/
sc_agribusiness_final_dec172012.pdf
c. Connect Nevada, ``Technology Use among Rural Nevada
Businesses,'' http://www.connectnv.org/sites/default/
files/connected-nation/Nevada/files/
nv_rural_biz_final.pdf
C. Digital Literacy and Education
Because relevance is such a significant barrier to broadband
adoption, Connected Nation's programs have produced state-
specific research papers to help those state-based public
private partnerships craft appropriate strategies to spur
broadband adoption:
a. Education
i. Connect South Carolina, ``Broadband--A
Technology Tool for Lifelong Learning,'' http:/
/www.connectsc.org/sites/default/files/
connected-nation/South%20Carolina/files/
sc_adoption_sept2012_final.pdf
ii. Connected Texas, ``Providing Learning
Anywhere: K-12 Education in Texas,'' http://
www.connectedtx.org/sites/default/files/
connected-nation/Texas/files/tx_elearning.pdf
iii. Connect Nevada, ``The Power of Broadband:
Boosting Nevada's Education System,'' http://
www.connectnv.org/sites/default/files/
connected-nation/Nevada/files/
nv_elearning_final.pdf
b. Digital Literacy
i Connected Texas, ``Making the Connection
through Digital Literacy,'' http://
www.connectedtx.org/sites/default/files/
connected-nation/Texas/files/
tx_digital_literacy_final.pdf
ii. AConnect Minnesota, ``Digital Literacy: A
Critical Skills for All Minnesotans,'' http://
www.connectmn.org/sites/default/files/
connected-nation/Minnesota/files/
mn_digital_literacy_final.pdf
D. Demographics
As shown in Figure 2, at-risk demographic groups adopt
broadband at lower than average rates, and as a result
Connected Nation's programs continue to explore this
area of concern:
a. Connect South Carolina, ``Closing the
Digital Divide in South Carolina,'' http://
www.connectsc.org/sites/default/files/
connected-nation/South%20Carolina/files/
sc_gap_analysis_final.pdf
b. Connect Nevada, ``Technology Adoption among
Hispanics in Nevada,'' http://
www.connectnv.org/sites/default/files/
connected-nation/Neva
da/files/nv_hispanic_adoption.pdf
IV. Conclusion
Broadband technology is becoming pervasive in American life, and
digital skills are rapidly becoming ``must have'' tools for American
workers and students. Whether students can research and complete their
homework, whether adults can improve their skills, whether a mother can
shop for health insurance options online, whether a senior can see his
or her own medical records and understand his or her care and
prescriptions efficiently--all of these require wide adoption and broad
knowledge as to how to use broadband. Broadband is not a luxury item,
and this nation can ill-afford to have 3 in 10 adults remain off-line
for very much longer.
The gaps demonstrate the need for Federal leadership and support
for public-private partnerships that will increase broadband adoption
and use. Programs that can drive broadband adoption represent a highly
efficient use of taxpayer funds because data show that once someone
begins using broadband, they tend to keep it, thus driving economic
impact for their community. For example, an April 2009 survey by the
Pew Foundation's Internet Project reported that people are twice as
likely to sacrifice cell-phone service or cable television service than
Internet service, with 22 percent of adults reporting that they had
cancelled or cut back cable TV service in the previous 12 months, 22
percent of adults reporting that they have cancelled or cut back cell-
phone service in the previous 12 months, compared to only 9 percent of
Internet users reporting cancelling or cutting back on broadband.\3\
---------------------------------------------------------------------------
\3\ (http://www.pewinternet.org/Press-Releases/2009/Home-broadband-
adoption-increases-sharply-in-2009.aspx)
---------------------------------------------------------------------------
Public-private partnerships, such as those that Connected Nation
works to foster, have proven themselves as an effective vehicle for
improving broadband availability and adoption. Successful public-
private partnerships will recruit local leaders, such as public
libraries, school administrators, and public officials, behind
initiatives to develop locally-relevant broadband applications and
solutions that target the specific needs of each community. Converting
non-adopters requires more than simply ``broadband cheerleading'' or
splashy awareness raising campaigns- it frequently requires
demonstrating directly to the community how broadband will improve
quality of life and provide wealth-creating opportunities.
At Connected Nation, we have had the privilege to see firsthand the
positive outcomes of collaboration and public-private partnerships in
this arena, and never cease to be amazed at what is possible when a
community and individuals have the desire and opportunity to connect
and access transformative broadband technology.
Nonprofit organizations such as my own and fellow travelers such as
the Blandin Foundation in Minnesota, the Prima Civitas Foundation in
Michigan, and ITology in South Carolina have an important role to play
working with both public and private sector stakeholders to foster and
facilitate localized strategies for broadband expansion. It is
imperative that as a nation we focus on programs that have a proven
record of success working with local communities to identify and
address the challenges that each community is experiencing. We look
forward to continue working with Congress, the Federal government,
states, and thousands of local champions who understand and share our
mission for universal digital inclusion across America.
Thank you again, Chairman Pryor, Full Committee Chairman
Rockefeller, Ranking Member Wicker, and Members of the Subcommittee for
this opportunity to provide this testimony for the record, and
Connected Nation stands ready to continue working with you on this and
other broadband related issues and policies.
Senator Wicker. I think it has been a great hearing----
Senator Pryor. Thank you.
Senator Wicker.--Mr. Chairman. Appreciate it.
Senator Pryor. I do have one last question, for Mr. Smith.
Do you have any other questions, Senator Ayotte?
Senator Ayotte. I don't think so.
Senator Pryor. OK.
I do have one last question, for Mr. Smith. I don't want
you to feel left out of this----
Mr. Smith. I was going to say, I thought you forgot about
me over here.
[Laughter.]
Senator Pryor. No, no. I'll tell you, we appreciate Pew,
because you guys do great work----
Mr. Smith. Thank you.
Senator Pryor.--and you provide a lot of good information
and data, and just a great resource for us. So, I do want to
mention that and thank you.
Part of your testimony was, you mentioned that there's a
slowdown in adoption in recent years. And I'd like to get your
insight on that. And you mentioned some of this before, but I'm
wondering if it's kind of a saturation issue that, sort of, the
people who want it have already gotten it, and things like
that. You went through some demographics, you know, older
adults, low education, et cetera, that seemed to be resistant
to taking this, for one reason or another. So, I'm curious
about that, but I'm also curious about your reasons that you
think that it's more difficult in rural areas to get the
adoption rate where we want it to be. So, are we hitting a
saturation point? And then, tell us specifically about rural
America.
Mr. Smith. Sure. So, in terms of a saturation point, I
don't know that we've necessarily hit a saturation point, but
it's pretty clear that the people who are easy converts have
already converted, and the folks who are left over, you know, a
lot of them, as I mentioned, don't use the Internet at all. So,
not only do they, you know, not have broadband, they don't have
a computer, they probably have very little experience with what
they need to do and feel a lot of apprehension about going
online. So, there's that group that obviously has some severe
issues as far as that goes.
The other group, a lot of those folks, generally, what we
see and what the FCC has seen in their work is that they want
it, they like the idea of access, they see the benefit of it,
but, for various reasons, a lot of them financial, don't have
the ability to have broadband at home.
And I was going to mention to Senator Rubio, a significant
number of those folks, so about 10 percent of the population
now, we find doesn't have broadband at home but does have a
smartphone. So, in many instances, that group is getting access
of one kind or another through a smartphone, but not
necessarily through a home connection.
But, I think, you know, in addition to the--sort of, the
economic climate that we've had recently, a lot of the issue is
just that the folks who are left in the pool are not going to
be as easy to bring on board as the folks that have already
been brought on board, thus far.
So, as to the rural question, definitely we see continued
gaps in rural residents versus urban and suburban. That gap has
gotten smaller over the years. And there are sort of two issues
that go into play there. Part of that is--as Senator Ayotte
mentioned, an access issue for certain rural areas. In a lot of
sort of rural areas, you simply can't get access in a
reasonable way. It also plays into the--the sort of
demographics of the rural population. So, in general, they tend
to be older, for example, and we know that the biggest group of
non-adopters is people over the age of 65. So, there's sort of
a demographic issue as well as an access or deployment issue
when it comes to the rural population.
Senator Pryor. OK. Well, thank you.
And--you good?
Senator Wicker. Yes.
Senator Pryor. OK.
Listen, thank you all for being here. I appreciate all of
our panelists. I know some people need to travel back to where
they came from. So, again, thank you.
What we're going to do is, we'll leave the record open.
Some of our members couldn't make it here today, and we will
leave the record open for 2 weeks and allow members to submit
questions. We would ask you all to get those back to us as
quickly as you could.
But, again, I just want to say thank you all for doing
this. This is helpful, and we appreciate it.
And, with that, we'll conclude the hearing.
[Whereupon, at 12 p.m., the hearing was adjourned.]
A P P E N D I X
Prepared Statement of Hon. John D. (Jay) Rockefeller IV, U.S. Senator
from West Virginia and Chairman, U.S. Senate Committee on Commerce,
Science, and Transportation
Over the last decade, the Nation has made great strides toward the
goal of ubiquitous broadband availability around the Nation. While much
work must be done in deploying broadband to the approximately 19
million Americans that still lack access to broadband, the increase in
broadband availability during the past 10 years is something to
applaud. This achievement came through a concerted effort by both the
public and private sectors, with billions of dollars in investment to
bring the benefits of broadband to all Americans. [And I am proud of
the role the Broadband Technology Opportunities Program (BTOP) that I
championed has played in this effort toward achieving universal
broadband availability and adoption.]
Broadband empowers our people with the digital resources they need
to succeed in their communities, across the Nation, and around the
world. Broadband offers businesses, no matter their size, entry into
the world's markets. It provides job seekers access to new
opportunities to find employment. Broadband offers access to previously
unavailable educational and health care resources. As I have seen in my
travels around West Virginia, bringing broadband to citizens in
unserved areas of the country can fundamentally change their lives.
