Is brought to you today by your cable or satellite provider. Host and this week on the communicators we want to introduce you to Shirley Bloomfield who runs an Organization Called the ntca, the Rural Broadband association. Ms. Bloomfield be, what is that group . Guest so thank you for asking, peter. It is a national organization. We represent about 850 communitybased communication providers who actually started off as Telephone Company in areas where the Large Companies chose not to provide service 50, 100 years ago because it is rural, it is remote, hard to make a Business Case for a large corporation. So these folks actually built up these Telephone Networks and have evolved service wise and are now, essentially, broadband providers. Weve got about twothirds of our membership that also do video, about half to a wireless play of some sort. So they are truly the onestop shop for Communication Service in Rural America. Cover about 40 of the land mass. They are folks who literally live and work and raise their families in the communities where they provide Communication Service. And we represent them. So we do everything from their advocacy to education and training for them to finding ways to create some synergy to bring some Business Opportunities thats very hard to do oneoff for small carriers. Host so who are some of your Member Companies . And who to they represent . Cowho do they represent . Guest i have carriers that are in 46 state, i have coops as large as 100,000 subscribers down to communityheld hubs who have 200 people in the middle of iowa. They provide service to, again, Rural America generally. You know, ive got folks who are doing Amazing Things because this is the community they live in. So as an example, i have a cooperative in Eastern Kentucky which is probably one of the lowest income portions of the country. Prtc is out there, and what they are doing is looking at ways that they can use their broadband to generate jobs and growth and literally have just created 350 new jobs out there by partnering with a federal entity to do some telemarketing and Customer Service training. So theyve opened up a training center. The broadband is provided by my member company, and then the folks are able to work from home. Theyre able to do some teleworking which, you know, you really require terrific broadband and Communications Access to be able to do that. Ive got companies that serve on islands on the top of mountains in the middle of alaskan villages. So they are truly the people who are looking to make sure that Rural America does not get left behind as we go through this amazing Communications Evolution where communication is everything. Host well, lets talk about some of the issues that the ntca members face, and to help us do that, david kaut of Communications Daily joins us. Obviously, youve mentioned broadband several times, and thats a big focus, bringing highperiod Internet Access to rural areas, and we hear about that all the time. What would you say your biggest priorities are right now either in congress or at the fcc . Guest so that is a loaded question, david, but theres the answer is broadband, and its broadband deployment. And one of the things that we are seeing, for example, the fcc just completed some pretty comprehensive universal service reform. 2016, it was a really big effort in the making, about six years of some really crunching numbers and models and different objectives with the fcc. So the fcc came out of that reform with both a model path and a legacy path for carriers, but the problem is there isnt sufficient funding to actually do the job that the models and the Legacy Program are now set to do. A lot of new accountability which is great. There is actually the ability now to geolocate where youre building broadband which i think is really important for policymakers and for communities. People are wonder, you know, do i have broadband, do i have robust broadband, do i have enough broadband . I look at universal service and making sure we can finish reform in a way that actually brings the promise of broadband to Rural America as probably job number one. Of and i think, again, i hear i get calls from communities across the country that arent served by my membership, you know, basically saying, you know, can we get one of your companies to come out of here . How do we start a cooperative . How do we insure we get some of these services . I would say thats first. The second is based on, particularly, Congress Agenda and President Trumps agenda. Were hearing a lot of talk about infrastructure, so its kind of like part two of your question which is how do we then make sure broadband is considered part of any infrastructure package that is considered . I look at it and i think, you know, superhighways of the future . Its really about broadband. Its the ability to do the teleworking, to bring jobs and commerce in, public safety, telemedicine, all of initiatives that really kind of keep our country robust can really be derived from broadband. So how do we make sure policymakers see infrastructure beyond just a road and a bridge. So those two are very top of mind. The third i would throw in, you know, thats really important has been rate floor. Its a proceeding that nobody but probably our sector of the industry would have watched, but since 2011 the fcc had designated a rate floor that they essentially said that urban rates and rural rates need to be, match one