Oregon Broadband Advisory Council Meeting

January 28, 2021 Virtual Meeting

Attendance Members Present: Kurtis Danka, Miles Ellenby, Joseph Franell, Michael Heffner, Wade Holmes, Lonny Macy, Representative Pam Marsh, Rick Petersen, Jeremy Pietzold, Cheri Rhinhart, Dave Sabala, Commissioner Mark Thompson and Commissioner David Yamamoto

Staff Present: Christopher Tamarin of Business Oregon

Guests: Pam Berrian, City of Eugene; Barbara Cannady, Representative Mark Owens Office; Meredith Coba, Oregon Treasurer’s Office; Peter Cohen, Marion County; Steve Corbató, Link Oregon; Alexander Corvello, Lane County Community and Economic Development; Charles Deister, ; Brett Farrell, OPUC; Diane Garcia, Calix; Rebecca Gibbons, City of Portland; Lori Gleichman, Jefferson County; Jay Gratchner, Verizon; Josh Kvidt, Lyrica Networks; Danielle Gonzales, Marion County; Montana Lewellen, Oregon Cable Telecommunications Association; Rachael Maddock-Hughes, Lincoln County; Nicola Peterson, OPUC; Jim Rennard, Pioneer Connect; Les Ruark, Arlington; and Barry Walton of Corning.

The meeting was called to order at 9:15 am.

Welcome, Introductions Chair Joe Franell called the meeting to order and asked for guest introductions.

Minutes Jeremy Pietzold moved that the November 19, 2020, minutes be approved as distributed. Dave Sabala seconded the motion. The council approved the motion.

National Broadband Activity Updates Chris Tamarin reported on the following national broadband activity regarding infrastructure deployment, technology, market trends, public policy, and illustrations of the value of broadband adoption and utilization since the council’s last meeting.

Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act The Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 was enacted on December 27, 2020, and includes provisions that address broadband deployment, digital inclusion, and broadband affordability through direct appropriations to federal agencies. This means the funding will not come directly to the state, so the state’s benefit from these nationally competitive programs will depend on applications from qualifying consumers, internet service providers, or local and state agencies.

The key broadband-related provisions in the bill include the following: Minutes • USDA Broadband Programs o $635 million for the USDA Reconnect Broadband Loan & Grant Program. o $60 million for the USDA Distance Learning and Telemedicine (DLT) Grant Program. o $35 million for the USDA Community Connect Broadband Grant Program. • FCC Broadband Programs o $98 million to implement the Broadband DATA Act to improve broadband mapping accuracy and accountability. o $3.2 billion Emergency Broadband Connectivity Fund to establish an Emergency Broadband Benefit Program, under which eligible households may receive a discount off the cost of broadband service (up to $50 monthly benefit per eligible household and up to $75 on tribal lands). The FCC has 60 days to create regulations. Public comments are due Jan. 25 and reply comments are due Feb. 16, 2021. o $250 million for the COVID-19 Telehealth Program. o $1.9 billion to “Rip and Replace” certain unsecure equipment as directed by recent FCC regulations. • NTIA Broadband Programs o $300 million to implement a broadband infrastructure deployment grant program benefiting rural areas, prioritizing applications delivering 100/20 Mbps or better broadband service in areas without access to 25/3 Mbps broadband service. o $285 million to create the Office of Minority Broadband Initiatives at the NTIA, focusing on access and adoption for minority communities. o $1 billion to expand access and adoption of broadband on tribal lands. [On January 15th, the U.S. Department of Interior, Indian Affairs issued a National Tribal Broadband Strategy to bring broadband to Tribal communities] • U.S. Department of Education was appropriated $82 billion for continuation of CARES Act programs, allocated as follows, these programs may be used to fund subsidized access to broadband services: o $4.1 billion for Governors Emergency Education Relief (GEER) Fund. o $54.3 billion for Elementary and Secondary School Emergency Relief (ESSER) Fund. While this is a continuation of the CARES Act program, there are slight differences between ESSER and ESSER II. o $22.7 billion for Higher Education Emergency Relief (HEER) Fund. [Summary by state of Colorado]

It is important to note that the bulk of the federal broadband funding programs under CRSSA and other federal broadband programs do not come automatically or directly to Oregon.

The broadband funding that Oregon receives depends on successful proposals from eligible Oregon applicants, and applicants need help with matching funds and technical assistance to be successful in receiving funding.

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 2 of 19 Minutes Federal Communications Commission (FCC) ANNUAL BROADBAND DEPLOYMENT REPORT The Federal Communications Commission (FCC) released last week its most recent report on broadband deployment in America. This is the agency's 14th such report and it includes data regarding school and classroom connectivity. According to a press release from the FCC, the number of rural Americans lacking access to 25/3 Mbps broadband service has fallen more than 45% since 2016. With the report, the FCC noted that the DIGITAL DIVIDE IS RAPIDLY CLOSING. Number of Rural Americans Lacking Access to 25/3 Mbps Broadband Service Has Fallen More Than 46% Since 2016.

Agriculture The FCC’s Office of Economics and Analytics released a working paper on the impact of broadband availability on agriculture on December 15, 2020. The working paper analyzes the impact of increased broadband availability in rural areas on the productivity of U.S. farms, drawing on both FCC data on broadband availability by census tract and U.S. Department of Agriculture data on agricultural productivity by county, for key row crops like corn, cotton, hay, and soybeans. The working paper finds statistically significant effects of increased broadband service, both in terms of lower costs (fertilizer, fuel, seed, etc.) and higher production (yield). To cite one striking result, the analysis finds that a 1% increase in the number of 25 Mbps/3 Mbps or better broadband connections per 1,000 households is associated with a 3.6% increase in corn yields, as measured in bushels per acre.

