Daily Digest 4/1/2025 (No Joke)

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

Rural internet program on hold as Musk’s satellites get new consideration  |  Read below  |  Julian Mark  |  Washington Post
Slowing BEAD to Speed Up Satellites: Evaluating Trade-Offs in Rural Connectivity  |  Read below  |  Nat Purser  |  Analysis  |  Public Knowledge
An Industry on Hold  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting
Reps Landsman, Carter Lead on Letter Urging Commerce Secretary to Release Broadband Program Funds  |  Read below  |  Rep Greg Landsman (D-OH-1), Rep Troy Carter (D-LA-2)  |  Letter  |  House of Representatives
Congressman Taylor Introduces Bill Aimed at Expanding Broadband Access Across Appalachia  |  Read below  |  Rep Dave Taylor (R-OH)  |  Press Release  |  House of Representatives

Local/State Initiatives

Benton Foundation
Fiber Public-Private Partnerships in the BEAD Era: How Localities Can Attract Broadband Investment  |  Read below  |  Wim Verdouw, Zachary Karson, Joanne Hovis  |  Analysis  |  Benton Institute for Broadband & Society
Governor Hochul Announces Nearly $50 Million Available Through an Expansion of the ConnectALL Municipal Infrastructure Program  |  Read below  |  Press Release  |  New York Office of the Governor
Governor Patrick Morrisey Announces Collaboration With Trump Administration To Bring Broadband Investments to West Virginia  |  Read below  |  Press Release  |  West Virginia Office of the Governor
Minnesota and Maine Share Ideas on the Future of BEAD With Secretary Lutnick  |  Read below  |  Carl Weinschenk  |  telecompetitor

Spectrum/Wireless

Major Low-Power TV Station Owner Wants to Shift to Datacasts  |  Read below  |  Jake Neenan  |  Broadband Breakfast
DOGE Should Focus On Wasted Federal Spectrum  |  Read below  |  Thomas Lenard, Lawrence White  |  Op-Ed  |  RealClearMarkets
The Looming Spectrum Crisis  |  Read below  |  Research  |  Accenture

Health

Let’s Not Move Backward on Telehealth and Hospital-at-Home Services  |  Read below  |  Shira Hollander, Lisa Tripp, Blair Levin  |  Op-Ed  |  DC Journal
The first trial of generative AI therapy shows it might help with depression  |  MIT Technology Review

Education

Teachers warn AI is impacting students' critical thinking  |  Read below  |  Ivana Saric  |  Axios

Devices

Establishing the United States Investment Accelerator  |  Read below  |  President Donald Trump  |  Public Notice  |  White House

Platforms/AI

AI eats social media as xAI swallows X  |  Read below  |  Scott Rosenberg  |  Axios
OpenAI finalizes a record $40-billion funding round  |  Los Angeles Times

Government Performance

Assessing Elon Musk’s Misleading Claims About Fraud in Government Spending  |  New York Times

Industry News

Lumen Transports 1.2 Tbps Signal Across 1,800 Miles  |  Read below  |  Phil Britt  |  telecompetitor
Huawei Investment & Holding Co., Ltd. 2024 Annual Report  |  Huawei

Stories From Abroad

How subsea cable cuts put spotlight on Internet resilience  |  Read below  |  Nicole Ferraro  |  Light Reading
French Competition Watchdog Fines Apple $162.4 Million Over App Tracking Transparency  |  Read below  |  Edith Hancock  |  Wall Street Journal
Today's Top Stories

Rural internet program on hold as Musk’s satellites get new consideration

Julian Mark  |  Washington Post

Recipients of Broadband Equity Access and Deployment (BEAD) grants have expressed worries that years of planning to bring internet to underserved rural households could be stymied by the Trump administration’s shift in the program’s direction. Under the original plan, which Congress approved with bipartisan support in 2021, Louisiana was set to receive $1.4 billion as part of the $42 billion program. Commerce Secretary Howard Lutnick announced in March that the program would drop Biden’s “woke mandates” and “burdensome” regulations, and take a “tech-neutral” approach to getting internet to rural residents. “Under the revamped BEAD program, all Americans will receive the benefit of the bargain that Congress intended,” Sec Lutnick said on March 5. “We’re going to deliver high-speed internet access, and we will do it efficiently and effectively at the lowest cost to taxpayers.” The program has been designed overwhelmingly around installing underground fiber-optic cables, a medium widely seen as a gold standard for fast and reliable internet. Some critics of the BEAD program say that approach is too expensive and time-consuming, and that using the “low-orbit satellite” technology offered by Starlink and Amazon’s Kuiper costs less and can get people connected faster. Comparing costs is not a simple matter, though. While satellite internet is cheaper to set up initially and works well for remote areas, the technology would cost households far more in the long run, said Drew Garner, director of policy engagement at the Benton Institute for Broadband and Society, an Illinois-based nonprofit. Starlink rates run about $120 a month, according to its website. The average fiber plan costs around $80, though prices vary broadly with speed. Many BEAD participants welcome some of the changes — such as tossing environmental and labor requirements — but say further delays would cause costly setbacks. And any shift to having states cover more rural areas with satellite internet, such as Starlink, could saddle households with inferior service and higher costs in the long run, some providers said.

