Daily Digest 3/27/2025 (Universal Service Fund)

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

Supreme Court Takes a Close Look at USF Contributions  |  Read below  |  Randy Sukow  |  telecompetitor, Associated Press, Bloomberg, USA Today
Commissioner Gomez's Remarks at SHLB USF Conference  |  Read below  |  FCC Commissioner Anna Gomez  |  Press Release  |  Federal Communications Commission
Broadband Advocates Respond to Supreme Court Arguments on USF  |  Read below  |  Press Release  |  Schools Health & Libraries Broadband Coalition
Commerce Secretary’s Proposal to Prioritize Satellite Over Fiber Internet Would ‘Strand’ Rural Communities, Experts Say  |  Read below  |  Sarah Melotte  |  Daily Yonder
Benton Foundation
Is LEO the “Benefit of the Bargain” for BEAD?  |  Read below  |  Drew Garner  |  Analysis  |  Benton Institute for Broadband & Society

Broadband Infrastructure

Does fiber-to-the-premise really matter for AI and the edge?  |  Read below  |  Masha Abarinova  |  Fierce

Wireless/Spectrum

Fixed-Wireless Access Subscribers Benefit from Robust Download Speeds  |  Read below  |  Sue Marek  |  Research  |  Ookla
Sen Cruz Letter to Department of Defense on Spectrum Auctions  |  Read below  |  Chairman Ted Cruz (R-TX)  |  Letter  |  Senate Commerce Committee

Public Media

Elmo and Elon Musk Are Cited as G.O.P. Lawmakers Grill PBS and NPR  |  Read below  |  Benjamin Mullin, Michael Grynbaum  |  New York Times

Privacy

The fearful traveler’s guide to locking down phones and other devices  |  Washington Post

Security

Intelligence officials remain defensive on Signal debate  |  nextgov
Signal Chat Disclosure Poses Early Test for F.B.I. and Justice Dept.  |  New York Times
U.S. Adds Export Restrictions to More Chinese Tech Firms Over Security Concerns  |  New York Times

Platforms/AI

President Trump floats easing tariffs on China in return for TikTok deal  |  Guardian, The
TikTok Appears to Be Here to Stay. What Does That Mean for Us?  |  New York Times
Utah governor signs online child safety law requiring Apple, Google to verify user ages  |  CNBC
Judge allows 'New York Times' copyright case against OpenAI to go forward  |  National Public Radio
Job hunting and hiring in the age of AI: Where did all the humans go?  |  Washington Post

Lobbying

Trump cuts have hit government agencies investigating Elon Musk’s businesses. Here’s a breakdown  |  Los Angeles Times
NDIA Affiliates Meet Legislators on Capitol Hill  |  Read below  |  Amy Huffman  |  National Digital Inclusion Alliance

Government & Communications

Voice of America Director Sues Trump Officials Over Shutdown  |  New York Times

Government Performance

Trump Blocks 10% of Funds for Key Agency in US-China Tech Race  |  Bloomberg

Stories From Abroad

UK Government AI roll-outs threatened by outdated IT systems  |  Guardian, The
China built hundreds of AI data centers to catch the AI boom. Now many stand unused.  |  MIT Technology Review

Industry News

Podcast | Why ISPs should evolve into experience providers—and who can help  |  Connected Nation
Google Fiber’s Nick Saporito sour on fiber-wireless bundles  |  Light Reading
EchoStar open to cutting wireless deals with cable operators  |  Light Reading
New Street Research: AT&T acquisition of Lumen is telecom’s most likely deal  |  Fierce
Google Strips DEI Language From Some Internal Research Studies  |  Information, The
Today's Top Stories

Supreme Court Takes a Close Look at USF Contributions

It was to be one hour of oral arguments about the Federal Communications Commission’s (FCC’s) Universal Service Fund (USF) program, considering whether Congress delegated too much of its authority when it created the program in the Telecommunications Act of 1996. Instead, U.S. Supreme Court justices spent more than two and a half hours peppering attorneys with questions about the nature of USF, whether the statute fails to set limits on the amount of funding it can collect and whether those fees are, in fact, taxes on the American public that Congress never debated. “At its heart, this case is about taxation without representation. Every year, Americans pay billions for the Universal Service Fund. The rate has increased 10-fold, and the rate is now 20 times the size of the FCC’s entire annual budget,” said R. Trent McCotter, attorney representing Consumers’ Research. During oral arguments, McCotter also claimed that Section 254 of the 1996 Telecommunications Act places no limit on the amount the FCC could collect in fees, which currently total about $9 billion annually. The act specifies that telecommunications carriers must pay a percentage of their interstate revenues into the fund. The contribution rate is currently more than a third of those revenues. Carriers then pass that expense on to consumers. During questioning, Supreme Court Justice Neil Gorsuch said his belief that the USF contribution system “is so clearly a tax.” But he was open to arguments that the system was constitutional regardless of whether it was a tax or a fee. Acting Solicitor General Sarah Harris referred repeatedly to case law, especially the 1989 case Skinner v. Mid-America Pipeline Co., where the court has approved similar revenue-collecting systems established by federal agencies.