Making broadband available to all Americans, however, is only part
of the challenge. That is why I am pleased that Subcommittee Chairman
Pryor has convened today's hearing on broadband adoption. According to
the National Telecommunications and Information Administration (NTIA)'s
most recent report, approximately 27.8 percent of homes in America that
have access to broadband do not subscribe to that service. The reasons
for not subscribing can be varied, but the truth is that these homes
risk being left behind as everyone around them takes advantage of the
digital revolution brought about through broadband infrastructure.
I am particularly interested in hearing witnesses discuss how
broadband access by our students can positively impact large broadband
adoption issues. Evidence from the Census Bureau shows a positive
relationship between a child's exposure to broadband at school and
adoption of broadband by the child's parents at home. Children are
broadband advocates--as the world is opened up to them through the use
of broadband and digital technology in the classroom, their parents and
caregivers come to understand just how important it is to have
broadband at home. This is yet another reason why the Federal
Communications Commission must act quickly to strengthen and expand the
E-Rate program in our Nation's classrooms and libraries.
I want to thank our witnesses today and look forward hearing about
their real-world experiences with broadband adoption efforts and the
lessons learned from the field.
______
Follow-up Submission to Testimony Submitted by Sunne Wright McPeak,
President and CEO, California Emerging Technology Fund
Purpose and Focus of Follow-Up Submission to Testimony
The purpose of this document is to provide additional information
and clarification regarding the written testimony submitted by the
California Emerging Technology Fund (CETF) and responses to questions
for the Senate Subcommittee on Communications, Technology and the
Internet hearing on ``Broadband Adoption: The Next Mile'' on October
29, 2013. This document addresses three major issues discussed during
the hearing:
Challenges of Increasing Broadband Adoption
Policy Goals, Performance-Based Regulatory Framework, and
Incentives for Partnerships
Community Experiences with Industry Broadband Adoption
Programs
Challenges of Increasing Broadband Adoption
Chairman Pryor and Ranking Member Wicker both eloquently described
in their opening comments the challenges of increasing broadband
adoption which must be addressed by formulating national policy and
designing an effective strategy to close the Digital Divide. Those who
remain off-line are largely remote rural residents without access and
urban poor residents without digital literacy skills or the resources
to afford market rate Internet service. (The data published by the Pew
Charitable Trust regarding broadband adoption are discussed below.)
Clearly, broadband access (infrastructure deployment) is ``necessary''
for broadband adoption, but it is not ``sufficient'' for the most
disadvantaged residents--low income families and people with
disabilities. And, it is for these residents that broadband has the
greatest potential to transform their lives and help them become
productive citizens and contributing taxpayers for the benefit of the
Nation.
CETF summarized the challenges of broadband adoption in the written
testimony based on extensive experience working with more than 80
community-based organizations (CBOs) in disadvantaged communities
throughout California. Dr. John Horrigan summarizes the challenges as
three-fold, which were set forth in the CETF testimony:
1. Cost
2. Relevance
3. Digital Literacy
CETF recommendations for action are anchored in the understanding
that all three facets of the challenge must be addressed simultaneously
in an integrated strategy to increase broadband adoption:
There must be an affordable broadband subscription rate to
address the cost challenge. Given the modest market penetration
to date of voluntary efforts, it is likely that an Affordable
Broadband Lifeline Rate Program at the national level will be
pivotal to significantly increasing broadband adoption beyond
current levels.
Broadband adoption should be integrated into all existing
Federal programs to address the relevance challenge. It should
be a part of all existing and future programs related to
education, workforce preparation, healthcare, and housing,
especially for disadvantaged and low-income populations. And,
that policy directive from Congress to integrate broadband
adoption does not require additional funding.
Training in digital literacy with access to affordable
computing devices needs to be provided by CBOs with a positive
track record that can serve as the ``trusted messengers and
honest brokers'' in a way that broadband companies alone are
not able to do. And, digital literacy training is most
effective when integrated into relevant services.
The Pew Charitable Trust data on broadband adoption needs to be
interpreted through the ``lens of reality'' of on-the-ground experience
with the benefit of listening to disadvantaged residents. Several focus
groups commissioned by CETF with low-income people who don't subscribe
to broadband and who don't have a computer in the home (all conducted
in language and in culture) reveal that the vast majority of residents
currently off-line want to have the benefits of high-speed Internet
access (which generically is referred to as broadband and includes both
wireline and wireless technologies).
The 2013 Pew Report on ``Who's Not Online and Why'' finds that 85
percent of Americans do use e-mail and the Internet overall, which
tracks with an 86 percent Internet use rate in California, and that 15
percent are not online overall, with just 5 percent saying that ``the
Internet is not relevant to them''. Unfortunately, some industry voices
repeat those figures as ``34 percent of the 15 percent'' (emphasizing
the 34 percent in graphics) without doing the math to place in
perspective that it is just 5 percent. Further, when anyone drills down
on the 5 percent there is a discovery that many of these people are
senior citizens who come to see the ``relevance'' when it is related to
better healthcare monitoring in their home, which can offset follow-up
clinical visits by as much as 40 percent (having a significant impact
on quality as well as cost savings in healthcare). The majority of
those not online, 58 percent of the 15 percent (or 9 percent of the
population) cite digital literacy, lack of a computing device to
connect to the Internet, and cost as issues. Thus, the Pew data confirm
that increasing broadband adoption requires an integrated approach that
tackles in a coherent strategy the three challenges of cost, relevance,
and digital literacy.
Broadband adoption, however, is not just about increasing overall
Internet use--it is about high-speed Internet access and use at home.
That is the focus of the California goal to achieve at least 80 percent
broadband adoption at home (with no single region or demographic group
less than 70 percent). California today is at 75 percent home broadband
adoption (including 6 percent mobile devices only) and is not likely to
achieve the 80 percent goal without new Federal policy and reform of
the Universal Services Fund (USF) by the Federal Communications
Commission (FCC) that address all three challenges to broadband
adoption.
While these figures may suggest that there are just a few
percentage points left to close the Digital Divide, it must be
understood that they translate into lots of real people who are being
left farther and farther behind in a Digital World--more than 633,000
families alone in California need to be reached to subscribe to
broadband to achieve the 80 percent adoption goal.
Pew contends that a relatively small percentage of Americans lack
any access. However, in every state there are rural communities--
thousands and thousands across the county--that are being stifled
without broadband access. Further, the infrastructure that does exist
in many rural areas often is so slow as to be barely classified
technically as ``broadband'' and certainly is inadequate for a vibrant
21st Century community. And, while percentages may seem small, the
actual number of households totally unserved (and woefully underserved)
need to be put in perspective: in California, there are at least
225,000 remaining unserved households to reach with broadband to
achieve the state goal of 98 percent deployment. Fortunately, when
broadband adoption is coordinated with deployment in California rural
communities, then rural adoption rates quickly catch up to the
statewide average.
In the written testimony, CETF delineated specific recommendations
for the integration of broadband deployment and adoption into existing
programs within Federal departments. The U.S. Department of
Transportation should have been included because deployment of
broadband along with major Federal transportation projects (surface and
transit) in public rights-of-ways (coupled with a ``Dig Once'' policy)
can greatly assist broadband deployment into unserved areas. Further,
broadband is a ``green strategy'' because it enables ``virtual trips''
which reduce impacts on the environment and help relieve traffic
congestion.
Policy Goals, Performance-Based Regulatory Framework, and Incentives
for Partnerships
As Senator Wicker observed during the hearing, CETF strongly
recommends that Congress set policy goals for broadband deployment and
adoption along with a timetable and assignments of responsibility.
Without a goal there is no accountability for performance. It is the
first crucial step towards ``rolling up our sleeves'', as Senator
Ayotte proposed. In fact, a goal is the bedrock of a ``performance-
based'' regulatory framework that invites and rewards private-sector
innovation versus the conventional ``command-and control'' regulatory
scheme that inhibits investment. However, the references during the
hearing to a ``light touch'' in regulations cannot and should not mean
the absence of either policy goals or performance accountability--the
very foundation for common sense regulations that serve the public
interest while embracing the strengths of the private sector. That is
why it is important for Congress to set national broadband deployment
and adoption goals, as Senator Rubio questioned the witness panel.
In this context, it is important to clarify my answer to Senator
Klobuchar regarding ``mandates'' which in the CETF testimony refers to
recommended actions by Congress to: (a) set policy goals for broadband
deployment and adoption; (b) direct Federal departments to integrate
broadband deployment and adoption into existing programs; and (c)
provide input to the FCC on USF reform (including design of an
Affordable Broadband Lifeline Rate Program and modernization of E-
rate). To the extent that Congress acts to establish Federal policy,
then that is a ``mandate'' for the Administration.
For example, CETF repeatedly recommended that Congress encourage
and reward partnerships in meeting the broadband adoption goals--
federal-state, public-private, and provider-community. Thus, in this
sense, CETF recommends that Congress ``mandate'' the FCC to reform the
USF to provide incentives for partnerships to broadband providers such
that design of an Affordable Broadband Lifeline Rate Program and E-rate
reform addresses all three challenges to adoption: cost, relevance, and
digital literacy. Likewise, CETF recommends that broadband providers
that receive subsidies from USF should be required to submit a
transparent plan to the FCC with goals (including percentage of
eligible participants to be reached) and a coherent set of activities
to achieve the goals. Further, CETF recommends that priority funding
and/or financial incentives be available to those broadband providers
that submit a plan to partner with intermediaries (such as EveryoneOn)
and CBOs with proven track records as ``trusted messengers and honest
brokers'' and which incorporates relevance and digital literacy. While
it would be voluntary on the part of each provider whether or not to
participate in the Affordable Broadband Lifeline Rate Program, receipt
of USF subsidies would be accompanied by these kinds of
``requirements''--which some might call a ``mandate''--but which are
needed to ensure accountability and success.
