[Senate Report 116-186]
[From the U.S. Government Publishing Office]
116th Congress } { Report
SENATE
1st Session } { 116-186
_______________________________________________________________________
MEASURING THE ECONOMIC IMPACT OF BROADBAND ACT OF 2019
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
OF THE
UNITED STATES SENATE
December 19, 2019.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
99-010 WASHINGTON : 2019
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred sixteenth congress
first session
ROGER F. WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota MARIA CANTWELL, Washington
ROY BLUNT, Missouri AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska TOM UDALL, New Mexico
CORY GARDNER, Colorado GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia TAMMY DUCKWORTH, Illinois
MIKE LEE, Utah JON TESTER, Montana
RON JOHNSON, Wisconsin KYRSTEN SINEMA, Arizona
TODD C. YOUNG, Indiana JACKY ROSEN, Nevada
RICK SCOTT, Florida
John Keast, Staff Director
David Strickland, Minority Staff Director
116th Congress } { Report
SENATE
1st Session } { 116-186
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MEASURING THE ECONOMIC IMPACT OF BROADBAND ACT OF 2019
_______
December 19, 2019.--Ordered to be printed
_______
Mr. Wicker, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 1289) to require the Secretary
of Commerce to conduct an assessment and analysis of the
effects of broadband deployment and adoption on the economy of
the United States, and for other purposes, having considered
the same, ordered to be reported favorably thereon without
amendment and recommended that the bill do pass. The bill was
discharged and passed without amendment in the Senate by
unanimous consent.
Purpose of the Bill
The purpose of S. 1289, the Measuring the Economic Impact
of Broadband Act of 2019, is to require the Secretary of
Commerce to conduct a biennial assessment and analysis of the
effects of broadband deployment and adoption on the economy of
the United States.
Background and Needs
Both the private and public sectors make significant
investments in broadband deployment. According to private
sector estimates, capital expenditures by broadband providers
on their networks have exceeded $1.6 trillion since 1996.\1\
The Federal Government has invested billions in broadband
deployment through various programs, including the Federal
Communications Commission's (FCC) Universal Service programs,
the Department of Agriculture's Rural Utilities Service (RUS),
and the Department of Commerce's Broadband Technology
Opportunities Program. States and localities have also made
investments in broadband buildout. Although more than 98
percent of the population of the country has access to either
fixed terrestrial service at 25 megabits per second (Mbps)
upload speeds and 3 Mbps download speeds or mobile long-term
evolution (LTE) with median speed of 10 Mbps/3 Mbps,\2\ the FCC
continues to report each year that there are millions of
Americans who lack access to high-quality, high-speed Internet
service.
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\1\USTelecom Industry Metrics and Trends 2018, Patrick Brogan,
March 1, 2018 (revised October 18, 2018) (https://www.ustelecom.org/wp-
content/uploads/2018/12/USTelecom-Industry-Metrics-and-Trends-
2018.pdf).
\2\Inquiry Concerning Deployment of Advanced Telecommunications
Capability to All Americans in a Reasonable and Timely Fashion, 2019
Broadband Deployment Report, GN Docket No. 18-238, FCC 19-44 (2019)
(https://docs.fcc.gov/public/attachments/FCC-19-44A1.pdf) at 20.
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Few would dispute that this investment in broadband
deployment has spurred massive economic growth in the United
States over the last 2 decades. According to one private sector
analysis, the broadband industry invests more than $70 billion
annually and supports an estimated 10 million American jobs.\3\
The Department of Commerce has proposed that the Federal
Government engage in more rigorous analysis of the economic
impact of broadband as part of its National Broadband Research
Agenda.\4\
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\3\Broadband Industry Stats, USTelecom (https://www.ustelecom.org/
broadband-industry/broadband-industry-stats).
\4\National Telecommunications and Information Administration and
the National Science Foundation, The National Broadband Research
Agenda: Key Priorities for Broadband Research and Data (January 2017),
at II.D., p. 27 (https://www.ntia.doc.gov/files/ntia/publications/
nationalbroadbandresearchagenda-jan2017.pdf).
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However, the Federal Government has not prepared on a
regular basis an official analysis of the economic impact of
broadband and the larger digital economy on the American
economy. Rigorous, regular analysis can inform government
broadband policies at various levels, including the Universal
Service Fund and RUS programs; Federal tax credits and rebates;
Federal community development programs; Federal grant programs
like those in the American Recovery and Reinvestment Act; State
programs (which support broadband deployment via State
universal service programs, grant programs, loan and loan
guarantees, and others); and numerous local initiatives.
Summary of Provisions
If enacted, S. 1289 would do the following:
Require the Secretary of Commerce, the Director of
the Bureau of Economic Analysis, and the Administrator
of the National Telecommunications and Information
Administration, to conduct an assessment and analysis
of the contribution of the digital economy to the
economy of the United States.
Require the Secretary of Commerce, the Director of
the Bureau of Economic Analysis, and the Administrator
of the National Telecommunications and Information
Administration to submit a report regarding the study's
findings to the appropriate committees of Congress.
