Tuesday, August 6, 2024
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ACP funding sees progress in the Senate but still unlikely to pass
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The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has approved Arizona's Initial Proposals for the Broadband Equity, Access, and Deployment (BEAD) Program. This approval enables Arizona to request access to funding and begin implementation of the BEAD program—a major step towards closing the digital divide and meeting the President’s goal of connecting everyone in America with affordable, reliable, high-speed Internet service. Arizona was allocated over $993 million to deploy or upgrade high-speed Internet networks to ensure that everyone has access to reliable, affordable, high-speed Internet service. Once deployment goals are met, any remaining funding can be used on high-speed Internet adoption, training, and workforce development efforts, among other eligible uses.

Hopes came alive again in Congress that the Affordable Connectivity Program (ACP), which lapsed in June, could actually get funded. First, a bipartisan group of lawmakers introduced a House bill on July 30, matching the language of a Senate bill that would extend the ACP with $6 billion and modify the program. On July 31, Democrats in the Senate Commerce Committee voted to advance an earlier bill – the ACP Extension Act – by attaching it as an amendment to the Plan for Broadband Act, legislation that would direct the NTIA to create a coordinated federal broadband strategy. Sen. Peter Welch (D-VT) led the charge to attach the ACP Extension Act, which provides $7 billion in ACP funding without program modifications, as an amendment. New Street Research's Blair Levin pointed to the various hurdles the legislation would need to overcome. These include obtaining time on the Senate floor, which Levin calls "a precious commodity at this stage of the election season," as well as surviving a "likely Republican threat of a filibuster." In the House, it would require Speaker Mike Johnson (R-LA) to bring the bill up for a vote, "something he has shown no interest in," said Levin. Levin put the prospects of ACP funding clearing any of those hurdles at "less than 50 percent."

How much power may Congress hand off to the Washington bureaucracy? That’s a live question, so grab the popcorn to read a decision by the Fifth Circuit Court of Appeals. In a 9-7 en banc ruling, it invalidated a “universal service” surcharge added to cellphone bills. Because other circuit courts have gone the other way, the Supreme Court might answer this call next. “In the Telecommunications Act of 1996,” Judge Andrew Oldham writes in Consumers’ Research v. FCC, “Congress delegated its taxing power to the Federal Communications Commission. FCC then subdelegated the taxing power to a private corporation. That private corporation, in turn, relied on for-profit telecommunications companies to determine how much American citizens would be forced to pay.” The majority says this subcontracting of Congressional power violates the Constitution. The Supreme Court has said Congress may delegate power as long as it gives agencies an “intelligible principle” to follow. The law in this case says Universal Service Fund funding should be “sufficient” to “preserve and advance universal service.” What does this mean? Well, service that’s “essential to education, public health, or public safety,” and so forth. Judge Oldham says the “amorphous” conception “amounts to a suggestion that FCC exact as much tax revenue for universal service projects as FCC thinks is good.” Its decisions toward that goal aren’t subject to Congressional appropriations, and commissioners on the FCC are “removable by the President only for-cause,” meaning democratic accountability “is extremely attenuated.” And that’s before getting to the FCC’s subdelegation to a private group, where Judge Oldham is withering: “Congress could not say: ‘The defense budget is whatever Lockheed Martin wants it to be, unless Congress intervenes.’” The whole opinion is worth a read. This one could be a landmark.

In March 2024, the Federal Communications Commission circulated a Notice of Proposed Rulemaking, or NPRM, seeking input on how to best “lower costs and address the lack of choice for broadband services available to households in apartments, condos, public housing, and other multi-tenant buildings.” Public Knowledge and 30 other organizations recently wrote to the Commission expressing our support for giving consumers the freedom to opt-out of bulk billing arrangements. This proposal is an intuitive addition to the administration’s broader suite of pro-consumer efforts, such as the FCC’s recently adopted “all-in” pricing transparency rules. Broadband bulk billing arrangements may sound good in theory – if people collectively pay into a service and receive a discounted rate, what’s not to like? But if you look under the hood, these contracts don’t always end up serving consumers’ interests. Instead, many tenants are left with poor service or high prices. For example, Lifeline-eligible consumers (or Affordable Connectivity Program-eligible households, should the program be revived) are forced onto higher-cost plans. So an opt-out option is a middle ground, commonsense approach to meet the wide-ranging needs of tenants. When we empower consumers to leave arrangements that aren’t working for them, we build markets that are responsive to every consumer’s needs.

Google acted illegally to maintain a monopoly in online search, Judge Amit Mehta of U.S. District Court for the District of Columbia ruled, a landmark decision that strikes at the power of tech giants in the modern internet era and that may fundamentally alter the way they do business. Judge Mehta said that Google had abused a monopoly over the search business. The Justice Department and states had sued Google, accusing it of illegally cementing its dominance, in part, by paying other companies, like Apple and Samsung, billions of dollars a year to have Google automatically handle search queries on their smartphones and web browsers. “Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta said in his ruling. The decision is likely to influence other government antitrust lawsuits against Google, Apple, Amazon, and Meta, the owner of Facebook, Instagram and WhatsApp. The last significant antitrust ruling against a tech company targeted Microsoft more than two decades ago. The decision is a major blow to Google, which had fiercely defended itself against the allegations. Internet search is a core driver of the company’s profits, and the ruling could have major ramifications for its future success, especially as Google spends heavily to compete in the race over artificial intelligence.
FCC Announces Anticipated Renewal of its Consumer Advisory Committee and Solicits Nominations for Membership

The Federal Communications Commission announced the anticipated rechartering of the Consumer Advisory Committee and solicited nominations for membership. The FCC intends to recharter the CAC for a period of two (2) years following consultation with the Committee Management Secretariat, General Service Administration. It is anticipated that after this consultation, the renewed charter will become effective on or before October 13, 2024. Nominations for membership are due by September 6, 2024. The Committee’s mission is to make recommendations to the FCC regarding topics of particular interest to consumers that will be specified by the FCC. The FCC seeks nominations from interested nonprofit organizations, corporations, trade associations, government agencies, or other entities from both the public and private sectors, who wish to be considered for Committee membership for a two-year term of service. Selections will be made based on factors such as expertise and diversity of viewpoints that are necessary to effectively address the topics before the Committee.
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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