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Agenda - Council - 09/13/2022
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Agenda - Council - 09/13/2022
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Council
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09/13/2022
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download speeds. Treasury expects that this threshold will yield long-term benefits and allow <br />networks to meet both pandemic -related and future needs. The Federal Communications <br />Commission (FCC) estimates that currently a household with two to three remote learners using <br />the internet simultaneously needs a connection supporting 100 Mbps download speeds.396 While <br />a lower threshold may have resulted in lower near -term costs to build, it would have potentially <br />constrained future utility from the infrastructure by producing infrastructure that would more <br />quickly — potentially in the near -term — become obsolete and no longer meet household needs, <br />potentially requiring sooner replacement and generally decreasing the return on investment. As <br />such, projects meeting a lower threshold could not be considered "necessary" investments in <br />broadband infrastructure, so Treasury has retained the threshold from the interim final rule. <br />Further, the final rule adds a requirement that recipients address the affordability needs of <br />low-income consumers in accessing broadband networks funded by SLFRF, either by requiring <br />service providers that provide service to households to either participate in the FCC's Affordable <br />Connectivity Program (ACP), or a broad -based affordability program with commensurate <br />benefits. Treasury believes that this requirement will increase the number of customers that are <br />able to take advantage of broadband infrastructure funded by SLFRF, increasing the <br />effectiveness of funds in connecting households and businesses to high-speed internet that is <br />critical to work, health, and education. There is a potential that this requirement may marginally <br />increase project costs for recipients and providers, but this impact is uncertain, given the varying <br />business models and pricing structures of broadband projects and providers. <br />396 See Federal Communications Commission, Broadband Speed Guide, available at <br />https://www.fcc.gov/consumers/guides/broadband-speed-guide (last visited October 28, 2021). <br />396 <br />
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