Community Experience with Industry Broadband Adoption Programs
CETF strongly encourages public-private partnerships to leverage
public investment and harness the innovation of the private sector.
Such partnerships must be transparent, explicit about goals, and
accountable for results. As stated during the hearing, CETF commends
industry efforts, such as Comcast Internet Essentials (CIE) program,
but observes that the results to date have been modest, with less than
10 percent of the eligible households actually participating. It is
worth noting that Comcast executive David Cohen did clarify at a
Washington Post forum last week (November 5, 2013) that his reference
during the hearing to ``1 million Americans'' participating in CIE was
a calculated projection of all persons in about 250,000 households that
actually have signed up. In California, 25,739 households out of
313,805 eligible households, or only 8.2 percent of the prospective
market, have signed up for CIE (according the last public release by
Comcast on June 21, 2013). Other companies have done even less:
according to EveryoneOn, Time Warner Cable operated their affordable
broadband pilot for only 2 months (although the launch was highly-
touted in media) and signed up just 1,235 households around 502
participating disadvantaged schools. To be sure, these companies know
how to market and are successful when they are committed to a goal.
They have not produced the hoped-for results because they have not been
accountable to anyone for performance, have ignored the ``lessons
learned'' from on-theground experience, and have invested too little in
partnering with CBOs with a track record to integrate relevance and
digital literacy into their broadband adoption programs.
Attached are letters from knowledgeable sources close to the
community and consumer realities of these voluntary affordable
broadband adoption programs that set forth the nature of the existing
problems. Representatives in California of Comcast and other companies
have been open to receiving this kind of input and have tried to
respond to the extent of their authority; and some issues have been
resolved, but enough problems persist to conclude that there must be
substantive changes to the programs to increase market penetration and
broadband adoption.
Conclusion
Closing the Digital Divide is an imperative for U.S. global
competitiveness. The Senate Subcommittee hearing was a very good
beginning to identify the challenges and formulate strategies to
accelerate broadband adoption. It is essential that Congress act to
establish policy goals that leverage existing resources, foster
partnerships, and reward results. There is no substitute for
Congressional leadership to empower and mobilize the Nation's
imagination, talent and innovation.
As was repeatedly said during the hearing, ``there is no silver
bullet'' for broadband adoption, but as was stated in the CETF written
testimony, ``there is silver buckshot'' in that there is a ``critical
mass'' of actions required close the Digital Divide which must be
infused in Federal policy. As was discussed during the hearing, there
are well-known, documented primary challenges to broadband adoption:
1. Cost
2. Relevance
3. Digital Literacy
Closing the Digital Divide and accelerating broadband adoption
requires an affordable broadband rate for low-income families. As FCC
Commission Mignon Clyburn has observed, ``100 million American homes
are without broadband and the #1 reason is affordability.'' Thus, there
is a need to step up the voluntary efforts by broadband providers and
establish a Federal Affordable Broadband Lifeline Rate Program that is
coupled with incentives for partnerships to integrate broadband into
other relevant programs for disadvantaged residents that incorporate
digital literacy training.
As a result of the Senate Subcommittee hearing, the Senators should
take heart that it is entirely possible to succeed in closing the
Digital Divide. Congressional leadership, focus and commitment make a
huge difference in this quest.
Attachments
Letters from:
--2-1-1/United Ways of California, Los Angeles
--Chicana/Latina Foundation, Burlingame
--Mission Economic Development Agency, San Francisco
--Office of Community & Economic Development, California State
University, Fresno
--Santee Educational Complex, Los Angeles Unified School District,
Los Angeles
______
Attachments to Letter
2-1-1 California
South Pasadena, CA, November 11, 2013
Hon. Mark Pryor,
Chairman, Subcommittee Committee on Communications, Technology, and the
Internet,
United States Senate
Washington, DC.
Hon. Roger Wicker,
Ranking Member, Subcommittee Committee on Communications, Technology,
and the Internet,
United States Senate
Washington, DC.
Re: Hearing on Broadband Adoption: The Next Mile
Dear Chairman Pryor and Ranking Member Wicker:
My name is Lilian P. Coral, and I serve as the Director of 2-1-1
California. Under the fiscal sponsorship of the United Ways of
California, 2-1-1 California is a statewide network of local 2-1-1
information and referral providers authorized by the California Public
Utilities Commission and the Federal Communications Commission to use
the 2-1-1 code as an easy-to-remember and universally recognizable
number that would enable a critical connection between individuals and
families in need and the appropriate community-based organizations and
government agencies. 2-1-1 California's mission is to develop the
statewide infrastructure and support necessary to ensure quality 2-1-1
services for everyone. In California, 2-1-1 is accessible in 30
counties servicing 93 percent of Californians.
I am writing this letter to add additional information to the
record for the Broadband Adoption: The Next Mile hearing. We were
fortunate to be recipients of an American Recovery and Reinvestment Act
grant through the National Telecommunications and Information
Administration to focus on Broadband Awareness and Adoption and between
March 2010 and June 2013 2-1-1 California through its 2-1-1 partners:
Provided outreach and education to 229,481 callers
Screened and referred 59,775 callers to computer and
Internet-related resources
As follow-up, 2-1-1 California through its 2-1-1 partners,
conducted surveys and interviews with approximately 6 percent of these
callers to find out whether they had participated in any computer/
Internet related training classes, subscribed to broadband or received
a free or low cost computer as a result of the referrals they received
from 2-1-1. Based on the survey results, we estimate that:
7,478 households subscribed to broadband
4,318 adults participated in a training class
3,659 households received a computer
4,555 children were connected to the Internet
Unfortunately, the Digital Divide continues to disproportionally
impact thousands of low-income families throughout California and
especially in some of our major urban centers. Based on in-depth
screening and referral protocols, callers told 2-1-1 Specialists that
the main reason they did not have broadband at home was that they did
not own a computer (41 percent). The second biggest reason was cost (36
percent).
We believe broadband adoption is an imperative for economic
prosperity, quality of life and family self-sufficiency and support the
recommendations put forth by the California Emerging Technology Fund
for accelerating Broadband adoption. Our Data and experience indicate
that the majority of people without broadband at home do want to adopt
the technology and understand the value proposition.
We think it is particularly important that there be stronger
partnerships that can help community-based organizations like our own,
who are trusted messengers, connect those still unconnected to truly
affordable broadband options that will ensure low-income families
connect, and stay connected, to broadband, to access the richness of
resources and education that the Internet affords.
Respectfully,
Lilian P. Coral,
Director,
2-1-1 California.
______
Chicana/Latina Foundation
Burlingame, CA, November 8, 2013
Hon. Mark Pryor,
Chairman, Subcommittee Committee on Communications, Technology, and the
Internet,
United States Senate,
Washington, DC.
Hon. Roger Wicker,
Ranking Member, Subcommittee Committee on Communications, Technology,
and the Internet,
United States Senate,
Washington, DC.
Re: Hearing on Broadband Adoption: The Next Mile
Dear Chairman Pryor and Ranking Member Wicker:
My name is Alicia Orozco, and I serve as Project Manager of the Get
Latinos Connected project (GLC) of the Chicana Latina Foundation, based
in the San Francisco Bay Area. The GLC project seeks to end the digital
divide that keeps the Latino community from connecting to the Internet,
and thus fully participating in the 21st Century. We are a non-profit
organization which promotes professional and leadership development of
Latinas. The Foundation's mission is to empower Chicanas/Latinas
through personal, educational, and professional advancement.
I am writing this letter to add additional information to the
record for Broadband Adoption: The Next Mile hearing. We were fortunate
to be recipients of an American Recovery and Reinvestment Act grant
through the National Telecommunications and Information Administration
to focus on Broadband Awareness and Adoption. With that project, were
able to sign up 1,070 first-time Internet users. That is 1,070 new
Latino Internet users. The majority of these homes have children who
now enjoy access to the online world and who have improved their class
work.
We strongly advocate for broadband at home and Digital Literacy
training as described in the National Broadband Plan, and we are making
the suggestions described in this letter with the goal of giving all
Americans access to digital tools and skills to improve their lives.
While we find the Comcast Internet Essentials program to be helpful
to some Bay Area families, there are several barriers that impede many
more households from participating.
We recommend that:
Comcast extend its program from 2014 until 2017 and set adoption
goals. As Comcast Executive Vice President David Cohen testified before
your subcommittee, the company has ``learned a lot over the first two
years'' of the three-year program. Currently, Internet Essentials is
scheduled to end 1 June 2014. From a California perspective, where
nearly half of Latino households do not have access to high-speed
Internet at home, this is not the time to halt the program. Comcast is
the main cable provider in the San Francisco Bay Area. We also
recommend that Comcast set national adoption targets as a percentage of
eligible households, and similar targets in major markets, such as the
San Francisco Bay Area. In addition to disclosing adoption goals, it
would be very helpful for non-profits like ours if Comcast would share
information about where they are targeting the broadband offer,
including providing lists of schools where students are eligible for
Comcast Internet Essentials. We have been asking for the list of auto-
qualified schools since the program started and we're still waiting for
that list.
The online application is useless. We have yet to be able to
actually use it. We've held Technology Fairs where we have set up
computer banks so that they can actually sign up people for Internet
Essentials, but have been unable to because the online application does
not work. We keep getting bounced off.
We also have become aware of the fact that when a person calls
Comcast to sign up for Internet Essentials, they are being asked how
many children they have in the program. Then the Comcast agent chooses
the oldest child to enroll in the program. This means the family will
be ``kicked out'' of the program sooner, because the discount only
lasts as long as the child is in school. So if an eligible family has a
child in high school and another in elementary schools (both on the
National Lunch program) by enrolling the high school student, the
family loses several years of eligibility for Internet Essentials.