another. And, you know, if you look at some of my carriers, ive got folks who a local call you may be able to reach 2,000 people, maybe 1,000 people, sometimes 10,000 people. It is not comparable. So how to you find a reasonable way to insure that were not having to match urban rates penny by penny. So thats been very top of mind for us, and folks have been talking about that on capitol hill. How are the universal service fund dollars used by your Association Members . Guest is so this is a really interesting distinction. A lot of people hook at universal service and say, well, you can build your Networks Using universal service. People tend to build their Networks Using Capital Infrastructure programs, things like the rus Lending Program run out of usda which is actually one of the first superappropriating line items in the budget in that the Program Actually makes money for the government because there has never been a default if in the program. So they use things like that or cfc or cobank to actually get loans for capital to put the fiber into the ground. Universal service is a support mechanism that insures the rates stay comparable. To how you keep that network uptodate, up to speed, how doo you continue to build it out and make sure what you are charging for those services is reasonably comparable to urban rates. For example, most of my carriers have a density of about 1 to 5 consumers per mile of wire. I look at a state like pennsylvania which i think is probably a good state to kind of base it off of because its got a real mix of urban and rural. Pennsylvania the average density per mile is about 284. The price of that fiber doesnt get any cheaper just because youve got a lot fewer people to go along on it. So how to you make sure that youre not charging rural consumers 300 a month to get Broadband Access . So those programs kind of work hand in hand, but universal service insures that you can do comparably, reasonably priced access for Rural Americans x. Thats why i think these reforms that the fcc has been doing are so important because what theyve put in place, were actually going to be able to quantify how far out we can go. This fcc in particular has put a real emphasis on unserved areas, so how do we look at those commitments that dont have broadband communities that dont have Broadband Access, how do we make sure those programs can tailor to reach those unserved areas and also not let the networks that are already in place deteriorate. Well, youre talking about universal service. Thats a subsidy program, essentially, that helps support the buildout and operation oggs. It gets about operations. It gets a little over 2 billion for the small, rural telcos that you represent. You all believe they need to provide another 250 million or so in funding per year. Just hows that looking over at the finishing cc . [laughter] guest fingers crossed. You know, its a tough time as everybodys kind of assessing and figuring out where we are at. But i look at that and i think, okay, 250 million a year to insure what the fcc has just put in place becomes fully funded. Again, we can quantify how many more people we can reach and what higher speeds we can actually provide more them. So i look at that and i think, wow, to reach farthest corners of our country, to make sure that all americans including Rural Americans have access . Its a pretty small price to pay. Now, working with the fcc, again, theyve created its almost like they built this car and its a great car, except theres just not enough gas in the tank. So that 250 million that youre referencing would go a long way to making sure that works. The other thing the highcost program doesnt have that the other universal Service Programs like erate and lifeline have is theres no cost of living adjustment. So, essentially, these carriers have been frozen at this for about accept years now, and i look at that and i think, but were talking about broadband. How do you make sure you get this great equal leadser out there . Equalizer out there . I think youve got a commission that is ruralempathetic. I think, you know, it was an interesting election. I think Rural America kind of stood up a little bit and waved the flag saying, hey, were out here, dont forget about us. And youve got chairman pai who hails from rural kansas who actually has not just flown over Rural America, hes actually lived on the ground in Rural America. He understands some of the challenges, and hes made a real point of getting out into these communities and seeing what it takes, what are people building, how are they doing immaterial . Hes been on doing it . Hes been on some of these digs. And commissioner reilly took a role on the usf reform, so i know he feels a strong passion about making sure americans have access. We remain hopeful. I think weve got a lot of challenges. The way usf contribution is done, it is based on old legacy telephone service. So youve got this really declining base at the same time youve got this growing demand on a program that has now become a broadband program. So, you know, youre kind of hitting into a brick wall a little bit. But i think folks are very thoughtful. I think folks are willing to talk about it. I remain hopeful that if we can talk about an infrastructure bill using universal service to actually do some of that filling in the gap would be a really efficient and very Cost Effective way of actually pushing that broadband further out there. Well, you