Broadband Breakfast

Charter Communications' top executive appears to be warming up to the Biden administration’s $42.5 billion broadband expansion program. However, he said it will still depend on individual state rules. Charter CEO Christopher Winfrey has previously expressed disappointment with the Broadband Equity, Access, and Deployment (BEAD) program’s rules around capped plans for low-income households and labor standards. He emphasized the company would stay out of states, which have some flexibility in implementing the program, where rules were unfavorable. 

Democratic mayors from major U.S. cities discussed the critical need to maintain affordable internet access for their constituents to mitigate impacts of the federal Affordable Connectivity Program’s expiration. The mayors outlined strategies to bridge the gap left by the program’s end during a discussion hosted by the Democratic Mayors Association at the Democratic National Convention.

The Fifth Circuit Court of Appeals threw federal broadband policy into chaos recently by declaring the Universal Service Fund unconstitutional. The decision threatens to shut down the Federal Communications Commission’s longstanding system of collecting fees from telecommunications customers to subsidize rural broadband deployment and Internet access for low-income households, schools, and other programs. For years, policymakers have acknowledged the need to overhaul the USF because of its ballooning fees, potential for waste, and outdated priorities.

Republican or Democrat, one rare issue that can unite every American is the need to provide affordable internet connections to everyone. In today’s digital world, access to broadband internet means access to jobs, education, health care, and social opportunities.

Experts expressed concern that federal support for municipal broadband is limited, prompting uncertainty about future funding and operational sustainability. Tyler Cooper, editor-in-chief of Broadband Now, said that Broadband, Equity, Access, and Deployment (BEAD) grants are less promising for municipal broadband deployments despite initial promises. Cooper expressed concern that BEAD rules and requirements may not favor municipal networks, potentially favoring larger providers.

A new regulatory framework to address digital discrimination has created a chilling effect felt across the broadband industry mainly because of its unclear enforcement, according to aides to Republican Federal Communications Commissioners. “Out of fear of running afoul of the rules, companies will certainly avoid otherwise planned investments,” said Erin Boone, chief of staff and wireless advisor for Republican FCC Commissioner Nathan Simington.

Even though there are enough Republicans in Congress to pass an extension of the soon-expiring Affordable Connectivity Program, industry observers are pessimistic about its passage. Because House Speaker Mike Johnson (R-LA) is not supportive, said Blair Levin, the measure is unlikely to get a vote before the House of Representatives. Paul Gallant, a technology policy analyst for investment bank TD Cowen, agreed. “Congress is probably going to do nothing,” said Levin. "If it were to hit the floor, it would pass, and I don’t think Speaker Johnson is going to let it go to the floor.

America’s Communications Association (ACA Connects), the Rural Broadband Association (NTCA), and the Wireless Internet Service Providers Association (WISPA) issued a joint statement to the Federal Communications Commission urging it to exclude smaller and rural broadband providers from its new digital discrimination rules, citing a lack of evidence they engage in discrimination where they build and calling into question the FCC’s legal authority to impose the rules. The organizations argued that the