Comcast remove the 90-day requirement. Comcast will not allow low-
income families who are already Internet subscribers, or have
subscribed in the past 90 days, to switch to the cheaper Internet
Essentials service. If a family has subscribed to the Internet as part
of a Comcast bundled service, they must stop service for 90 days before
they become eligible for the $9.95 month Internet service.
Comcast increase support of local and regional digital literacy
programs. Many of the families we serve need computer literacy training
to take full advantages of their broadband connections. CLF has worked
effectively with schools, faith-based communities, local employers,
health clinics and job-training programs to incorporate digital
literacy and workforce training. We would welcome additional
commitments by Comcast to help fund essential training programs like
these.
Comcast increase support of local and regional digital literacy
programs. Many of the families we serve need computer literacy training
to take full advantage of their broadband connections to the Internet.
The Chicana/Latina Foundation has worked effectively with schools,
churches, health clinics, job-training programs and social service
providers to incorporate digital literacy and workforce training. We
would welcome additional commitments by Comcast to help fund essential
training programs like these.
Comcast expand the program to include low-income seniors, people
with disabilities and veterans. Recent polling on home broadband use in
California shows that seniors and people with disabilities adopt high-
speed home Internet at significantly lower rates than other
populations. Often homebound, these clients are among the most
vulnerable we serve, and an affordable Internet connection would
significantly improve their access to vital services and the quality of
their lives.
Elected officials and policymakers should know that while Comcast
has made improvements to its discounted broadband offer, the company
should make Internet Essentials available beyond June 2014 and expand
eligibility as described above if it desires to be a leader in closing
the Digital Divide in California.
Respectfully,
Alicia Orozco,
Project Manager,
Get Latinos Connected.
______
Mission Economic Development Agency
San Francisco, CA
Hon. Mark Pryor,
Chairman, Subcommittee Committee on Communications, Technology, and the
Internet,
United States Senate,
Washington, DC.
Hon. Roger Wicker,
Ranking Member, Subcommittee Committee on Communications, Technology,
and the Internet,
United States Senate,
Washington, DC.
Re: Hearing on Broadband Adoption: The Next Mile
My name is Luis Granados, and I serve as Executive Director of the
Mission Economic Development Agency (MEDA), based in San Francisco. The
Mission Economic Development Agency (MEDA) is a community-based, local
economic development corporation located in the Mission District of San
Francisco. For 40 years MEDA has worked to improve economic and social
conditions in the neighborhood by stimulating investment, enhancing the
business environment, and creating jobs for area residents, with an
emphasis on the Latino community in San Francisco. MEDA engages the
local community with homeownership counseling, foreclosure
intervention, small business development services, financial education,
free tax preparation, and technology training and workforce
development.
I am writing this letter on behalf of MEDA to add additional
information to the record for the Broadband Adoption: The Next Mile
hearing. We were fortunate to be recipients of an American Recovery and
Reinvestment Act grant through the National Telecommunications and
Information Administration to focus on Access to Careers in Technology
and, earlier this year the Department of Education granted MEDA a $30
million Mission Promise Neighborhood Grant aimed at helping students at
underperforming schools San Francisco.
We strongly advocate for broadband at home and digital literacy
training as described in the National Broadband Plan, and we are making
the suggestions described in this letter with the goal of giving all
Americans access to digital tools and skills to improve their lives.
In our work with Comcast we have found the Internet Essentials
program to offer high-quality, reliable broadband service to some of
the people who need it most. Our clients who have subscribed are
generally happy with the program. However, there are several barriers
that impede many more households from participating.
We recommend that Comcast take the following steps to ensure that
the maximum amount of eligible and needy families can benefit from
Internet Essentials:
Extend Internet Essentials from 2014 until 2017. As Comcast
Executive Vice President David Cohen testified recently before your
subcommittee, the company has ``learned a lot over the first two
years'' of the three-year program. Currently, Internet Essentials is
scheduled to end in June 2014. From a California perspective, where
nearly half of Latino households do not have high-speed Internet access
at home, Comcast should continue the program.
In addition, in the first years of the program Internet Essentials
sign-ups were impacted as we worked with eligible families to overcome
hurdles in the subscription process, challenges that resulted in
damaged community confidence in the product. These hurdles included:
Clients receiving letters from Comcast saying that they had
failed a credit check. Internet Essentials specifically
advertised there would be no credit check.
The application process took up to 3 months--far too long
for clients that are skeptical about the product in the first
place and have other pressing demands on their budget.
Initial Internet Essentials customer service representatives
suggested that Internet Essentials clients could pay $150
deposit to avoid a credit check.
Families were charged $50 by the technicians that installed
their modem, even though Internet Essentials guarantees free
installation.
Through advocacy with Comcast and the actions of regional staff,
these issues have been addressed by Comcast. However, MEDA is concerned
that these issues have prevented eligible and needy families from fully
taking advantage of this benefit. Due to these early barriers MEDA
believes Comcast should extend the Internet Essentials program until
2017.
Comcast increase support of community-based programs. If it weren't
for community-based organizations helping clients learn about and
subscribe to Internet Essentials, Comcast wouldn't even have the 8
percent penetration it is currently reporting among eligible families.
These organizations also provide critical ongoing support to
subscribers, including digital literacy training. At MEDA, we spend
significant resources on these support activities. We would welcome
additional commitments by Comcast to help fund essential programs like
these.
Comcast expand the program to include low-income individuals. Even
as government and other social services are more exclusively available
online, the clients they are meant to serve adopt high-speed home
Internet at significantly lower rates than other populations. Low-
income households, people with disabilities and seniors are among the
most vulnerable we serve, and an affordable Internet connection would
significantly improve their access to vital services and the quality of
their lives.
Elected officials and policymakers should know that while Comcast
has made improvements to its discounted broadband offer, the company
should offer Internet Essentials beyond June 2014 and expand
eligibility as described above if it desires to truly play a leadership
role in closing the Digital Divide and achievement gap in our state.
Respectfully,
Luis Granados.
______
California State University, Fresno
Fresno, CA
Hon. Mark Pryor,
Chairman, Subcommittee Committee on Communications, Technology, and the
Internet,
United States Senate,
Washington, DC.
Hon. Roger Wicker,
Ranking Member, Subcommittee Committee on Communications, Technology,
and the Internet,
United States Senate,
Washington, DC.
Re: Hearing on Broadband Adoption: The Next Mile
Dear Chairman Pryor and Ranking Member Wicker:
I am writing on behalf of the Office of Community and Economic
Development (OCED) at California State University, Fresno (Fresno
State). Through our community-based programs, we and our partners
annually help thousands of San Joaquin Valley (Valley) residents gain
access to services vital to their lives, including high-speed Internet
at home.
This letter is to provide input to the record for the Broadband
Adoption: The Next Mile hearing. Specifically, we wish to comment on
the disappointing experience we have had in trying to connect families
to the Internet Essentials Program offered by Comcast. Also, we ask you
to support this much-needed program by extending the program beyond the
proposed June 2014 date.
Comcast is one of the largest broadband providers for rural areas
of the San Joaquin Valley, one of the poorest regions of California.
When first introduced, we welcomed Internet Essentials as an
opportunity to connect our traditionally un-served population. However,
based on the substantial hurdles our residents face when signing up for
Internet Essentials, we find ourselves reluctant to support the program
due to the long wait before customers can begin using the Internet at
home.
The waiting period between the initial call to Internet Essentials
and the application arriving in the mail is 8-12 weeks, if the letter
comes at all. After submitting the application, another 2-4 weeks
elapse before the equipment arrives. Many Valley residents do not have
Social Security numbers and are therefore forced to drive long
distances to verify identification since Comcast has closed many of its
regional offices.
Leaders in the San Joaquin Valley have been pushing for online
registration since the beginning of the Internet Essentials Program.
Despite what Comcast says, the system is not working properly. The site
is often unable to complete address eligibility searches and simply
redirects the customer to the 1-855 number again. We understand that
new systems need time to work out the bugs, but we have been trying to
work with Comcast for many weeks to provide consumer feedback about the
poor website operations, to no avail.
Comcast does not effectively advertise Internet Essentials in our
area, so our community partners use grassroots educational campaigns to
let families know about the program. Comcast also does not provide
timely data to tell us which schools are undersubscribed for Internet
Essentials so our partners can make best use of their resources to
target un-served families for adoption.
My greatest concern, with the program scheduled to end in June
2014, is that the discounted offer will only be available for new
enrollments for a few more months, leaving many Valley residents unable
to take advantage of this opportunity to connect to broadband at home.
Please consider the Office of Community and Economic Development at
California State University, Fresno a supporter of extending the
Internet Essentials Program.
If you have any questions regarding our support of expanding the
Internet Essentials Program please contact me at [email protected].
Sincerely,
Mike Dozier,
Executive Director,
California State University, Fresno.
______
Santee Education Complex
Los Angeles, CA
Hon. Mark Pryor,
Chairman, Subcommittee Committee on Communications, Technology, and the
Internet,
United States Senate,
Washington, DC.
Hon. Roger Wicker,
Ranking Member, Subcommittee Committee on Communications, Technology,
and the Internet,
United States Senate,
Washington, DC.
Re: Hearing on Broadband Adoption: The Next Mile
My name is Martin O. Gomez and I serve as Principal at Santee
Education Complex based in Los Angeles. We serve 1,850 college bound
students in the South L.A. community in which 100 percent of our
students qualify for free and reduced lunch.
I am writing this letter on behalf of Santee Education Complex and
our community to add additional information to the record for the
Broadband Adoption: The Next Mile hearing. Unfortunately, the Digital
Divide continues to disproportionally impact thousands of low-income
students attending Los Angeles schools. Last year, several of those
schools located in some of the most economically challenged areas in
Los Angeles were invited to participate in a pilot program sponsored by
Time Warner Cable (TWC), which according to the company's own estimates
serves one quarter of California households.
