September 19, 2022
Oversight - Broadband and Equal Access to the Internet in New York City.
Int 0112-2022: Establishing a cable franchise agreements website.
Int 0241-2022: Providing public school students with mobile hotspot devices.
Int 0440-2022: Program to provide public access to wireless networks.
Int 0599-2022: Information on affordable internet programs for students and families.
Good afternoon, Chairs Gutiérrez and Riley and members of the City Council Committee on Technology and the Subcommittee on Zoning and Franchises. My name is Brett Sikoff, and I am the Executive Director of Franchise Administration for the Office of Technology and Innovation (OTI). Here with me today is Associate Commissioner and Acting General Counsel Chantal Senatus. Thank you for the opportunity to testify today on one of OTI’s largest priorities: equitable broadband access.
OTI, under the leadership of Chief Technology Officer Matthew Fraser, oversees several initiatives to bring broadband access to historically underserved communities. We believe not having reliable, affordable access to broadband severely limits large segments of the population from fully participating in society. Internet access is not a luxury, but a necessity akin to a utility. The pandemic brought the digital divide into focus, laying bare the gaps in learning and productivity for those who did not have the access at their fingertips.
The City’s broadband strategy and approach has benefitted from the consolidation of the City’s technology offices under the broader OTI umbrella. Under my team, we have brought together the City's franchise authority (previously under legacy DoITT) and have aligned it with the mission to support ubiquitous broadband adoption (previously under legacy MOCTO). We have been able to take a more holistic view of existing programs, contracts, and franchises and account for where the gaps remain. Further, we can continue to move the ball forward on bringing in more internet service providers to give New Yorkers affordable and reliable service, while also considering short-term solutions that address this urgent need.
That is why earlier today, Mayor Adams and CTO Fraser announced the launch of Big Apple Connect, a program that will make free high-speed internet and basic cable TV available to approximately 300,000 New Yorkers living in more than 200 NYCHA developments by the end of 2023. Today, more than 100 developments’ residents are eligible for this new benefit. Once its rollout is completed, Big Apple Connect is projected to be the largest municipal program to cover the cost of internet for public housing residents. This program will provide residents of NYCHA developments a free offering that consists of in-home, high-speed internet connection, basic cable TV service and common area Wi-Fi hotspots selected in consultation with NYCHA.
To get results in a short time frame, we decided to request proposals from existing NYC cable television franchisees, all of whom already have infrastructure throughout NYCHA developments, nearly eliminating the need for additional capital investment, with the ability to quickly deliver services. In the last few months, we have entered into three-year agreements for a bulk purchase of services at a low price with both Altice/Optimum and Charter/Spectrum. These two companies will collectively cover the majority of developments owned and managed by NYCHA. The City is continuing to negotiate with Verizon, which has a citywide cable television franchise.
In addition to making this available within the year, our goal is to make enrollment in the program as seamless as possible. Existing eligible customers of Altice/Optimum and Charter/Spectrum living in NYCHA developments will automatically be enrolled in the program and will only be billed for any additional services they choose to purchase directly. Customers will receive e-mail notifications and mailers explaining why their bills were lowered, as well as information on Big Apple Connect. Residents without existing service will be able to reach out to the companies directly or can sign-up during on-site enrollment events conducted by the companies in partnership with OTI.
The program began in a pilot phase available at 8 developments across all 5 boroughs, including: Mott Haven and Patterson in the Bronx; Langston Hughes and Brownsville Houses in Brooklyn;
Polo Grounds in Manhattan; Queensbridge and Woodside in Queens; and Stapleton in Staten Island. The next phase of sites selected are available on nyc.gov/bigappleconnect.
Big Apple Connect is meant to be complimentary to the existing Affordable Connectivity Program (ACP). This federal program provides eligible households with a $30 a month benefit toward internet service. Although it is not possible to use the ACP benefit and Big Apple Connect for in-home broadband service, all eligible households will have the opportunity to apply ACP to cellular data service. For as long as ACP is available, OTI will continue to promote and support its adoption. We appreciate that the Council has taken many steps to partner with organizations to bring awareness to the program and help residents sign up for ACP across the City.
Support of programs to provide low- or no- cost broadband is one of many strategies OTI oversees. The City must enable ubiquitous fiber infrastructure in order for these services to be provided. At the core of many of the broadband services with which the committees may be familiar are franchises. A franchise is a contract that allows use of the City’s rights-of-way – our streets, sidewalks, and other public assets – to deliver services to the public in exchange for franchise fees. In other words, the City grants a limited right to use these valuable assets, and in return, receives much-needed revenue. Franchises do not cost taxpayer funds; rather, they provide a funding stream. The NYC Council plays a crucial role in the franchise process by passing authorizing resolutions that allow us to solicit and enter into franchise agreements.
