Responding to Biden Administration’s Tech Neutrality
Rejection
By Michael O’Rielly
For decades in communications policy, Republicans and
Democrats have uniformly supported the principle that government(s) should not
pick technology winners or losers. This
simple concept, best known as technology neutrality, has served our nation well,
preventing countless missteps and allowing a greater chance for innovators to win
the marketplace. Despite this great
work, the Biden Administration recently rejected the concept in a key part of its
latest broadband funding initiative at the National Telecommunications and
Information Administration (NTIA) within the Department of Commerce. You don’t have to take my word alone: this
exact point was included in a thoughtful critique of NTIA’s actions by some of
the lead Senate authors of the broadband provisions.
Effectively ignoring this basic principle (and the
underlying law), the Administration essentially has done everything possible –
absent strict mandates – to favor fiber broadband technology over any other
when awarding the $41.601 billion in competitive grants under the Broadband
Equity, Access, and Deployment (BEAD) Program.
In doing so, the Administration has unfairly
penalized other innovative technologies, such as licensed fixed wireless access
(FWA) providers or Low Earth Orbit Satellite systems. This has huge ramifications, including driving
up broadband costs and deployment timelines in the short-term and leaving
consumers unserved in the longer-term. For
State Broadband Offices, which have been empowered by Congress to expand
broadband access to the unserved families throughout the nation, it makes their
jobs that much harder.
What is Technology Neutrality?
Technology neutrality is based on the simple concept that
policymakers are not necessarily technologists or market experts. They are far and away not in a position to
select which technologies should be allowed to succeed and which ones should
fail. Instead, healthy reliance and
trust is placed with the innovators, manufacturers, market researchers, and ultimately
the consuming public to determine which products and services will capture the
attention of consumers and enterprises. This
doesn’t come blindly, as policymakers often enact parameters or broader
requirements to roughly shape the offerings to be made. Industry associations also can prevent
complete freewheeling by enacting and adopting standards and
specifications. Within this larger
framework, however, it is the private marketplace that gets to decide the future
of technology.
This structure has proven highly effective over
command-and-control approaches, as it inherently incorporates market demand
into the equation while removing the subjectivity of elected or appointed
officials. History is replete with
example after example of applications of technology neutrality that generated
surprising results as to which features and/or functions were more important
for eventual adoption. Does anyone
remember when VHS media players beat the more robust but pricier BETA versions? Reversing technology neutrality comes with
the belief that the technology selected is absolutely correct for all
applicable situations.
Adherence to the principle doesn’t leave policymakers
without a role, it just directs their attention and authority to a much higher regulatory
layer. Consider that there is a notable
difference between suggesting or even pushing industry to decide on a uniform phone
charging port (a dubious policy for sure) and mandating that a future one can
only be USB-C, as the European Commission recently did (even more outrageous). Likewise, government officials can set
minimum performance requirements for programs without selecting a particular
technological outcome, as the FCC did in 2019 with the Rural Digital
Opportunity Fund (RDOF).
In the case of broadband, rejecting technology neutrality doesn’t
make sense. Fiber is an absolutely
wonderful technology. With the right
electronics, it allows for digital communications at fast speeds, high
capacity, low latency, and high longevity.
It just so happens to be expensive to purchase, often hard and
time-consuming to deploy, difficult to obtain, and uneconomical in situations. Other technologies, namely FWA and LEOs, can
offer comparable functionality without some of the downsides. For instance, FWA can provide greater
resiliency compared to aerial fiber builds, common architecture for rural
deployments. Moreover, these
alternatives are improving at galactic speed, reducing any perceived deficiencies,
and can serve as gateway technologies for decades to come with enormous
benefits – not harm – to the consumer or enterprise Internet access experience. Simply put, non-fiber technologies can offer far
greater deployment timelines, which may matter tremendously to an unserved
consumer: a few months compared to fiber’s multiyear builds. That is not to suggest, all things being
equal, that fiber is inferior but all things being equal requires consideration
of other factors into the equation, which must include cost and deployment
speeds.
The Infrastructure Law & the NOFO
While the broadband provisions within the Infrastructure
Investment and Jobs Act (IIJA) may have been drafted by a few members of
Congress, the resulting text was consecrated by a majority of members and then signed
by the President. According to the law,
“The Assistant Secretary shall, to the extent practicable, carry out this title
in a technological neutral manner.” Use of the verb “shall” should be viewed as removing
any discretion by NTIA, and reliance on the inclusion of the phrase “to the
extent practicable” does not undermine this requirement. Admittedly, the statute provides NTIA
latitude to define broadband performance criteria, it does not provide a
carve-out to the technology neutral requirement, beyond the extent practicable
clause. It is not reasonable to suggest
that adopting a technology neutral selection for underlying broadband
technology is not practicable since it has been done by many other federal
agencies in the broadband sphere. Arguably
there are other provisions where the extent practicable clause may be
applicable, but not in the selection or approval of acceptable broadband
technology.