Slowing BEAD to Speed Up Satellites: Evaluating Trade-Offs in Rural Connectivity

Nat Purser  |  Analysis  |  Public Knowledge

The Commerce Department is considering changes to the distribution of the $42 billion Broadband Equity, Access, and Deployment program that could significantly delay broadband deployment and redirect billions away from fiber and fixed wireless in favor of Low-Earth Orbit satellite services like Starlink’s. LEO satellites have distinct advantages in remote areas, but they also have technical & economic tradeoffs that would undermine BEAD’s long-term goals of reliable, scalable broadband access. Any reforms we make to BEAD should accelerate our progress, safeguard state choice over the technologies they invest in, and ensure rural America enjoys enduring, robust connectivity. Some key risks of the proposed changes include:

  • Delayed Deployment
  • Worse Consumer Outcomes
  • Higher Cost to Consumers
  • Local Economic Impact

An Industry on Hold

Doug Dawson  |  Analysis  |  CCG Consulting

I keep seeing articles or podcasts speculating on what the new administration and Congress might change in the $42.5 billion Broadband Equity, Access, and Deployment grant program. This all seems like speculation to me since only a few people really know what might happen, and I don’t think they are the ones talking. There is one thing that definitely has occurred. A large chunk of the industry that was expecting to participate in BEAD is largely on hold—and feeling the stress. That group includes the many internet service providers that have filed or plan to file BEAD applications. It also includes State Broadband Offices that are marching on with the program, but spending a lot of energy speculating on what they might have to rework, and worrying that they’ll not have enough money to do this all a second time. The group feeling the most pain are the vendors expecting to sell to BEAD grant winners. The group has already had a few letdowns, and now they see the process entering April 2025 with no idea of when grants will be made and when ISPs might start ordering equipment. 

Reps Landsman, Carter Lead on Letter Urging Commerce Secretary to Release Broadband Program Funds

Rep Greg Landsman (D-OH-1), Rep Troy Carter (D-LA-2)  |  Letter  |  House of Representatives

Reps Greg Landsman (D-OH-1) and Troy Carter (D-LA-2) led ten other members of the House Communications Subcommittee to send a letter to Commerce Secretary Howard Lutnick urging the immediate release of stalled Broadband Equity, Access, and Deployment program funds. "While we understand you have launched a review of the program, we urge you to consider the reality of where BEAD sits today and the consequences of retroactive mandates at this late stage. Despite predictions to the contrary, the so-called “pointless requirements” have not deterred private industry participation in BEAD. As a matter of fact, private industry is participating in BEAD en masse across states, with completed or open subgrantee selection processes already resulting in highly competitive bids promising to bring new infrastructure to historically unserved rural areas. It would be highly detrimental to introduce new elements of uncertainty to a program that is primed for success in the near term."

Congressman Taylor Introduces Bill Aimed at Expanding Broadband Access Across Appalachia

Rep Dave Taylor (R-OH)  |  Press Release  |  House of Representatives

Rep Dave Taylor (R-OH-02)  introduced the Expanding Appalachia’s Broadband Access Act, which aims to increase access to broadband for rural communities across Appalachia. The Expanding Appalachia’s Broadband Access Act will direct the submission of a request to the U.S. Government Accountability Office (GAO) to conduct a study on the capabilities of low-orbit satellites operated under the purview of the Appalachian Regional Commission (ARC). This study would additionally assess the capabilities of low-orbit satellites for business services to ensure these satellites can meet businesses’ needs. It would also require an evaluation of economic development in areas already utilizing low-orbit satellites to determine the increase in resulting economic growth. If favorable results are produced from this study, the Expanding Appalachia’s Broadband Access Act will allow for the potential inclusion of low-orbit satellites in the Broadband Equity Access and Deployment (BEAD) program.