The paper acknowledges that high-speed connectivity is “considered an essential component of modern agriculture” and sought to quantify the impacts of broadband availability on farming outcomes, but notes that larger farm firms are more likely to utilize broadband and e-commerce than small farms, and farm operations further up the supply chain, such as feed suppliers, are also more likely to do so.

The paper concludes that the research “provides evidence that improved connectivity at higher speed thresholds is an important factor in improving outcomes for U.S. farms” and that “the results clearly indicate that internet access meaningfully contributes to rural infrastructure development.” https://www.fcc.gov/document/paper-shows-positive-impacts-rural-broadband-farm-productivity

Broadband Mapping One day before the departure of Chairman Ajit Pai, the Federal Communications Commission announced new rules pertaining to the collection and verification of broadband availability data. The Federal Communications Commission outlined rules that specify how more detailed broadband coverage information will be collected from providers and how such data can be challenged by stakeholders. Government challenges of FCC broadband data will be submitted through an online portal. The new rules also establish a process for providers to respond to challenges.

The FCC for years has gathered information from service providers about fixed and mobile wireless broadband services offered, but that information has been widely criticized. The FCC has found major inaccuracies in coverage data provided by the carriers–so much so that the commission scrapped plans for a mobility fund that would have targeted rural areas lacking

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 3 of 19 Minutes service. The commission now plans a 5G Mobility Fund program that will not get off the ground until more accurate data is available. https://www.telecompetitor.com/fcc-moves-on-digital-opportunity-data-collection-seeking- better-broadband-data-and-maps/

Rural Digital Opportunity Fund (RDOF) Following the fall auction, the FCC awarded 9.2 billion for 49 states. The auction had been budgeted to award up to $16 billion, which means that the non-awarded balance of $6.8 billion will be allocated toward phase two of the RDOF auction.

386 entities qualified to participate in the RDOF auction. Nearly half, 180, were RDOF auction winners.

Charter Communications, bidding as CCO Holdings, was the biggest Rural Digital Opportunity Fund auction winner in the measured by number of locations. The cable company won $1.22 billion in the auction, which was completed early last week, to bring service to over one million locations in 24 states.

Other big winners include: • LTD Broadband, which won $1.3 billion. That company won funding to bring broadband to 528,000 locations in 15 states. • Rural Electric Cooperative Consortium, which won $1.1 billion for 618,000 locations in 22 states • Space Exploration Technologies Corp (SpaceX), which won $885.5 million for 642,000 locations in 35 states • Windstream, which won $522.9 million for 192,567 locations in 18 states • Frontier, which won $370.9 million for 127,188 locations in eight states • AMG Technology Investment Group, and which has been a bidding entity for Nextlink, which won $429.2 million for 206,136 locations in 12 states • ReSound Networks, which won $310,681,00 for 219,239 locations in seven states • CenturyLink, which won $262.3 million for 77,257 locations in 20 states

According to the FCC, nearly all RDOF auction winners (99.7%) have committed to deploying service at speeds of at least 100/20 Mbps, with 85% getting gigabit broadband. The results point to the success of the weighting system used in the auction, which was designed to favor bids to provide higher-speed service.

The RDOF awards for service territories in Oregon are as follows:

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 4 of 19 Minutes

Following the award announcements, a broad coalition of Republican and Democratic senators and representatives have sent a letter to the FCC asking the commission to thoroughly vet RDOF auction winners. The letter was championed by Senators Amy Klobuchar and John Thune, as well as Representatives James E. Clyburn and Tim Walberg. Also signing the letter were an additional 153 senators and representatives. https://www.telecompetitor.com/congress-asks-fcc-to-thoroughly-vet-rdof-winners-warning-of- long-term-risks/

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 5 of 19 Minutes Connect America Fund II (CAF II) Frontier and CenturyLink told the FCC they may not have met all deployment deadlines for 2020 for the Connect America Fund CAF II rural broadband program. If so, that would mark the second time the companies have missed CAF II deployment deadlines.

The CAF II program awarded funding to the nation’s larger carriers to bring broadband to unserved and underserved rural areas within their local service territories. Frontier accepted $283 million in funding annually and CenturyLink accepted $514 million annually.

Funding recipients were given six years to complete buildouts to a specific number of locations and were given interim deadlines to complete deployment to a specific percentage of locations. The companies must report more definitive deployment data by March 1.

Some operations for which Frontier accepted CAF II funding back in 2015 are now in the hands of Ziply Fiber, which acquired Frontier operations in Idaho, Montana, Oregon, and in May 2020.

In its own letter to the FCC, Ziply said it had met CAF II deployment requirements in all states acquired from Frontier except Washington, where Ziply said it had met over 96% of the 100% deployment milestone. Ziply attributed the delay to the September 2020 wildfires in the region. Remaining Washington locations are expected to be completed by February 16, 2021. https://www.telecompetitor.com/frontier-centurylink-again-may-have-missed-caf-ii-deadlines- for-rural-broadband-buildouts/

Federal Universal Service Fund On December 14, 2020, the Office of Managing Director released a Public Notice to announce the proposed universal service contribution factor for the first quarter of 2021 will be 31.8%, up from the previous quarter’s 27.1%. This sets an all-time record for the highest universal service fund contribution factor ever.