Despite the statutory language, NTIA has effectively declared
fiber, a non-technologically neutral approach, as the default selection for
funding by determining that “Priority Broadband Projects” are those that use
end-to-end fiber-optic architecture. NTIA officials have reiterated this point by
multiple officials, including comments by Andy Burke of NTIA who stated that
“You will see that we have clearly expressed a preference for fiber.” Moreover, the NOFO confirms early in its
Overview that, “the Program prioritizes projects designed to provide fiber
connectivity directly to the end user.”
Here again, the recent Senate letter provides helpful input
and rebuttal. It states, “the law
prioritizes those providers who can deliver the buildout speeds we require with
consistency, have the ability to scale speeds up over time, and are able to
help support the deployment of 5G and other advanced services throughout its
useful life. The NOFO contradicts this by explicitly stating that fiber is the
only technology that can meet the definitions of a priority project. That is
not the case. Never in the legislation did Congress stipulate that one
technology was able to meet these needs above any other. Fiber, fixed wireless,
and cable providers have all demonstrated an ability to reliably serve
customers at the 100/20 Mbps required speed, an ability to scale up service
over time, and an ability to support deployment of other advanced
telecommunication services.”
In addition to these alternatives, keep in mind that unlicensed FWA and LEOs may
be capable of meeting this standard too, and these alternative technologies
will most likely only continue to improve.
FWA Ramifications
The decision to ignore tech neutrality permeates how the
NOFO funding will be allocated for FWA networks and other applicable systems in
at least two ways.
Licensed FWA
The good news is that the NOFO allows FWA networks using
hybrid licensed and fully licensed spectrum networks to be selected as subgrantees
(i.e., broadband providers) by state broadband offices. The NOFO defines “reliable broadband service”
to include fiber-optic technology, cable hybrid fiber-coaxial, DSL technology,
and terrestrial fixed wireless technology utilizing entirely licensed spectrum
or using a hybrid of licensed and unlicensed spectrum. This last clause means that there is definitional
exclusion for FWA licensed and hybrid offerings, as exists with other
technologies. That said, the NOFO requires
state broadband offices to select “priority broadband projects” – i.e., fiber
builds – anywhere there is a qualified fiber applicant and absent an NTIA
waiver to pick an acceptable alternative technology including applicants with
locations exceeding the Extremely High Cost Per Location Threshold. The NOFO specifically states, “NTIA has determined
that ‘Priority Broadband Projects’ are those that use end-to-end fiber-optic
architecture.” Beyond ignoring tech
neutrality, this structure adds an extra hurdle for a state to select FWA
licensed or hybrid systems to serve its citizens.
FWA licensed offerings are not likely to have spectrum
congestion issues, as the licenses were obtained at market and include
exclusive use rights. In fact, licensed
FWA providers architect their systems and utilize the appropriate spectrum
bands to ensure service quality for users.
Does anyone really believe that users of T-Mobile’s successful FWA
offering
are bypassing a fiber product by accident or somehow welcome an inferior
service? With upwards of two million recent
customer adds this year, licensed FWA seems to be treated by the market as a broadband
alternative.
Policy wise, NTIA’s decision is potentially troubling as it
narrows where an exceptionally constructed, highly capable FWA licensed or
hybrid network would be eligible to receive BEAD funds. On its face, it seems to inappropriately treat
those offering these systems as second-class service providers, letting qualified
pure fiber builders pick their desired territories and leave any remnants of
unserved (and eventually underserved) areas to licensed FWA and others. For states trying to ensure that every
citizen obtains broadband access, this limits their options to improve cost
efficiencies, thereby increasing the likelihood of running out of overall
funding. U.S. policy has made clear:
NTIA owes it to taxpayers to connect every American household and that requires
all technologies. It should be criminal
for this problem to exist when this program concludes.
On the provider side, limiting FWA licensed and hybrid
spectrum networks to this universe, while excluding its use in areas that may
be more fruitful, will likely result in fewer applicants, and consequently,
participating providers. Consider that
fewer applicants in an effective reverse auction for competitive grants, for
instance, means less competition and ultimately fewer matching funds from the
subgrantees, and thus more NTIA funding. Did we somehow forget that the RDOF scoring
rubric meant baseline FWA applicants kept gig-tier applicants honest in the
support funding they would be willing to accept?
