Daily Digest 9/29/2026 (Josephine Edith Tetreault)

Benton Institute for Broadband & Society
Table of Contents

Broadband Marketplace

Assessing the ‘Land Grab’ in the U.S. Fiber Market: Who’s Next?  |  Read below  |  Mike Dano  |  Research  |  Ookla
Price Regulation Is Not the Answer for Broadband  |  Read below  |  Randolph May, Joseph Kennedy  |  Analysis  |  Free State Foundation

Broadband Funding

SpaceX Wants to End Rural Subsidies  |  Read below  |  Doug Dawson  |  CCG Consulting

Satellite

SpaceX’s Starship goes orbital, deploying first next-gen Starlinks  |  Read below  |  Stephen Clark  |  Ars Technica

Telecommunications

FCC Does Not Automatically Grant Application of Verizon to Discontinue Domestic Legacy Voice Service  |  Read below  |  Public Notice  |  Federal Communications Commission

AI

President Trump is selling an AI ‘golden age’ as fears about perils spiral  |  Washington Post
AI godfathers warn of potential for runaway ‘intelligence explosion’  |  Guardian, The
Video | Bill Gates warns of ‘a billion’ deaths if AI goes wrong  |  NBC
OpenAI Scraps Release of New AI Model Over Safety Concerns  |  Wall Street Journal
OpenAI Pledges Task Force After Hacking of Australia Government Website  |  Bloomberg
OpenAI Agents Used Aggressive Techniques to Access U.N. Website  |  Wall Street Journal
Microsoft goes quiet after church groups ask for 1 percent of data center costs  |  Ars Technica
How Pew Research Center is—and is not—using AI in our work  |  Pew Research Center
Today's Top Stories

Assessing the ‘Land Grab’ in the U.S. Fiber Market: Who’s Next?

Mike Dano  |  Research  |  Ookla

The U.S. fiber broadband market is in the midst of a massive “land grab,” mirroring the consolidation seen in the early days of wireless and cable. This race is driven by the reality that most U.S. cities can only sustainably support one or two fiber providers—and that fiber is now viewed as a critical component of future telecommunications earnings and revenue growth, not to mention a pathway for advanced AI services. But how to assess the current state of the U.S. fiber marketplace? An analysis of Ookla Speedtest data from almost 1,700 fixed internet providers in the U.S. in the first half of 2026 turned up roughly 500 internet service providers that show likely fiber network characteristics. While major providers like AT&T and Verizon made up about 60 percent of fiber Speedtest samples, smaller regional operators accounted for the remaining 40 percent. Meaning, roughly 40 percent of the U.S. fiber market—based on Speedtest samples—is composed of hundreds of smaller fiber players, providers that might emerge as players in a fiber operator rollup. Such data stands apart from federal Broadband Data Collection programs because it’s derived from actual fiber users and collected in real time.

Price Regulation Is Not the Answer for Broadband

Randolph May, Joseph Kennedy  |  Analysis  |  Free State Foundation

Christopher Ali, the Pioneers Chair in Telecommunications at Penn State University, recently called for consideration of rate regulation for broadband providers. His main argument is that some households still have difficulty paying their Internet bill. That may be true for some in the short term. However, the best way to ensure lower prices and greater innovation for most consumers over the long term remains continued promotion of increased competition with market-determined prices. There is considerable evidence showing a steady pattern of increasingly faster speeds and lower prices per megabyte per second over the last few years. In other words, on average, consumers are paying less for more broadband capacity. Rate regulation almost certainly would reverse this.

SpaceX Wants to End Rural Subsidies

Doug Dawson  |  CCG Consulting

SpaceX has now told the Federal Communications Commission multiple times that the agency should begin the process of phasing down and eliminating all rural high-cost subsidies from the Universal Service Fund. The company filed comments asking for the end of subsidies in FCC Docket 26-96, which is looking at reforming the High-cost fund for an all IP Future, and in Docket 10-90 that was looking at Universal Service Fund reform. In both filings, SpaceX says that its proliferation of low-orbit satellites means that rural subsidies are obsolete and are no longer needed. The company characterizes anybody who disagrees with it as a “subsidy-dependent incumbent”. SpaceX goes on to argue that the money currently spent on rural subsidies should be redirected to programs that lower the cost of broadband for low-income families. It’s an interesting policy question that raises more questions about satellite broadband than it does about the rural companies that are receiving broadband subsidies. 

SpaceX’s Starship goes orbital, deploying first next-gen Starlinks

Stephen Clark  |  Ars Technica

SpaceX’s Starship rocket thundered into the sky over South Texas on September 28. It was the 14th test flight of the world’s most powerful launch vehicle. This time, however, the rocket’s massive upper stage squeezed out some extra oomph from its Raptor engines and accelerated to orbital velocity. On all of Starship’s previous flights, SpaceX intentionally dialed back the full capability of the rocket to fly a suborbital trajectory, slow enough for Earth’s gravity to pull the vehicle back into the atmosphere before it could complete a full lap around the planet. After several successful suborbital flights in a row, SpaceX officials decided this launch should go all the way to low-Earth orbit. And it did. What’s more, SpaceX packed 26 of the company’s newest generation of Starlink broadband satellites into the rocket’s cargo bay. One by one, the flat-packed satellites—too large to fit inside SpaceX’s workhorse Falcon 9 rocket—were released from Starship’s payload deployer using a system of pulleys and cables to eject the satellites overboard like a Pez dispenser spits out candy.

FCC Does Not Automatically Grant Application of Verizon to Discontinue Domestic Legacy Voice Service

Public Notice  |  Federal Communications Commission

On August 10, 2026, Verizon filed an application with the Federal Communications Commission requesting authority, under section 214 of the Communications Act of 1934, as amended, 47 U.S.C. § 214, and section 63.71 of the FCC’s rules, 47 CFR § 63.71, to discontinue residential and business legacy TDM-based voice service in portions of Arizona, Delaware, New Jersey, New Mexico, Ohio, Rhode Island, South Carolina, Utah, and Virginia. On August 26, 2026, the Commission released a public notice seeking comment on the Application and stating that the Application would be automatically granted on September 26, 2026. The FCC requires additional time to complete its review. Accordingly, the Application as filed with the FCC will not be automatically granted. We emphasize that our removal of Verizon’s application from the automatic grant process is not a final determination on the merits of Verizon’s request for authority to discontinue service.

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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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