Fiber Public-Private Partnerships in the BEAD Era: How Localities Can Attract Broadband Investment

Wim Verdouw, Zachary Karson, Joanne Hovis  |  Analysis  |  Benton Institute for Broadband & Society

The expansion of broadband in the United States is at a critical inflection point. Massive uncertainty about the federal government's investment in rural connectivity is grabbing headlines, as the new Administration openly ponders changes to the Broadband Equity, Access, and Deployment (BEAD) Program that could favor satellite technology at the expense of robust terrestrial technology such as fiber. At the same time, many localities are still struggling to determine how best to use their American Rescue Plan Act (ARPA) funds for broadband projects, even as the clock is set to run out on their ability to spend those funds. Given these uncertainties, local governments should be thinking about how to understand and navigate the coming federal policy changes—and private market forces—and developing strategies to attract broadband investment in their communities. This brief discussion provides insights and guidance for localities on why and how to initiate a competitive partner selection process to advance their broadband policy goals, to leverage both public and private investment.

[Wim Verdouw is a principal at Rebel’s Washington (DC) office, with 20 years of experience in financial analysis, project development and project implementation in broadband, transportation, renewable energy, water, and social infrastructure sectors. Zachary Karson is a manager at Rebel with over 7 years of experience advising both public and private sector clients on infrastructure projects in various sectors, including broadband, mass transit and mobility, renewable energy, water, and wastewater. Joanne Hovis is a broadband analyst and president of CTC Technology & Energy. For more than 25 years, she has advised state and local governments in development of collaborations with the private sector to address broadband and connectivity needs.]

Governor Hochul Announces Nearly $50 Million Available Through an Expansion of the ConnectALL Municipal Infrastructure Program

Press Release  |  New York Office of the Governor

Governor Kathy Hochul highlighted the launch of Phase 4 of New York State’s Municipal Infrastructure Program Request for Applications, making nearly $50 million available to support broadband infrastructure projects across the state. MIP connects unserved and underserved communities to high-speed internet through open-access and publicly controlled broadband infrastructure. To date, ConnectALL has awarded over $240 million, enabling the construction of almost 2,400 miles of fiber and connecting nearly 100,000 locations statewide. The new Phase 4 Application expands the program to nearly $300 million, drawing on funds from the US Department of Treasury Capital Projects Fund.

Governor Patrick Morrisey Announces Collaboration With Trump Administration To Bring Broadband Investments to West Virginia

Governor Patrick Morrisey (R-WV) announced that West Virginia has been granted a 90-day extension to submit its final proposal to the National Telecommunications and Information Administration’s Broadband Equity, Access, and Deployment program. This action comes after the Governor met with Commerce Secretary Lutnick to discuss the Trump Administration’s plans to make changes to the BEAD program. West Virginia will use the additional time that NTIA has granted the state to work closely with federal partners and West Virginia BEAD stakeholders to expeditiously finalize the proposal in a manner consistent with the program changes being proposed by the Trump Administration. Doing so will best position West Virginia to submit a final proposal that successfully addresses the program’s new focus and brings the desired BEAD funding to the state. This extension will allow West Virginia to further focus on how BEAD funding can be most efficiently invested and most effectively leveraged to advance the state’s broader economic development goals, including attracting investment from AI hubs, microgrids, and data centers. 

Minnesota and Maine Share Ideas on the Future of BEAD With Secretary Lutnick

Carl Weinschenk  |  telecompetitor

At least two states—Maine and Minnesota—have contacted the U.S. Department of Commerce concerning the changes that may be made to the $42.45 billion Broadband Equity, Access, and Deployment Program. Minnesota’s suggestions about BEAD came via a letter to Commerce Secretary Howard Lutnick from Bree Maki, the Executive Director of the Minnesota Office of Broadband Development. The requested “volume 2” changes are a reduction or elimination of program and reporting requirements she characterized as “excessive.” The letter also requested four administrative task changes. The Maine Connectivity Authority, also in a letter to Secretary Lutnick suggested four steps that it said would accelerate and improve the program. The letter was signed by Andrew Butcher, the president of the authority. The suggestions were high level (i.e., recognizing that “[s]tates and territories are key to success” and that it is important to “[i]nvest in the right technology for the right place”).

Major Low-Power TV Station Owner Wants to Shift to Datacasts

Jake Neenan  |  Broadband Breakfast

The largest owner of low-power TV stations in the country is asking federal regulators to allow datacasting on the 5G broadcast standard, and potentially sunset the sector’s obligation to provide at least one free signal viewable on traditional TV sets. HC2, which owns 14 percent of the 1,801 LPTV stations in the United States, asked the Federal Communications Commission for the change in a March 28 petition. The 5G broadcast standard, the company said, would allow LPTV stations to broadcast signals to 5G-enabled devices on spectrum currently used for TV programming in the United States.

