Daily Digest 2/24/2025 (State and Local Broadband)

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

RDOF Defaults  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting

Affordability

Internet service provider failed to comply with New York’s $15 broadband law—until Ars got involved  |  Read below  |  Jon Brodkin  |  Ars Technica

State/Local

California Awards $9 Million in Final Round of Broadband Grants  |  Read below  |  Press Release  |  California Public Utilities Commission
Ohio, Vermont showcase successful municipal network financing  |  Read below  |  Masha Abarinova  |  Fierce
How Digital Skills Are Opening Doors for Eastern Kentuckians  |  Read below  |  Kristi Zappie-Ferradino  |  Analysis  |  National Digital Inclusion Alliance
California to launch digital democracy effort to improve public engagement  |  California Office of the Governor
California’s radical idea for data privacy: Enforce the law  |  Washington Post

Net Neutrality

The Internet Should Be ‘Neutral,’ but Congress Should Not  |  Read below  |  Steve Rosenbush  |  Wall Street Journal

Telehealth

Doctors and patients are calling for more telehealth. Where is it?  |  MIT Technology Review

Platforms/Social Media

As Facebook Abandons Fact-Checking, It’s Also Offering Bonuses for Viral Content  |  ProPublica
The man trying to capture the internet before it disappears  |  Vox
Pollution from Big Tech’s data centre boom costs US public health $5.4 billion  |  Financial Times

Artificial Intelligence

OpenAI finds new Chinese influence campaigns using its tools  |  Read below  |  Ina Fried  |  Axios
OpenAI tops 400 million users despite DeepSeek’s emergence  |  CNBC
Roll Over Shakespeare: ChatGPT Is Here  |  Wired

Government & Communications

Judge temporarily blocks key parts of President Trump’s executive orders targeting DEI  |  Washington Post
The National Institute of Standards and Technology Braces for Mass Firings  |  Wired
Federal employees must answer email on what they did last week — or lose jobs, Musk says  |  Washington Post

Security

SI Wireless Again Scolds FCC for Lack of Rip-and-Replace Reimbursement  |  telecompetitor

Company News

Frontier Reports Fourth-Quarter and Full-Year 2024 Results  |  Read below  |  Press Release  |  Frontier

Stories From Abroad

When Germany Votes, It Will Be About the Economy  |  Read below  |  Melissa Eddy, Jim Tankersley  |  New York Times
A dispute between Netflix and SK Broadband in South Korea: Who should pay the network usage fees?  |  Read below  |  Jihong Kim, Heejin Lee  |  Research  |  Telecommunications Policy
Europe Vows to Step Up Baltic Sea Security After a New Cable Break  |  New York Times
Today's Top Stories

Broadband Funding

RDOF Defaults

Doug Dawson  |  Analysis  |  CCG Consulting

The Rural Digital Opportunity Fund was the biggest attempt at the time to solve the rural broadband gap. The Federal Communications Commission had originally slated $20.4 billion to award to internet service providers in a reverse auction, meaning the ISP willing to take the smallest subsidy for a given area won the funding. Winners were to collect the funding over 10 years and had up to seven years to build the promised networks. The program ran into problems in several dramatic ways. First, the FCC chose the areas eligible for RDOF using its badly flawed broadband maps. In a problem that is still plaguing the Broadband Equity, Access, and Deployment process, the FCC made the funding available in what is best described as a checkerboard of eligible and non-eligible areas. At the close of the BEAD auction, ISPs had claimed over $9.2 million in RDOF subsidies to serve over 5.2 million locations. The Benton Institute for Broadband & Society has assembled a spreadsheet that shows that 1.9 million of those locations and $3.3 billion were defaulted.

Affordability

Internet service provider failed to comply with New York’s $15 broadband law—until Ars got involved

Jon Brodkin  |  Ars Technica

When New York's law requiring $15 or $20 broadband plans for people with low incomes took effect, Optimum customer William O'Brien tried to sign up for the cheap Internet service. Since O'Brien is in the Supplemental Nutrition Assistance Program, he qualifies for one of the affordable plans that Internet service providers must offer New Yorkers who meet income eligibility requirements. Despite qualifying for a low-income plan under the law's criteria, O'Brien's request was denied by Optimum. He reached out to Ars Technica, just like many other people who have read our articles about bad telecom customer service. Usually, these problems are fixed quickly after we reach out to an Internet provider's public relations department on the customer's behalf. That seemed to be the way it was going, as Optimum's PR team admitted the mistake and told us that a customer relations specialist would reach out to O'Brien and get him on the right plan. But O'Brien was rejected again after that.

State/Local

California Awards $9 Million in Final Round of Broadband Grants

The California Public Utilities Commission (CPUC) approved $9 million in broadband infrastructure grants for five projects in Tuolumne County (CA), marking a major milestone in the state’s historic $2 billion Last Mile Federal Funding Account grant program. These investments bring broadband access to underserved and unserved communities across California, reinforcing the state’s commitment to Broadband for All. The Last Mile Federal Funding Account seeks to close the digital divide by expanding investment in broadband infrastructure, increasing affordability, and enhancing access for all with the prioritization of disadvantaged and low-income communities. Today’s grants will provide access and improve service to approximately 3,300 households and businesses in Tuolumne County. The CPUC has now awarded over $1 billion in broadband grants for projects spanning 52 counties across California. An additional $550 million is set to be allocated to the Last Mile program in the 2027–2028 state budget.