With much national publicity, TWC announced that it would offer a
low-cost broadband offer at $9.95 for families with students
participating in the National School Lunch program at 19 Los Angeles-
area schools. This pilot was offered for only two months, from October
1 until November 30, 2012, and without visible outreach by TWC to
promote the program. Many of us had hoped that the two-month pilot
would offer valuable lessons on the enrollment process and marketing
and customer service, which then would allow TWC to scale up the
program to reach all students in the National School Lunch program. In
fact, the pilot turned out to be a very short ``limited time offer''.
According to the California Emerging Technology Fund, TWC enrolled just
1,200 families nationally in 500 schools.
Even more disappointing, TWC did not offer any explanation as to
why they stopped the discount program completely while other cable
providers in California saw the value of helping low-income families
subscribe to broadband at home.
We think elected officials and policymakers should know that this
is a missed opportunity for the largest cable provider in California to
play a leadership role in closing the Digital Divide and achievement
gap in our state.
Respectfully,
Martin O. Gormez, Ph.D.,
Instructional Leader,
Santee Education Complex.
______
Prepared Statement of the National Hispanic Media Coalition
To the Honorable Chairman Mark Pryor, Ranking Member Roger Wicker,
and Members of the Subcommittee:
The National Hispanic Media Coalition (``NHMC'') writes to
supplement the record of the hearing held by the Senate Committee on
Commerce, Science, and Transportation, Subcommittee on Communications,
Technology, and the Internet entitled ``Broadband Adoption: The Next
Mile'' on October 29, 2013. Thank you for providing me with the
opportunity to submit this written testimony.
Slowing Adoption Rates, the Issue of Affordability, and the Cost of
Digital Exclusion
While home broadband adoption rates have improved since broadband
service was introduced, the adoption rate still lags among certain
segments of the population--to include Latinos, African-Americans,
seniors, struggling families, people with disabilities, and the less
educated. Indeed, as Aaron Smith of the Pew Research Center's Internet
Project pointed out during his testimony at the hearing, the pace of
broadband adoption overall has ``slowed substantially'' in recent
years.\1\
---------------------------------------------------------------------------
\1\ Broadband Adoption: The Next Mile Before the Subcomm. On
Commc'ns., Tech., and the Internet of the S. Comm. On Commerce, Sci.,
and Transp., 113th Cong. 1 (2013) (statement of Aaron Smith, Senior
Researcher, Pew Research Center's Internet Project), available at
http://www.commerce.senate.gov/public/?a=Files.Serve&File_id=8919d402-
a852-4246-916e-de623778
e7e5 (pointing out that ``[a]fter increasing by an average of nearly
seven percentage points per year from 2000 through 2009, the national
broadband adoption level increased by a total of just seven percentage
points from 2009 through 2013.'').
---------------------------------------------------------------------------
The Latino community, in particular, has struggled to adopt
broadband at home. According to a recent Pew report, only 53 percent of
Latinos have adopted broadband at home, meaning that almost half of
Latinos remain disconnected.\2\ And those who prefer to speak Spanish
at home have proven to be one of the most difficult groups to reach,
with only 38 percent having broadband within the home.\3\
---------------------------------------------------------------------------
\2\ Kathryn Zickuhr & Aaron Smith, Pew Internet and American Life
Project, Home Broadband 2013 3 (2013), available at http://
www.pewinternet.org/ /media//Files/Reports/2013/
PIP_Broadband%202013_082613.pdf.
\3\ Lee Rainie, Director, Pew Internet and American Life Project,
Presentation at Washington Post Live 2013 Bridging the Digital Divide
forum (Nov. 5, 2013), available at http://www.pewinternet.org/
Presentations/2013/Nov/The-State-of-Digital-Divides.aspx.
---------------------------------------------------------------------------
Cost of service and relevance have been cited in a number of
reports as reasons why many fail to adopt broadband, although it is
important to note that a social desirability bias can exist in answers
to survey questions about personal income and spending power. In other
words, a respondent may point to relevance or lack of interest or
necessity as a reason for failing to adopt broadband so that they do
not have to admit to the surveyor that they cannot afford to pay the
costs associated with service. Further, beyond this bias, there is an
important relationship between cost and relevance that should not be
overlooked. As Zach Leverenz, the Chief Executive Officer of
EveryoneOn, a national non-profit working on bridging the digital
divide, mentioned at a recent event, the issue of relevance can be
problematic because ``people that can't afford [broadband] also think
of it as being not relevant.'' \4\
---------------------------------------------------------------------------
\4\ Video Clip: I came from the digital divide, Wash. Post Live,
available at http://www.washingtonpost.com/postlive/conferences/
digital-divide.
---------------------------------------------------------------------------
The failure to adopt broadband at home will serve to exacerbate
existing socio-economic disparities, putting Latinos and others who
have failed to adopt broadband at a significant disadvantage. The
Federal Communications Commission (``FCC'') Broadband Adoption
Taskforce has defined the digital divide that exists between those that
have broadband and those that do not, as an ``opportunity divide'' that
manifests itself in a number of ways.\5\ For instance, more than 80
percent of Fortune 500 companies, including huge employers like Wal-
Mart and Target, only accept job applications online.\6\ In the next
decade, nearly 80 percent of jobs will require some digital literacy
skills.\7\ And students with broadband at home graduate at a rate 6-8
percent higher than students who lack such access.\8\ Consumers with
broadband at home can save up to $7,000 per year on goods and services,
and annual revenues of small businesses with broadband access are, on
average, $200,000 higher than those without broadband.\9\
---------------------------------------------------------------------------
\5\ FCC Broadband Adoption Taskforce, Broadband Adoption
Presentation to FCC Open Meeting, at slide 4-5 (Nov. 30. 2011),
available at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-
311281A1.pdf.
\6\ Id. at slide 10.
\7\ Id. at slide 11.
\8\ Id. at slide 14.
\9\ Id. at slide 19.
---------------------------------------------------------------------------
Industry and Government Each Have an Important Role to Play
Private initiatives and public-private partnerships are a valiant
effort to solve the problem of lagging home broadband adoption but,
while valuable, some have significant limitations when it comes to
trying to reach the remaining hold outs. For instance, many low-cost
broadband programs require a household to have a student in the
National School Lunch Program in order to be eligible to receive the
reduced rate.\10\ However, this eligibility criterion targets a group
that has outperformed others when it comes to home broadband adoption--
families with school-age children. According to a recent National
Telecommunications and Information Administration (``NTIA'') report,
households with school-age children are already adopting broadband at
home at a rate of 79 percent. That rate is 13 percentage points higher
than households without school-age children, which only adopted home
broadband at a rate of 66 percent.\11\
---------------------------------------------------------------------------
\10\ See e.g., How It Works--Comcast Internet Essentials, http://
www.internet
essentials.com/how-it-works.
\11\ NTIA, U.S. Dept. of Commerce, Exploring the Digital Nation:
America's Emerging Online Experience 26 (June 2013) available at http:/
/www.ntia.doc.gov/files/ntia/publications/
exploring_the_digital_nation_-_americas_emerging_online_experience.pdf.
---------------------------------------------------------------------------
Government initiatives can subsidize the cost of service for a
wider range of people, potentially creating a price point lower than
that offered by Internet service providers, and collect important data
associated with any efforts along the way. The Universal Service Fund
already subsidizes the cost of broadband connections for schools and
libraries through the E-Rate program, and the cost of basic phone
service (or broadband bundled with phone service) for low-income
households through the Lifeline program. Both programs have already
demonstrated success at connecting underserved communities to valuable
communications services. Further, the FCC has conducted a number of
pilots to determine how it can best leverage existing programs to make
broadband more affordable and accessible in the home and important data
has been collected as a result.\12\ This data should be analyzed and
released to the public. NHMC also agrees with the California Emerging
Technology Fund (``CETF'') that any efforts should incorporate the
``wealth of knowledge'' and the lessons learned by the NTIA through its
administration of a number of broadband programs.\13\
---------------------------------------------------------------------------
\12\ For instance, the FCC's Learning-On-The-Go pilot launched in
2011 to test a program in which students were provided with devices and
Internet access at home and in the school. The results of this pilot
program have yet to be released. Further, the FCC is currently
conducting Lifeline Broadband Pilot, to explore the variables
associated with home broadband adoption in low-income households. Once
completed, the data collected during this pilot must be analyzed. See
Lifeline and Link Up Reform and Modernization, WC Docket No. 11-42,
Order, 27 FCC Rcd. 15842 (rel. Dec. 19, 2012) available at http://
hraunfoss.fcc.gov/edocs_public/attachmatch/DA-12-2045A1.pdf.
\13\ Broadband Adoption: The Next Mile Before the Subcomm. On
Commc'ns., Tech., and the Internet of the S. Comm. On Commerce, Sci.,
and Transp., 113th Cong. 5 (2013) (statement of Sunne Wright McPeak,
President and CEO, California Emerging Technology Fund), available at
http://www.commerce.senate.gov/public/?a=Files.Serve&File_id=dae0b397-
babc-45b5-8751-2cd7622fbe11.
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Important lessons learned by other, public initiatives, such as
those carried out by CETF, can also provide valuable insight into how
any future, national programs should be structured for maximum
efficacy. For instance, CETF's School2Home initiative is similar to
some of the existing private initiatives in that community engagement
happens at the school. However, by targeting low-performing middle
schools and stressing parent engagement, the program was able to yield
impressive broadband adoption results in hard to reach groups.
