Monday, July 28, 2025
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Broadband Adoption and the Fraying Social Safety Net
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The recently passed One Big Beautiful Bill (OBBB) is likely to result in substantial changes in the financial prospects of low-income households. There is no shortage of analyses that foresee a budget shock for the less well-off among us as the social safety net contracts and the tax burden for low-income households increases. Direct effects are one thing, whether that is less food assistance or help with the heating bill in the winter. Indirect impacts are inevitable as well—and the ability to pay for home broadband service is bound to be one of them. The following analysis estimates the number of low-income households that will lose home broadband connectivity due to OBBB’s negative impact on their household finances. The analysis shows that approximately 5.6 million low-income Americans (that is, those in the lowest 20% of the income distribution) may lose broadband connectivity as the full effects of OBBB unfold. Many low-income households rely only on a cellular data plan to go online and they are most at-risk of disconnection. At the same time, additional millions are likely to lose home wireline subscriptions, perhaps keeping some connectivity through a cell data plan. And for some, no home subscription to a broadband service may become a new normal. In addition to the aggregate estimate of 5.6 million lost connections, this analysis presents state-by-state estimates for connections lost. About half a million households each in California and Florida may lose broadband connectivity, with 200,000 households potentially disconnecting service in states such as Pennsylvania, North Carolina, and Michigan.

The Commerce, Justice, Science, and Related Agencies Appropriations Act, 2026, provides a total of $76,824,000,000 in discretionary budget authority for fiscal year 2026. Within this amount, non-defense spending totals $70,590,000,000 and defense spending totals $6,234,000,000. To reduce the size of the Federal Government and ensure that agencies funded herein are focused on missions that serve the American people without wasting and abusing hard-earned tax dollars, this bill prioritizes funding for critical agencies. The recommendation includes $46,000,000 for the salaries and expenses of the National Telecommunications and Information Administration (NTIA), which is $11,000,000 below fiscal year 2025 and equal to the OMB Budget request.
- Policy and Technical Training.—The Committee directs NTIA to continue working with the Federal Communications Commission and the Department of State to provide support for activities authorized under section 7 of Public Law 98–549. As part of these activities, NTIA may provide assistance and guidance in policy and technical training to impart best practices to information technology professionals from developing countries.
- Broadband Programs.—NTIA’s broadband programs shall not provide a scoring advantage based specifically upon the form of organization or commercial status of a broadband service provider, and NTIA should ensure States using funding obtained through NTIA similarly do not provide a scoring advantage based on organization or commercial status for programs administered by the State.
- Rural Broadband Coordination.—The Committee continues to encourage NTIA to equally prioritize the deployment of the Nationwide Public Safety Broadband Network (NPSBN) in rural communities and in urban areas.
- Broadband Programs Barrier to Entry.—In administering its broadband programs, NTIA shall consider the effect of supply chain, workforce shortages, and other known barriers such as permit approvals to determine whether providers can reasonably meet deployment deadlines. In the case NTIA determines these factors unduly impact project commitments or will deter program participation, the Administration shall use its discretionary authority to provide waivers of such requirements and/or other relief.
- Broadband Equity Access and Deployment (BEAD) Coordination.—The Committee is concerned with the NTIA’s implementation of section 60102(h)(5)(D) of the Infrastructure Investment and Jobs Act (Public Law 117–58). Accordingly, the Department shall not approve any Eligible Entity’s initial proposal or final proposal if the Eligible Entity proposes to require, encourage, or incentivize subgrantees to offer specific rates for broadband service, including a specific rate for a low-cost broadband service option, a middle- class affordability strategy, or a specific rate in order to earn points for the scoring of deployment subgrantee selection.
- Rate Regulation.—NTIA’s broadband programs shall not directly or indirectly regulate the rates that broadband service providers charge to consumers generally or to any subset of consumers.
- Broadband Program Duplication.—The Committee appreciates NTIA and other Federal agencies’ efforts to provide high-speed broadband access to all Americans. However, the Committee is concerned that multiple Federal broadband programs exist with similar purposes. This overlap could increase the risk of duplication and inefficient use of taxpayer funds. As Congress has created new broadband deployment grants, the Committee believes it is important to ensure all broadband programs are well coordinated, sustainable, and effective using existing resources. NTIA is directed to report to the Committee, no later than 120 days after the enactment of this Act, on any statutory limitations hindering coordination of Federal broadband programs and offer legislative proposals to address these limitations, as recommended by Government Accountability Office (GAO) in 2022. NTIA should also analyze how many Americans still lack fixed broadband access and estimate additional funding required to ensure all Americans have access to broadband, considering current funding.
- Spectrum Needs.—The Committee directs NTIA to continue evaluating ways to expand spectrum availability for non-Federal wireless use while maintaining a balanced approach to licensed, unlicensed, and shared spectrum access. NTIA is directed to provide annual updates on its evaluation process, including a review of spectrum-sharing opportunities and commercial access considerations.

