Monday, March 31, 2025
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There’s still hope for the USF, but no easy fix
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The Supreme Court held oral arguments in Federal Communications Commission v. Consumers' Research, a case challenging the legality of the Universal Service Fund framework. While a decision isn't expected from the court until June or later, at least one analyst believes the USF framework is "more likely than not" to be upheld."After the argument, we believe the current USF framework is more likely than not to be upheld," wrote analyst and former FCC official Blair Levin in a policy note for New Street Research. However, he caveats, that outcome is "not a certainty." Indeed, while Levin expects the three justices appointed by Democrats to uphold the program, "other justices gave indications that they could vote either way," while Justice Neil Gorsuch indicated he would be "one clear vote to overturn the program," said Levin.

The Universal Service Fund’s day in court came and went, and the U.S. telecommunications industry still has hope the subsidy will live to see another day. But even if the Supreme Court deems the USF framework constitutional, there’s still no easy path to reform the program. The Supreme Court heard arguments related to the Fifth Circuit’s decision that the USF’s funding method is unconstitutional. While it’s by no means certain, New Street Research Policy Analyst Blair Levin said the current USF framework is “more likely than not to be upheld.” The bigger question is what happens next. Telecommunications providers are required to contribute a certain percentage of their interstate and international service end-user revenues. The problem is the contribution rate continues to go up, but those revenues are shrinking as more people subscribe to broadband over traditional telephone services.

Though the broadband grant funding debate has occurred in earnest on this community for years and amongst the telecommunications and fiber industries, it’s hardly become a mainstream issue for water cooler conversation—until now. Jon Stewart invited New York Times writer and Vox Media founder Ezra Klein onto his podcast, The Weekly Show with Jon Stewart to discuss—of all things—the Broadband Equity, Access, and Deployment program. Klein is in the midst of a cross country book tour for his new non-fiction book, Abundance. The topic of the Democrats’ addiction to process over outcomes is a major theme of the book, and while appearing on the podcast with Stewart, Klein laid out in detail the 14 steps all the 56 Eligible Entities of BEAD needed to undertake in order to qualify for funding, from the Notice of Funding Opportunity through the challenge process to the final proposal. A gobsmacked Jon Stewart listened and occasionally chimed in with expressions of disbelief at the amount of red tape the National Telecommunications and Information Administration and the Biden Administration behind it put in place for the states and territories to secure the funding, with Klein ending his point on the issue by stating that the Democrats did this to themselves.

Building advanced artificial-intelligence systems will take city-sized amounts of power, which has turbocharged electricity demand projections for the first time this century. Tech companies are pressing into unexpected parts of the country, far from traditional data-center markets such as Northern Virginia. They are hunting for huge swaths of flat land with access to natural gas and transmission lines, landing them on the doorstep of oil-and-gas country, including Louisiana’s Haynesville Shale. Other matchups between tech and natural gas are emerging from North Dakota to West Texas, where the first site for the Stargate venture—a new $500 billion AI infrastructure initiative—will feature on-site natural gas-fired power. Exxon Mobil and Chevron are getting into the electricity business to power AI, too.

Nearly 5,000 people call the Umatilla Nation home. On any given day, residents across the reservation come together to celebrate and honor their heritage and culture. Community is an integral part of every day, and connecting is woven into the fabric of Tribal life. For Tribal communities, ‘connectivity’ means preserving traditions while engaging with the modern digital world. Unfortunately, limited technology and connectivity resources on the Umatilla Reservation have also left many residents without the opportunity and tools needed to thrive in today’s online society. But with the help of a locally run initiative aimed at addressing the technology needs of all Umatilla residents, achieving digital equity may soon be realized. Thanks to a grant through Google.org, Cayuse Native Solutions was selected to join the National Digital Inclusion Alliance’s National Digital Navigator Corps to launch a program providing free, hands-on technology assistance to residents across the reservation. That community-trusted resource is Leo Wallahee, the lead Digital Navigator for the program.

Military families living on Fort Eisenhower are now experiencing faster, more reliable internet thanks to the launch of Boldyn Networks’ Fiber to the Home service. The first phase of this major infrastructure upgrade marks a key milestone in improving the quality of life for over 109,000 military personnel, families, civilians and contractors on base who rely on strong digital connectivity for work, education, and daily life. Boldyn, a leading neutral host and open access provider, has completed the installation of approximately 18.5 miles of fiber throughout the base. In partnership with Army & Air Force Exchange Service, Balfour Beatty Communities, and E-community Fiber, who serves as the Internet Service Provider, the new fiber infrastructure is designed to support the demands of modern military life—serving all of the personnel who live and work at Fort Eisenhower.

