Wednesday, February 26, 2025
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Should Congress Repeal the FCC’s E-Rate HotSpot Lending Decision?
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Sens Cramer, Moran Introduce Bipartisan Legislation to Prevent Taxation of Rural Broadband Grants
How telehealth could offset the cost of the Affordable Connectivity Program
Supreme Court rejects internet service providers again in latest bid to kill NY’s $15 broadband law
Broadband Funding



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Broadband Funding

Under existing law, federal broadband deployment grants are subject to federal taxation, limiting the funds available for recipients to use. Sen Kevin Cramer (R-ND) Sen Jerry Moran (R-KS) in introducing the Broadband Grant Tax Treatment Act to ensure federal broadband deployment grants are excluded from taxable income, allowing recipients to maximize investments in broadband expansion. Cosponsors of the Broadband Grant Tax Treatment Act include Sens Dan Sullivan (R-AK), Tim Kaine (D-VA), Tommy Tuberville (R-AL), Mark Kelly (D-AZ), Shelley Moore Capito (R-WV), Angus King (I-ME), Roger Wicker (R-MS), Raphael Warnock (D-GA), and Deb Fischer (R-NE).

The Missouri Office of Broadband Development announced that the year’s first round of Broadband Equity, Access, and Deployment funding is closed. During this initial round, OBD received a total of 519 applications, which would bring broadband to more than 192,000 of the state’s residents and businesses. OBD said this represents 90 percent of the locations eligible for the funding. Nearly $4 million in funding was requested. The next step will be for OBD to review those applications. OBD advised applicants to be prepared to participate in the best-and-final offer process, for which the top two submitted scores for an application area are eligible. OBD is also in the process of determining the areas which will be eligible for the second round of Missouri BEAD grant applications.

We’re creeping closer to the one-year mark since the federal government axed the Affordable Connectivity Program due to lack of funding, which left over 23 million low-income households without affordable internet. But folks didn’t just lose the $30/month subsidy and a reliable broadband connection. A new study from the Brattle Group found healthcare and workforce opportunities—and the economic impact associated with both—are also down the drain without the ACP. Should the program return, it can potentially save up to $29.5 billion in annual healthcare costs by improving access to telehealth, said the Brattle Group. The firm noted since ACP had a “modest annual cost” of $7.3 billion, the healthcare savings could “more than offset the costs of the entire program if it were reinstated.”

An open-access fiber network is installed by a company that then sells access to internet service providers. That means you can have multiple providers offering plans for your house. They use the same infrastructure but may have different prices, services and bundles. You’ll find two types of open-access networks in the US. Municipally-owned networks are owned by cities. Private companies own commercial networks. They both work in a similar fashion, usually with multiple ISPs competing for customers.

Some big internet service providers have big plans for more fiber expansion. AT&T, for example, plans to build 21 million fiber passings to meet a goal of 50 million passings by the end of 2029. I’ve followed AT&T’s expansion in various communities, and the company has built fiber over the last five years where the cost to do so was the lowest, so this expansion plan perplexes me. It seems to me that for AT&T to meet its target of 50 million passings it is now willing to spend more per passing than in the past. Perhaps that willingness is based on the success the company has in converting customers to fiber in overbuilt neighborhoods. Only AT&T knows the details behind its decision to expand rapidly. I find it interesting that the company is suddenly willing to build fiber in neighborhoods that were not in its plans just a few years ago.
Affordability
Supreme Court rejects internet service providers again in latest bid to kill NY’s $15 broadband law

The Supreme Court has once again rejected a telecommunications industry challenge to New York's $15 broadband law. The court first refused the hear the case in December, which meant that an appeals court ruling upholding the law was not disturbed. New York started enforcing the law in January, but broadband industry groups made another attempt to get the Supreme Court's attention. AT&T stopped offering its 5G home Internet service in New York entirely instead of complying with the law, and the industry hoped AT&T's exit would convince the Supreme Court to change its decision. The Supreme Court still was not swayed. In a list of orders, the court denied the broadband industry's request for a rehearing without comment.
Local Initiatives
Broadband Coalition Launches Plan to Bridge the Digital Divide and Expand Opportunity in Rio Grande Valley

The Rio Grande Valley Broadband Coalition unveiled the RGV Broadband and Digital Opportunity Plan, a bold initiative to ensure every home, business, and community anchor institution in the region has access to affordable, reliable high-speed internet. Much of the RGV still lacks reliable internet access, holding the region back in a world that increasingly depends on digital tools. The RGV Broadband and Digital Opportunity Plan is a roadmap to change that, focusing on:
- Expanding broadband infrastructure to connect unserved and underserved communities
- Increasing digital skills training to help residents navigate online education, work, and services
- Preparing a local workforce for in-demand, high-wage technology jobs
- Enhancing telehealth access to improve healthcare outcomes and lower costs
- Supporting small businesses in adopting digital tools to grow, compete, and better serve their customers

As it looks at 2025 and beyond to 2030, the telecommunications industry is expected to work to keep cutting costs, keep capital expenditures under control, monetize their past investments, and use mergers and acquisitions to drive value. Growth-oriented companies will likely also find ways to grow revenues faster than core connectivity growth would suggest. However, the market for telecommunications is rapidly evolving. As new technologies and digitization of the economy continue to flourish at rapid pace, telecommunications will be faced with difficult investment choices.

US cable companies Comcast and Charter Communications have long suggested that they will build their own small-scale public wireless networks using their 3.5GHz CBRS spectrum holdings. Doing so, according to the companies, will help them reduce their MVNO payments to Verizon. But so far there are few signs they're actually doing that. Curious, I started asking around with the network-monitoring companies like Ookla that track this kind of stuff. Most declined to comment, but OpenSignal shared its findings. The result? The commercial mobile customers of Comcast and Charter showed no additional time on CBRS when compared with the customers of Verizon. If Comcast and Charter had extensive CBRS operations of their own—that were commercially available—their customers would presumably show much more time on CBRS.

Federal Communications Commission Chairman Brendan Carr announced the appointment of Bradley Craigmyle as Deputy General Counsel of the FCC. Craigmyle will serve as the FCC’s Deputy General Counsel for litigation. He joins the FCC from the U.S. House of Representatives Office of General Counsel, where he served as Associate General Counsel and managed the office’s high-priority and high-profile litigation.
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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