According to CETF's testimony, the School2Home initiative increased
home broadband adoption among Spanish-speaking parents from 48 percent
to 76 percent--a dramatic increase within a group that has historically
struggled with broadband adoption.\14\ By examining this type of
success story and extracting lessons from it, we may have a real shot
at significantly increasing home broadband adoption rates in lagging
communities.
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\14\ Id. at 6.
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NHMC believes that spurring home broadband adoption will lead to
greater equity in our society and allow historically disadvantaged
communities to access opportunities that have been previously
unattainable. It was encouraging to see the Subcommittee take up this
issue and to see so many Members speak passionately about the
importance of bridging the digital divide during the hearing. NHMC
looks forward to remaining engaged on this important issue and welcomes
any questions from the Subcommittee.
Testimony Prepared By:
Michael Scurato,
Policy Director,
National Hispanic Media Coalition.
______
United States Hispanic Chamber of Commerce
October 29, 2013
Senator Mark Pryor,
Chairman,
U.S. Senate Subcommittee on Communications, Technology, and the
Internet,
Washington, DC.
Senator Roger Wicker,
Ranking Member,
U.S. Senate Subcommittee on Communications, Technology, and the
Internet,
Washington, DC.
Chairman Pryor and Ranking Member Wicker:
I write today to thank the Subcommittee on Communications,
Technology, and the Internet for its timely hearing entitled Broadband
Adoption: The Next Mile to discuss the access and adoption of broadband
in the United States. As the President and CEO of the United States
Hispanic Chamber of Commerce (USHCC), I have had the unique opportunity
to observe closely private industry's investment in closing the digital
divide. I want to take this opportunity to highlight a few of the most
innovative approaches, programs, and investments undertaken by the
private sector to date.
The National Telecommunications & Information Administration (NTIA)
recently published a report entitled Exploring the Digital Nation:
America's Emerging Online Experience, which identified those American
communities most affected by the persistent technology gap. Among the
communities identified were Hispanic families, who lagged significantly
behind their White counterparts in computer ownership, Internet use,
and broadband adoption. In fact, only 58 percent of Hispanic households
surveyed were connected to the internet.
What is particularly troubling about these adoption rates is that
they persist in the face of near universal broadband access. Pro-
broadband efforts of the Obama Administration coupled with extensive
and sustained investment from the private sector have pushed rates of
broadband access to 98 percent. Today, the Internet has become an
indispensable tool for educational exploration, social interaction, and
entrepreneurial innovation. Broadband further extends opportunities in
e-commerce, telecommuting, distance learning, and telemedicine. In the
information age, still more need be done to ensure that the
opportunities offered by the Internet are expanded to all Americans.
The private sector has essential role to play, and has played an
important role. Industry has contributed to the expansion of the
Internet infrastructure, designed original programming to bolster
broadband adoption rates among the public, partnered with other
community institutions to demonstrate and broaden Internet
applications, and continues to deliver faster speeds of access.
AT&T is making an impressive investment in the infrastructure
delivering high-speed Internet across the country. Just last year, AT&T
announced that it would spend $14 billion over three years expanding
its broadband service and high-speed wireless to the majority of its
extensive landline network. This considerable contribution will broaden
high-speed Internet access to some 8.5 million homes in some of the
most difficult to reach communities around the country.
Comcast has instituted an important program in closing the digital
divide. Its Internet Essentials program provides discounted broadband
rates to lower-income households, as well as access to low-cost
computers and digital training. Over one million American households--
often connecting to the Internet from their home for the first time--
have been served by this pioneering program to date.
Verizon has been at the fore of demonstrating the innovative
applications of broadband in daily life. Verizon's Innovative Learning
School Program has provided comprehensive training to hundreds of
teachers in the utilization and leveraging of online technology in STEM
focused classrooms. This has delivered the benefits of broadband to
thousands of students in lower-income communities.
Google has not only been a staple of making information accessible
to individuals on the web, but has also worked in communities to unveil
demonstration projects delivering even faster broadband speeds. Google
Fiber is boosting Internet-connection speeds exponentially--to speeds
heretofore unseen in the United States. Such deployment of new
technology will give rise to new applications making access even more
important for the public in the years to come.
While the NTIA's recent report reminds us that still more needs to
be done to close the digital divide, leading American companies of the
Internet ecosystem are producing groundbreaking tools allowing for
connection to the global community, the dissemination of information,
and the broad distribution of services. Such investment,
experimentation, and ingenuity are bridging the technology gap as we
move into the future.
The USHCC looks forward to working with the Senate Subcommittee on
Communications, Technology, and the Internet to expand Internet
adoption across American households. Should you have any questions
regarding this issue please feel free to contact Marco De Leon, the
USHCC Vice President of Government Affairs & Policy, at
[email protected].
Thank you for your time and consideration of this matter.
Sincerely,
Javier Palomarez,
President and CEO,
USHCC.
______
Response to Written Question Submitted by Hon. Amy Klobuchar to
Aaron Smith
Question. Please describe how the United States compares to other
countries when it comes to broadband adoption? Countries that excel in
adoption, what are they doing that can be replicated here? How do our
broadband adoption rates impact our ability to compete globally?
Answer. Unfortunately I do not have any definitive answers to your
question, as my organization has to this point collected only a modest
amount of data on technology adoption and usage outside of the United
States. The Pew Research Center's Global Attitudes Project has
collected data on general Internet usage rates in select countries
worldwide, and has found that the United States is comparable to
developed countries such as Britain and Germany in terms of the
proportion of its population that goes online.\1\ However, we have up
to this point never attempted to systematically track broadband access/
adoption internationally.
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\1\ See http://www.pewglobal.org/2012/12/12/social-networking-
popular-across-globe/
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Several other organizations have attempted to examine this issue,
but much of the existing data is inconsistently collected or based on a
limited subset of counties. One of the more widely accepted measures is
a 34-country ranking of fixed and wireless broadband penetration
produced regularly by the OECD. On this measure, the United States'
ranking in fixed broadband penetration has fallen from 6th in 2002 to
15th in 2012. We currently rank more highly (6th out of 34) in mobile
broadband penetration.
Additionally, the Council on Foreign Relations recently released a
very nice ``backgrounder'' document that summarizes the current
research on broadband adoption across the globe, the economic impact of
increased access to broadband, and the steps different countries are
taking to promote increased access to high speed Internet service.
Their report is available at http://www.cfr.org/digital-infrastructure/
us-broadband-policy-competitiveness/p30687, and I highly recommend it
if you would like a short yet very informative summary of the latest
research on the subject.
______
Response to Written Questions Submitted by Hon. Amy Klobuchar to
Bernadine Joselyn
Question 1. NTIA BTOP grants to Sustainable Broadband Adoption
programs, like the Blandin Foundation's program, have proved extremely
successful. How important was the Federal funding seed money to
securing partnerships and other sources of funding?
Answer. Blandin Foundation used the NTIA BTOP application process
to spur the interest of statewide, regional and local partners in
tackling the digital divide and broadband adoption. When funding was
received from NTIA, the promise of the partnership was achieved through
a collaborative and detailed design process that respected
organizational priorities, capabilities and existing partnership
networks.
It is highly unlikely that the MN Intelligent Rural Community
Project (MIRC) could or would have been launched without the NTIA
funding for the following reasons:
Sustainable broadband adoption strategies were generally not
high on the priority list of our prospective partners.
Many of these partners have dedicated funding for specific
activities; even if sustainable broadband adoption was a
priority, there were no dedicated and/or available funds to
address the issue.
With its broad mission of ``strengthening rural Minnesota
communities,'' broadband adoption is only one of Blandin
Foundation's priorities. Without matching Federal dollars to
leverage the foundation's own investment, it is highly doubtful
that the foundation would have made the scope of commitment to
this work as it did under MIRC.
Spurred by MIRC's palpable positive impact on the vibrancy
of the communities we serve, Blandin Foundation Trustees
authorized continued funding of broadband adoption work in
2013-14 at a lesser funding level than MIRC. Absent the NTIA
BTOP funds, our current program cannot support the state-wide
partnerships enjoyed under MIRC, and thus we have less
technical, programmatic, and staff support to offer the
participating communities than was available through the
federally-funded program.
Our MIRC partners used the NTIA SBA funds to involve a ``third
ring'' of organizations across Minnesota. For example, University of
Minnesota Extension used their funds to collaborate with local economic
development agencies and chambers of commerce in the delivery of e-
commerce training programs. The MN Department of Employment and
Economic Development offers another example of cascading partnerships
sparked by the Federal funding: they partnered with workforce centers,
libraries, and community education programs to reach un and under-
employed workers in diverse settings. As a result of these
partnerships, digital literacy curricula developed through MIRC were
incorporated into Adult Basic Education program offerings across the
state.
Blandin Foundation would have been hard pressed to commit technical
and process consulting, community coaching and financial resources to
our demonstration communities without the NTIA SBA funds. Federal
financial resources made it possible for the foundation to help
communities move relatively quickly from community planning processes
to project implementation.
Question 2. What makes your program sustainable and how can any
lessons learned be exported to other regions of the country?
Answer. The Minnesota Intelligent Rural Communities project has
illustrated sustainability in a number of ways:
With NTIA SBA funding, MN Department of Employment and Economic
Development, a MIRC partner, designed and delivered effective, learner-
centric, culturally adapted and self-paced digital literacy curricula.
But perhaps of equal importance, thanks to diligent coordination
efforts, a sustainable system for course delivery is now in place
through innovative partnerships with workforce centers, libraries and
adult basic education classes provided through community education. By
embedding these curricula into adult basic education, the costs to
offer these classes are reimbursable to local school districts through
state education funding.
In the case of PCs for People, our computer refurbishing and
distribution partner, participation in the MIRC project enabled them to
reach a scale of sustainable operations, attracting Digital Citizen as
a low-cost Internet Service Provider (ISP) partner. Through the
project, PCs for People opened four affiliate offices across rural
Minnesota. Inspired by their model, other independent community-based
computer refurbishment efforts are growing, including with the
participation of ISPs enticed by findings that over 80 percent of
first-time Internet subscribers retain their subscriptions even after
their initial income-adjusted subscriptions expire.