FCC Released Communications Marketplace Report The FCC released a 2020 communications marketplace report on December 31, 2020, which fulfills the Commission’s requirement set forth in RAY BAUM’S Act of 2018 to provide a comprehensive evaluation of the state of competition in the communications marketplace in the United States. The report assesses: the state of all forms of competition in the communications marketplace; the state of deployment of communications capabilities; and barriers to competitive entry. The report also discusses the actions taken by the FCC in the previous two years to address challenges and opportunities in the communications marketplace and help Americans in the face of the pandemic, and the FCC’s agenda for continuing to address the challenges and opportunities for the next two years.

E-Rate Program The Universal Service Administration Company (USAC) recently announced the deadlines for the 2021 federal E-rate program. The filing window for Form 471 applications opened at Noon ET on Friday, January 15 and will remain open until 11:59pm ET on Thursday, March 25. More than $4 billion is available to support, improve school connectivity. https://www.usac.org/e-rate/

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 6 of 19 Minutes

FCC reports increases in Broadband speeds The FCC reported that most providers were delivering the speeds advertised or close to it. The weighted average advertised broadband speed among 10 of the largest U.S. providers was 146.1 Mbps as of September-October 2019. That was an increase of more than 100% from the same period two years earlier.

Mediacom had the best download performance, regularly exceeding its advertised download speed by more than 120%. Other cable companies also regularly delivered more than their advertised download speeds, including Charter, , Cox and Optimum. In addition, telco fiber services from Frontier and Verizon also regularly exceeded their advertised download speeds.

It was a different story with DSL-based offerings. Neither CenturyLink nor Frontier DSL offerings regularly delivered 100% of their advertised DSL download speed; however, CenturyLink and Frontier came close. Both companies’ DSL services had average download speeds that were at least 90% of what the companies advertised.

Data for upload speeds was similar. All the cable companies and all the telco fiber services had average upload speeds exceeding 100% of their advertised upload speeds, while all DSL services except ’s had average upload speeds that were at least 80% of their advertised upload speed.

The superior performance of cable and fiber services over DSL is not a new finding. Previous FCC research has yielded similar results.

In addition, 1% to 8% of subscribers migrated to a higher speed tier using a different technology from what they had in the 2018 study. https://www.telecompetitor.com/fcc-sees-increase-in-advertised-broadband-speeds-most- providers-deliver-speeds-advertised/

New FCC Acting Chair President Biden appointed Commissioner Jessica Rosenworcel as acting chair. She has been a long standing advocate of broadband and believes that the FCC standard should be raised to 100 Mbps.

Changing Patterns of Use Streaming video This month, Roku Inc. reported a significant milestone for the company and the industry. The company announced preliminary estimated data for the fourth quarter ending Dec. 31, 2020, of 51.2 million active accounts—up by approximately 14 million accounts in 2020. The company also announced an estimated 17 billion streaming hours in the fourth quarter for a total of 58.7 billion hours in 2020, an increase of 55% year over year for the quarter and the full year.

There is an ongoing TV streaming trend of how consumers are choosing to watch the content they love. Nearly one third of U.S. households have cut traditional pay TV, according to Roku’s 2020 cord cutting study. Furthermore, eMarketer predicts that by the end of 2024, fewer than half of U.S. households will subscribe to a traditional pay TV service.

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 7 of 19 Minutes https://newsroom.roku.com/news/2021/01/surpasses-50-million-active-accounts-users-streamed- 58/wjajnauh-1609943074

Shopping by Smartphone The convenience of smartphones powered Thanksgiving Day sales online, accounting for half of all transactions. The share of mobile-driven spending increased by 30% compared to the day before. $25.5 billion has been spent via smartphones in November 2020—up 48% YoY, which equates to 38.6% of all ecommerce sales, according to Adobe Insights data. Overall, online shopping continues to break records. Adobe Analytics confirmed its full-season shopping forecast from November through December, of $189.1 billion spent online—up 33.1% YoY. https://www.mediapost.com/publications/article/358167/onlines-3-billion-shopping-days-driving- retail.html

Fixed Wireless An Ericsson report estimates 300% growth in fixed wireless access within the next six years, bringing the number of global connections using fixed wireless technology past 180 million. Almost half of service providers responding to another study, this one from Omdia, believe that fixed wireless is in the two leading 5G use cases. https://www.fiercewireless.com/5g/marek-s-take-fixed-wireless-answer-to-bridging-digital-divide

Broadband Subscriber Growth A new research study by Moffett-Nathanson reports that the COVID-19 Pandemic drove strong Broadband subscriber growth in 2020 with a year-over-year broadband subscriber growth rate of 4.7%, a big jump from the 2.7% rate pre-COVID rate, and the highest in a decade. Most of the growth went to cable companies, while telephone companies, overall, saw a slower rate of broadband subscriber losses. The growth is all the more remarkable given the evident economic stresses on so many families as a result of the COVID recession, though it should also be noted that many service providers did not disconnect service even if bills went unpaid. https://www.telecompetitor.com/report-covid-fuels-strong-broadband-subscriber-growth-higher- margins-will-be-hard-to-repeat-in-2021/

Electric Cooperatives and Investor-Owned Utilities Electric cooperatives and investor-owned utilities are partnering with competitive providers and telephone companies to close the systemic rural broadband gap. Service providers and electric utilities are making last-mile broadband expansion pacts. Because utilities and telcos use one another’s facilities, partnerships between electric utilities and telcos make sense. By working collaboratively, utilities can ease service providers’ access to utility poles and rights of way reducing installation costs.