mentioned the infrastructure. You all are you just had your legislative conference, and you had a lot of members go up to the hill, so i assume you probably got a fairly good sense of what the current status of efforts is. Whats your sense on the prospects for an infrastructure bill . President trump talked about a trillion dollar just broad infrastructure bill and theres been a lot of talk about broadband in there. Chairman pa sixer supports9 pai supports it. Whats your sense of the prospects up there . Youve been lobbying the hill, youve been at the white house, hows it looking . Guest we going to place some bets today here, david . Just trying to make some news here. Guest i tell you what, i am very bullish. Ive talked to a lot of senators and ill do the 7030, 6040. I look at the mood we have here in congress, and ive been out here a long time and gone through a lot of cycles of a lot of administrations. I think theres something to be said for finding a topic that this country can rally around that is bipartisan, that everybody can find something that is actually really important and good for the country. I think infrastructure really, really becomes that issue. I think there is a lot of i think i am very hopeful that we can actually do this. I will say the tact that youve got President Trump putting out a herbally 1 trillion proposal potentially 1 trillion proposal, the democrats have referenced that broadband could and should be a part of that. The discussions with the white house are very interesting. They are very focused on infrastructure, figuring out what those pieces might look like. So we play this game this washington, right, where its like, well, you cant do it in an Election Year because that gets everybody all riled up. I would disagree. So i look at it and think, okay, weve got some big ticket items that need to get off the a plate, but third, Fourth Quarter i remain hopeful that by the summer, early fall that folks are starting to be willing to circulate some things that people can respond to. And i look at 2018 is an Election Year, but actually i think its a great year to really consider infrastructure spending. Everybody likes to have something positive that they can go home and talk about. And i think every community benefitses from some infrastructure investment. Host Shirley Bloomfield, theres also new leadership in congress. Marsha blackburn, mike doyle over on the house side, greg walden is the new enc chair, greg thune on the other side. Whats been your interaction with this group . Guest so i have been very excited about working with this new leadership. Senator thune has been where hes been for a while. Hes south dakota. If you look at a map and i showed you where my carriers provide service, south dakota is a very big state for us. So here we have someone whos the chairman of the Senate Commerce committee who gets it. He understands these are his constituents, and hes wired to think about whats happening for rural consumers and making sure that his state has the same access that minnesota next door has. So he has really been just a joy to work with. Congresswoman blackburn has been very engaged. She actually spent a lot of time working with the Trump Administration through the transition so was very behind the scenes in terms of some of their priorities. Shes already invited some of our folks to partake in a summit she held in january, some folks in tennessee who are doing some interesting telemedicine initiatives with vanderbilt university, and she is going to come she addressed our group last week here in washington, d. C. And shared some of her agenda and talked a lot about Rural Broadband. So the fact that its top of mind, i am very optimistic about. And congressman walden has a long history, againing of being again, of being from a state that has deep rural pockets and has a chief of staff as the committee who has spent time as chairman of a state pushes c. So p be uc puc. You find in Washington People youre not going to agree with all the time, but if you can have discourse, find ways to engage and find areas of commonality, i think we can push the ball forward on behalf of all consumers. Lets assume there is a broadband infrastructure component and infrastructure is being pushed as a bill. Weve got some additional models. Youve had the Rural Utility Service usda program out there, can and youve had the fccs universal service program, and then you had the stimulus bill in 2009 which ive heard you say actually did some good things. Other people have criticized it. If you were giving advice, what would be the best way for congress to channel new support for broadband infrastructure . Its a really interesting question, and i think theres kind of a multiapproach because i think that multi approach. Again, i think universal service now that its been reformed, now that youve got so much accountability built into the system and literally, again, the geocodinging allows you to say what did that money go to, what speeds are we getting out there. I think theres something very concrete about that, that i think is the accountability that people are looking for when you look to anything that is any kind of an investment program. So i think that is one important piece. I look at it, and youre right, stimulus actually we had companies that have built out Amazing Things during the stimulus program. So we are not antistimulus. The one thing i will say is i hook at things like