Monday, November 25, 2024
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Sen Cruz to NTIA: A Change Is Gonna Come to BEAD
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Supreme Court Agrees to Hear Fresh Challenge to Agency Power
Emerging Details of Chinese Hack Leave U.S. Officials Increasingly Concerned
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The internet has emerged as a basic utility that is essential for communication, well-being, education, and socioeconomic opportunities, and digital inclusion is increasingly recognized as one factor that influences the social determinants of health. Increasing the proportion of adults with broadband internet is an objective of Healthy People 2030. As with other utilities, such as water and sewer services, where inequities have been patterned by race and political power, evidence exists of a digital divide in internet access. The roots of this digital exclusion stem from unequal distribution of resources by age, sex, race, ethnicity, position in the division of labor, position within a nation (eg, resident vs migrant), and education level, resulting in differential access to digital technologies. The causes of digital exclusion align with conditions faced by migrant and seasonal farmworkers. Interventions are needed to increase internet access and digital inclusion for migrant and seasonal farmworkers in North Carolina.
As a country we have a very short memory when it comes to broadband. Anybody in their late 40s or older clearly remembers twenty-five years ago when the predominant form of broadband was dial-up and we were seeing the first DSL and cable modem trials in the market. But I think most people have forgotten about the state of broadband just ten years ago. We’ve made extraordinary strides with broadband speeds in just ten years. Cable companies now routinely offer gigabit speeds and millions of new fiber passings are being built every year. Fixed wireless access cellular is bringing pockets of 100+ Mbps all around the country. New fixed wireless radios now have big bandwidth capabilities. I don’t think anybody in 2014 could have predicted where we are today with broadband.
The Supreme Court, which dealt a major blow to the power of federal agencies in June, agreed to consider another: whether Congress violates the Constitution by delegating broad discretion to them. The so-called nondelegation doctrine has been largely dormant since 1935, when the Supreme Court struck down New Deal laws for granting too much leeway to agencies with insufficient guidance. A decision reviving the doctrine would be the latest in a sustained series of attacks on what its critics call the administrative state. The new dispute concerns an $8 billion fund that helps pay for telephone and broadband services for poor people and residents of rural areas. Overseen by the Federal Communications Commission, the Universal Service Fund relies on charges imposed on phone bills. Consumers’ Research, a conservative group, challenged the law establishing the program, saying it granted the agency too much discretion. Moreover, the group said, the FCC had acted unlawfully in letting a private entity administer the fund.
I am pleased that the Supreme Court will review the Fifth Circuit’s misguided decision. For decades, there has been broad, bipartisan support for the Universal Service Fund and the FCC programs that help communications reach the most rural and least-connected households in the United States, as well as hospitals, schools, and libraries nationwide. I am hopeful that the Supreme Court will overturn the decision that put this vital system at risk.
Joint Statement of NTCA, CCA, USTelecom on Supreme Court Agreeing to Review Challenge to the Federal Universal Service Fund Contribution Mechanism
We are grateful that the Supreme Court has granted certiorari and will review the Fifth Circuit’s finding that the universal service contribution mechanism is unconstitutional as currently structured. The Fifth Circuit’s decision is contrary to Supreme Court precedent and the decision of several other circuit courts of appeals, and it threatens to undermine universal service programs that, for many decades, have served to promote the availability and affordability of critical communications services for millions of rural and low-income consumers, rural health care facilities, and schools and libraries across the nation. We look forward to presenting arguments in defense of the USF contribution mechanism as the case moves forward, and ultimately to dispelling the uncertainty that these challenges have created in furthering our nation’s mission of universal service.