Broadband service providers working with electric cooperatives to connect middle-mile and last- mile networks may be a new trend. A key reason utilities get into broadband is to serve communities that are either unserved or underserved. This is very much a reflection of the same spirit that took place in the 1930s, when the Rural Electrification Act passed. But these same rural communities are often constrained by the FCC definition of unserved and underserved. According to FCC mapping data, a census block is defined as served if even one residence has 25/3 Mbps service.

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 8 of 19 Minutes By expanding rural broadband, utilities make communities more attractive to consumers and businesses. As broadband is rolled out in remote rural areas, it attracts more people who want to work from home and increases home values. Properties that have fiber access are becoming more valuable. According to a Fiber Broadband Association study, a home’s proximity to a fiber network boosts its value by an average of $5,437.

According to a 2019 fact sheet from the National Rural Electric Cooperatives Association (NRECA), electric cooperatives could bring broadband to 6.3 million households. What’s more, an Institute for Local Self-Reliance report revealed that 90 electric cooperatives have built FTTH networks. https://www.bbcmag.com/community-broadband/electric-cooperatives-investor-owned-utilities- form-new-pacts-to-expand-rural-broadband

Comcast Comcast has announced the third extension of steps it took to make connectivity more accessible to subscribers during the COVID-19 pandemic. The carrier said that until June 30, 2021, it will provide free Internet service for the first 60 days to new Internet Essential subscribers. In addition, the company will provide free access to more than 1.5 million public Wi-Fi hotspots until that date.

Last year, the company said that 90% of the subscribers to the program had not previously had an Internet connection. Comcast has additionally invested more than $650 million in digital skills training and provided 100,000 discounted and subsidized laptops during the life of the program. https://www.telecompetitor.com/comcast-covid-19-assistance-extended-through-june/

Charter Spectrum announced in December 2020 that is has doubled download speeds in 17 of its markets for its basic speed tier from 100 Mbps to 200 Mbps. The 17 markets with the faster Spectrum download speeds have a combined 8 million homes. The faster speeds are available to all new customers. Legacy customers will benefit from the speed boost in the first quarter of the New Year. Customers can choose faster speeds as well. Spectrum Internet Ultra offers download speeds up to 400 Mbps, while Spectrum Internet Gig offers a gigabit connection to the customer’s home. The faster speeds comprise only part of parent company Charter Communication Inc.’s growth plans. With its recent win with the RDOF auction has the company planning a dramatic expansion into more rural markets https://www.telecompetitor.com/charter-spectrum-broadband-download-speeds-double-in-17- markets/

Dish Dish said today that it will use fiber access connectivity from Everstream, Segra, Uniti, and Zayo to provide backhaul and front haul capability for the Dish 5G network. It is the latest of numerous Dish 5G vendor announcements, which the company has been issuing frequently in recent months.

According to Dish, the four fiber access providers collectively will provide fiber coast-to-coast to reach sites covering approximately 60 million Americans. Dish is in the unusual position of building a nationwide 5G network from scratch with the goal of competing with three strong competitors that have decades of experience in the wireless market. While those competitors–

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 9 of 19 Minutes AT&T, T-Mobile and Verizon–are leveraging existing infrastructure to support 5G as they roll out the technology, Dish’s network will be all-5G, with no previous-generation underpinnings. https://www.telecompetitor.com/dish-picks-four-carriers-for-massive-fiber-access-deal-to-power- 5g/

Cybersecurity U.S. Government cyber attack The U.S. Government has been under a sustained and significant cyber-attack. Key federal agencies, from the Department of Homeland Security to the agency that oversees America’s nuclear weapons arsenal, were reportedly targeted, as were powerful tech and security companies including Microsoft. Investigators are still trying to determine what information the hackers may have stolen, and what they could do with it.

The hack began as early as March, when malicious code was snuck into updates to a popular software called Orion, made by the company SolarWinds, which provides network-monitoring and other technical services to hundreds of thousands of organizations around the world, including most Fortune 500 companies and government agencies in North America, Europe, Asia and the Middle East.

That malware gave elite hackers remote access to an organization’s networks so they could steal information. The apparent months-long timeline gave the hackers ample opportunity to extract information from targets including monitoring email and other internal communications. Dozens of security and other technology firms, as well as non-governmental organizations, were also affected. US officials speaking on condition of anonymity, as well as prominent cybersecurity experts, told media outlets they believed Russia was the culprit, specifically SVR, Russia’s foreign intelligence outfit.

“This hack was so big in scope that even our cybersecurity experts don’t have a real sense yet in the terms of the breadth of the intrusion itself,” Stephen Lynch, head of the House of Representatives oversight committee. “A ‘do-over’ is mandatory and entire new networks need to be built–and isolated from compromised networks.” https://www.theguardian.com/technology/2020/dec/18/orion-hack-solarwinds-explainer-us- government

Schools In terms of cybersecurity, the pandemic has been terrible for schools. Universities were bludgeoned by hackers throughout the summer, with ongoing attempts by advanced persistent threat (APT) groups to steal COVID-19 research. Similarly, K-12 and public schools saw an increase in cyberattacks—a trend that apparently shows no signs of slowing down. “Cyberactors” view schools as targets of opportunity, and these types of attacks are expected to continue through the 2020/2021 academic year. These issues will be particularly challenging for K-12 schools that face resource limitations." The attacks include ransomware, denial of service, and bombing. https://www.govtech.com/security/Cyberattacks-on-K-12-Likely-to-Persist-Through-School- Year.html?utm_term=READ%20MORE&utm_campaign=In%202020%2C%20a%20Reckoning%20for% 20Law%20Enforcement%20and%20Tech%20Ethics&utm_content=email&utm_source=Act- On+Software&utm_medium=email