DOGE Should Focus On Wasted Federal Spectrum

Thomas Lenard, Lawrence White  |  Op-Ed  |  RealClearMarkets

The Department of Government Efficiency should live up to its name and propose lasting reforms that improve government efficiency. Freeing up federal spectrum for commercial uses presents such an opportunity. For that to happen, however, the agencies that control much of the nation’s spectrum need a better incentive to give some of it up. Spectrum is the foundation for the ubiquitous wireless technologies that have become essential for businesses and consumers. Federal agencies also are major users of spectrum: it is an important input for mission-critical activities performed by the Department of Defense, the Federal Aviation Administration, the National Oceanic and Atmospheric Administration, and many other agencies. But since there is no market test, we don’t know whether the agencies that control this spectrum are using it efficiently or whether the allocation of spectrum between the public and private sectors is efficient. 

[Thomas M. Lenard is President Emeritus and Senior Fellow at the Technology Policy Institute. Lawrence J. White is Robert Kavesh Professor of Economics at the NYU Sloan School of Business.]

The Looming Spectrum Crisis

Research  |  Accenture

The US faces a spectrum crisis, with long-term negative implications for US economic growth. Rising demand on networks and constrained supply are pushing networks to their limit. Additional full-power mid-band spectrum must be licensed to enhance network capacity, enable enterprises to innovate and expand their services, and provide users with faster, more reliable, and secure connectivity to boost US global technology leadership. Failing to do so would result in the U.S. losing out on $1.4 trillion of potential gross domestic product between 2025-2035. This paper examines the impact of the impending spectrum shortfall on US wireless networks, businesses, consumers, and the country.

Let’s Not Move Backward on Telehealth and Hospital-at-Home Services

Shira Hollander, Lisa Tripp, Blair Levin  |  Op-Ed  |  DC Journal

Why is the government risking a return to a healthcare regulatory regime that results in worse outcomes, less access to care and higher costs? The motives are unclear, but that would be the outcome if Congress lets the current regulatory framework for telehealth and hospital-at-home lapse, which it will if not renewed in 2025. The arguments to extend the waivers, as laid out in a letter from more than 350 healthcare organizations, are powerful.  Extensions will:

  • Provide certainty for Medicare and Medicaid beneficiaries to maintain access to clinicians and services they are using virtually and to hospital care at home.
  • Strengthen our healthcare workforce by enabling more clinicians to provide needed services and allowing for investment in flexible, virtual staffing models that address workforce shortages while maintaining high-quality healthcare.
  • Encourage investment in the technology and infrastructure needed to offer telehealth and hospital-at-home services, particularly for providers serving underserved communities that cannot afford to invest in these tools without an ensured reimbursement pathway.
  • Allow health plans and employers to design and offer benefits leveraging telehealth and hospital-at-home services.

Rhetorically, the administration appears to agree, but with deadlines looming, rhetoric is not enough. Congress and the Centers for Medicare & Medicaid Services must act to extend these waivers in a longer-term and more meaningful way than including them in short-term continuing resolutions. 

[Shira Hollander is a healthcare attorney. Lisa Tripp is a healthcare attorney and co-wrote the CMS hospital-at-home waiver. Blair Levin was executive director of the 2010 National Broadband Plan.]

Teachers warn AI is impacting students' critical thinking

Ivana Saric  |  Axios

Artificial intelligence is playing an increasingly dominant role in how students navigate school, and some teachers are warning the technology could be hurting their critical thinking skills. Why it matters: AI use among school-aged children has increased dramatically as the bots appear in everything from Google searches to Spotify playlists. In fall 2023, a survey from Common Sense Media found that nearly half of young people had never used AI tools or didn't know what they were, but by September 2024, 70 percent of U.S. teens had used at least one type of generative AI tool. Gina Parnaby, a 12th grade English teacher at Atlanta's Marist School, said that she has seen students using AI "as a way to outsource their thinking" and "flat-out cheat." Alexa Borota, an 11th grade teacher at New Jersey's Trenton Central High School, agrees AI can hurt students' critical thinking skills and worsen attention spans already shortened by smartphones.

