Monday, June 30, 2025
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Reactions to the Supreme Court Ruling on FCC vs Consumers Research
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Supreme Court upholds $8 billion fund for internet and phone service
Safeguarding State Broadband Goals After the BEAD Restructuring Policy Notice
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The Supreme Court ruled that an $8 billion fund that provides telephone and internet service in rural and low-income communities is constitutional, a break from a string of major rulings by the high court that have sharply curtailed the power of federal agencies. In a 6-3 ruling, the justices found Congress properly granted the Federal Communications Commission discretion to collect fees from telecommunications companies to pay for the Universal Service Fund, which helps ensure equal access to critical communication services. The ruling is a blow to conservatives who had hoped the high court would—for the first time since 1935—find that Congress had violated a constitutional provision that bars it from delegating too much of its authority to other branches of the government, namely the executive and federal agencies. Conservatives have long sought to revive the “nondelegation doctrine” as a means to check a federal bureaucracy they feel has grown too large and powerful. A decision striking down the fund could have opened the door to a host of legal challenges against other powers that Congress has granted to agencies, but a majority consisting of the court’s liberals and several conservatives—including Chief Justice John G. Roberts Jr., Brett Kavanaugh and Amy Coney Barrett—rejected that idea.

The Supreme Court has finally ruled to uphold the constitutionality of the Universal Service Fund, and telecommunications industry groups issued statements en masse praising the Supreme Court’s decision. But as they celebrated the end of the legal battle, they acknowledged there’s still a long road ahead for USF reform. “As welcome as this decision is, the underlying threat to the Universal Service Fund remains, with the program's funding shrinking by the day,” said Gigi Sohn, executive director of the American Association for Public Broadband. Telecommunications companies are currently required each quarter to contribute 36.6 percent of interstate and international service end-user revenues to the USF. But that pool of money continues to dwindle as fewer consumers subscribe to traditional telephone services. This issue, coupled with the demise of the Affordable Connectivity Program, “means that the promise of the USF program—to deliver affordable broadband directly to homes, schools and libraries, and rural communities—remains unfulfilled,” Sohn added.

The Computer & Communication Industry Association released a paper recently warning about the impact of imposing Universal Service Fund fees on what it characterizes as cloud services. CCIA is an association that lobbies on behalf of some of the largest web companies like Amazon, Meta, Google, Apple, Netflix, and Cloudflare. It’s somewhat refreshing to see that the lobbyists in other industries are as willing to greatly exaggerate claims about the impact of regulatory and legal changes as the telecommunications industry. The bottom line is that the CCIA analysis is downright silly when it threatens that a $3 billion fee on cloud services might wipe out 5 percent of South Carolina’s annual State budget or might decrease national GDP by at least $59 billion. But you have to give it to lobbyists—the purpose of the analysis was to provide talking points for politicians in DC, and I suspect it provided the talking points CCIA was looking for.

The Broadband Equity, Access, and Deployment Restructuring Policy Notice of June 6, 2025, greatly narrows the vision embedded in the original BEAD program. The previous approach recognized that digital equity and complementary policy measures, such as workforce development programs, boost the social and economic benefits of high-speed Internet access. In contrast, the revised PN aims at minimizing BEAD program outlays for broadband access. Although efficiency and expediency are desirable, the new approach risks jeopardizing even the more modest remaining goals of BEAD. For one, the PN creates tensions between short- and long-term planning that eligible entities may struggle to reconcile. This ambiguity is further aggravated by uncertainty about how the National Telecommunications and Information Administration will conduct final reviews. To avoid these pitfalls, State Broadband Offices will have to establish appropriate incentives for the benefit-for-the-bargain round, supplemented with robust methods for the evaluation of bids. Most importantly, they must select an appropriate time horizon for determining BEAD outlays, and they must put mechanisms in place that help improve the trustworthiness of bids.

The revamped Broadband Equity, Access, and Deployment program opens the door for more wireless players to snag a piece of the funding pie. But certain broadband vendors could face roadblocks in meeting BEAD's domestic manufacturing requirements. The Build America, Buy America Act, which mandates certain broadband network components, construction materials and other related equipment must be made in the U.S., could “be an issue for WISPs,” said CCG Consulting President Doug Dawson. WISPS are wireless internet service providers that commonly use fixed wireless access technology. Steve Schwerbel, director of state advocacy at WISPA, said the BABA rules “are being taken seriously across the vendor ecosystem” and that he’s optimistic most WISP vendors are prepared to “deliver products that meet all federal requirements.”

The North Carolina Department of Information Technology’s Division of Broadband and Digital Opportunity announced Maggie Woods as the new director of the Office of Digital Opportunity, Christina Strickland as chief deputy general counsel, and Dana Lee as deputy general counsel. The division was created in May 2021 to expand access to high-speed internet, computers, and digital skills to all North Carolinians. As director of the Office of Digital Opportunity, Maggie Woods is responsible for overseeing the division’s $50 million in economic development efforts to ensure North Carolinians have the skills and technology needed to compete for jobs. Christina Strickland joined NCDIT in June 2025 as chief deputy general counsel for the department and general counsel for the division. She will provide legal guidance for all programs, including the $1.5 billion Broadband Equity, Access and Deployment program that will expand high-speed internet access to homes and businesses across the state. Dana Lee joined NCDIT in March 2025 as the division’s deputy general counsel. In this role, she has finalized contracts between counties, internet service providers, and NCDIT for more than $255 million in high-speed internet projects that will connect nearly 70,000 North Carolina homes and businesses in 83 counties.