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 10 of 19 Minutes Comcast report on cybersecurity Comcast reports that consumers underestimate the threat. Ninety-six percent of consumers surveyed were unfamiliar with how to answer six basic true/false cyber threat questions. Since last January, xFi Advanced Security has blocked almost 6 billion cybersecurity threats to Comcast Xfinity subscribers’ home networks, according to Comcast’s first “Xfinity Cyber Health Report.” The report combines consumer survey results with data collected by the xFi platform. It found that users have an average of 12 devices per home—two more than a year ago—and that 61 percent say that they plan to buy at least one more connected device during the holidays. The top five most vulnerable devices in connected homes are computers and laptops; smart phones; networked cameras; networked storage devices and streaming video devices. https://www.telecompetitor.com/comcast-cybersecurity-report-consumers-underestimate-the- threat/

Broadband Predictions for 2021 High levels of bandwidth consumptions will continue Although the level of growth will taper off in 2021, high levels of bandwidth consumption will continue in 2021 as some of the digitally enabled business models will persist and evolve to become an essential part of the strategic framework. For example, many companies will retain some version of flexible work arrangements well beyond the pandemic, and some predict that about 20% of remote work will never return to in-person; another example is healthcare where the limits on in-person treatment drove almost a five-fold increase in telehealth-based treatment. Healthcare regulation is expected to continue to be relaxed in 2021, and telehealth utilization is expected to persist, and indeed grow, as the industry evolves business models toward more comprehensive virtual care modalities that include solutions such as remote patient monitoring and age in place. In addition to driving bandwidth consumption, these solutions will over time accelerate the comprehensive re-planning of the communications and computing infrastructures.

Demand for up-stream bandwidth will grow This trend that started in 2020 will continue, as the need for capacity in the upstream will exceed the capacity of most existing cable access infrastructures.

New business models will be explored As bandwidth consumption shifts to homes and other locations, and as bandwidth is increasingly used to replace in-person activities, new frameworks around who pays for broadband will start to be explored.

Beyond broadband networks Although the focus has been on bandwidth capacity, major currents are underway in the broader telecom industry. As digital enablement accelerates, companies in many verticals and consumers in their homes will need increasingly complex applications. Delivering connectivity, while essential, will no longer be sufficient. Offering complex solutions that include connectivity, computation, automation, and generic and vertical application modules will emerge; service providers have the opportunity to play a major role in this emerging area. However, this will require investments, new partnerships, and innovative business models. https://www.nexttv.com/blogs/broadband-networks-predictions-for- 2021?utm_source=SmartBrief&utm_medium=email&utm_campaign=D6676C7F-338F-4804-9FFB- 9FE47D54867C&utm_content=3D21EDF5-4C6B-403D-B95F-F218C818C3B4

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 11 of 19 Minutes

State Broadband Activity Updates Chris Tamarin reported the following state broadband activity regarding infrastructure deployment, technology, market trends, public policy, and illustrations of the value of broadband adoption and utilization since the council’s last meeting.

USDA ReConnect Program PORTLAND—The USDA has awarded $13.2 million to expand high-speed internet in rural Oregon, part of a federal program aimed at accelerating broadband development nationwide. Funding comes from the USDA's ReConnect Program, established in 2018 to generate private sector investment in broadband infrastructure to rural homes, businesses, schools, libraries, hospitals, farms, and ranches.

Casco Communications, a telecommunications company based in Corvallis, that operates as PEAK Internet LLC, received a $6.6 million federal grant and $6.6 million loan to build fiber optic lines serving 10.2 square miles in rural Linn and Polk counties. For its project, Casco Communications plans to build two fiber networks connecting 5,265 households, 31 businesses, 13 farms and two public schools to high-speed broadband. In Linn County, lines will be focused east of Lebanon, south of Sodaville and north of Sweet Home. In Polk County, lines will be west of Monmouth and south of Falls City.

Rick Petersen noted the sustained effort required to apply for and administer federal program funding. He is thankful for the funding and the expansion of broadband infrastructure that it will support.

Zoom Towns We have added a new term to our lexicon: “Zoom towns.” These are scenic places experiencing a surge of house hunters. Booming demand comes from workers freed by the pandemic to work from home long term.

One such place where the pandemic has super-charged an already hot real estate market is Bend, Oregon. "I think 'Zoom town' very accurately captures the experience that we're having right now," said Brian Ladd, a principal broker with Cascade Sotheby's International Realty in Bend.

"For anyone that had interest in moving to a town like ours, that plan was greatly accelerated because of COVID," Ladd said in an interview over Zoom, of course. "When they were able to work remotely, or they were forced to work remotely, all of a sudden it became an option."

Ladd's observations are shared by brokers in at least half a dozen other outdoorsy, vacation destinations around the Pacific Northwest. Places to label as Zoom towns besides Bend could include its resort community neighbor Sunriver and parts of the Oregon Coast.

In Bend and surrounding Deschutes County, the average residential home price in October was up 17% year over year. The median sales price in October in Bend was $560,000. Ladd said the average number of days on the market for desirable homes to go pending is around five days, which means many homes get multiple offers. One of the top five criteria for where people want to live was the ability to get gigabit internet to the house.