CenturyLink told the Federal Communications Commission recently that it is defaulting on 41,000 Rural Digital Opportunity Fund locations spread across eight states and 153 Census block groups. There are a number of consequences of this default. First, this has now happened after states made Broadband Equity, Access, and Deployment maps and allocation. That makes it likely that nobody will be bringing improved broadband to the default areas. If the defaults had happened earlier, these areas could have been rolled into the BEAD process. Second, CenturyLink should expect a significant fine. If CenturyLink is fined at the same level as recent RDOF defaults, or around $3,000 per location, the fine will be $123 million. Additionally, roughly half of the RDOF funding has flowed to auction winners, meaning CenturyLink would have to return approximately $65 million of RDOF subsidy to the FCC. This is not likely the end of RDOF defaults. I said at the time it was first announced that RDOF is a badly flawed program. The reality has turned out to be far worse than any predictions.

China’s two biggest networks have deployed less than 1 percent of their planned satellites, records show, a measure of how far they are falling behind Elon Musk’s company SpaceX for dominance in space communications. Satellites in low Earth orbit, up to 1,200 miles above the planet, are increasingly seen as essential for driverless cars, drone warfare and military surveillance. China regards Starlink as a military threat, and Chinese companies have invested heavily in two huge networks, with nearly 27,000 satellites planned between them. One reason for the unexpectedly slow pace is that the Chinese companies have not cleared a key engineering hurdle. The first network, or megaconstellation, Qianfan, was scheduled to have about 650 satellites in space by the end of 2025. But records show that the company behind the network, Shanghai Spacesail Technologies Co., has put only 90 satellites in orbit since its launches began in August 2024. The other megaconstellation, Guowang, is even farther behind. Despite plans to launch about 13,000 satellites within the next decade, it has 34 in orbit. SpaceX has about 8,000 Starlink satellites in orbit and is expanding its lead every month, according to data from U.S. Space Force and CelesTrak, a nonprofit group that gathers space data.

More satellite broadband deployment is on the horizon following revisions to the $42.5 billion Broadband Equity, Access and Deployment program. But whether satellite can get the job done quite like fiber remains up in the air—no pun intended. Bandwidth capacity—or lack thereof—is still the biggest obstacle in reaching widespread satellite coverage. SpaceX’s Starlink, for instance, has excess network capacity in only about half the U.S.; elsewhere, customers are often stuck on a waitlist to receive service. Even if the Federal Communications Commission allocates more spectrum for satellite providers, it won’t be enough to solve the capacity bottleneck, said Arun Menon, lead analyst at MTN Consulting. Proponents of satellite broadband frequently bring up how it’s much cheaper for rural internet deployments than fiber, as the cost to lay fiber cables typically goes up in areas with low population density. It’s true that a satellite connection doesn’t require the same extensive construction—merely a modem and a dish at each location—but it won’t come cheap for the consumer. Starlink gear has an upfront cost of $349, on top of the data plan, which starts at $120/month. The company did recently launch a “Residential Lite” offering that costs $80 per month, but it’s still quite a hefty price for what’s supposed to be an affordable broadband option.