Commissioner Gomez's Remarks at SHLB USF Conference

FCC Commissioner Anna Gomez  |  Press Release  |  Federal Communications Commission

This country has long valued ensuring connectivity for all—regardless of income, location, or circumstance. The Universal Service Fund or USF has been an essential part of that promise, providing the funding necessary to connect millions of Americans. Whether through a phone line, broadband connection, or both, access to communications has been critical for economic opportunity and equality. When we invest in connectivity, we invest in people. We invest in their futures. We invest in the next generation’s ability to learn, in rural communities’ access to healthcare, and in working families’ ability to thrive in an increasingly digital world. And it is always important to remember the big picture, ensuring widespread access to broadband is a key ingredient to continued economic leadership.  The Universal Service Fund supports essential programs that address that goal by reaching nearly every corner of the country: More than 54 million students, and over 132,000 schools and library sites rely on the ERate program for internet access. This ensures that no child is left behind due to lack of broadband....  In recent years, members of both parties have come together in an effort to protect and strengthen the USF. However, despite this broad support, the program remains under threat. There is no way that we can ensure connectivity for all if we accept that market forces and realities will simply leave schools, hospitals, and low-income people -- especially those in hard to reach areas -- on the wrong side of the digital divide. Failure to protect the program would disproportionately impact those who need connectivity the most, deepening economic and social inequalities. For decades, the USF has stood as a promise to the American people: that no community will be left behind in the digital age. We must honor that promise. The stakes are too high to turn back now. 

Broadband Advocates Respond to Supreme Court Arguments on USF

The Supreme Court heard oral arguments in the consolidated cases Nos. 24-354 and 24-422, which will determine the future of the Universal Service Fund and the federal government’s ability to ensure affordable broadband access. The Schools, Health & Libraries Broadband (SHLB) Coalition—a party to the case—and allied organizations, including the Benton Institute for Broadband & Society, the National Digital Inclusion Alliance, and MediaJustice, responded to the day’s proceedings with a renewed commitment to protecting critical access to affordable, robust broadband for anchor institutions and their communities. "The oral arguments today confirmed what we’ve long known: the Universal Service Fund is critical to delivering education, healthcare, and economic opportunity," said Adrianne Furniss, Executive Director of the Benton Institute for Broadband & Society. "Congress gave the FCC clear authority to fulfill the promise of universal connectivity."

Commerce Secretary’s Proposal to Prioritize Satellite Over Fiber Internet Would ‘Strand’ Rural Communities, Experts Say

Sarah Melotte  |  Daily Yonder

In early March, U.S. Secretary of Commerce Howard Lutnick proposed changes to a federal broadband connectivity program that would favor Low Earth Orbit satellite connectivity, like Starlink, over fiber optic, a faster and more reliable form of internet access. Critics say Secretary Lutnick’s proposal to prioritize LEO will worsen the digital divide by abandoning rural communities without the long term economic benefits of fiber optic infrastructure. Broadband Equity, Access, and Deployment, or BEAD, is a $42 billion grant program created by the Biden administration under the Infrastructure, Investments, and Jobs Act of 2021. BEAD aims to connect 25 million Americans with high speed internet in all 56 states and territories. Lutnick’s proposed changes would exacerbate the digital divide between rural and urban residents, according to the Benton Institute’s Broadband & Society Director of Policy Engagement Drew Garner. Garner said that fiber optic infrastructure is faster, more reliable, and a larger driver of economic growth compared to satellite internet technology.

Is LEO the “Benefit of the Bargain” for BEAD?

Drew Garner  |  Analysis  |  Benton Institute for Broadband & Society

In March 2025, U.S. Secretary of Commerce Howard Lutnick launched an effort to change key elements of the $42 billion Broadband Equity, Access, and Deployment (BEAD) Program, which Congress established in the Infrastructure Investment and Jobs Act of 2021. Secretary Lutnick’s stated goal for the reforms is to get the “benefit of the bargain.” To accomplish this, Secretary Lutnick reportedly plans to shift BEAD away from the deployment of fiber networks, which can be expensive, and toward the deployment of low-earth orbit (LEO) satellite networks, which can be relatively cheap. But who, exactly, stands to benefit from this bargain? And is LEO really the bargain that Secretary Lutnick seems to think it is?

Does fiber-to-the-premise really matter for AI and the edge?

Masha Abarinova  |  Fierce

It’s fairly obvious by now long-haul fiber and data center connectivity matter for AI innovation. But where do last mile fiber-to-the-premises deployments factor in? Network automation is perhaps the most apparent use-case, but fiber operators are also be well-positioned to house future AI edge applications. According to Jack Gold, founder and principal analyst at J.Gold Associates, fiber has an advantage at the edge as it’s an area where satellite providers like Starlink can struggle. “Starlink has a significant latency problem for things like AI, since the round trip to the satellite, and speed of network are vastly slower than a fiber connection, and more costly as well,” Gold said. Then there's using AI for FTTP network deployment and automation. Nokia recently unveiled the Broadband Easy platform, which leverages AI to provide operators “full visibility and control” of the entire fiber rollout process. Analysts indicated the technology could be a saving grace for companies riddled with rising deployment costs. 

