Tuesday, June 3, 2025
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Today | Fiber Connect and USF Fees on Cloud Services
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Fiber Expansion Strong Despite BEAD Delays
When Will Starlink Have LEO Competition?
Could House AI Task Force Recommendations Become Law This Year?
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Changes are coming for the Broadband Equity, Access, and Deployment program. While BEAD, a $42.5 billion COVID-era initiative to connect all remaining unserved locations in the U.S. to high-speed internet, is a relatively new broadband funding program, the Universal Service Fund, which has existed in its current form for nearly three decades, is also facing an existential crisis. The Supreme Court recently concluded oral arguments about whether the USF is constitutional. While many legal experts seem to be cautiously optimistic that the Court will uphold USF’s legality, the program’s financial stability remains in need of Congressional action. BEAD and USF are different subsidy programs created decades apart. Yet, some stakeholders are advocating for a marriage of sorts, arguing that USF is necessary to pay for ongoing operational expenses for BEAD-funded network deployments. While these advocates would inextricably link the two programs as necessary for broadband networks in rural America, there are many reasons to object to this union.
[Mark Vasconi served as the Director of Washington's state broadband office from 2022-2023 and as Director of Regulatory Services at the Washington Utilities & Transportation Commission from 2010-2022.]

At Fiber Connect in Nashville (TN), a panel of experts discussed the challenges of delivering broadband to the absolute hardest places in America using ferries, planes, and crossing international borders. One example came from panelist Donna Hilty, COO at Whidbey Telecom, which is in the Northwest corner of the state of Washington. The company’s footprint covers several islands. Hilty said their most remote site is part of Washington but requires techs to take a plane or boat and also to cross the Canadian border to get there, a difficult situation even before President Trump's tariffs. “Now we have a problem with the tariffs and a situation in Canada, so it's not nearly as friendly, and we may have some problems bringing materials over there." Jason Thune Thune from Hawaiian Telcom, who has to ship materials and workers in order to build, said planning a timeline to build to remote locations is important. He likened it to planning a large event. You have to source materials and line up crews. “It's literally like putting a production together,” he said. Regarding the level of production involved in delivering broadband, panel moderator Kathryn de Wit with Pew Charitable Trusts, said the idea that it’s no big deal if BEAD is delayed for several months is wrong-headed. “It does really matter for planning."

Sen Marsha Blackburn (R-TN) is looking for a larger pipeline of licensed spectrum as the Senate takes up a sweeping budget bill. The bill, officially dubbed the One Big Beautiful Bill Act and narrowly passed by the House, would reinstate the Federal Communications Commission’s ability to auction off spectrum, which expired in March 2023. With the reauthorization would come a mandate to sell 600 megahertz of exclusive-use spectrum for mobile or fixed broadband, a pipeline the wireless carriers have been pushing to get included. It’s expected to raise about $88 billion to help pay for tax cuts. Sen Blackburn wants 1200 megahertz. Opponents to any sort of pipeline signalled they want to see the House language changed. Lawmakers aligned with the Defense Department have been concerned that a large quota could lead to military spectrum being vacated, which they say would be time-consuming and costly.

On April 28, Amazon’s Project Kuiper launched an Atlas V rocket from Cape Canaveral in Florida and sent 27 satellites into low Earth orbit. The ground personnel rapidly established contact with the satellites. It was the first of a series of planned launches to an altitude of 280 miles, working toward a future constellation of 3,200 satellites beaming broadband service worldwide with extremely low latency. The hope is to give Starlink some competition. That sums up the state of the LEO-based broadband market today. Elon Musk’s Starlink has had the field to itself for years and continues to expand its constellation, which currently stands at 6,750 satellites. Project Kuiper and others have just begun launching satellites, but when will there be effective competition? Communications research firm Strand Consult compares competition between Project Kuiper and Starlink to a just-opened “burger bar” and an “interstellar McDonald’s.”

Business-only fiber network Everstream has agreed to sell “substantially all of its operations” to an affiliate of Bluebird Fiber, a regional business-focused connectivity provider. The announcement of the acquisition says that the two firms have come to a “stalking horse” agreement, which Investopedia describes as follows: “The bankrupt company will choose an entity from a pool of bidders who will make the first bid on the firm’s remaining assets.” Everstream hopes to expedite the transaction by voluntarily entering Chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas. Everstream says it will operate as usual during the transition to Bluebird Fiber via a $55 million commitment it has for debtor-in-possession financing from existing lenders. If the court approves the financing, the funds will be combined with existing cash on hand to fund operations until the sale closes.