The dark cloud of uncertainty hanging over EchoStar doesn’t appear to be going away anytime soon. Federal Communications Commission Chairman Brendan Carr said his agency continues to take a close look at whether EchoStar, via its Dish business, complied with the FCC’s 5G network buildout obligations. “Dish obviously says that they did,” he said during a press conference after the FCC’s July open meeting. “Concerns have been raised. We’ve been working through the data on that. That work continues.” Separately, the FCC opened a proceeding looking at whether EchoStar is using the 2 GHz band for mobile satellite services consistent with the terms for which it was authorized years ago by the FCC. That’s also ongoing. Chairman Carr said he’s open-minded about paths forward, but he reiterated that “the status quo is just not acceptable. We’re pushing hard to free up spectrum, and you have Dish effectively over the years sitting on a tremendous amount of spectrum that simply isn’t loaded.”

The U.S. Education Department is releasing more than $5 billion in education grant funding to states. In late June, the Trump administration told states it was withholding these previously approved federal grants for further review. That announcement came a day before the July 1 deadline when those funds have traditionally been disbursed. The decision left many school districts scrambling in the lead up to the school year. According to Madi Biedermann, deputy assistant secretary for communications at the Education Department, the Office of Management and Budget "has directed the Department to release all formula funds. The agency will begin dispersing funds to states next week." Lawmakers from both sides of the aisle lobbied to release the funds, citing financial strain on states and local communities. Several states have also sued the administration in an effort to get the funds released. It's not the first time the Trump administration has singled-out these programs: The administration's proposed FY 2026 budget eliminated all the grants that had been frozen.

Most Americans encounter the Federal Trade Commission only if they’ve been scammed: It handles identity theft, fraud, and stolen data. During the Biden administration, the agency went after artificial intelligence companies for scamming customers with deceptive advertising or harming people by selling irresponsible technologies. With the announcement of President Trump’s AI Action Plan, that era may now be over. In the final months of the Biden administration under chair Lina Khan, the FTC levied a series of high-profile fines and actions against AI companies for overhyping their technology and bending the truth—or in some cases making claims that were entirely false. These actions did not result in fines that crippled the companies, but they did stop them from making false statements and offered customers ways to recover their money or get out of contracts. In each case, the FTC found that everyday people had been harmed by AI companies that allowed their technologies to run amok. The new plan released by the Trump administration suggests it believes these actions went too far. In a section about removing “red tape and onerous regulation,” the White House says it will review all FTC actions taken under the Biden administration “to ensure that they do not advance theories of liability that unduly burden AI innovation.” In the same section, the White House says it will withhold AI-related federal funding from states with “burdensome” regulations.

Network development and information infrastructure professional services provider Tilson Technology Management has filed a breach of contract lawsuit against networking firm Gigapower in which it seeks more than $200 million it claims to be owed for building networks in Nevada and Arizona. Tilson says that Gigapower breached a contract between the two companies and owes Tilson for termination charges, underpayments, and missed payments. The suit alleges that Gigapower delayed and withheld payments in order to force Tilson to renegotiate and accept new terms, including lower payments and a reduced scope of work. That, Tilson claims, caused more than $100 million in “negative cash flow.” The suit claims that Gigapower terminated the agreement, which forced Tilson into Chapter 11 bankruptcy.

Charter Communications reported financial results for the second quarter of 2025. Highlights include:
- Second quarter total Internet customers decreased by 117,000. As of June 30, 2025, Charter served 29.9 million Internet customers.
- Second quarter total mobile lines increased by 500,000. As of June 30, 2025, Charter served 10.9 million mobile lines.
- As of June 30, 2025, customer relationships totaled 31.2 million, excluding mobile-only relationships.
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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