[Senate Report 116-186]
[From the U.S. Government Publishing Office]


116th Congress   }                                           {   Report
                                  SENATE                          
1st Session      }                                           {   116-186
_______________________________________________________________________

                                     




        MEASURING THE ECONOMIC IMPACT OF BROADBAND ACT OF 2019

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                 OF THE

                          UNITED STATES SENATE
                          




               December 19, 2019.--Ordered to be printed
               
               
                            ______

             U.S. GOVERNMENT PUBLISHING OFFICE 
 99-010               WASHINGTON : 2019
              
               
               
               
               
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred sixteenth congress
                             first session

                 ROGER F. WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota             MARIA CANTWELL, Washington
ROY BLUNT, Missouri                  AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas                      RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska                BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas                  EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska                 TOM UDALL, New Mexico
CORY GARDNER, Colorado               GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee          TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia  TAMMY DUCKWORTH, Illinois
MIKE LEE, Utah                       JON TESTER, Montana
RON JOHNSON, Wisconsin               KYRSTEN SINEMA, Arizona
TODD C. YOUNG, Indiana               JACKY ROSEN, Nevada
RICK SCOTT, Florida
                       John Keast, Staff Director
               David Strickland, Minority Staff Director
               
               


116th Congress  }                                              {   Report
                                  SENATE
 1st Session    }                                              {  116-186

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



 
         MEASURING THE ECONOMIC IMPACT OF BROADBAND ACT OF 2019

                                _______
                                

               December 19, 2019.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1289) 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, ordered to be reported favorably thereon without 
amendment and recommended that the bill do pass. The bill was 
discharged and passed without amendment in the Senate by 
unanimous consent.

                          Purpose of the Bill

    The purpose of S. 1289, the Measuring the Economic Impact 
of Broadband Act of 2019, is to 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 (FCC) Universal Service programs, 
the Department of Agriculture's Rural Utilities Service (RUS), 
and the Department of Commerce's Broadband Technology 
Opportunities Program. States and localities have also 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 megabits per second (Mbps) 
upload speeds and 3 Mbps download speeds or mobile long-term 
evolution (LTE) with median speed of 10 Mbps/3 Mbps,\2\ the FCC 
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 (revised October 18, 2018) (https://www.ustelecom.org/wp-
content/uploads/2018/12/USTelecom-Industry-Metrics-and-Trends-
2018.pdf).
    \2\Inquiry Concerning Deployment of Advanced Telecommunications 
Capability to All Americans in a Reasonable and Timely Fashion, 2019 
Broadband Deployment Report, GN Docket No. 18-238, FCC 19-44 (2019) 
(https://docs.fcc.gov/public/attachments/FCC-19-44A1.pdf) at 20.
---------------------------------------------------------------------------
    Few would dispute that this investment in broadband 
deployment has spurred massive economic growth in the United 
States over the last 2 decades. According to one private sector 
analysis, the broadband industry invests more than $70 billion 
annually and supports an estimated 10 million American jobs.\3\ 
The Department of Commerce has proposed that the Federal 
Government engage in more rigorous analysis of the economic 
impact 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), 
at II.D., p. 27 (https://www.ntia.doc.gov/files/ntia/publications/
nationalbroadbandresearchagenda-jan2017.pdf).
---------------------------------------------------------------------------
    However, 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 
broadband policies at various levels, including the Universal 
Service Fund and RUS programs; Federal tax credits and rebates; 
Federal community development programs; Federal 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, and others); and numerous local initiatives.

                         Summary of Provisions

    If enacted, S. 1289 would do the following:
   Require the Secretary of Commerce, the Director of 
        the Bureau of Economic Analysis, and the Administrator 
        of the National Telecommunications and Information 
        Administration, to conduct an assessment and analysis 
        of the contribution of the digital economy to the 
        economy of the United States.
   Require the Secretary of Commerce, the Director of 
        the Bureau of Economic Analysis, and the Administrator 
        of the National Telecommunications and Information 
        Administration to submit a report regarding the study's 
        findings to the appropriate committees of Congress.

                          Legislative History

    S. 1289 was introduced on May 2, 2019, by Senator Klobuchar 
(for herself and Senators Boozman, Capito, Cortez Masto, King, 
and Sullivan) and was referred to the Committee on Commerce, 
Science, and Transportation of the Senate. On May 15, 2019, the 
Committee met in open Executive Session and, by voice vote, 
ordered S. 1289 reported favorably without amendment. On June 
5, 2019, S. 1289 was discharged and passed in the Senate 
without amendment by unanimous consent. On June 10, 2019, the 
bill was referred to the Committee on Energy and Commerce in 
the House of Representatives.
    S. 1289 is identical to S. 645, as reported, which was 
introduced in the 115th Congress 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 was an additional cosponsor. 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). That bill passed the 
Senate with an amendment by unanimous consent on December 13, 
2018.
    On July 10, 2019, identical legislation to S. 1289, H.R. 
3676, was introduced by Representative Khanna (for himself and 
Representatives Butterfield, Clarke, Eshoo, Fitzpatrick, Lujan, 
and Welch) and was referred to 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. 1289 would require the Department of Commerce to submit 
a report to the Congress assessing the effects of broadband 
deployment on the U.S. economy. The first report would be due 
two years after the bill's enactment, with subsequent reports 
due every two years. Such reports would consider the effect of 
e-commerce, peer-to-peer commerce (such as Etsy), and the 
production of digital media on the U.S. economy. The Department 
would be required to consider the effect of broadband 
deployment on employment, job creation, business headcounts, 
income, telehealth, and agriculture.
    Using information from the Bureau of Economic Analysis 
(BEA) and the National Telecommunications and Information 
Administration, CBO estimates that implementing S. 1289 would 
cost $2 million over the 2019-2024 period for the BEA to 
coordinate with several federal agencies and to produce the 
required analyses and reports; such spending would be subject 
to the availability of appropriated funds.
    The CBO staff contact for this estimate is David Hughes. 
The estimate was reviewed by Theresa Gullo, 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. 
Indeed, by providing decision-makers with better information 
regarding the economic impact of broadband, the bill would 
allow more efficient investment in broadband.

                            economic impact

    S. 1289, as reported, is not expected to have a negative 
impact on the Nation's economy.

                                privacy

    S. 1289, 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 (including 
broadband) 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 2019''.

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 listing the appropriate 
committees of Congress that would receive the report produced 
under this section. It would define broadband as ``an Internet 
Protocol-based transmission service that enables 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.
    Subsection (c) of this section would set forth the specific 
considerations for each biannual report. Specifically, 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.
    Subsection (c) would further provide that, as part of each 
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: (1) representatives of the business community, 
including rural and urban Internet service providers and 
telecommunications infrastructure providers; (2) 
representatives from State, local, and Tribal government 
agencies; and (3) representatives from consumer and community 
organizations.
    Subsection (d) of this section would require the Secretary 
to submit to the appropriate committees of Congress a report 
regarding the Secretary's findings with respect 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.