The broadband adoption initiative in the town of Thief River Falls,
one of the MIRC communities, has grown to a regional effort. Just
recently, regional broadband champions organized the collection of
approximately 200 monitors and 100 computers from area businesses. This
equipment will be refurbished and distributed to qualifying families.
High school students, under supervision of workforce agency staff, do
the computer refurbishment and train the new computer owners in basic
skills.
Blandin Foundation, in its MIRC design, invested in evaluation. The
data provided by the evaluation strategies demonstrated the value and
results of the work. That evidence led the Foundation to continue its
investment in broadband access and adoption. We also use this data to
make the case to local and regional leaders that broadband access and
adoption is key to economic vitality.
The Intelligent Community \1\ benchmarking and planning processes
embedded in MIRC design provided citizens and leaders with a solid
understanding of community technology needs and opportunities, and led
to each community identifying its own unique priorities and utilizing
its unique assets to develop and implement projects to address those
needs and seize those opportunities. The benchmarking provided clear
evidence of progress in each of the Intelligent Community framework's
five focus areas: broadband connectivity; knowledge workforce;
innovation; digital inclusion; and marketing and advocacy. This system
gives communities tools to quantify their progress and encourages them
to continue to move forward.
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\1\ Intelligent Community Forum; www.intelligentcommunity.org
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The websites, applications, school programs and community-based
projects launched with the help of NTIA SBA funding (over 100 in all)
continue to yield benefits to MIRC communities. For example, the eleven
public access Internet sites opened in libraries, grocery stores,
American Legion halls, parks, YMCAs, laundromats and many other venues,
remain open as part of these organization's ``new way of doing
business.''
Even more importantly, community leaders, organized as teams
through the MIRC project, are now motivated, coached in community
leadership skills, informed through ongoing information and training
services (webinars, e-newsletters), and determined to ``stay the
course.'' They continue to respond to community technology
opportunities and challenges. For example, when a Minnesota state
senator wanted to call host a series of roundtable broadband policy
events across the state's rural counties, MIRC communities stepped
forward to host these discussions which helped to elevate the
importance of connectivity as a key determinant of Minnesota
communities' economic and social well-being.
Below are some of the lessons we've learned about what makes
broadband adoption programs effective:
Our experience in Minnesota supports research results
showing that economic growth follows telecommunications
investment. However, we've also learned that investment in
infrastructure is not enough. ``If you build it they will
come'' does not apply to broadband. Concerted, sustained cross-
sectoral engagement at the community level is required to
create the ``culture of use'' necessary to deliver on the full
promise of digital literacy and global connectivity.
Even given the socioeconomic and demographic barriers to
increasing broadband adoption encountered by the MIRC
demonstration communities, it is our experience that programs
designed to increase computer access and Internet use for low-
income populations can address these disparities, although
recruiting these target populations to participate in offered
programs can be challenging.
The greatest impacts are achieved when decisions are made
closest to home. It has been our experience that rural
communities can achieve big results with relatively small of
amounts of funding when that funding is locally controlled.
Encouraging and resourcing community-based teams to set goals
and develop plans to achieve them increases community impact.
Communities know best. Involve citizens directly in articulating
their community's broadband adoption and utilization goals to catalyze
long-term engagement needed to increase adoption.
``It seems as though communities impacted by this project felt a
rejuvenated sense of community because there were so many people
rallying to get these projects done for their school, community or
organization.''--Jacki Anderson, Upper MN Valley RDC
Local leadership matters. Help local broadband champions get and
use skills to frame issues, build and sustain relationships and
mobilize people to build a community's capacity to achieve its
broadband goals. Train community leaders and champions to use
participatory facilitation skills; effective meeting facilitation can
make a big difference in keeping folks coming back to the planning and
implementation table.
``Our elected officials now see the importance of broadband for
economic development and community vitality.''--Nancy Hoffman, Benton
County Economic Development Director
Broadband is not an end in itself. It is a means to the higher ends
of increased economic vitality and improved quality of life. Framing
this work in these terms, or as a necessary but not sufficient
condition for innovation, connectivity, and equal opportunity for all,
or as a prerequisite for full participation in our democracy, is likely
to be more successful than by calling out the technical infrastructure
itself.
``In an era when digital access is an essential element of full
participation in modern society, when digital technology can be the
deciding factor between economic opportunity and isolation, between
social change and increasing inequality, and between democratic
participation and standing on the outside looking in, it is critical to
the future of our country . . . to ensure that everyone has high-speed
. . . access to an open Internet.--Luis Ubinas, President, Ford
Foundation
High-touch outreach works. Effective recruitment strategies for
technologically-challenged small business and for historically
marginalized populations are intra-community, hyper-local, ``high
touch,'' and personalized. Change follows relationship lines.
``These technology classes have encouraged our Hispanic and Somali
immigrants to interact, really for the first time.''--Fatima Said,
Project FINE, Winona
Peers make great teachers. Peer-based learning formats that
encourage local businesses to share practices, questions and
experiments are a popular, low-cost, and easily sustainable tool to
build a community's technological savvy.
[Digital presence course] ``Basically gets you acclimated to it
[online marketing], and learn how to make it work for you.''--Susan
Reiter, Coffee Choices coffee shop, Jackson
Cross-community communication is key. Signage, local media support,
and online social media are effective, low-cost ways to spur and
sustain energy and excitement for community projects.
``This effort has helped us develop wonderful community
connections. We have reached out to our whole community.''--Keri
Bergeson, Principal, Dawson/Boyd High School
Engage tomorrow's leaders today. Recognize and authentically engage
the talents of young people. This next generation of leaders bring
energy and sustainability to any community initiative. Youth can serve
as co-trainers, technology mentors, partners in computer refurbishment
projects, and use their video and other social media to promote their
communities.
``My customers are couples planning weddings, so I need my website
updated and fresh, and to be found using mobile devices. The students'
work on my site and Google Map location was great.''--Donna Henry,
Henry Catering, Foley
Connect the economic dots. Framing increased sustainable broadband
use a necessary but not sufficient ingredient in a ``whole systems''
approach to strengthening community vitality can help communities see
and leverage the connection between technology and benefits to
community life. The ``whole picture'' Intelligent Community framework
for community and economic development used in MIRC can help community
leaders see how workforce, infrastructure, inclusivity, innovation and
marketing/advocacy are mutually interdependent aspects of community
vitality.
``This framework brings people together that have not always worked
together--technology advocates, workforce, social service agencies, and
economic development professionals.''--Danna MacKenzie, Cook County IT
director
``The involvement of local citizens, government, business and non-
profit groups working together to enhance the effort to make the
community better by forming a partnership that shares the same goals,
aspirations and hope for the future of the whole county.''--Michael
Haynes, Stevens County Economic Development Director
Have patience. This work takes time. Look for and celebrate early
and easy ``wins'' along the way, but think long-term and build capacity
and energy for the long-haul. Money and other resources follow vision
and commitment.
Question 3. Can you discuss how investing in broadband adoption is
good for the economy? What level of return on investment do you tend to
see from broadband adoption programs? What is the best way to measure
broadband use and its impacts?
Answer. Broadband is a key driver of innovation and economic
development. Evidence abounds that high-speed Internet access has
powerful economic benefits (positive impact on median household income,
employment, and business growth).
Broadband access is key. . .but so is adoption. Investing in
programs that stimulate the use of broadband delivers meaningful
economic benefits. According to the report, ``Broadband's Contribution
to Economic Health in Rural Areas: A Causal Analysis,'' by B. Whitacre,
S. Strover, and R. Gallardo (March 26, 2013), ``Non-metro counties with
high levels of broadband adoption in 2010 had significantly higher
growth in median household income between 2001 and 2010 compared to
counties that had similar characteristics in the 1990s but were not as
successful at adopting broadband.''
Strategic Networks Group, an economic consultant firm working with
local governments in North America, Europe and Australia on the
benefits of broadband, has compiled evidence from studies they have
conducted in North Carolina, Virginia, Kentucky, Illinois, and Nebraska
that demonstrate a $5 million economic development impact for every
1,000 broadband passes installed.\2\ Their data show that 23.4 percent
of all new jobs created in the economies they have studied are directly
attributable to broadband (i.e., if it had not been for broadband,
those jobs would not exist). These are not only IT jobs, but include
jobs like shipping, account management, etc. that are needed as the
business grows. For example, a study they conducted in North Carolina
in 2010 showed that 32 percent of all households surveyed report having
home-based businesses or telecommuting, and 14 percent plan to start
using broadband at home to support their households. Of businesses
surveyed, 56 percent said that access to high-speed broadband was
essential for remaining in their current location.
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\2\ http://sngroup.com/tag/broadband-economic-impacts
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Moreover, businesses that increase their utilization of broadband
by ten percent realize a 24 percent gain in revenue and a seven percent
reduction in costs. And the higher the degree of sophistication of use
of broadband-enabled services, the higher the benefit: 54 percent of
revenue from businesses using high levels of broadband utilization come
from the Internet.
Blandin Foundation recently commissioned SNG to study the ROI in
broadband infrastructure and utilization initiatives in two Minnesota
counties, Lac qui Parle and Kanabec. The results of this study were
illustrative and on par with SNG research and findings in other regions
as described above. Generally speaking, an investment of $120-145,000
in Lac qui Parle and $175-225,000 in Kanabec might leverage effect as
much as 10 to 1; so for every $1 invested, $10 is returned in direct
and spinoff impacts to the local economies.\3\
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\3\ The Return from Investment in Broadband Infrastructure and
Utilization Initiatives, Jan 2014, http://bit.ly/1ko1kJT
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Economic Benefits of Broadband. The following are key findings from
SNG's ongoing research into the economic benefits of broadband.