Establishing the United States Investment Accelerator

President Donald Trump  |  Public Notice  |  White House

It is the policy of the United States to modernize its processes to attract substantial domestic and foreign investment in the United States and to actively assist those building here for the benefit of our Nation’s economic prosperity to unleash investment from our small businesses to the largest companies. Within 30 days of the date of this order, the Secretary of Commerce, in coordination with the Secretary of the Treasury and the Assistant to the President for Economic Policy, shall establish within the Department of Commerce an office named the United States Investment Accelerator (Investment Accelerator).  The Investment Accelerator shall facilitate and accelerate investments above $1 billion in the United States by assisting investors as they navigate United States Government regulatory processes efficiently, reduce regulatory burdens where consistent with applicable law, increase access to and use of our national resources where appropriate and consistent with applicable law, facilitate research collaborations with our national labs, and work with State governments in all 50 States to reduce regulatory barriers to, and increase, domestic and foreign investment in the United States. The Investment Accelerator shall be headed by an Executive Director and staffed with legal, transactional, operational, and support staff as directed by the Secretary of Commerce.  The Investment Accelerator shall be responsible for the CHIPS Program Office within the Department of Commerce, which shall focus on delivering the benefit of the bargain for taxpayers by negotiating much better deals than those of the previous administration. The Investment Accelerator shall identify any existing mechanisms, exceptions, and opportunities in Federal law that can be used to assist foreign and domestic investors, consistent with the protection of national security. 

AI eats social media as xAI swallows X

Scott Rosenberg  |  Axios

Elon Musk's self-deal for his AI company xAI to acquire X, formerly Twitter, is the strongest sign yet that the AI business is devouring the social media world. Musk's move is a maneuver to spruce up his overall financial picture—leveraging the AI industry's fizzy valuation arithmetic to shore up X's stagnant revenue and debt-loaded capital structure. The entire social media world—including X, Meta-owned Facebook and Instagram, Google-owned YouTube, even the younger TikTok—has become a legacy platform. 2 1/2 years after he bought Twitter, Musk has done little to grow its business or actually transform the company into the "everything app" he once planned. xAI gives him a convenient vehicle to scoot X out of the tarnished social media category and into the AI world.

Lumen Transports 1.2 Tbps Signal Across 1,800 Miles

Phil Britt  |  telecompetitor

Lumen Technologies and Ciena have collaborated on a successful 1.2 terabit wavelength service trial across 3,050 kilometers (more than 1,800 miles) on Lumen’s Ultra-Low-Loss fiber network, the longest 1.2 Tbps non-regenerated signal across the globe. Lumen and Ciena used 800G interfaces to successfully test and qualify the services to support wavelength, Ethernet, and IP services over the 1.2 Tbps single carrier channel. According to Lumen, the successful trial is important because artificial intelligence (AI), cloud, and security demands are pushing data transmission speeds to new limits. The jump to 1.2 Tbps wavelength services unlocks next-gen AI, cloud and data-intensive applications while improving scalability and network efficiency, an important development for hyperscalers and similar enterprises.

How subsea cable cuts put spotlight on Internet resilience

Nicole Ferraro  |  Light Reading

Whether from unintentional damage (common) or seemingly intentional sabotage (less common), risks to the subsea fiber optic cables that power global Internet connectivity are on the rise. The vulnerability of such cables is a growing concern. According to the site TeleGeography, there are more than 1.48 million kilometers of submarine cables spanning the world's seas and oceans, and more than 600 active and planned submarine cables overall. Work recently started on the new, 12,500-kilometer E2A submarine cable system, connecting parts of Asia and the US, which is a collaboration between Chunghwa Telecom, SK Broadband, SoftBank and Verizon Business Global. The proliferation of subsea fiber optic cables, paired with increasing accidents and attacks, highlights the urgent need for resilient and redundant Internet infrastructure. 

French Competition Watchdog Fines Apple $162.4 Million Over App Tracking Transparency

Edith Hancock  |  Wall Street Journal

France’s competition regulator fined Apple 150 million euros ($162.4 million) over concerns the company abused its dominant position in mobile apps through the privacy measures it imposes on developers on its iPhone and iPad’s operating system. The watchdog said that the goal of Apple’s App Tracking Transparency system–which since 2021 has forced app developers to issue a prompt asking permission to track users’ activity across multiple apps–is not open to criticism, but the way the company implements its policy is “neither necessary nor proportionate to Apple’s stated objective of protecting personal data.” The regulator said that Apple’s services don’t face the same restrictions and that its policy penalizes smaller publishers because they depend on collecting third-party data to finance their business. An Apple spokesperson said that the system gives users more control of their privacy by mandating that developers issue a prompt to ask permission to track data, adding that it has received strong support for the feature from consumers, privacy advocates and data protection authorities.

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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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