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Over 5.2 million homes and businesses are now planned to receive broadband internet access through the Federal Communications Commission’s Rural Digital Opportunity Fund.

Exactly 21 years after the SSTI Weekly Digest ran its first story on the digital divide, a recent report by the Government Accountability Office confirms what inestimable studies before it have reported: access to broadband has expanded, but significant shortcomings in broadband still exist. Meanwhile, the Federal Communications Commission has issued new rules to improve collection and mapping of broadband availability. The commission is also seeking comments on proposals to ensure the accuracy of the new broadband coverage maps.

School buses across the country are helping school children as they finish a decidedly unconventional academic year but they aren’t transporting students, they are acting as mobile Wi-Fi units bringing connectivity capability to students who lack broadband service. As the coronavirus pandemic closed schools across the country, many in rural or low-income areas without internet access were left scrambling as classes went online. Equipping buses with Wi-Fi to help accommodate the online learning is a short-term solution to a much bigger problem.

The Federal Communications Commission (FCC) announced last week that it has approved the Rural Digital Opportunity Fund which will provide $20.4 billion over two phases to help expand broadband networks throughout rural communities. Phase one will provide $16 billion for use in communities that are currently unserved by broadband services with minimal download speeds of 25 megabits per second (Mbps) and 3 Mbps upload speeds.

Broadband access is one of the pillars of economic development, yet as many as 24 million Americans, including a disproportionate percentage in rural areas, still lack high-speed and reliable internet service, according to the Pew Charitable Trust.

Innovation initiatives are seeing increased funding in some states as legislatures across the country begin to finalize budget bills and other legislation. SSTI continues to monitor these developments and this week we cover budget bills in Idaho that saw small increases to the Manufacturing Extension Partnership (MEP) program, as well as increases in the Small Business Development Center (SBDC) and STEM Action Center, and new funding for a computer science initiative. South Dakota will see an increase in funding for the Governor’s Office of Economic Development and West Virginia passed bills creating an SBIR/STTR matching grant program, support for community and technical college tuition assistance, expansion of broadband service, and other innovation-related initiatives in its budget that passed earlier in March.

Investments in rural broadband deployment can create significant returns on investments for state economies. A recent study from Purdue University's Center for Regional Development contends that Indiana could generate a $12 billion economic impact over 20 years with strategic broadband investments in rural areas across the state. Purdue researchers estimate that for every dollar invested in broadband by the state, there would a ROI of nearly $4 to the economy. The Federal Communication Commission and the U.S. Department of Agriculture have recently announced efforts or proposed rules to create incentives for private investments, deploy new technologies, and develop other resources for rural communities across the country with the intent of spurring economic growth.

Wyoming Gov. Matt Mead has approved legislation that will help promote economic diversification through innovation in a state that has relied heavily on a relatively small number of resource-based industries. Mead recently signed multiple pieces of legislation that comprise ENDOW (Economically Needed Diversity Options for Wyoming), a 20-year initiative focused on diversifying and growing the state’s economy. Notable bills include Senate File 118, which will establish a dedicated organization to support Wyoming’s entrepreneurs and provide funds to innovative startups, and Senate File 119, which will establish a dedicated fund for workforce training in economic sectors considered a priority for the state.

A new map of broadband access based on Federal Communications Commission (FCC) data offers a granular look at the internet options available to Americans. Based on data submitted by internet service providers through FCC’s Form 477, the map provides insight on the types and speeds of internet access available on a block-by-block basis across the country. Notably, the maps do not include information on the cost of internet service. 

Can banks meet Community Reinvestment Act (CRA) obligations by helping address high-speed broadband gaps and the digital divide? Participants in a recent Federal Reserve webinar said yes and provided tips on how.

CRA is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods and the webinar explained how financing broadband initiatives would qualify as an economic development tool that meets the CRA service tests. Our communities would benefit on a number of fronts.

The National Telecommunications and Information Administration and the National Science Foundation have released The National Broadband Research Agenda, a report detailing key priorities for broadband research and data. Despite significant advances in broadband connectivity, disparities remain in access, adoption and choice.

The Court of Appeals for the Sixth Circuit ruled against the Federal Communications Commission’s (FCC) plan that would allow municipalities to build their own broadband network – superseding state laws in Tennessee and North Carolina that explicitly prohibit such projects. The FCC claimed that the Telecommunications Act of 1996 granted it implicit power to preempt state laws that are intended to support open markets for private-sector utility companies.