Fixed-Wireless Access Subscribers Benefit from Robust Download Speeds

Sue Marek  |  Research  |  Ookla

Fixed wireless access has steadily gained popularity in the U.S. over the past four years and now the service has more than 11.5 million subscribers—and that’s just counting the FWA subscribers from the big three nationwide operators. Today, FWA is considered a viable broadband competitor, and its traction with customers has caused many cable operators to lose customers to FWA. 

  • As of Q4 2024, T-Mobile’s FWA subscriber base tops 6.43 million. However, that growth in FWA subscribers hasn’t impacted the company’s download speeds. T-Mobile’s FWA median download speeds increased more than 50% from 134.99 Mbps in Q4 2023 to 205.44 Mbps in Q4 2024.  
  • AT&T’s Internet Air FWA customers experience strong median download speeds of 150.47 Mbps (as of Q4 2024). 
  • T-Mobile consistently outpaces the competition when it comes to median upload speeds. 
  • Verizon and T-Mobile have both recently increased their goals for the number of FWA subscribers they plan to attract by 2028. Verizon increased its goal to 8 million to 9 million by 2028 and T-Mobile increased its goal to 12 million by 2028. 

Sen Cruz Letter to Department of Defense on Spectrum Auctions

Chairman Ted Cruz (R-TX)  |  Letter  |  Senate Commerce Committee

On March 25, Senate Commerce Committee Chairman Ted Cruz (R-TX) wrote to Defense Secretary Pete Hegseth to request that the Department of Defense turn over any Biden-era documents referring to the Federal Communications Commission's spectrum auction authority. In the letter, Sen Cruz details allegations that Biden-era DOD officials pressured defense contractors to lobby against reauthorizing auction authority. He wrote, “Specifically, the Committee has been made aware that multiple Pentagon officials and career staff during the Biden administration engaged directly with members of the United States defense industrial base and encouraged, and potentially pressured, them to lobby the Congress in opposition to legislation related to reauthorizing the Federal Communications Commission spectrum auction authority. This kind of jawboning is corrosive to the trust between elected lawmakers and Pentagon officials and is precisely why Congress outlawed direct lobbying by executive branch agencies in the first place."

Elmo and Elon Musk Are Cited as G.O.P. Lawmakers Grill PBS and NPR

Benjamin Mullin, Michael Grynbaum  |  New York Times

Congressional Republicans laced into PBS and NPR, accusing the country’s biggest public media networks of institutional bias in a fiery hearing that represented the latest salvo against the American press by close allies of the Trump administration. Representative Marjorie Taylor Greene (R-GA), who organized the hearing which she called “Anti-American Airwaves,” opened her remarks by deriding PBS and NPR as “radical left-wing echo chambers” that published skewed news reports and indoctrinated children with L.G.B.T.Q. programming. The leaders of both PBS and NPR testified that those claims were untrue, arguing that their stations served as a crucial source of accurate information and educational programming for millions of Americans, even as the NPR chief executive acknowledged regrets for posting critical remarks about President Trump before she joined the broadcaster. Democratic committee members mocked the proceedings as a cynical excuse by Republicans to air a familiar list of grievances against the news media. Several Democrats tried to shift focus to the Trump administration, citing the revelation that top security officials inadvertently included the editor of The Atlantic on a group chat planning a military operation. The hearing, organized by a new congressional subcommittee, Delivering on Government Efficiency, represented another front in an extraordinary two months of unrelenting attacks on the news media led by the Trump administration and its allies.

NDIA Affiliates Meet Legislators on Capitol Hill

On March 5th, 16 National Digital Inclusion Alliance affiliates from across the country, half of the NDIA team, and several of NDIA’s partners spent the day on Capitol Hill to share with Congress how NDIA’s 2,000 affiliates help people in their districts get and stay online safely. In total, we had 65 meetings with staff from the Senate and House offices of 23 states. We met with staff from both committees that oversee digital equity and broadband policy in the Senate and House—the Senate Commerce Committee and the House Energy and Commerce Committee. We got to sit in on a live hearing that the House Energy and Commerce Committee hosted on broadband programs. And bonus, some affiliates even got to meet their representatives in person! Our goal was to educate Members of Congress about the essential work that digital inclusion practitioners do across the country and how vital it is to their other goals and priorities. We also dedicated time to ensuring that congressional members and their staff understood the fundamentals of the Digital Equity Act (DEA), including its purpose, how it interacts with other broadband programs, and its current (precarious) status.

Submit a Story

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.


© Benton Institute for Broadband & Society 2025. Redistribution of this email publication — both internally and externally — is encouraged if it includes this message. For subscribe/unsubscribe info email: headlines AT benton DOT org


Kevin Taglang

Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
1041 Ridge Rd, Unit 214
Wilmette, IL 60091
847-220-4531
headlines AT benton DOT org

Share this edition:

Benton Institute for Broadband & Society Benton Institute for Broadband & Society Benton Institute for Broadband & Society

Benton Institute for Broadband & Society

The Benton Institute for Broadband & Society All Rights Reserved © 2024