Rep. Don Beyer (D-VA), who served on the House AI Task Force during the 118th Congress, says that he remains hopeful the group’s recommendations will receive renewed legislative attention later this year. The bipartisan House AI Task Force was created in February 2024, to provide lawmakers with policy recommendations for the safe and secure use of the emerging technologies. Beyer was one of the 24 representatives—12 Democrats and 12 Republicans—who served on the task force. The group released a 273-page final report that outlined more than 80 policy recommendations and endorsed over a dozen AI-focused bills designed to curb potential misuses and abuses of the advanced technologies. Rep Beyer noted that all 24 members of the group endorsed 14 specific legislative proposals. While some of these bills advanced out of their respective congressional committees during the previous Congress, Rep Beyer said they failed to make it to the full House for a vote “for strange but real reasons.” “The hope was that we built a base, a foundation, that future Congress’ could build upon,” he added.

One of the more puzzling pieces of American tech and diplomatic policy in the new Trump era was the one recently announced by Secretary of State Marco Rubio—a new visa restriction for foreign officials “complicit in censoring Americans”. The restriction would ban entry to the U.S. for foreign officials who impose content moderation over social media posts. Secretary Rubio said it was “unacceptable for foreign officials to issue or threaten arrest warrants on U.S. citizens or U.S. residents for social media posts on American platforms while physically present on U.S. soil.” Among some observers, a theory has taken hold that the law is tailored to a single person: Brazil’s Supreme Court Justice Alexandre de Moraes. De Moraes is the judge who has personally sparred with both Elon Musk and President Donald Trump. He temporarily blocked X in Brazil and fined the company $5 million. Trump’s media company sued de Moraes in February for ordering the site Rumble to suspend some accounts, saying Rumble provided hosting and video streaming infrastructure to Truth Social. The visa announcement came out in the same month as a reported letter from the U.S. Justice Department to de Moraes, condemning his request to Rumble to suspend accounts. Observers also noted that the State Department’s Bureau of Western Hemisphere Affairs reposted the visa policy announcement on X in Portuguese—the language of Brazil—but not Spanish, which far more people in the hemisphere speak.

The Artificial Intelligence-fixated tech industry is rapidly dismantling the old web, with no game plan for how to replace it. Chatbots have already begun to intercept web traffic and drain publishers' revenue. Now tech giants and startups aim to remodel the devices and browsers we use to access web pages, using AI to summarize or pre-empt the content that people and publishers post online. As tech goes all in on rebuilding our web experiences with AI, there's no guarantee that the web will still be there when that job is done. With chatbots becoming users' default way to find out what's happening in the world, their makers pretend they can plaster this new interface layer over the internet without disrupting the data sources that feed it. But some media observers believe an AI-first web will choke off the money and attention that motivates web creators to keep extending the common knowledge pool.

Mary Meeker, the famed internet analyst turned venture capitalist, recently published her first Trends report since 2019—focused on the AI revolution. Top takeaways:
- On the most important thing she learned: "We've never seen anything like the user growth of ChatGPT, particularly outside the U.S., and it shows how the global dynamics of tech and distribution have changed. I wasn't around for the evolution of the mainframe or mini-computer, but have read up on it and was around for the PC, desktop internet, mobile internet, cloud, and now AI. This is such a faster pace of change."
- On OpenAI's lead in the industry: "Early leaders fail when they fall behind on innovation or price themselves out of the market, but OpenAI shows no signs of doing either. I think it and ChatGPT will be around for a long time."
- On the importance of immigrants to the tech landscape: "America has to be a place where the brightest people in the world want to come ... Our tech ecosystem would not be where it is today without a lot of first-generation immigrants and even more second-generation immigrants."

Gary Bolton, CEO of the Fiber Broadband Association, kicked off the Fiber Connect 2025 conference in Nashville by pointing out two sides of the same coin: fiber internet connectivity has made great strides in recent decades, even though the Broadband Equity, Access, and Deployment Program is not progressing as quickly as hoped. The theme for this year’s Fiber Connect conference—“Light It Up”—was chosen based on the idea that, by the time of this conference, BEAD funds would have lit up the first communities in the country with fiber, he said. Bolton’s introduction to Fiber Connect wasn’t all celebration, though. He came out strongly against rumored changes to the BEAD Program that may allow low Earth orbit satellite broadband companies to provide connectivity where, in Bolton’s view, fiber should be used. Bolton made the case that the federal government should not interfere with the progress BEAD has made so far, particularly regarding the BEAD preference for fiber.

According to research released by the Fiber Broadband Association and consulting firm RVA, roughly 88.1 million households in the US now have access to fiber, representing 56.5% of all homes. That includes 10.3 million homes passed in 2024 alone. "I think we expect to see something similar again this year," said FBA Vice President of Public Policy Marissa Mitrovich on anticipated fiber deployments for 2025. The overall growth of fiber passings has been spurred by multiple factors: a global pandemic, for starters, that emphasized the need for reliable, high-speed connectivity; a variety of public subsidies and uptick in private equity investments; and the diversity of providers entering and creating competition in the market. One issue hanging over fiber broadband players, however, is what's to come of the $42 billion Broadband Equity Access and Deployment program. Mitrovich acknowledges that there is likely to be less of a fiber preference in revised BEAD rules, but says she remains optimistic based on conversations FBA has had with the Trump administration.
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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