Telecommunications Act of 1996

Here is an overview of the major federal funding vehicles for broadband that are helping to fuel the broadband investment cycle and are aimed at closing the digital divide so that all Americans have access to high-speed, reliable, affordable broadband:

Alaska Communications expanded broadband availability and boosted speeds to almost 5,000 homes in the Interior region of the state in 2022. The company used a wide range of last-mile technologies – from XGS-PON to fixed wireless, even some DSL — to achieve that. The Alaskan Interior can be thought of as the center of the state – the area most removed from the state’s lengthy coastline. Much of the area is wilderness.

The Federal Communications Commission's Wireline Competition Bureau (WCB) announced the conclusion of the Connect America Fund Phase II auction long-form application review. There were 195 authorized applicant state combinations, totaling $1.48 billion authorized in 10-year support, covering 708,494 locations in 45 states. Authorized bids included a range of performance tiers, with more than one-half of the winning bids at 100/20 Mbps or higher.

Reducing the broadband affordability gap is an important and noble goal. Unfortunately, it is far from clear whether Lifeline, the federal program tasked with getting low-income households online, actually addresses this problem. For over a decade, academics, government watchdogs, and independent auditors have criticized the Federal Communications Commission’s inability or unwillingness to measure the program’s effectiveness—while private studies suggest much of this spending may be misdirected toward families at no risk of losing internet access.

Federal Communications Commissioner Chairwoman Jessica Rosenworcel said that using the E-rate program to subsidize mobile hotspot devices is a “great idea” and that there may be some activity on that front in the future. The chairwoman was fielding a comment from a mayor of a Texas city, who said that his jurisdiction has a program that lends out connectivity hubs – allowing others to connect to the device – in parts of the town for residents seeking internet. He asked whether that’s something that the FCC could fund.

A case before the Supreme Court challenging the liability shield protecting websites such as YouTube and Facebook could “upend the internet,” resulting in both widespread censorship and a proliferation of offensive content, Google said in a court filing.

The year 2023 could prove to be a volatile year for the Federal Communications Commission as it wrestles with a number of lawsuits concerning its Universal Service Fund (USF) program.

The $8.6 billion Universal Service Fund, a linchpin of US communications funding since the late 1990s, helps more than 8 million people afford phone and internet service. The conservative advocacy group Consumers’ Research filed lawsuits in three US courts saying the program should be invalidated because its funding is set by regulators, rather than by Congress, which has taxing authority. There’s a high chance one of the courts will strike down the program in 2023, shifting the battle to the Supreme Court, where justices skeptical of US regulatory agencies could hand the challengers a win.

The Federal Communications Commission's Media Bureau started the 2022 Quadrennial Review of the FCC’s media ownership rules. The Bureau seeks comment on whether the media ownership rules remain “necessary in the public interest as the result of competition.” Although the FCC has not yet adopted final rules in the 2018 Quadrennial Review proceeding, it remains cognizant of the statutory obligation to review the broadcast ownership rules every four years.

The Federal Communications Commission's Wireline Competition Bureau and the Office of Economics and Analytics announced they are ready to authorize Rural Digital Opportunity Fund (Auction 904) support for 1,764 Auction 904 winning bids. Nearly all of the winning bids are Resound Networks, a wireless internet service provider. Bids are to serve parts of Arizona, Arkansas, Colorado, Kansas, New Mexico, Oklahoma, and Texas. The FCC also announced that Xiber, a broadband provider headquartered in Indianapolis, is forfeiting bids in Illinois, Michigan, Ohio, and Texas.