Tuesday, September 15, 2026
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Today | Data Centers, Health Care Cybersecurity, and Listening Session on the FCC's E-Rate and Screen Use NPRM
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USF Contribution Factor Reaches 42%
President Trump tries to kill regulations on ‘HOAX’ AI dangers
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The Federal Communications Commission's Office of Managing Director (OMD) announced that the proposed universal service contribution factor for the fourth quarter of 2026 will be 0.42 or 42.0 percent. The FCC's Wireline Competition Bureau (WCB), in consultation with the OMD, instructs the Universal Service Administrative Company (USAC) to apply $69 million in unused funds to offset the Schools and Libraries program demand and $56 million in unused funds to offset the Rural Health Care program demand. This offset reduces the fourth quarter 2026 contribution factor to a level below the expected contribution factor based on USAC’s filings.

A federal judge in July gave digital equity advocates a partial victory against President Donald Trump, stopping his attempt to unilaterally kill a multibillion-dollar grant program Congress created. But U.S. District Judge John D. Bates, in a 35-page opinion, also agreed with the administration that it was unconstitutional for the government to use race or ethnicity as the basis to award money under a program created to expand internet skills and access. “It was definitely disappointing,” said Angela Siefer, executive director of the National Digital Inclusion Alliance, a nonprofit that filed suit last year after not receiving a nearly $26 million award meant to bolster digital and internet skills nationwide. “With this administration, it’s really worrisome.”

The Tribal Broadband Connectivity Program and the Native Entity Grant Program, designed to support Native Entities in implementing essential broadband adoption and usage programs, are open for application. Indian Tribes, Alaska Native entities, and Native Hawaiian organizations are eligible applicants for both programs. The NEGP prioritizes broadband adoption and usage. TBCP funds broadband infrastructure, usage, and adoption, but prioritizes use and adoption. NDIA recommends that anyone interested in applying for either program read the NEGP NOFO, TBCP 3 NOFO, and other National Telecommunications and Information Administration-prepared resources (NEGP & TBCP 3).

I can think of only three sources of locations that the Broadband Equity, Access and Deployment program missed the first time around. One group of locations is those being turned back to State Broadband Offices when BEAD awardees decide not to accept a BEAD grant. The broadband offices have been trying to find other internet service providers to take these locations at the original award price. But I already know of several examples where there are no takers—at least at the dollar level of BEAD that was awarded after the Benefit of the Bargain round. Perhaps the National Telecommunications and Information Administration will loosen the purse strings a bit to allow for higher awards for some of these locations. Another potential source of locations comes from each update of the Federal Communications Commission mapping fabric, when new locations are added to the FCC map. Some of these are new construction, and others are corrections of the fabric. I can’t imagine that is a whole lot of places in this category, but there are always going to be some with each new map. The only other source of new BEAD locations I can think of would be from fixing the many errors introduced in the BEAD map challenge process. The only word I can use to describe the map challenge process is ludicrous.

Every morning, as Mike Hesse gets ready to go out the front door of his family farm, he has a rude awakening. Right at the edge of his property stands an orange and white pole that looks like a PVC pipe. It’s a utility cap for a fiber-optic internet line that cuts through his front yard. “That’s how close fiber internet is to my home here,” he said, standing on his porch. “You got the vault 60 feet from my house, and you cannot hook us up.” Even though he mows around the internet connector every week, it’s not for residential use, Hesse said. “I’d just love to have them connect me from that box to my house,” Hesse said, dreaming about how nice it would be to open a PDF file in under a minute. His home in northeast La Crosse County is just one of thousands across Wisconsin left in the so-called “last mile” between internet lines and home connections.

President Donald Trump tried to shut down a burgeoning push for the United States to further regulate artificial intelligence, saying the U.S. has already done enough to prevent artificial intelligence from catastrophic risks and that the dangers posed by the technology are a “HOAX.” In a flurry of social media posts on September 14, the president decried placing additional guardrails on AI, argued that the technology and data centers will boost the economy, claimed there’s a conspiracy against it, and alleged, without evidence, that there’s no real threat posed by AI.

The increasingly urgent pleas from leading tech executives to slow the advance of artificial intelligence are confronting one daunting obstacle: It’s not entirely clear how they could do that. A slowdown could involve releasing frontier models less frequently, requiring approval before deploying systems with powerful cyber or biological capabilities, giving independent monitors access to AI labs, or negotiating limits with China. The debate intensified after Anthropic CEO Dario Amodei published a proposal Saturday calling for a more deliberate pace of AI development—a pitch that soon drew endorsements. OpenAI CEO Sam Altman, SpaceXAI CEO Elon Musk, Google DeepMind Chair Demis Hassabis, and Microsoft CEO Satya Nadella soon voiced their agreement.

Spectate or participate. Those are the options on the table for operators as the AI revolution rolls on, Alianza CEO Brian Beutler argued. And the choice could mean the difference between hitching up to a growth engine or being left behind as a dumb pipe—again. Alianza recently unveiled Crux, a new orchestration platform designed to enable operators to tap into the AI voice market. Crux was pitched as not just a customer retention tool and churn reducer, but also a path to new revenue streams for operators. But the battle around AI voice isn’t just about technology. It’s about compelling operators to act before the moment passes them by.

Telecommunications firms have been touting AI as a cost saver, using it to justify thousands of layoffs. But while the humans are disappearing, the costs aren’t always following suit. New research from Bain & Company warned that telecommunications companies risk falling into an opex trap as AI costs grow and could end up facing total costs that are higher—not lower—than where they started. “The risk is a dangerous cost-creep scenario: higher operating expenses without proportional gains in productivity, customer experience, or growth,” Bain’s team wrote. The firm outlined two potential outcomes for telecommunications companies. In the first scenario, a company is able to replace 20-30 percent of its traditional costs with AI-related expenses around agents, tokens, and data. In the second (dubbed the “cost creep” model, a company fails to cut traditional costs, and those AI expenditures simply add 20-30 percent to their overall spending.

We are facing the multi-trillion-dollar march of private artificial intelligence (AI) data centers into our economy, politics, ecosystem, and cultural life. Amid calls for blanket moratoria and investments in data centers in space, how can the public assert a controlling interest in the development and outcomes of this technology? This essay proposes developing municipally owned, small-scale data center capacity to support municipal services and public-interest AI. To encourage outcomes in the public interest, infrastructure investments must shift away from primarily private, hyperscale facilities and toward publicly accountable, resource-aware, incremental, and flexible deployments. Starting small will open new horizons for municipalities’ capabilities to achieve their public service missions. This is an opportunity for municipalities to provide a next-generation category of services, take risks, and build competency and control over the emerging productive assets of the 21st century.
[Preston Rhea is a Principal in the Technology & Society Studio at HR&A Advisors, where he advises cities, counties, and states on broadband and public technology infrastructure.]

Charter’s CFO Jessica Fischer is leaving the company on October 15 to become the founding CFO of a new Blackstone–Google joint venture called Crux AI, which will be focused on AI infrastructure. But still representing Charter, Fischer spoke at Citi's 2026 Global TMT Conference. She was asked about the cost synergies that Charter expects from its recent acquisitions of Cox Communications and Liberty Broadband. Previously, the company expected cost synergies from the Cox acquisition of about $800 million, but at Citi, Fischer said, “The confidence that we have in the synergies that will come from the transaction, I'd say, has increased dramatically as we've sort of dug in further. And so we've raised our synergy target to more than $1 billion.”
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) and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.
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