look at things like rus. Rus is a rural Lending Program. They understand rural networks. So we actually saw a lot of things hit the ground a lot faster with, rus than ntia. So i would say if theres capital push, i think putting it to an agency that understands what employments are, who understands what what requirements are, what standards need to be met, thats really important. The other thing i would say is if were really going to take this seriously, theres got to be some kind of governmentwide push to streamline, standardize, make sure that people arent going through four different sets of hoops to get processes in place. Because what we found even with stimulus, we had folks who literally ran up into the deadline because they couldnt get something through on a mean pa review or had some local jurisdiction issue. And if you didnt spend the money by the tedline, you were kind of out of the game. And then i would say people like to throw out tax incentives. I think its an important piece of it not necessarily of for my companies. If you cant make money in an area, having a tax credit in an area youre not making money is in isnt a huge motivator. But i would say for the entire ecopace as a whole it probably makes a lot of sense that that at least be a part of it. Some people would put those first, i would probably put those last. But i think were seeing, you know, one of the things i really admire, youve got chairman thune and senator nelson with their mobile now which kind of addresses a lot of this streamlining and easement issues which i think is important. Chairman pai over at the fcc with his digital empowerment agenda, very thoughtful about what is it going to really take that i see as complementary to any infrastructure proposal. And i think his creating a Broadband Advisory Council is a really intriguing idea. And he spoke to my membership last week, and it was really fun to share some thoughts with him because, you know, i think when they first created this Advisory Council which is really a roll up your sleeves, lets get into this, i think he thought hed get about 40 names into the pot x he said theyre currently at about 403. So i think theres a lot of interest for people serving on that kind of Advisory Council. Host what percentage of the u. S. Population does not have access to broadband at this point . Guest i think it really depends, peter, on who you and how you define broadband x. We know that kind of becomes a roving statistic out from there. I look at our sector, and 85 of my membership offered at least speeds in excess of 10 megabits9 to 85 of their consumers that are out there. So, you know, so i look at our kind of ecosystem, and its a pretty robust ecosystem. In terms of national statistics, id be loathe to throw something out because, again, everybodys using different standards. But we definitely have parts of the country that arent served x thats one of the reasons why one of the initiatives the fcc just recent by put forward was this connect america fund ii which allowed some of the larger carriers who are, for whatever reasons, choosing not to invest in some of their rural markets the ability to put that area up for auction. And i think thats going to be a really interesting process and something were really excited about because a lot of those areas are communities that are contingent to the area my companies serve, and they are very anxious to go in and be able to get support to build in and provide broadband to those folks who actually havent had it yet. Its kind of like the lightbulbing goes off, and it is a transforming technology to see what these communities do with the capacity. Its pretty impressive. Again, im sorry im not going to throw a statistic, because whatever i say, somebody will tell me its wrong, so Congress Just passed a resolution to repeal the fcc privacy rules for broadband that president bush just signed President Trump just signed. So the fcc privacy rules. How to you see that playing out . The 2, the fcc as well as the federal trade commission, theres been a lot of criticism that this is going to endanger privacy. The defenders say, no, theyre going to do a harm needs framework for everybody harmonized framework for everybody. How do you see that playing out . Guest so im hopeful that harmonizing happens. You know, i look at it and i think theres been its interesting reading autopress reports as people kind of jump to the conclusions of what this really means. In reality it was a little bit of an overreach. I look at the carriers i represent. They have every, every need to be consumercentric. The difference, you know, from a market perspective is my carriers actually live in the communities they serve. Nobodys, you know, nobody wants to do anything to disrupt what is a very important balance when youre a community provide or. These folks are your neighbors and sometimes your family. So theyve always been consumercentric, privacys very, very important. But i think what the fcc had done was really looked at one sector of the industry and, frankly, there are other folks who are kind of in this industry, you know, on the edge or content providers that actually have far more access to some data that, certainly, a broadband provider does. I like the idea of harmonizing, its really important. What the federal trade commissions been looking at has been a more reasonable approach, so i think cooler heads will prevail. And be i think for now everybody