Apple is clashing with Elon Musk in its push to eliminate cellphone dead spots with satellite technology. Apple is investing heavily in satellite-based communications that keep users connected in places where traditional wireless signals aren’t available. Musk’s SpaceX, meanwhile, has launched more than 550 satellites that provide cellphone connectivity via its Starlink service. To build capacity, the companies are competing for valuable spectrum rights—airwaves to carry their signals—which are in limited supply. Apple’s outer-space investments have drawn Musk’s ire, people familiar with the matter said. SpaceX has pushed federal regulators to stall an Apple-funded satellite expansion effort. The conflict intensified in recent months after SpaceX and its partner, T-Mobile, sought Apple’s cooperation to offer Starlink on iPhones. The companies engaged in tense discussions and eventually reached an agreement that allows the SpaceX and T-Mobile satellite cellphone service, which will debut this summer, to appear seamlessly on newer iPhones. Apple retains tight control over the iPhone’s largely closed software ecosystem. The feud between Musk and Apple over satellite service pits the world’s richest man against one of the world’s most-valuable companies.

AT&T is preparing a $5.5 billion bid for Lumen Technologies' consumer fiber operations. If that deal goes through, it would have significant implications for other players in the space—particularly T-Mobile. "One would have thought the logical buyer for Lumen fiber homes would be T-Mobile who presumably needs to play catch-up," wrote the financial analysts at TD Cowen in a recent note to investors. But Bloomberg's new report on the possible AT&T/Lumen deal "suggests otherwise," according to the analysts. They contend that AT&T and Verizon are building "kingdoms" of fiber—areas of the country where they can converge high-speed wireline and wireless connections.

National Artificial Intelligence Literacy Day encourages collective action to learn more about AI and reflect on how it shapes the human experience in all aspects of life. AI literacy is for everyone. It’s for people who design technology and people who interact with technology—whether they choose to adopt the latest tools or not—because AI is increasingly embedded into traditional platforms and products. AI literacy is foundational to digital skills training, and a necessary condition for informed AI adoption, where individuals make decisions about their personal use of technology based on an understanding of how it works, how they can leverage it, and what the risks might be in different applications.

Reps Rick Allen (R-GA-12) and Marcy Kaptur (D-OH-9) introduced the Telling Everyone the Location of Data Leaving the U.S. Act (TELL Act) to protect American data from the Chinese Communist Party. The TELL Act would enable the Federal Trade Commission to endorse rules that would make it easier for Americans to know if China has compromised their data and if it is being stored, transferred, or exposed to China or companies owned by the Chinese Communist Party. Under this legislation, failing to disclose this information or providing false information will result in civil fines from the FTC.

I am writing to inform you that I have asked the FCC’s Enforcement Bureau to open an investigation into Disney and ABC. In particular, I want to ensure that Disney and ABC have not been violating FCC equal employment opportunity regulations by promoting invidious forms of DEI discrimination. While I have seen reports that Disney recently walked back some of its DEI programs, significant concerns remain. For one, I want to ensure that Disney ends any and all discriminatory initiatives in substance, not just name. For another, I want to determine whether Disney’s actions—whether ongoing or recently ended—complied at all times with applicable FCC regulations. As you know, Disney started out a century ago as an iconic American company. For decades, Disney focused on churning out box office and programming successes. But then something changed. Disney has now been embroiled in rounds of controversy surrounding its DEI policies. Numerous reports indicate that Disney’s leadership went all in on invidious forms of DEI discrimination a few years ago and apparently did so in a manner that infected many aspects of your company’s decisions. As you may know, the Communications Act and Commission rules prohibit regulated entities like Disney’s ABC from discriminating on the basis of race, color, religion, national origin, age, or gender. Indeed, the FCC’s longstanding equal employment opportunity or EEO rules set forth specific requirements to which Disney’s regulated operations must adhere. Nonetheless, I am concerned that ABC and its parent company have been or may still be promoting invidious forms of DEI in a manner that does not comply with FCC regulations.

Senate Appropriations Committee Chairwoman Susan Collins (R-ME) accused President Donald Trump of illegally refusing to spend $2.9 billion approved by Congress, teaming with Democrats in an early salvo in the simmering struggle between Congress and the White House over which has the ultimate power over federal spending. In a letter signed by committee Ranking Member Patty Murray (D-WA), the legislators asset that the administration had violated the six-month spending law approved by Congress. They pointed to a memo President Trump had sent to Congress on March 24 that declared that only a portion of the $12.4 billion designated as emergency funding in the legislation would actually be spent, “because I do not concur that the added spending is truly for emergency needs.” The appropriators vigorously contested that assertion, arguing that the law requires the administration to spend all emergency money or none of it, and does not allow the president to decide for himself what money to spend and what not to. “Just as the president does not have a line-item veto, he does not have the ability to pick and choose which emergency spending to designate,” the letter said. They noted that the Trump administration’s interpretation of federal budget law was at odds with how presidents of both parties had viewed it for two decades. “It is incumbent on all of us to follow the law as written — not as we would like it to be,” Sens Collins and Murray wrote.

President Trump wrote to White House Office of Science and Technology Policy Director Michael Kratsios, outlining "the road ahead to the Golden Age of American Innovation." The letter included three main questions:
- How can the United States secure its position as the unrivaled world leader in critical and emerging technologies—such as artificial intelligence, quantum information science, and nuclear technology—maintaining our advantage over potential adversaries?
- How can we revitalize America’s science and technology enterprise—pursuing truth, reducing administrative burdens, and empowering researchers to achieve groundbreaking discoveries?
- How can we ensure that scientific progress and technological innovation fuel economic growth and better the lives of all Americans?
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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