Using broadband creates jobs. Over 22 percent of all new full-time
jobs created by 3,326 surveyed businesses are attributed to their use
of broadband. This effect is even stronger for the 2, 337 surveyed
small businesses (fewer than 50 employees) where over one in four new
jobs created (26 percent) are attributed to using broadband. Small
businesses represent over 95 percent of establishments and almost half
of total employment.
Using broadband increases business revenues. 963 small businesses
surveyed (fewer than 50 employees) report that over 30 percent of their
revenue is attributed to using broadband. More importantly, businesses
that make greater use of broadband generate a higher percentage of
revenue than businesses that use fewer applications--almost 37 percent
of revenue for high users versus less than 10 percent of revenue for
low users--a ratio of almost 4 to 1.
Using broadband contributes to economic growth. As businesses
increase their use of broadband their new revenues and cost savings
contribute to economic growth. For example, increasing utilization of
broadband by 5 percent for 1,000 businesses would increase regional GDP
by $17M, add $1.8M in taxes, create $9.5M in household income, and
create 185 new jobs.
Broadband benefits communities. The availability of broadband is a
significant factor in attracting and retaining businesses and
households for communities. Over 38 percent of 8,416 broadband
households surveyed report that they would very likely relocate to
another community if broadband was not available. Over 48 percent of
11,870 businesses with broadband surveyed say that the availability of
broadband is essential or very important for selecting their business
location. Over 75 percent of these businesses reported that broadband
is essential or very important for remaining in their present location.
Communities that do not have adequate broadband services risk losing
households and businesses over time.
Broadband enables income opportunities for households. Eighteen
percent of 9,478 households surveyed operate a home business and 17
percent telework, creating new or improved income opportunities for
households. Almost 90 percent of these surveyed home businesses say
that broadband is essential for operating their business. Almost half
of teleworkers say that they would not have their present job without
being able to telework.
Measurement. Measuring broadband use is a tricky problem and one
that may be best considered on a case-by-case basis. In Minnesota, for
the MIRC project, evaluators utilized three separate methodologies to
estimate broadband use in terms of subscribership. First, baseline
surveys were conducted in each demonstration community, along with a
statewide survey to estimate broadband penetration across all
geographies. Second, Minnesota Cable and DSL providers agreed to
provide new subscriber information in aggregate, to assist, but still
maintain provider confidentiality. And third, we contracted with a
private firm to provide detailed Internet transactional data for each
of the 11 demonstration areas. Using these three methods project
evaluators triangulated the data to derive accurate subscription
estimates. Project benchmark surveys on broadband penetration were
performed at the end of the project period.
Question 4. What recommendations would you give to this committee
on shaping policies to continue promoting broadband adoption, both in
terms of funding and programming assistance from Federal agencies? How
can NTIA and the FCC effectively support ongoing broadband adoption and
meet the goals of the National Broadband Plan?
Answer.
Provide support to take broadband adoption to higher levels
of utilization and sophistication. As important as it is for
all Americans to have a basic level of digital literacy, it is
also critical that both workforce and business continue to
drive their sophistication of use higher so as to fully capture
the potential value of the network.
As wireless technologies are increasingly counted as an
acceptable broadband technology to reach 4 Mbps, ensure that
bandwidth caps are set high enough to enable critical customer
applications such as telehealth and online/Internet-based
learning. Benefits of being connected are diminished if
bandwidth caps inhibit sophisticated use of the network.
Reward programs that focus on the ``so what'' of adoption.
In other words, programs that lead directly to enhanced
education, workforce opportunities, business creation and
expansion, improved health care outcomes, etc. should be
encouraged and supported.
Four Mbps is not enough bandwidth, now and into the future,
to support advanced or even every-day technology use. To
attract Federal CAF or other support, providers must invest in
network technology improvements that can provide significantly
higher capacity.
Adopt life-line programs for broadband.
______
Response to Written Questions Submitted by Hon. Marco Rubio to
Hon. John Sununu
Question 1. In your testimony you state that ``government should
ensure that regulations do not hinder or crowd out investment in the
broadband and Internet industries.'' Can you expand on that--why do you
believe government regulations will hinder broadband deployment and
investment?
Answer. In the Telecommunications Act of 1996, Congress adopted a
light-touch regulatory approach for the broadband and Internet
industries that has led to enormous levels of capital investment. Since
that year, telephone, cable, and wireless providers have invested over
$1.2 trillion to build a robust broadband network, and the results are
evident. Approximately 99 percent of Americans now have access to
broadband, and new Internet-based industries have been created.
There is no sound basis to revisit the regulatory approach that has
enabled this success.
Over-regulating broadband would risk dampening providers'
incentives to invest, and because broadband technologies advance so
quickly, it would also risk inhibiting the development of new and
innovative technologies and practices. Regulation, if any, must be the
last option in order to allow the Internet to realize its full
potential without the persistent threat of government intrusion.
Broadband adoption is one of the best examples of how the light-
touch approach has worked effectively, as broadband adoption has
increased faster than almost any other technology. Policymakers should
be mindful of this success. Any future regulatory action should avoid
applying old regulations to new technologies, and should be tied to
actual market failures. Regulation should not be used to pick winners
and losers in the broadband marketplace.
And government should not build, or fund other entities to build,
broadband networks in areas where unsubsidized private entities have
already built such networks.
Government should promote, not hinder, broadband deployment and
adoption.
Question 2. I would like you to talk about the importance role
wireless broadband plays in the digital economy and in broadband
expansion. How important is making more spectrum available to the
future of wireless broadband and to promoting competition in the
broadband market?
Answer. It is critical. The U.S. is the global leader in mobile
broadband across virtually every metric:
American wireless companies invested more than $30 billion
in building out cutting edge networks last year alone.
We have roughly half of the world's 4G LTE customers.
Smartphones now account for 60 percent of all U.S. mobile
phones, and 25 percent of adults own a tablet.
1 out of 10 American's only broadband connection is their
smartphone.
By 2012, 82 percent of Americans were able to choose between
at least 4 wireless broadband providers.
Traffic on licensed mobile wireless networks increased 70
percent in 2012.
Over one-third of all IP traffic is now carried over
unlicensed Wi-Fi networks, and Wi-Fi traffic is expected to
triple between 2011 and 2016.
The wireless industry supports more than 3.8 million high-
paying American jobs--2.6 percent of all U.S. employment.
Wireless employees are paid 65 percent higher than the average
worker. Wi-Fi and other unlicensed services support billions
more in investment and economic opportunity.
Spectrum is the lifeblood of this mobile revolution--yet the
spectrum in use, and in the pipeline, is not sufficient to handle the
anticipated growth in demand. As a result, there is a looming threat
that, just around the corner, we will see congested networks leading to
slower speeds and lost opportunities for consumers. If we want to
continue our global leadership, more spectrum is needed for the private
sector, both licensed and unlicensed.
Consumers want reliable high-speed wireless services. These
services are not possible without more spectrum being made available to
private companies. Wireless broadband has unleashed waves of innovation
that have driven industries like the apps economy--which now employs
over 750,000. Making more spectrum available will only further drive
innovation and job growth.
Sufficient spectrum is vital to ensure the availability of future
wireless capacity that Americans demand as well as to promote
competition among existing providers and new entrants alike. With
sufficient spectrum resources, providers will have the ability and
incentive to invest in faster and more robust networks and to provide
new and innovative broadband offerings.
It is very important for the FCC to move quickly on these issues.
It can take up to 10 years and cost billions of dollars for newly
acquired spectrum to be used in the marketplace. If we want to stay at
the forefront of the wireless technology tomorrow, the FCC must release
new spectrum as soon as possible.
Question 2a. Do you think that the FCC neglects to consider
wireless broadband a vibrant competitor to wireline broadband because
doing otherwise would destroy the ``scarcity'' argument that underlies
the very need for regulation?
Answer. Wireless broadband can, and should, be considered a
competitor to wired broadband. Today's high-speed wireless networks are
capable of speeds that meet, and sometimes exceed, the speeds offered
by some wired broadband services. A study conducted last year by
RootMetrics found that the average downstream speed across the three
national LTE networks at that time ranged from 10.3 Mbps to 18.6 Mbps
with maximum speeds up to 57.7 Mbps. To put this into context, the FCC
requires a service to provide only 4 Mbps downstream in order to be
considered ``broadband.''
Roughly two-thirds of U.S. broadband connections are wireless
today, and minority communities have far higher than average mobile
adoption and utilization levels. Each household makes its own decisions
based on its needs and budget. Some prefer to subscribe to both wired
and wireless broadband options, while others select one or the other.
The FCC should not second guess those decisions.
Question 3. Pew says that because there is ``no widespread
consensus as to whether 3G or 4G smartphones qualify as 'broadband'
speed, and [because] many would question whether they offer the same
utility to users as a dedicated home Internet connection'', wireless
broadband connections are not included in Pew's definition of
``broadband user.'' Given the widespread deployment and significant
adoption of 4G technology, is this ``wireless isn't equal'' thinking
correct?
Answer. No, the notion that wireless services cannot qualify as
``broadband'' is simply outdated and inaccurate. The characteristics of
LTE wireless broadband service--including the speeds noted above--and
the popularity of wireless broadband offerings today contradict any
efforts to systemically exclude or discount them.
Both wired and wireless broadband connections allow users to stream
videos and music, access news and social media websites, edit online
documents, and access cloud-based software. In addition, both wired and
wireless connections provide access to health care, education, and job
information (functions which the FCC has rightly identified as
essential). Given the exponential growth in wireless broadband, it is
imperative for the government to consider wireless services in any
assessment of the broadband market in order to properly evaluate
competition across platforms.