How the CHIPS Act Took Center Stage of Biden's Re

May 28, 2023

When President Biden talks about his economic program, the CHIPS Act is the star of the show.

Published

on

By

The increasingly hostile technology race between the United States and China now revolves around the key to the modern economy: semiconductors. Semiconductors are the microprocessors that power smartphones and washing machines and automobiles. Indeed, these chips are needed in advanced weaponry and artificial intelligence. That places them at the focal point of international tension.

Simply put, semiconductors are the world's new oil.

And, as both President Joe Biden and Commerce Secretary Gina Raimondo have been quick to note, American ingenuity invented the semiconductor. But today, the U.S. currently produces only 12 percent of the world's supply, none of which are the most advanced. This is down from 40 percent in 1990.

The technology and machinery needed to create the most advanced semiconductor chips is so complex and sophisticated that the world's supply is manufactured by only a handful of companies.

Taiwan hosts the world's largest producer, Taiwan Semiconductor Manufacturing Company. It manufactures chips for leading chip design companies, including Apple, Nvidia, Qualcomm and Broadcom. TMSC alone accounts for around 60 percent of the global market for semiconductors, and more than 90 percent of the most advanced ones.

This is especially concerning for America's national security in light of the mounting threat that Taiwan appears to face from its neighbor, the People's Republic of China. The PRC itself hosts almost 300 semiconductor manufacturing plants, and China has launched initiatives of its own to invest in domestic production through the China Integrated Circuit Industry Investment Fund. Established in 2014, this fund was aimed at achieving self-sufficiency for China in the semiconductor industry.

[much more…]

Join to receive your copy of the Breakfast Club Exclusive Report!

Learn more about the Broadband Breakfast Club!

Debt Ceiling Law Doesn't Change Administration Priorities on Semiconductors, Advanced Energy and Broadband

Teralyn Whipple, who joined Broadband Breakfast in 2022, studied marketing at Brigham Young University. She has reported extensively on broadband infrastructure, investments and deployment. She has also headed marketing campaigns for several small companies.

Debt Ceiling Law Doesn't Change Administration Priorities on Semiconductors, Advanced Energy and Broadband

Experts Debate TikTok Ban, Weighing National Security Against Free Speech

Broadband Breakfast on Wednesday, June 28, 2023 – The Future of Ultra High-Speed Connectivity

Broadband Breakfast on June 21, 2023 – Middle Mile Award Announcements

Broadband Breakfast on June 14, 2023 – Unpacking the CHIPS and Science Act

‘Urgent’ Social Media Advisory, Tribal Broadband Awards, Permitting Reform Progress, BroadbandNow Podcast

With government action, America can reindustrialize itself, bolster national security, revive left-behind places and reduce carbon emissions.

Published

on

By

WASHINGTON, June 2, 2023 — Perhaps the greatest surprise of the debt ceiling deal passed Thursday night by the Senate (and on Wednesday by the House) is that it leaves unscathed the Biden administration's three top domestic priorities: the Inflation Reduction Act (August 2022), semiconductor promotion in the CHIPS and Science Act (July 2022), and the Infrastructure Investment and Jobs Act (November 2021).

Together, these measures will invest more than $2 trillion of federal funds into American manufacturing, infrastructure (including broadband) and advanced energy.

As Broadband Breakfast's Made in America Summit takes shape, we encourage you to register now to attend this important event on Tuesday, June 27, in Washington. The summit's four sessions will explore the intersection of these vital big-picture topics:

The Inflation Reduction Act invests billions of dollars in clean energy projects that work to limit carbon emissions and other pollutants, including solar, wind, nuclear, clean hydrogen and more. But will its investments in clean energy founder on the lack of infrastructure deployment, or by delays in federal, state and local permitting? This session will also consider the intersection of "smart grid" infrastructure, long-haul and local, and the synchronicities between the broadband and energy economies.

• Lori Bird, U.S. Energy Program Director and Polsky Chair for Renewable Energy, World Resources Institute• Xan Fishman, Director of Energy Policy and Carbon Management, Bipartisan Policy Center• Quindi Franco, Assistant Director, Government Accountability Office• Robert Glicksman, Professor of Environmental Law, George Washington University Law School• Other panelists have been invited

The CHIPS and Science Act provides $280 billion in funding to spur semiconductor research and manufacturing in the United States. Semiconductors are key components of consumer electronics, military systems and countless other applications, making a domestic supply chain critically important — particularly amid an increasingly hostile technological race with China. How successful will efforts be to bring semiconductor manufacturing to America?

