Thursday, November 14, 2024
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The future of the $8.5 billion Universal Service Fund (USF), which supports broadband access in schools, libraries, and rural communities, hangs in the balance as three critical court cases move forward. In a rare twist, two cases saw oral arguments on the same day, adding a sense of urgency to the outcomes. These decisions could redefine affordable internet connectivity for students, families, and communities nationwide. We summarize each case and outline the stakes for the E-rate and other USF programs. As we await the courts’ decisions, SHLB is not just observing from the sidelines. We’re actively engaged—filing briefs, educating policymakers, and preparing materials to underscore the transformative impact of E-rate and Rural Health Care (RHC) programs. Our goal? To ensure these essential services continue to bridge the digital divide and uplift vulnerable and underserved communities.
The Universal Service Fund (USF) has been stuck in legislative limbo as the government wrestles with how to improve the subsidy program. Experts think USF reform could see momentum in Trump’s second term, but how that will pan out is a trickier question to answer. The USF, which supports broadband access and affordability in rural and low-income communities, is made up of four [sic] smaller programs: Connect America Fund, Lifeline, E-Rate and Rural Health Care. One glaring problem with the current USF framework is the shrinking contribution base. Telecommunications service providers are required to contribute a certain percentage of their interstate and international service end-user revenues. However, those revenues have declined over time as more consumers use broadband as opposed to traditional telephone service.
On August 22, the Federal Communications Commission (FCC) threatened significant fines for eleven internet service providers (ISPs) that failed to participate in the FCC broadband data collection and mapping process. These ISPs have been issued several warnings from the FCC to begin complying with the broadband mapping rules. In this recent order, the FCC gave the ISPs 30 days to respond to the order. The FCC said that failure to meet that deadline could result in a fine not to exceed $24,496 per day or a maximum fine of $183,718. For folks who work with broadband maps every day, the fines I’d really like to see are for ISPs that distort the reported broadband speeds that are available to customers. But we’ll never see fines for misstated speeds since the FCC gave permission to ISPs to do so.
Oregon’s Broadband Deployment Program Announces Notices of Intent to Award $133 Million to Bring High-Speed, Reliable Broadband Internet to Thousands by 2026
The Oregon Broadband Office is excited to announce it has issued Notices of Intent to Award $132,917,084 through the Office’s Broadband Deployment Program (BDP), part of the American Rescue Plan Act (ARPA) Coronavirus Capital Projects Fund (CPF). This initial tranche of funding will support the construction and deployment of high-speed, reliable wired broadband internet at speeds of 100/100 Mbps to unserved and underserved locations across the state. Eligible applicants included municipalities, private and for-profit entities, electric utilities, co-operatives, municipal affiliates (economic development corporations, regional planning and development councils, and councils of government), nonprofit organizations, and partnerships between eligible applicants. All awarded funds must be utilized, and projects must be operational by December 2026.
Superior Court Judge Says Cox’s Lawsuit Against Rhode Island Commerce Corporation Is a Federal Issue
Superior Court Judge Brian Stern issued a decision dismissing Cox Communication’s lawsuit against Rhode Island Commerce Corporation. Stern says this is a matter that should be pursued in federal court. The legal battle centers around whether RI Commerce Corporation is misspending federal dollars. The lawsuit filed by Cox is scathing in its criticism of Commerce Corp and, de facto, its management of the program to distribute more than $108 million of federal money to improve internet speed and access.
A legal battle over the Biden administration’s influence on social media companies looks set to spill into the next Trump administration—and no one knows quite how that will play out. A district judge allowed the case known as Missouri v. Biden to resume even as the Biden administration winds down. The Supreme Court vacated his previous ruling in the case in June, but the new one means the plaintiffs can now pursue additional discovery. That sets the stage for Donald Trump and his team to inherit the role of defendants in government censorship cases brought by some of their own political allies—including Robert F. Kennedy Jr.
With artificial intelligence (AI) technologies becoming increasingly prevalent in educational settings and beyond, it is crucial to examine how paid AI services will increase disparities in digital access and literacy. GenAI resources can be valuable educational tools, but their cost may exacerbate the digital divide between wealthy and low-income students. By offering free access to the paid version of their products to financially struggling students, AI companies can help level the playing field. This would give financially disadvantaged students equal opportunity to benefit from AI-assisted research, writing support, and personalized tutoring. Reducing the digital divide in this way could lead to improved academic outcomes and career prospects for low-income students. It may also foster innovation by enabling a more diverse group of future professionals to gain early experience with GenAI technologies.
Cable TV giant Charter Communications and Liberty Broadband Corp. have entered into a definitive agreement under which Charter has agreed to acquire Liberty Broadband, part of the empire of John Malone, in an all-stock transaction. The transaction was unanimously recommended to the Charter Board of Directors for approval by a special committee composed of independent, disinterested directors and advised by independent financial and legal advisors. The Boards of Directors of both Charter and Liberty Broadband have approved the transaction. The deal is expected to close on June 30, 2027, unless otherwise agreed by the companies.
Cox Communications owns two companies that provide fiber broadband for enterprises—Unite Private Networks (UPN) and Segra. And Cox just cleaned up the portfolio of these companies by selling the Pacific Northwest assets of UPN to Ziply Fiber. Both UPN and Segra provide fiber optic communications services to commercial enterprises as well as organizations such as schools, governments, service providers and hyperscalers. Ziply will acquire UPN’s fiber assets, network and customers in Washington, Idaho, Wyoming and Montana. The acquisition will add more than 7,000 fiber miles in these states, allowing Ziply to provide both lit and dark fiber services to its commercial customers.
Following in the footsteps of some smaller US cable operators, GCI, Alaska's biggest cable operator, is preparing to end its pay-TV service. GCI confirmed that it has informed its video customers that it will shut down its TV offerings by mid-2025 and allocate more of its resources toward broadband and mobile. GCI explained on its website that it filed an application to discontinue its cable TV/video service with the Regulatory Commission of Alaska on November 8. GCI has already been phasing out a legacy QAM video platform. That move enables the operator to clear about 200MHz of spectrum for broadband and other IP services, including "high-split" upgrades that dedicate more capacity to the network upstream and potential, future DOCSIS 4.0 upgrades.
Washington is getting ready to run a wild experiment, testing what happens when one of Silicon Valley’s signature “disruptors” meets the world’s biggest bureaucracy. Elon Musk showed up in person in the capita the day after Donald Trump named him to lead a “Department of Government Efficiency”—an initiative to slash government waste, fraud, and inefficiency, wherever the tech mogul might decide he finds it. Musk will co-lead the project with Vivek Ramaswamy, the biotech investor and MAGA cheerleader who ran against Trump in the GOP primary. Trump unveiled the idea with his usual lavish promises in a statement from his transition team shared on Truth Social. “It will become, potentially, ‘The Manhattan Project’ of our time,” he wrote, and “will send shockwaves through the system.”
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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