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 12 of 19 Minutes https://www.opb.org/article/2020/12/07/coronavirus-pandemic-migration-zoom-towns-pacific- northwest/?utm_medium=email&utm_campaign=First%20Look%20Dec%207%202020&utm_conten t=First%20Look%20Dec%207%202020+CID_81cc8be9648118bc4e7144c5f9709873&utm_source=firstlo ok&utm_term=Read%20the%20story

Municipal Fiber to the Home Hillsboro Hillsboro’s new, city-backed fiber-optic network formally launched in December 2020, eighteen months behind schedule serving just 780 homes and businesses in a single neighborhood near Shute Park with internet and phone service called HiLight. HiLight charges $55 a month for internet speeds of 1 gigabit per second.

Over the next decade, though, Hillsboro plans to expand the project to establish Oregon’s largest publicly run fiber network with prices and speeds that best those offered by the private companies that currently dominate the market. The city has committed $28 million over seven years in hopes of offering its citizens and businesses a better deal and making fast internet access available to households who can’t afford similar packages from Comcast. It has spent more than $9 million so far.

The city maintains it has a unique opportunity to make this project work. It’s collaborating with the Hillsboro School District and connected 44 school facilities to its fiber network. And HiLight will focus initially on the emerging South Hillsboro development, because it’s cheaper to run fiber- optic lines in conjunction with new construction.

HiLight serves just about 2% of Hillsboro addresses at its launch. Over the next year, as it expands into South Hillsboro and southwest Hillsboro, the city hopes the network will reach 4,700 residential and commercial addresses, about 10% of Hillsboro. https://www.oregonlive.com/silicon-forest/2020/12/hillsboro-launches-hilight-aspiring-to-build- oregons-largest-city-run-internet-service.html

Maupin Lynne Ewing, mayor of the 430-resident town of Maupin, saw a lot more faces this year than usual. Located by the Deschutes River in Central Oregon, Maupin is known for summer sports like fishing and whitewater rafting. Nearly one in three residences are vacation homes, though they were mostly full this year as workers fled the cities–something that would not have been possible without the town’s new, publicly owned fiber-optic internet connection.

The network is the result of a four-year collaboration between the city, telecommunications company LS Networks, Hood River internet provider Gorge.net, QLife, a government agency that promotes fiber-optic network solutions, Google and the Gorge Health Council.

The upside of the city-owned network is already being felt. “One of the fly shops got really tech savvy in a hurry,” says Ewing. “They opened an online store, put up videos of how to fly fish. Now their online sales are outpacing their in-store sales.”

A coalition of investors, including LS Networks and Nike, plan to renovate the high school’s track, giving athletes coming to Oregon to train an option outside of Eugene. The network means

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 13 of 19 Minutes athletes from around the world will have unfettered communication, and videos of the trials could be streamed and posted online.

Knowledge workers from Portland have been able to live in Maupin full-time. One of these workers is Michael Jones, senior director of artificial intelligence research at Salesforce. He was not certain the city’s four-year, high-speed internet project would work out when he bought a vacation home in Maupin. Now he has made Maupin his full-time residence. For a subsection of knowledge workers looking to flee the city, Maupin is now an option. The access to outdoors, safety and the cost of living all make a big difference,” says Jones. “It checks a lot of boxes, and I don’t think too many people know about it yet.” Jones has not kept the secret to himself. One of his colleagues has just moved in next door. https://www.oregonbusiness.com/article/tech/item/19236-rural-connections

Mark O. Hatfield Center for Cybersecurity The Portland State University Mark O. Hatfield Center for Cybersecurity has established a Certificate Program in Building Cyber Resilience. The 12-week non-credit professional certificate is designed to help you gain foundational knowledge in cybersecurity so that you can develop policies and strategies to manage your cyber risk. Don’t worry if you don’t have a technical background. The accessible online lessons will get you up to speed so you can navigate current and future cybersecurity challenges. In your virtual class sessions, your program instructors will help you and your classmates unpack and apply key concepts using a case-study approach. • Learn about major types of risk and how they can be mitigated • Create and implement a risk management program for your organization • Explore the intersection of public policy and cyber risk • Build a peer network of other managers, public administrators, and IT professionals in local governments, special districts, nonprofit organizations, tribal governments, small hospitals, and educational institutions • Engage with experts in cybersecurity, collaboration, and local government Learn more by visiting the program website and joining the program’s interest list. Contact: [email protected]

STEM The Oregon Science, Technology, Engineering and Mathematics (STEM) Investment Council recently released Oregon’s 2021-2025 STEM Education Plan, a statewide strategy to young Oregonians for the workforce and ensure that our businesses have the talent they need to grow and thrive. The STEM plan will be used statewide to guide investments, policy, and programming related to STEM education. https://www.oregon.gov/highered/institutions-programs/workforce/Documents/STEM/2021- 2025%20Oregon%20STEM%20Education%20Plan.pdf

OCHIN The Federal Communications Commission (FCC) has chosen 14 pilot programs over 11 states for the Connected Care Pilot Program, awarding applicants $26.6 million for their proposed projects.