• Gene Irisari, Head of Semiconductor Policy, Samsung• Shawn Muma, Director of Supply Chain Innovation & Emerging Technologies, Digital Supply Chain Institute• Maryam Rofougaran, CEO and Co-Founder, Movandi Corporation• Rishi Iyengar (moderator), Global Technology Reporter, Foreign Policy• Other panelists have been invited

The Build America Buy America Act, part of the Infrastructure Investment and Jobs Act, established a domestic content procurement preference for all federally subsidized infrastructure projects. Although waivers of Buy America requirements have been proposed for certain projects — such as Middle Mile Grant Program recipients — it appears unlikely that these will be extended to initiatives such as the Broadband Equity, Access and Deployment program, despite requests and warnings from industry leaders. Although fiber-optic cable production is on the rise, significant issues remain in America's semiconductor and electronic equipment supply. How will these issues be addressed in broadband and other infrastructure projects?

• Panelists to be announced

The Inflation Reduction Act establishes requirements for the use of American-made equipment in clean energy production. How will those requirements impact green energy development? How will the resulting projects interact with other ongoing infrastructure initiatives? What will it take for America to establish itself as a clean energy superpower?

• Panelists to be announced

Early-bird registration of $199 until Friday, June 9 + government and Broadband Breakfast Club rate.

Check back frequently to see updates on the Made in America Summit event page.

Cambridge aims to construct a citywide fiber network that passes all 52,300 residences and businesses in the city.

Published

on

By

In Cambridge, Massachusetts, digital equity advocates and city leaders have been debating the idea of building a citywide municipal fiber network for years now, mostly over whether the estimated $150 to $200 million it would cost to build the network would be worth it.

In a tech-savvy city, home to Harvard and MIT, the former city manager was resistant to a serious inquiry into municipal broadband. He retired last summer. But before he left, he relented on the broadband question – under pressure from city councilors and a local citizen group advocating for municipal broadband, Upgrade Cambridge.

With many residents weary of being held hostage to the whims and high cost of service from the monopoly provider in town (Comcast), which currently controls 80 percent of the city's market, in 2021 the city hired the well-regarded Maryland-based consulting firm CTC Technology & Energy to conduct a thorough feasibility study. Now, with a new supportive city manager in office, city leaders have agreed to continue to investigate the options laid out in the recently published study.

The study found that for Cambridge to construct a "financially sustainable" citywide fiber network that passes all 52,300 residences and businesses in the city, "a significant public contribution would be required."

"In a base-case scenario that applies conservative construction cost assumptions and reasonable revenue projections," the study says, "the network could require an upfront public capital contribution of $150 million."

While some city leaders initially balked at the price tag, a market survey conducted by CTC, found "significant public support for the City taking steps to bring about a new FTTP service, even if a public contribution is required."

"Eighty-seven percent of respondents agreed that Cambridge needs an additional Internet service provider. When asked if they support City facilitation even if it required a contribution, two-thirds of respondents strongly agreed (40 percent) or agreed (26 percent) the City should facilitate building a fiber broadband network that allows for high-speed service and competition, even if this requires a tax subsidy."

And when asked if they would be willing to purchase services from a new provider, 58 percent of survey respondents who now get service from Comcast said they would be "very or extremely likely" to subscribe to new Internet service.

Early on, the study seeks to disabuse councilors of the notion that municipal broadband means the city must go it alone and "be the only entity that builds, operates, maintains, and directly markets and offers retail services."

The city has options, which may involve public-private partnerships. In fact, the study says, "there exists a strong likelihood of private interest in a partnership with the City on a broadband network."

From there, the study lays out four models the city could pursue and includes a detailed analysis of the risks and trade-offs associated with each: a network fully owned and operated by the city; one where the city builds and owns the infrastructure and then contracts with a private ISP to offer retail service; an open access network in which the city builds and owns the infrastructure and then leases the network to multiple private providers; or one that is largely funded and operated by a private provider.

The construction cost estimates were based on several assumptions, namely that the network would consist of "62 percent aerial construction using existing utility poles and 38 percent underground construction" with an estimated construction timeline of about five years.

Additionally, the cost estimate assumes a 40 percent take-rate that would generate $70 per month, per user "with prices increasing by 3 percent per year."

As for network architecture, the study advises the city seek to build a network "based on a Gigabit Passive Optical Network (GPON) architecture, which is the most commonly provisioned fiber-to-the-premises service" – the same kind of architecture used by the AT&T, Verizon Fios and Google Fiber, which could be "easily leveraged by triple-play carriers for voice, video, and data services."

All told, the study envisions deploying 130 miles of fiber both aerially and underground that "will vary between 12- and 288-count based on the projected need in the area," with a backbone that ranges from 144- to 288-count cables.

When CTC presented the results of the feasibility study in March, it proved to be a real eye-opener for one skeptical City Councilor.

As reported by Cambridge Day, Councilor Burhan Azeem said, "it doesn't sound like it would be as big of a construction project as I was initially worried about."

"I was a little bit skeptical of municipal broadband because of the cost of $200 million and all this time and energy and effort. And the benefits weren't clear to me. This conversation has been really helpful in convincing me otherwise."