OTI administers several franchises, including cable television; public communications structures (LinkNYC public Wi-Fi); mobile telecommunications (mobile phone service); and information services (fiber used for other purposes). It is important to note that although the cable television franchisees – Charter, Altice, and Verizon – all also provide broadband services, the franchise agreements are limited to the provision of cable television, to the extent required by federal law.
LinkNYC remains a cornerstone of the broadband offerings provided via franchise agreement. Nearly 2,000 kiosks have been deployed in all five boroughs, reaching over 11.8 million subscribers. Recently, we unveiled Link5G, the newly designed kiosk that provides all the same amenities as the original Link – free Wi-Fi, nationwide calling, device charging, and quick access to 911 and government services – with the added benefit of multi-tenant 5G. We continue to work with the franchisee, CityBridge, to bring more Links to underserved areas in the outer boroughs and above 96th Street over the next several years.
In addition to Link5G, my team administers mobile telecommunications franchises. These franchises allow companies to build 4G and 5G equipment on light poles and utility poles. Through this franchise, mobile carriers are able to enhance and densify their cellular networks, providing crucial service to anyone who owns a cell phone. More recently, we have provided incentives for these companies to build their equipment in historically underserved areas of the City, ensuring that mobile coverage is equitable.
Finally, information services franchises are held by companies that install and operate fiber optic cable in City streets for the purpose of offering or supporting voice, data, and/or business-to-business internet service across the five boroughs. In the past year, the City has entered into 10 of these franchises, and we continue to consider qualified companies on a rolling basis. These companies’ fiber build provides the foundation for more broadband companies to enter the marketplace, with the hope that more competition will result in lower prices. While we cannot direct the franchisees precisely where to build, we have put incentives in place to encourage build outside the Manhattan core, similarly to our other franchises.
We know that building the foundation for broadband and providing the means to access it is not enough, which is why OTI also funds and administers Connected Communities, a long-term, large-scale digital inclusion initiative that provides digital literacy and employment resources in historically underserved areas for thousands of New Yorkers every year. In partnership with NYC Parks Media Education Labs, the Department for the Aging’s Older Adult Centers, NYCHA’s Digital Van Program, and the City’s three library systems, Connected Communities underwrites over 100 public sites to enable the critical delivery of devices, software, mobile hotspots, and over 24,000 hours annually of high-quality digital literacy programs that help New Yorkers gain essential skills.
I will now turn to the legislation being considered today:
Introduction 112-2022, sponsored by Council Member Holden, would require OTI to post information on our website related to cable franchise agreements. We recently updated our website and do provide information about the cable franchises. We continue to improve it and keep content fresh and would be happy to take feedback from Council on this page in particular.
Next, Introduction 241-2022, sponsored by Chair Gutiérrez, would require OTI, in consultation with the Department of Education (DOE) to provide all students with mobile hotspots. While we are all too familiar with the struggles that students faced during the height of the COVID-19 pandemic, it is our understanding that students in need may already be able to request devices directly from DOE. During the time period of remote instruction, DOE acquired over 700,000 mobile data-enabled devices and approximately 30,000 hotspots that were distributed to schools for use as needed. DOE continues to have a process in place for schools to ask for device needs. Procuring mobile hotspot devices to all students would be a sizable investment in both hardware and monthly service fees. More discussion is needed to determine where the gaps remain to ensure that any large investment is benefiting those who need it most.
Council Member Won’s bill, Introduction 440-2022, would require OTI to establish a program whereby city agencies provide wireless network access for the public to utilize the internet. We appreciate the spirit of this proposal, which appears to seek to leverage current Wi-Fi networks for public uses. Upon review of the bill text, it remains unclear whether the proposal seeks to provide service to an agency’s walk-in customers or to the general public. Further, the capabilities of an agency to provide this service is highly dependent on numerous factors and may require significant infrastructure investments. We’d like to discuss further what the sponsor envisions with this bill, considering the operational and fiscal implications as written.
Lastly, Introduction 599-2022, also sponsored by Council Member Won, would require OTI to provide written materials about affordable internet for wide-ranging outreach to students and families. OTI cares deeply about promoting low- or no-cost broadband service to those most in need, and we appreciate the Council’s focus on educating students and their families about the programs available to them. We have collaborated with DOE to promote ACP in the past and would like to discuss with DOE and the Council additional strategies to better get the word out about current offerings and identify which programs would be appropriate to promote.
I am now happy to take Council Members’ questions.