Legislative History
S. 1289 was introduced on May 2, 2019, by Senator Klobuchar
(for herself and Senators Boozman, Capito, Cortez Masto, King,
and Sullivan) and was referred to the Committee on Commerce,
Science, and Transportation of the Senate. On May 15, 2019, the
Committee met in open Executive Session and, by voice vote,
ordered S. 1289 reported favorably without amendment. On June
5, 2019, S. 1289 was discharged and passed in the Senate
without amendment by unanimous consent. On June 10, 2019, the
bill was referred to the Committee on Energy and Commerce in
the House of Representatives.
S. 1289 is identical to S. 645, as reported, which was
introduced in the 115th Congress on March 15, 2017, by Senator
Klobuchar (for herself and Senators Capito, King, Heitkamp,
Boozman, Franken, and Sullivan) and was referred to the
Committee on Commerce, Science, and Transportation of the
Senate. Senator Cortez Masto was an additional cosponsor. On
June 27, 2018, the Committee met in open Executive Session and,
by voice vote, ordered S. 645 to be reported favorably with an
amendment (in the nature of a substitute). That bill passed the
Senate with an amendment by unanimous consent on December 13,
2018.
On July 10, 2019, identical legislation to S. 1289, H.R.
3676, was introduced by Representative Khanna (for himself and
Representatives Butterfield, Clarke, Eshoo, Fitzpatrick, Lujan,
and Welch) and was referred to the Committee on Energy and
Commerce of the House of Representatives.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
S. 1289 would require the Department of Commerce to submit
a report to the Congress assessing the effects of broadband
deployment on the U.S. economy. The first report would be due
two years after the bill's enactment, with subsequent reports
due every two years. Such reports would consider the effect of
e-commerce, peer-to-peer commerce (such as Etsy), and the
production of digital media on the U.S. economy. The Department
would be required to consider the effect of broadband
deployment on employment, job creation, business headcounts,
income, telehealth, and agriculture.
Using information from the Bureau of Economic Analysis
(BEA) and the National Telecommunications and Information
Administration, CBO estimates that implementing S. 1289 would
cost $2 million over the 2019-2024 period for the BEA to
coordinate with several federal agencies and to produce the
required analyses and reports; such spending would be subject
to the availability of appropriated funds.
The CBO staff contact for this estimate is David Hughes.
The estimate was reviewed by Theresa Gullo, Assistant Director
for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
number of persons covered
The bill does not authorize any new regulations and will
not subject any individuals or businesses to new regulations.
Indeed, by providing decision-makers with better information
regarding the economic impact of broadband, the bill would
allow more efficient investment in broadband.
economic impact
S. 1289, as reported, is not expected to have a negative
impact on the Nation's economy.
privacy
S. 1289, as reported, is not expected to have an adverse
impact on the personal privacy of individuals.
paperwork
The legislation would not increase paperwork requirements
for private individuals or businesses. It would direct the
Secretary of Commerce to biennially assess and report to
Congress on the contribution of the digital economy (including
broadband) to the United States.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short title
This section would provide that the bill may be cited as
the ``Measuring the Economic Impact of Broadband Act of 2019''.
Section 2. Assessment and analysis regarding the effect of the digital
economy on the economy of the United States
Subsection (a) of this section would set out definitions
used in the section, including listing the appropriate
committees of Congress that would receive the report produced
under this section. It would define broadband as ``an Internet
Protocol-based transmission service that enables users to send
and receive voice, video, data, or graphics, or a combination
of those items.'' Finally, it would direct the Secretary of
Commerce to define the term ``digital economy'' for purposes of
the section, and would direct the Secretary to consider
specific issues when establishing that definition.
Subsection (b) of this section would require that, not
later than 2 years after the date of enactment of the Act, and
biennially thereafter, the Secretary of Commerce, in
consultation with the Director of the Bureau of Economic
Analysis of the Department of Commerce and the Assistant
Secretary of Commerce for Communications and Information,
conduct an assessment and analysis regarding the contribution
of the digital economy to the economy of the United States.
Subsection (c) of this section would set forth the specific
considerations for each biannual report. Specifically, the
Secretary would be required to consider the impact of the
following: (1) the deployment and adoption of digital-enabling
infrastructure and broadband; (2) e-commerce and platform-
enabled peer-to-peer commerce; and (3) the production and
consumption of digital media, including free media.
Subsection (c) would further provide that, as part of each
study, the Secretary also would be required to consult with the
heads of any agencies and offices of the Federal Government as
the Secretary considers appropriate, including the Secretary of
Agriculture, the Commissioner of the Bureau of Labor
Statistics, the Administrator of the Small Business
Administration, and the Federal Communications Commission. In
addition, the Secretary would be required to consult with the
following: (1) representatives of the business community,
including rural and urban Internet service providers and
telecommunications infrastructure providers; (2)
representatives from State, local, and Tribal government
agencies; and (3) representatives from consumer and community
organizations.
Subsection (d) of this section would require the Secretary
to submit to the appropriate committees of Congress a report
regarding the Secretary's findings with respect to each
assessment and analysis conducted pursuant to this Act.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee states that the
bill as reported would make no change to existing law.