Ohio, Vermont showcase successful municipal network financing

Masha Abarinova  |  Fierce

Like most internet service providers, municipalities face their fair share of challenges when building broadband networks. Particularly, they need to convince financiers that it’s a worthwhile investment. Securing funds is especially tricky when the incumbents don’t want to play ball. Ernie Staten, Public Service Department Director for the City of Fairlawn, Ohio, said when Fairlawn asked some local internet service providers if they were interested in a partnership to build a citywide network, they basically laughed at the idea. So, Fairlawn decided to finance the network itself, which cost $10.1 million for the outside plant and some small data centers. The city classified broadband just like a road, sewer or water line, so it was able to take funding out of its infrastructure budget to finance the network. Meanwhile in Vermont, community-owned broadband is all the rage thanks to the state’s communications union districts. A CUD is an organization of two or more towns that collaborate to build communications infrastructure.

How Digital Skills Are Opening Doors for Eastern Kentuckians

Kristi Zappie-Ferradino  |  Analysis  |  National Digital Inclusion Alliance

In Appalachia Kentucky where reliable internet access and digital literacy can mean the difference between opportunity and isolation, Ashley Smith is helping people navigate a new path forward. As the local Digital Navigator, Ashley has worked one-on-one with hundreds of residents, connecting them to education, jobs, and essential online resources. One of Ashley’s first clients was a college student struggling to use Blackboard, a platform essential for online coursework. Frustrated and falling behind, she turned to Ashley for help. After just a few sessions, she felt confident navigating the platform, keeping up with assignments, and taking control of her education. Stories like this highlight the critical role Ashley plays in helping residents embrace technology–whether it’s setting up an email account, searching for a job online, or helping with telehealth appointments.

Net Neutrality

The Internet Should Be ‘Neutral,’ but Congress Should Not

Steve Rosenbush  |  Wall Street Journal

A federal appeals court’s rejection of the Federal Communications Commission’s decade-plus push for stronger oversight of the internet was a crushing defeat for “net neutrality” as it has been pursued since the Obama administration. But the ruling could also be seen as the latest indictment of the inability of Congress to regulate at anywhere near the speed of tech. It has been more than a generation since Congress passed the Telecommunications Act of 1996, its first and so-far last really big swing on the internet, and that was a modernization of the Depression-era Communications Act of 1934. The failure of Congress to act as technology grows ever more powerful can be seen as an invitation for the executive and judicial branches of government in the U.S., as well as regulators in Europe and elsewhere, to fill the void. That leaves the tech industry, its business customers and consumers to navigate unresolved policy questions, a patchwork of state regulations and international rules, and federal agency policies vulnerable to court decisions.

Artificial Intelligence

OpenAI finds new Chinese influence campaigns using its tools

Ina Fried  |  Axios

OpenAI spotted and disrupted two uses of its AI tools as part of broader Chinese influence campaigns, including one designed to spread Spanish-language anti-American disinformation. AI's potential to supercharge disinformation and speed the work of nation state-backed cyberattacks is steadily moving from scary theory to complex reality. OpenAI recently published its latest threat report, identifying several examples of efforts to misuse ChatGPT and its other tools. One campaign, which OpenAI labeled "sponsored discontent," used ChatGPT accounts to generate both English-language comments attacking Chinese dissident Cai Xia and Spanish-language news articles critical of the U.S. OpenAI, which started publishing threat reports in 2024, says that it's doing so "to inform efforts to understand and prepare for how the P.R.C. or other authoritarian regimes may try to leverage AI against the U.S. and allied countries, as well as their own people."

Company News

Frontier Reports Fourth-Quarter and Full-Year 2024 Results

Press Release  |  Frontier

Frontier Communications reported fourth-quarter and full-year 2024 results. Full year highlights include:

  • Added 1.3 million new fiber passings to reach 7.8 million locations passed with fiber
  • Added a record 385,000 fiber broadband customers, resulting in fiber broadband customer growth of 19.2% year-over-year

Fourth quarter highlights include:

  • Added 241,000 fiber passings to reach 7.8 million total locations passed with fiber
  • Added 97,000 fiber broadband customers, resulting in fiber broadband customer growth of 19.2% year-over-year

Stories From Abroad

When Germany Votes, It Will Be About the Economy

Melissa Eddy, Jim Tankersley  |  New York Times

The German election has in part focused on hot-button issues like immigration and more recently on the threat to the Atlantic alliance presented by President Trump. But the overriding concern in daily German life, according to interviews and polls, and the thing most likely to drive the choice of voters, is the nation’s anemic economy. The German economy has not grown in five years. Its once-powerful industries are suffering through what corporate and labor leaders call a crisis of competitiveness. Structural problems, including crumbling public infrastructure, from bridges and roads to schools; a lack of high-speed broadband networks; and public services that still work with paper have dragged on growth. So have regulations, tax rates and, in particular, high energy costs.

A dispute between Netflix and SK Broadband in South Korea: Who should pay the network usage fees?

Jihong Kim, Heejin Lee  |  Research  |  Telecommunications Policy

The advancement of digital technologies has led to the evolution of media content delivery methods. In particular, Over-The-Top (OTT) services have experienced an explosive growth in the video content industry. The skyrocketing data traffic increases the burden on ISPs’ infrastructure, and the discourse on CPs’ payment of network usage fees has emerged. It is significant to review the case of Netflix-SK Broadband in South Korea, the world’s significant legal dispute over network usage fees. This study examines network usage fees and network neutrality as concepts relevant to the case, traces the litigation process, identifies the reasons for the settlement of the lawsuit, and discusses policy implications. This study suggests that the issue of network usage fees could become a trade issue and that a regulatory framework needs to be evolved accordingly. This study contributes to understanding the issue of network usage fees that will be increasingly important for global digital industries. As such, it can present a reference to the telecommunications and content industries and even to digital trade for their future debate and development.

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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), Grace Tepper (grace AT benton DOT org), and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.


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