Under your leadership, the National Telecommunications and Information Administration (NTIA) has repeatedly ignored the text of the Infrastructure Investment and Jobs Act in administering the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program. This past August, I sent you an inquiry regarding NTIA’s decision to hoard nearly $1 billion in BEAD funding to build a central planning bureaucracy that proceeded to impose extraneous mandates on the states and prevent the expeditious delivery of internet access to unserved communities. Instead of working to reverse course on the botched BEAD program, your agency responded by doubling down on its extralegal requirements and evading congressional inquiries. With anticipated new leadership at both NTIA and in Congress, the BEAD program will soon be ‘unburdened by what has been’ and states will no longer be subject to the unlawful and onerous bureaucratic obstacles imposed by the Biden-Harris NTIA. Congress will review the BEAD program early next year, with specific attention to NTIA’s extreme technology bias in defining “priority broadband projects” and “reliable broadband service”; imposition of statutorily-prohibited rate regulation; unionized workforce and DEI labor requirements; climate change assessments; excessive per-location costs; and other central planning mandates. In turn, states will be able to expand connectivity on terms that meet the real needs of their communities, without irrelevant requirements that tie up resources, create confusion, and slow deployment. It is incumbent on you to bear these upcoming changes in mind during this transition term. I therefore urge the NTIA to pause unlawful, extraneous BEAD activities and avoid locking states into in any final actions until you provide a detailed, transparent response to my original inquiry and take immediate, measurable steps to address these issues. I am enclosing a copy of NTIA’s letter to ensure full accountability for decisions that impact American connectivity.
T-Mobile is part of the consortium that won Louisiana's biggest Broadband Equity Access and Deployment (BEAD) award. However, the company declined to provide much detail about the role it's playing. "We'll be bringing wireless service on our 5G network," a T-Mobile representative wrote. The representative declined to provide details. Thus, it's not clear whether T-Mobile is funding the consortium, or whether it will provide fixed wireless or mobile services to Louisiana's BEAD locations.
To take full advantage of online local government services, healthcare and other resources, residents need robust connectivity capabilities—which still aren’t available in some areas of the U.S. An established fiber backbone can enable a fast, reliable connection; yet while 91 percent of state and local leaders said their agencies would benefit from modernizing IT infrastructure in a recent EY survey, only 40 percent identified it as a top priority. Connectivity-related upgrades may seem particularly out of reach for sparsely populated areas and smaller cities. Fiber providers’ deployment efforts have traditionally focused on denser regions where better returns can be realized, due to lower costs per location. The expense involved in installing fiber, for instance, can be beyond the scope of local governments’ budgets. Other funding sources, however, may be an option, including federal grants, says Curtiss Strietelmeier, public sector funding manager at CDW.
City of Boulder, ALLO Communications Agree to Fiber Lease to Deliver Affordable and Reliable High-Speed Internet
The City of Boulder (CO) has developed a transformative agreement with ALLO Communications to bring affordable, high-speed internet access to community members and businesses across the city. This collaboration will significantly enhance Boulder's digital infrastructure, expanding access to high-quality broadband services while fostering equity, inclusivity, and environmental sustainability. This achievement stems from a 2018 decision by City Council to construct a citywide fiber backbone. This forward-thinking initiative secured the city's future ability to support various broadband business models, ensuring long-term flexibility and growth in digital infrastructure.
With a new presidential administration soon upon us, a panel of broadband operators was asked what policy changes they’d most like to see. Leigh Fox, CEO at altafiber, gave a point-blank answer: “Permitting needs to be addressed.” From his perspective, it’s the one thing slowing down broadband deployments, and municipal permitting is “getting tougher and tougher,” he said. Five to ten years ago, a joint use agreement would take around 6-8 months to set up, said Fox. Now, that process can take “18-24 plus months.” Fox wasn’t the only one with permitting gripes. Harold Zeitz, CEO at Ziply Fiber, said in some of the towns Ziply operates in, they only let the company have one permit open at a time. Not only does that elongate the build process, but it makes it more expensive for both Ziply and the municipality.
Shopping for home internet just got a little easier. In April, the Federal Communications Commission launched an initiative to simplify internet shopping. Internet providers are now required to display labels with the key ingredients of their plans—borrowing the nutrition label format from food products. Initially, the rule applied only to providers with more than 100K subscribers, but since Oct. 10, all providers have been required to use the labels. You'll see the broadband labels wherever you shop for internet. You may have to enter your address to see them, but all providers are now required to display them on their websites. The new Trump-appointed chair of the FCC, Brendan Carr, is expected to roll back many of the FCC's initiatives from the past four years, but broadband labels aren't one of them—Commissioner Carr voted for the labels in 2022, arguing that they'd promote transparency and help consumers make informed choices.