The projects are designed to provide connected care services, particularly for low-income and veteran patients. The funding is part of the Universal Service Fund program. The awards are intended to help defray the costs of connected care services for eligible health care providers,

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 14 of 19 Minutes including patient broadband internet access services; health care provider broadband data connections; other connected care information services; and certain network equipment. The largest award was $5.8 million for the OCHIN Consortium based in Portland with 15 sites in Ohio, 16 in Oregon, and 13 in Washington. An OCHIN pilot project will provide patient broadband internet access and wireless connections to approximately 3,450 low-income patients to access connected care services. https://www.telecompetitor.com/fcc-awards-first-quarter-of-100-million-connected-care-pilot- funds/

Hunter Communications Hunter Communications in southern Oregon and northern California, has been awarded $8,223,340 from the California Advanced Services Fund (CASF) to provide high-speed broadband internet services to the Hoopa Valley Reservation, the largest in the state of California. https://www.businesswire.com/news/home/20210120005603/en/Hunter-Communications- Announces-8.2-Million-in-Funding-to-Provide-High-Speed-Broadband-Internet-to-Hoopa-Valley- Tribal-Areas-in-Northern-California

State of the State Broadband was included in Governor Brown’s State of the State address this month. The Governor noted that, as we have seen with the pandemic, broadband, access to the internet, is an essential service just like our electricity. Our kids need it to participate in class, our businesses need it to connect to customers, and our communities rely on it to provide services to their people.

The Governor’s budget invests over $100 million in broadband expansion statewide, with a focus on providing access to communities that have been disproportionately impacted during the pandemic, and ensuring every single school across Oregon is connected to the internet. She noted that this could be a bridge that helps Oregon mend the urban rural divide. And the disparities in access aren’t just a problem here, but across the country. https://drive.google.com/file/d/1Ng5ndPup99JALP5QWZQHrYp7M1z-Dejo/view

Presentation Oregon Public Utility Commission Brett Farrell and Nicola Peterson provided the Council with a briefing on carrier of last resort (COLR) investigation status and the Oregon Universal Service Fund.

In House Bill (HB) 3065, the Oregon Legislature directed the PUC to establish a public process to investigate the continuing relevance of the COLR obligation on telecommunication providers under ORS 759.500 to 759.570. These obligations were created to ensure that, when an incumbent local exchange carrier (ILEC) was granted the exclusive right to serve a designated service territory, the ILEC would provide service to all customers within that service territory. The PUC met with a large group of stakeholders over the course of several workshops to gain insights in the COLR obligation, in addition PUC Staff developed a survey to gather public input from across the state.

The results of the public survey illustrated an urban-rural divide. A divide in the quality of and access to broadband services and the use of basic telephone service. 55% of rural residents have basic telephone service, a far higher rate of retention compared to 42% for urban residents that

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 15 of 19 Minutes have migrated to mobile wireless and VoIP over broadband for their voice service. Another key finding of the survey was that 100% of the respondents said that broadband is either Important or Very Important across both urban and rural areas of the state. The survey also showed the perceived importance of reliable service. Users rely on their telecommunications service for daily communication. We can note that this reliance has become even more important during the pandemic. Rural areas reported higher levels of service interruption that urban areas.

The PUC concluded that the quality and reliability of internet service is closely tied to reliance on basic landline telephone service. Individuals in the survey who had less reliable or slower internet were more likely to indicate that they relied heavily on landline telephone service or believed that access to landline telephone service was important or very important. Promoting Universal Broadband Access Promotes Universal Voice Service. Meeting the broader policy goal of universal access to broadband may mitigate the need underlying the COLR obligation for voice telephony, as broadband service can provide both information and voice services. More than a quarter of Oregonians live in areas that are unserved, underserved, or have older technologies that will not be able to meet the digital demands of the very near future.

The Oregon Universal Service Fund (OUSF) was established to ensure that basic telephone Service is available at a reasonable and affordable rate throughout the state, and as a result of recent legislation to also encourage broadband. Currently, the fund is supported by a 5% surcharge on intrastate retail telecommunications revenue which provided $27.5 million in 2019. The PUC provides subsidies to service providers serving high cost areas to ensure basic telephone service availability. SB1603, passed in the 2020 First Special Session added VoIP and wireless contributors and also capped the fund and surcharge.

The OUSF has been steadily declining due to the market shift away from basic telephone service to wireless and broadband enabled services. It is projected that even with the inclusion of VoIP and wireless contributions, the fund will continue to decline in size. The PUC is currently conducting an investigation of the OUSF (UM2040). Phase I of the investigation is a calculation of disbursements. Phase 1a is a study of the role of competition. Phase II is an accounting and study of operational issues. The investigation should be completed by December 2021.

Work Session OBAC Chair and Vice-Chair elections Joe Franell was re-elected as Chair. Jeremy Pietzold was re-elected as Vice-Chair.

OBAC Policies and Procedures The council’s policies and procedures were reviewed and updated.

Action Item Dave Sabala moved that the policies and procedures be adopted. Wade Holmes seconded the motion. The council approved the motion.

OBAC 2021 Agenda The Council discussed its agenda for 2021. Areas and issues for focus included: • Broadband Action Teams (BATs) • Broadband mapping

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 16 of 19 Minutes • Cybersecurity • K-12 Schools • Telehealth • Digital Inclusion • Agriculture • Oregon Broadband Office

2021 Legislative Session The 2021 Legislative Session has begun. The council surveyed the broadband related bills and resolutions introduced to date.

HB 2410 Prohibits public bodies from contracting with broadband Internet access service providers that do not offer low income rate program that meets minimum standards established by Public Utility Commission by rule. Becomes operative January 1, 2022. Takes effect on 91st day following adjournment sine die. Sponsored by Representative MARSH, Senator FREDERICK. Status: Introduced.

