[Senate Report 115-341]
[From the U.S. Government Publishing Office]


                				    Calendar No. 613

115th Congress}                                            { Report
                                 SENATE
  2d Session  }                                            { 115-341

======================================================================
 
        MEASURING THE ECONOMIC IMPACT OF BROADBAND ACT OF 2017

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                  ON

                                 S. 645

[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]


October 2 (legislative day, September 28), 2018.--Ordered to be printed
       
       
                                __________
                               

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
                              WASHINGTON : 2018                     
          
-----------------------------------------------------------------------------------
For sale by the Superintendent of Documents, U.S. Government Publishing Office, 
http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, 
U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free).
E-mail, [email protected]. 




       
       
       
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred fifteenth congress
                             second session

                   JOHN THUNE, South Dakota, Chairman
ROGER F. WICKER, Mississippi         BILL NELSON, Florida
ROY BLUNT, Missouri                  MARIA CANTWELL, Washington
TED CRUZ, Texas                      AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska                RICHARD BLUMENTHAL, Connecticut
JERRY MORAN, Kansas                  BRIAN SCHATZ, Hawaii
DAN SULLIVAN, Alaska                 EDWARD J. MARKEY, Massachusetts
DEAN HELLER, Nevada                  TOM UDALL, New Mexico
JAMES M. INHOFE, Oklahoma            GARY C. PETERS, Michigan
MIKE LEE, Utah                       TAMMY BALDWIN, Wisconsin
RON JOHNSON, Wisconsin               TAMMY DUCKWORTH, Illinois
SHELLEY MOORE CAPITO, West Virginia  MARGARET WOOD HASSAN, New Hampshire

CORY GARDNER, Colorado               CATHERINE CORTEZ MASTO, Nevada
TODD C. YOUNG, Indiana               JON TESTER, Montana
                       Nick Rossi, Staff Director
                 Adrian Arnakis, Deputy Staff Director
                    Jason Van Beek, General Counsel
                 Kim Lipsky, Democratic Staff Director
           Christopher Day, Democratic Deputy Staff Director
           
           
           
 


						  Calendar No. 613

115th Congress}                                            { Report
                                 SENATE
  2d Session  }                                            { 115-341

======================================================================          


            MEASURING THE ECONOMIC IMPACT OF BROADBAND ACT OF 2017

                                _______
                                

October 2 (legislative day, September 28), 2018.--Ordered to be printed

                                _______
                                

Mr. Thune, from the Committee on Commerce, Science, and Transportation, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 645]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 645) to require the Secretary 
of Commerce to conduct an assessment and analysis of the 
effects of broadband deployment and adoption on the economy of 
the United States, and for other purposes, having considered 
the same, reports favorably thereon with an amendment (in the 
nature of a substitute) and recommends that the bill (as 
amended) do pass.

                          Purpose of the Bill

    S. 645 would require the Secretary of Commerce to conduct a 
biennial assessment and analysis of the effects of broadband 
deployment and adoption on the economy of the United States.

                          Background and Needs

    Both the private and public sectors make significant 
investments in broadband deployment. According to private 
sector estimates, capital expenditures by broadband providers 
on their networks have exceeded $1.6 trillion since 1996.\1\ 
The Federal Government has invested billions in broadband 
deployment through various programs, including the Federal 
Communications Commission's Universal Service programs, the 
Department of Agriculture's Rural Utilities Service, and the 
Department of Commerce's Broadband Technology Opportunities 
Program. And States and localities have made investments in 
broadband buildout. Although more than 98 percent of the 
population of the country has access to either fixed 
terrestrial service at 25 Mbps/3 Mbps or mobile LTE at 10 Mbps/
3 Mbps,\2\ the Federal Communications Commission continues to 
report each year that there are millions of Americans who lack 
access to high-quality, high-speed Internet service.
---------------------------------------------------------------------------
    \1\USTelecom Industry Metrics and Trends 2018, Patrick Brogan, 
March 1, 2018 (https://www.ustelecom.org/sites/default/files/
USTelecom_Industry_Metric%20_and_Trends_2018.pdf).
    \2\2018 Broadband Deployment Report (https://docs.fcc.gov/public/
attachments/FCC-18-10A1.pdf).
---------------------------------------------------------------------------
    Few would dispute that this investment in broadband 
deployment has spurred massive economic growth in the United 
States over the last two decades. According to one private 
sector analysis, broadband and broadband-related industry 
sectors contribute more than $1 trillion annually to the U.S. 
economy and support an estimated 10 million American jobs.\3\ 
But as of June 28, 2017, the Federal Government has not 
prepared on a regular basis an official analysis of the 
economic impact of broadband and the larger digital economy on 
the American economy. Rigorous, regular analysis can inform 
Government subsidy and support programs at various levels, 
including Federal programs (which support broadband deployment 
via the Universal Service fund, the Rural Utilities Service, 
tax credits and rebates, community development programs, and 
grant programs like those in the American Recovery and 
Reinvestment Act), State programs (which support broadband 
deployment via State universal service programs, grant 
programs, loan and loan guarantees, tax policy, and others), 
and numerous local initiatives. Such a study also would 
contribute to an understanding of how broadband contributes to 
the economic health of the Nation. The Department of Commerce 
has proposed that the Government engage in more rigorous 
analysis of the socioeconomic impacts of broadband as part of 
its National Broadband Research Agenda.\4\
---------------------------------------------------------------------------
    \3\Broadband Industry Stats, USTelecom (https://www.ustelecom.org/
broadband-industry/broadband-industry-stats).
    \4\National Telecommunications and Information Administration and 
the National Science Foundation, The National Broadband Research 
Agenda: Key Priorities for Broadband Research and Data (January 2017) 
(https://www.ntia.doc.gov/files/ntia/publications/nationalbroadband 
researchagenda-jan2017.pdf).
---------------------------------------------------------------------------