Consumer Financial Protection Bureau Finalizes Rule on Federal Oversight of Popular Digital Payment Apps to Protect Personal Data, Reduce Fraud, and Stop Illegal “Debanking”
The Consumer Financial Protection Bureau (CFPB) finalized a rule to supervise the largest nonbank companies offering digital funds transfer and payment wallet apps. The rule will help the CFPB to ensure that these companies—specifically those handling more than 50 million transactions per year—follow federal law just like large banks, credit unions, and other financial institutions already supervised by the CFPB. The CFPB estimates that the most widely used apps covered by the rule collectively process over 13 billion consumer payment transactions annually. The final rule will enable to the CFPB to supervise companies in key areas including:
- Privacy and surveillance
- Errors and fraud
- Debanking
The Supreme Court dismissed an appeal by Meta’s Facebook, allowing to go forward a lawsuit brought by investors who claim they were misled by the social media giant about risks from a massive data breach. The justices wrote in a unanimous, one-line opinion that the case was “improvidently granted,” meaning the court should not have taken it in the first place. The justices did not explain the reasoning for their ruling. The Securities and Exchange Commission mandates businesses disclose information about investment risks, and separate regulations prohibit companies from making misleading or false statements related to the purchase or sale of a stock. The shareholders claim Facebook misled them and did not reveal crucial information about a known risk that could expose the data of Facebook users. Facebook denies the claims.
Left-leaning apps, news websites and social networks are experiencing a spike in engagement following President-elect Trump's election win, further dividing the internet along political lines. It's not unusual for resistance media to rise in response to contentious elections. But the internet itself is becoming more politically divided than ever, driving Americans further into echo chambers. Bluesky, an alternative to Elon Musk's X, saw downloads rise by 430% during election week. For platforms and media outlets looking to become more neutral, playing to everyone's interests may present business challenges. All signs point to online tribalism increasing as the barrier to entry for new digital products lowers, challenging mainstream institutions.
Leaders of the top telecommunications companies were summoned to the White House to discuss a security problem that has been roiling the government: how to expel Chinese hackers from the deepest corners of the nation’s communications networks. The meeting in the Situation Room came after weeks in which officials grew increasingly alarmed by what they had uncovered about the hack. They now believe the hackers from a group called “Salt Typhoon,” closely linked to China’s Ministry of State Security, were lurking undetected inside the networks of the biggest American telecommunications firms for more than a year. They have learned that the Chinese hackers got a nearly complete list of phone numbers the Justice Department monitors in its “lawful intercept” system, which places wiretaps on people suspected of committing crimes or spying, usually after a warrant is issued.
“Americans, your calls and texts can be monitored by Chinese spies,” a Washington Post opinion piece recently headlined. China has “growing cyber-sophistication and relentless ambition to undermine U.S. infrastructure” another Post article reported. Some analyses trace the recent exploitation to a telecommunications network backdoor created early in the era of digital networks to allow for court-authorized wiretaps. When the digital wiretap law was passed in 1994, no one foresaw the kind of sophisticated intrusions apparently developed by the Chinese. It is an experience that we must remember as the design of digital network technology continues to evolve. The current cyberattacks are a clarion call that network security must be both a forethought in network design and an ongoing regulatory responsibility for the agency entrusted with oversight of the nation’s networks.
Donald Trump picked Brooke Rollins as his Agriculture secretary, after weeks of intense internal fighting over the role. Rollins served as director of the Office of American Innovation and acting director of the Domestic Policy Council during the first Trump administration. Since her time in the White House, Rollins has co-founded and helmed the America First Policy Institute think tank, which played an influential role in the transition and has been referred to as Trump’s White House in waiting. Rollins, who grew up on a farm and has a degree in agricultural development, is a surprise pick for the role, with less experience in agriculture policy than those on Trump’s shortlist. The Agriculture Department operates a $430 billion-plus yearly budget and employs 100,000 people. The department shapes nearly every part of the country’s $1.5 trillion food and agriculture industry. If confirmed, Rollins will also oversee the country’s largest anti-hunger program, known as the Supplemental Nutrition Assistance Program (SNAP). It provides food aid benefits to more than 40 million low-income Americans and Republicans are eyeing ways to rein in future spending on the program as part of a major 2025 reconciliation package.
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org), Grace Tepper (grace AT benton DOT org), and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.
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