Unlicensed FWA
For FWA networks using only unlicensed spectrum, the NOFO
deems them as not “reliable broadband service” meaning that the technologies face
a higher set of hurdles, requiring an NTIA waiver and then in only “extremely
high cost per location threshold” (EHCPLT) areas.
Categorically discounting unlicensed FWA projects (except in
EHCPLT areas) should be viewed as objectionable as it ignores the real-world
application of unlicensed FWA networks operating today. Networks that deliver capable
and reliable broadband to both urban and rural consumers today. In fact, many rural parts of America have
only a FWA network as an option because it is uneconomic to build a wireline
network. To the extent the subsidies in
the NOFO remove cost as an issue, it doesn’t undermine the historical value
brought forward by unlicensed FWA providers or justify that these networks be
summarily excluded from funding.
Additionally, the loudest objection to unlicensed services usually
is based on uncertainty to obtain spectrum and possible band congestion. Yet, in many of the unserved and even
underserved areas of America, unlicensed spectrum is not necessarily subject to
such constraints. One only needs to take
a look at the CBRS Priority Access Licenses to see where licenses were not
claimed as a measurement of crowding in these markets. In congested areas, new radio technologies
such as beamforming and noise nulling enable unlicensed spectrum to perform
comparably to its licensed counterparts. Further, to the extent existing unlicensed
bands are congested, new bands – including 5.9 GHz and 6 GHz – are coming to
the market in short order. Policymakers
should be raising questions over the delay to complete any necessary
proceedings so these bands can be put to use for broadband expansion.
State Broadband Office Options
It seems safe to assume that NTIA is locked into its
approach and sadly will not be changing the NOFO, notwithstanding the views of
key Senators in the recent letter. Absent
other funding, there should be real questions as to whether NTIA’s focus on
fiber will ensure there is enough money to fund every unserved location.
Even with the elevated subsidies under BEAD, it’s almost a
guarantee that many states may have to use the Fiber-only waiver or the EHCPLT
waiver processes to some degree. States
and Territories are required to file their five-year broadband plans next now
that all have provided letters of interest to participate in BEAD funding.
These five-year plans will serve as a good sanity check and indication of
whether alternative technologies beyond fiber are needed to steward NTIA
funding. Given that the States and
Territories are charged with bringing broadband to all unserved (and then
underserved) locations, how can they best react to the NOFO’s waiver processes
while ensuring their five-year action plans to best fit the needs of their constituents?
1.
Seek Clear Waiver Criteria
States should be seeking clear guidelines and specific
criteria from NTIA of exactly how the waiver processes will work and how readily
petitions will be granted. While NTIA
has sent signals in the broadband community that it will liberally approve
these petitions, such private assurances are not worth all that much given
NTIA’s ultimate rejection of tech neutrality. Putting state broadband officers in an
impossible position of risking billions in federal funding on a wink and a nod
that federal bureaucrats will not enforce their clear fiber-preference guidance
is not acceptable. States should expect,
and more appropriately demand, a more defined criteria to make sure their broadband
plans are not rejected by NTIA or OMB and as a result the efforts required to
complete them are wasted. And this needs
to be done publicly and early, otherwise other technologies are likely to skip
even seeking participation. Moreover, States
and Territories should expect that there will be a presumption in favor of
granting any waiver submitted.
2.
Liberally Apply Waiver Asks
NTIA intentionally built waivers into the NOFO and did not
include discouraging language, meaning that it should fully expect that States
and Territories will seek waivers. Accordingly, NTIA officials should be held
accountable to this guidance (and in subsequent public comments of waiver
receptivity). That means States and
Territories should actively build waivers into their five-year action plans, advocate
that FWA and other alternative technologies submit applications, and generally
welcome the waiver process, rather than seeing it only as an emergency-only
case option. At some point, it would
also be rational to move to a pro forma, properly structure waiver process to
minimize confusion and bureaucracy.
3.
Set EHCPLT at Reasonable Levels
Similarly, States and Territories should consider setting
their respective EHCPLT at reasonably lower levels to account for funding
issues and needs of unserved residents. If these thresholds are set too high,
then alternative providers will not have sufficient locations to make business
cases to reach the remnant locations left after other grants are awarded.
* * *
The opinions expressed in this document are those of the author and are not intended to be a submission to the Federal Communications Commission (or any other government agency or proceeding) with the intent to influence agency employees in the performance of their official duties in any current or future Commission matter.