                          Legislative History

    S. 645 was introduced on March 15, 2017, by Senator 
Klobuchar (for herself and Senators Capito, King, Heitkamp, 
Boozman, Franken, and Sullivan) and was referred to the 
Committee on Commerce, Science, and Transportation of the 
Senate. Senator Cortez Masto is also a cosponsor of the bill. 
On June 27, 2018, the Committee met in open Executive Session 
and by voice vote ordered S. 645 to be reported favorably with 
an amendment (in the nature of a substitute).
    On February 26, 2018, similar legislation to S. 645, H.R. 
5093, was introduced in the House of Representatives by 
Representative Ro Khanna (for himself and Representatives Brian 
K. Fitzpatrick, Anna G. Eshoo, and Ryan A. Costello). On March 
2, 2018, that bill was referred to the Subcommittee on 
Communications and Technology of the Committee on Energy and 
Commerce of the House of Representatives.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 645--Measuring the Economic Impact of Broadband Act of 2018

    S. 645 would direct the Department of Commerce (DOC) to 
assess and analyze the contributions of the digital economy to 
the economy of the United States and produce a report every two 
years. The analysis would include the effect of digital-
enabling infrastructure, broadband, e-commerce, and digital 
media.
    Using information from the Bureau of Economic Analysis 
(BEA) and the National Telecommunications and Information 
Administration, CBO estimates that implementing S. 645 would 
cost $2 million over the 2019-2023 period for the BEA to 
coordinate with several federal agencies and produce the 
required analysis and reports; such spending would be subject 
to the availability of appropriated funds.
    Enacting S. 645 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting S. 645 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    S. 645 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Stephen Rabent. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       number of persons covered

    The bill does not authorize any new regulations and will 
not subject any individuals or businesses to new regulations.

                            economic impact

    S. 645, as reported, is not expected to have a negative 
impact on the Nation's economy.

                                privacy

    S. 645, as reported, is not expected to have an adverse 
impact on the personal privacy of individuals.

                               paperwork

    The legislation would not increase paperwork requirements 
for private individuals or businesses. It would direct the 
Secretary of Commerce to biennially assess and report to 
Congress on the contribution of the digital economy to the 
United States.

                   Congressionally Directed Spending

    In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


Section 1. Short title

    This section would provide that the bill may be cited as 
the ``Measuring the Economic Impact of Broadband Act of 2018.''

Section 2. Assessment and analysis regarding the effect of the digital 
        economy on the economy of the United States

    Subsection (a) of this section would set out definitions 
used in the section, including defining the appropriate 
committees of Congress who would receive the report produced 
under this section. It would define broadband as ``an Internet 
Protocol-based transmission service that enable users to send 
and receive voice, video, data, or graphics, or a combination 
of those items.'' Finally, it would direct the Secretary of 
Commerce to define the term ``digital economy'' for purposes of 
the section, and would direct the Secretary to consider 
specific issues when establishing that definition.
    Subsection (b) of this section would require that, not 
later than 2 years after the date of enactment of the Act, and 
biennially thereafter, the Secretary of Commerce, in 
consultation with the Director of the Bureau of Economic 
Analysis of the Department of Commerce and the Assistant 
Secretary of Commerce for Communications and Information, 
conduct an assessment and analysis regarding the contribution 
of the digital economy to the economy of the United States. In 
conducting that study, the Secretary would be required to 
consider the impact of the following: (1) the deployment and 
adoption of digital-enabling infrastructure and broadband; (2) 
e-commerce and platform-enabled peer-to-peer commerce; and (3) 
the production and consumption of digital media, including free 
media.
    As part of the study, the Secretary also would be required 
to consult with the heads of any agencies and offices of the 
Federal Government as the Secretary considers appropriate, 
including the Secretary of Agriculture, the Commissioner of the 
Bureau of Labor Statistics, the Administrator of the Small 
Business Administration, and the Federal Communications 
Commission. In addition, the Secretary would be required to 
consult with the following: representatives of the business 
community, including rural and urban Internet service providers 
and telecommunications infrastructure providers; 
representatives from State, local, and tribal government 
agencies; and representatives from consumer and community 
organizations.
    Finally, the section would require the Secretary to submit 
to the appropriate committees of Congress a report regarding 
the Secretary's findings with respects to each assessment and 
analysis conducted pursuant to this Act.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
bill as reported would make no change to existing law.

                                  [all]