to be able to go back to the table and talk about what are those principles that are going to be really important to insure that Consumer Privacy is protected, which i think is the ultimate goal at the same time not actually targeting any one industry, you know, as youre doing that or tying anybodys hands behind their back is going to be really important. So im hoping well have a reset here. And another big ticket item remains, Net Neutrality. Or they call it the open internet. As well as the framework that would be used to govern that. The fcc reclassified broadband as a socalled title ii service. Republicans have expressed a lot of interest in repealing that both at the fcc and in congress. Do you think congress is going to make a serious run at some sort of legislation to just target that, or do you think they might to a more broader attempt to just rewrite the Communications Act . Guest well, having lived through the 96 act, it is a big bite. But i do think that Net Neutrality potentially gives Congress Really the right hook to to look at something more comprehensive. I think thats tough. I mean, im almost a fan of art of the possible, and sometimes i think thats like what can you bite off and get done one bite at a time, because i think weve now, you know, particularly given the social media tools that have come into play since the 96 act, its just a made the volume in the room so much louder and everybody able to kind of, you know, spin their own spin on these things. But i do think taking a look at Net Neutrality will be an anchor or certainly a part of what congress would do on a rewrite of sorts. We were in a little bit of a unique position in that my carriers were already regulated under title ii, so we were probably less, you know, concerned about what was happening under a title ii regime. The only difference being the past fcc in our minds really overreached with where they were going and kind of pushed that instead of kind of the ability to make sure that our folks could interconnect or that theres Seamless Networks between one another. There was a little bit of discrimination between if you were a provider versus if you were a content provider or an edge provider, you know, the inability to look at the universe as a whole. So, again, same kind of thing, i think. If people can sit down and share some principles, i think weve got a Good Opportunity to do it. Its, you know, again, it kind of goes back to your earlier questions. Congress has a lot on their plate right now x Net Neutrality as we have seen takes a lot of oxygen. So the question is can you clear up enough so that folks can really focus on some of those issues, or will they want to. But i do see it as a cornerstone, potentially, of some kind of a Communications Act rewrite. I imagine a lot of our viewers out there are not in rural areas. Some are, but a lot are in suburban and urban areas. Why should they care about all this talk about Rural Broadband . Because theyre paying into this fund as the universal service fund or paying taxes for other programs potentially in infrastructure. Why should they, why should they worry so much about Rural Broadband . Guest so aside from the fact that rural is cool, the other reason they should really care about it is the value of the network exponentially grows the more connections you have on the network. So a network that actually leaves out, you know, geographically 50 of our country, 60 of our country has far less significant value to all of us. The other thing that i would say is that Rural America, you know, when you think about, the percentage of our natural resources, our energy, the agriculture, all of these things that are tied to commerce and why broadband is so important to bring those to market really to benefit all of us. It is not one of those things that milk does not come from a grocery store. It actually comes from a cow somewhere in a rural area are. So those needs are actually universal throughout the country. The other thing is thats kind of interesting, the Hudson Institute did a study and in 2015 they actually did some Economic Analysis that showed that Rural Broadband has a 24. 1 billion impact on the american economy. And of that, 66 of that benefit was to the benefit of urban america. And and that is because vendors, job suppliers, all of that impact. So, you know, the dollar flow does not stay in one location. So, you know, theres economic reasons for it. And i think, certainly, as we look at ourselves as a country, i think, again, the more we continue to create a Robust National network, the benefit of all of us. Host Shirley Bloomfield runs an Organization Called the ntca, the Rural Broadband association. David kaut is a Senior Editor at Communications Daily. Cspan, where history unfolds daily. In 1979, cspan was created as a Public Service by americas Cable Television companies and is brought to you today by your cable or satellite provider. We need physicians and ore other Health Profession bales who are technically confident, who are problem soars, who are lifelong learners, who are team leaders, consensus builders. Indeed, who are Business Managers and who can share power constructively and gracefully. I would just hope that you would understand what this responsibility means. That i means reach it means reaching out, it means caring about more than yourself. It means asking about we rather than me. 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