When councilors asked about whether it was worth the investment in light of other challenges the city faced such as housing, CTC President Joanne Hovis laid out the variety of community benefits such networks provide in terms of improving economic vitality and quality-of-life – including the ability "to deliver services that we can't imagine right now."

It led Councilor Quinton Zondervan to observe that robust high-speed Internet infrastructure is as vital as roads, further noting: "If we went back in time 100 years, we would be debating whether to pave the roads in Cambridge. In the case of broadband, it's creating potential new business opportunities, learning opportunities and economic opportunities for our residents."

Should City Councilors decide to move forward, the study provides a "roadmap" for next steps, which includes meeting with and researching potential partners; selecting a business model; issuing an RFI; preparing and launching a procurement process; evaluating bids and selecting partner(s); conducting final negotiations; and awarding a contract.

As for CTC's recommendation on which business model to pursue, the study says that should the city decide to move forward, CTC recommended the city pursue either building an open-access dark fiber network and lease it to multiple private providers, or enter into a public-private partnership where the private provider shoulders most of the financial risks while allowing the city to retain "long-term ownership" of the network.

Roy Russell, founding member of Upgrade Cambridge, told ILSR he was pleased with the study and the progress city leaders seem to be making to explore how they can bring more reliable and affordable competition to the market.

"One reason municipal broadband runs into trouble, in the few that have had problems, is because they either underestimated the costs or overestimated the revenue," Russell said. "That's why I think this study is great because it's a conservative analysis with plenty of contingencies built in."

Should the city be successful in building a citywide fiber network, "even for the people who wouldn't switch (to a new provider), they still benefit greatly from competitive pressure – better service, cheaper rates. Now, there's no way for the city to monetize that. But, it benefits everyone. So the city should see that, and not look at this as a business proposition in terms of: how are we going to make money off of this," Russell said.

"The city should see this as infrastructure investment the same way we invest in schools, roads, and sewers. It's about providing services. I mean, we’ve spent somewhere around $500 million renovating our schools. And the schools are great. So I see this (construction cost) as the price to get competition in the city. The phrase ‘Feasibility Study’ implies: can we do this? There isn't any question about the technical feasibility. That's well known. It's entirely feasible. So the question is: what is the cost and how much value does it brings the city?"

Now that the study has been completed, Russell says his group has a simple ask – that city leaders "proceed in an open and deliberate manner to better understand the alternatives and the decisions that need to be made. We believe if they look at the value it brings, the answer will be to definitely move ahead."

This article originally appeared on the Institute for Local Self Reliance's Community Broadband Networks project on May 30, 2023, and is reprinted with permission.

The program instructs applicants on best practices to write winning grant applications.

Published

on

By

WASHINGTON, June 1, 2023 – Advocacy group National League of Cities is sponsoring a nationwide program designed to advise cities and towns on how to access federal infrastructure funding.

The Local Infrastructure Hub program is hosting a grant application bootcamp aimed at assisting small- and mid-sized cities and towns in their grant applications. The bootcamp series will begin in June and will focus on the programs funded through the $65 billion Infrastructure Investment and Jobs Act and the Inflation Reduction Act.

The camp comes ahead of the National Telecommunications and Information Administration's allocation by June 30 of the $42.5 billion from its Broadband Equity, Access and Deployment program.

The broadband opportunities bootcamp will introduce cities to the entire ecosystem of federal broadband opportunities and educate them on ways they can engage with the private sector, the NLC said. It will guide them through the process of applying to the Broadband Equity Access and Deployment program, it added.

Participants will be guided through the process of creating an asset map for their community, executing a community engagement strategy, utilizing data to understand problems, aligning applications with broader federal priorities, and writing winning applications through provided templates.

Mayors and municipal staff across a wide range of specialties are eligible to participate. Participants will have access to subject-matter experts and individualized coaching sessions. The program will connect applicants with their peers applying to the same programs, the NLC said.

The free bootcamps will last 3 to 4 months and will require several hours of participation each week per team member. Many city leaders tout the program as being highly successful and influential in their grant application process.

hbspt.forms.create({ region: "na1", portalId: "20721996", formId: "0f5acd00-6960-4d68-8f00-9516bbbca6e9" });

BroadbandNow: Internet Provider Search and research on the digital divide

AT&T Closes Open Access Fiber Deal With BlackRock

Starlink Likes FCC Direction on 12 GHz, Verizon & Comcast Urge ACP Funding, FCC Head on ACP Tour

Scott Wallsten: A $10 Billion Broadband Black Hole?

Broadband Breakfast on June 7, 2023 – Affordable Connectivity Fund (Special Town Hall Edition)

Crown Castle CEO Says 5G Plus Fixed Wireless Can Rival Fiber Connections

Debra Berlyn: Creating a Path to Close the Digital Divide for Older Adults

New ACP Landing Page, Cellular Association Wants More Mid-Band Spectrum, New Ezee Fiber CEO

Revisiting the NTIA's Middle Mile Program Ahead of Funding Announcements