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The Federal Budget: Spending, Taxes, and Debt

EPIC Regulatory Comment on Local Estimates of Internet Adoption Methodology and Suggestions for Future Improvements

The Federal Budget: Spending, Taxes, and Debt Policy Rapid Response PublicationOctober 11, 2024 By Paul Winfree, Ph.D.
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Introduction

Paul Winfree, Ph.D., and William W. Beach, D. Phil., submitted feedback on the U.S. Census Bureau’s experimental model for estimating local broadband adoption. They offer both commentary on the current methodology and suggestions for potential future improvements to the model, particularly as it relates to rural counties.

Suggestions for Future Improvements:

  1. Inclusion of Satellite Internet Users: The model currently excludes households that subscribe to satellite internet. This results in an underestimation of broadband adoption, especially in rural areas. Given that satellite broadband is often the only viable option for many rural residents, its exclusion almost certainly underestimates actual adoption. We recommend updating the methodology to include satellite internet users as part of the broadband adoption rates. This adjustment will better reflect the reality in many rural communities, where satellite services play a key role in internet access.
  2. Reflecting Technological Advancements: Satellite broadband technology has improved significantly and now meets the Federal Communication Commission’s 100/20 megabits per second (Mbps) standard. With new market participants such as Amazon’s Project Kuiper and other innovations, satellite internet will only grow in importance for rural broadband. The model should be adapted to account for these technological advancements and their future impact on rural internet access.
  3. Alignment with NTIA Guidance: The recent announcement by the National Telecommunications and Information Administration (NTIA) on alternative broadband technology funding highlights the growing acceptance of satellite broadband as a critical solution for underserved areas. The U.S. Census Bureau should consider aligning its future estimates with NTIA’s revised guidelines, which emphasize the importance of alternative technologies, including satellite, in closing the digital divide.
  4. Improved Accuracy for Sub-State Geographies: Accurate broadband adoption estimates are essential for effectively directing federal resources to unserved or underserved areas. It is especially important for sub-state geographies, such as rural counties, where satellite services are often the only available option. Expanding the model to better capture broadband adoption in these areas will ensure more efficient allocation of resources and support for infrastructure development.
The inclusion of satellite broadband users in the current and future iterations of this model is essential for producing a more accurate and comprehensive picture of internet adoption in rural areas. By doing so, the U.S. Census Bureau can improve the accuracy of these estimates and better support the equitable distribution of federal broadband funding. EPIC thanks the U.S. Census Bureau for considering these suggestions as part of their efforts to improve Project LEIA.

Author

Paul Winfree, Ph.D.

Paul Winfree, Ph.D.

President & CEO

Paul Winfree, Ph.D., is the President and CEO of the Economic Policy Innovation Center (EPIC). He has served in top management and policy roles in the White House, the U.S. Senate, and think tanks. Prior to founding EPIC, Winfree served in multiple positions during three different tours at The Heritage Foundation. These included Distinguished Fellow in Economic Policy and Public Leadership, Director of Economic Policy Studies the Richard F. Aster Fellow, and acting Director of the Center for Data Analysis. Before rejoining Heritage in 2018, Winfree was Deputy Assistant to the President for Domestic Policy, the Deputy Director of the Domestic Policy Council, and the Director of Budget Policy, all at the White House. Winfree was also Chair of the Deputies Committee that oversaw the execution of all domestic policy at the Deputy Secretary level throughout the administration as well as the interagency policy coordination process. During the 2016 Presidential Transition, Winfree led the team responsible for the Office of Management and Budget. Winfree served three terms as Chair of the Fulbright Foreign Scholarship Board , a 12-member board selected by the President of the United States. In 2022, he received a distinguished service award from the U.S. State Department’s Bureau of Education and Culture Affairs for his “stewardship during the COVID-19 pandemic, and for meaningful contributions to advance mutual understanding through the Fulbright Program.” Winfree’s research focuses on U.S. economic history, public finance, political economy, the economics of media, and the economics of education. He is author of a book on the evolution of economic and fiscal policy from colonial America until the present called The History (and Future) of the Budget Process in the United States: Budget by Fire (Palgrave Macmillan, 2019). His research has been featured in The Wall Street Journal , The New York Times , The Washington Post , Investor’s Business Daily , USA Today , and Congressional Quarterly , among other publications. Winfree holds a Ph.D. in economics from Queen’s University Belfast, an M.Sc. in economics and economic history from the London School of Economics and Political Science, and a B.S. in economics from George Mason University. He lives in Virginia with his wife and three children.

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