HB 2411 Requires notifications and process for allowing interested telecommunications providers to coordinate with Department of Transportation to include installation of underground infrastructure for provision of broadband as part of certain projects included in Statewide Transportation Improvement Program. Becomes operative January 1, 2022. Takes effect on 91st day following adjournment sine die. Sponsored by Representative MARSH, Senator BEYER. Status: Introduced.

HB 2507 Decouples Oregon Telephone Assistance Program from funding offered by Federal Communications Commission. Modifies sunset provisions applicable to Oregon Telephone Assistance Program. Sponsored by Representative MARSH. Status: Introduced.

HB 2508 Requires Oregon Health Authority to ensure reimbursement of health services delivered using telemedicine. Modifies requirements for health benefit plan coverage of telemedicine. Declares emergency, effective on passage. Status: Introduced.

HB 2603 Requires owners or operators of undersea fiber optic telecommunication cables to obtain financial assurances and create plan for removal of cable. Directs Department of State Lands to study permitting processes for undersea fiber optic telecommunication cables and report results of study to interim committees of Legislative Assembly related to environment no later than September 15, 2022. Takes effect on 91st day following adjournment sine die. Sponsored by Representative GOMBERG. Status: Introduced.

HB 2613 Sets forth certain requirements related to the permitting and siting of broadband infrastructure. Sponsored by Representative BREESE-IVERSON; Representatives POST, SMITH DB. Status: Introduced.

HB 2654 Authorizes electric utility to use or allow for use of electric easement in provision of broadband services. Provides process for property owner to bring action for damages if use in provision of broadband services results in expanded use of easement. Sponsored by Representatives SMITH DB, MARSH, Senators BEYER, FINDLEY; Representative OWENS. Status: Introduced.

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 17 of 19 Minutes HB 2726 Direct Public Utility Commission to study laws related to rural broadband and provide results to interim committees of Legislative Assembly no later than September 15, 2022. Sunsets January 2, 2023. Takes effect on 91st day following adjournment sine die. Sponsored by Representative WITT. Status: Introduced.

HB 2790 Appropriates moneys from General Fund to Oregon Department of Administrative Services for distribution to Curry County for purpose of installing fiber optic telecommunication line to Cape Blanco Airport. Declares emergency, effective July 1, 2021. Status: Introduced.

HB 2841 Directs Oregon Health Authority to award grant moneys to eligible school-based health center pilot projects to expand access to health care services and improve health and education outcomes for students through telehealth. Defines “telehealth.” Establishes eligibility criteria for pilot projects. Directs authority to report to interim committee of Legislative Assembly on effectiveness and success of pilot projects not later than December 31, 2025. Sunsets January 2, 2026. Takes effect on 91st day following adjournment sine die. Sponsored by Representative PRUSAK. Status: Introduced.

SB 11 Requires health benefit plan to reimburse cost of covered telemedicine health service provided by health professional licensed or certified in this state if same health service is covered when provided in person. Sponsored by Senator BEYER. Status: Introduced.

SB 290 Directs Oregon Business Development Department to study rural broadband access in this state. Requires department to submit report on findings to interim committee of Legislative Assembly by September 15, 2022. President of the Senate presession filed at the request of Governor Kate Brown. Status: Introduced.

SB 423 Allows patient located in Oregon to receive health care services through telemedicine from specified out-of- state health care provider. Defines “telemedicine.” Takes effect on 91st day following adjournment sine die. Sponsored by Senator MANNING JR (at the request of Dale Penn - Providence Health and Services). Status: Introduced.

SB 615 Establishes Low Income Broadband Bill Payment Assistance Fund. Directs Oregon Business Development Department to establish by rule program, to be administered by Oregon Broadband Office, for providing broadband bill payment assistance to low income households. Sponsored by Sen FREDERICK. Status: Introduced.

SB 629 Allows pharmacist to use telepharmacy to deliver pharmacy services to patient at remote location. Defines “telepharmacy.” Takes effect on 91st day following adjournment sine die. Sponsored by Senator HANSELL. Status: Introduced.

SB 697 Prescribes additional requirements for health benefit plan coverage of telemedical health services.

SCR 9 Requires committees and subcommittees of Senate and House of Representatives, and joint committees and subcommittees of Legislative Assembly, to accept remote testimony given by telephonic or electronic means. Requires Legislative Policy and Research Director to post on legislative website procedures

Oregon Broadband Advisory Council Meeting, January 28, 2021, virtual on-line web-conference Page 18 of 19 Minutes witnesses may follow to testify remotely. Requires director to post procedures within seven calendar days of adoption of resolution. Sponsored by Senator GIROD; Senators FINDLEY, THATCHER. Status: Introduced.

A survey will be distributed to the Council members to determine which bills and resolutions the Council should support.

Public Questions/Comments Danielle Gonzalez reported that the fiber builds in Detroit and Idanha have been completed in spite the severe infrastructure damage caused by last September’s wildfires. She praised Ziply Fiber and Consumers Power for their extraordinary efforts.

Les Ruark of Arlington thanked Chris Tamarin for his work as Chris retires.

Meeting Schedule The January 28, 2021, meeting of the Oregon Broadband Advisory Council was held as a virtual on-line web-conference. The next meeting of the council will be held on February 25, 2021, as a virtual on-line web-conference. Meeting information will be posted on the council website.

The meeting adjourned at 12:00 pm.

Approved by: Signature on file______February 25, 2021 Joseph Franell, Chair Date Oregon Broadband Advisory Council

Signature on file______February 25, 2021 Christopher Tamarin Date Business Oregon

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