When the National Telecommunications and Information Administration announced changes to the Broadband Equity, Access, and Deployment program, the state of North Carolina had not yet begun accepting applications for funding. According to Angie Bailey, North Carolina director of broadband infrastructure, it will be challenging to meet the new deadlines that NTIA has imposed. “It’s a big lift with the timing window,” she said. The deadline for states to submit final BEAD proposals, including their selection of funding awardees, is early September. That means the state only expects to be able to do one funding round. And as Bailey said, “The big question is: What if we don’t get to 100%? What about areas where there is no bid?” Bailey said another question is: “Will providers be able to participate and develop projects and submit bids, especially if they’re juggling similar timing in other states?” She added, though, that the application process will be a bit easier because NTIA eliminated certain requirements.

North Dakota State Broadband Program Director Brian Newby prefers not to beat his head against a federal agency over which he has no control. “Just tell me the rules. We’ll follow the rules.” Officially, North Dakota only has about 2,000 locations left without broadband, though Newby thinks that after the bogus broadband locations are removed, the number may be closer to 1,000. Those locations are spread throughout the state—Newby and his team call them “Swiss cheese locations”—and, as a result, the state didn’t receive many Broadband Equity, Access, and Deployment applications when their application window first opened. “There must be two types of states,” Newby said. Some “have a crazy number of bidders. And then I think there’s a fair number of states like us, where we’ve just had two bidders.” Newby hopes the two providers who originally bid for—and were preliminarily selected for—BEAD funds will bid again in the new "Benefit of the Bargain" round. “Now that they know this is kind of a final round, they may look at the state and see if there are [other locations] they want to bid on.”

The Senate version of the budget reconciliation bill, backed by President Donald Trump, removes protections for unlicensed spectrum that broadens the capacity of the 6GHz Wi-Fi band. This could result in slower Wi-Fi speeds. Under the bill, the Federal Communications Commission would sell off some of that spectrum to mobile carriers such as AT&T, which could use it to improve the speed of their mobile data. The bill includes a provision requiring the FCC to auction 800MHz of spectrum, including bands allocated by the FCC in 2020 for unlicensed use. The version of the bill that passed the House excluded the band of frequencies between 5.925 gigahertz and 7.125 gigahertz, which includes 6GHz; however, there’s no such exclusion in the Senate version. The FCC could be “forced to sell off as much as half” of the unlicensed spectrum currently in the 6GHz band, according to Public Knowledge. Removing this spectrum from unlicensed use could negatively impact the 6GHz Wi-Fi band, which added a huge swath of capacity to Wi-Fi when former FCC Chairman Ajit Pai made 1,200 megahertz of spectrum available for unlicensed use in 2020.

EchoStar Chairman Charlie Ergen is buying himself some more time to work out a deal with the Federal Communications Commission, making more than $500 million in debt-interest payments and delaying an imminent potential bankruptcy filing. The interest payment was revealed in an 8-K filing, in which EchoStar answered a couple of questions that were looming over the company. For one, it doesn’t look like a bankruptcy filing is happening as soon as once thought because EchoStar is making at least one of the interest payments coming due. For another, it’s still hoping to reach some kind of resolution with the FCC after agency Chairman Brendan Carr threatened to take away certain spectrum licenses. But EchoStar clearly isn’t out of the woods yet. It elected not to make interest payments of about $114 million that are due on July 1, triggering another 30-day grace period. That ups the ante in what many analysts describe as a “game of chicken” that’s going on between EchoStar and the FCC. EchoStar has the cash to make its interest payments, but it’s using the threat of a bankruptcy filing as negotiating leverage with Chairman Carr, who, meanwhile, is threatening to take away some of Ergen’s spectrum licenses that allegedly aren’t being used.

A group of 17 Republican governors asked Senate Majority Leader John Thune (R-SD) and Speaker Mike Johnson (R-LA) to remove a 10-year moratorium on enforcing state and local artificial intelligence laws from the GOP’s megabill. In the biggest show of Republican resistance to the provision so far, the governors warned the language would undo existing state efforts to protect their citizens from the harm the technology could cause, and criticized the lack of “thoughtful” public debate over the measure. “While the legislation overall is very strong, there is one small portion of it that threatens to undo all the work states have done to protect our citizens from the misuse of artificial intelligence,” the governors wrote. “We are writing to encourage congressional leadership to strip this provision from the bill before it goes to President Trump’s desk for his signature.” The letter was signed by the governors of Arkansas, Alabama, Alaska, Georgia, Idaho, Iowa, Louisiana, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, and Wyoming.

Fifty-one percent of respondents to a survey conducted by internet performance monitoring firm Catchpoint reported monthly losses of over $1 million due to internet outages or degradations, according to a new report. That figure is up from 43 percent in 2024. The report, which included input from 475 IT managers, directors, and executive-level decision-makers from diverse industries, also found that one in eight responding companies lose more than $10 million each month. The company called the figure “a noticeable rise” compared to 2024. “If the Internet was already teetering on a fragile edge when we launched our inaugural Internet Resilience Report in June 2024, it’s even more so now,” said Catchpoint CEO and co-founder Mehdi Daoudi. “The industry is waking up to a new reality: slow is the new down. Sluggish websites and applications don’t just frustrate users—they drain revenue and damage reputations.”
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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