Much of FCC Commissioner Brendan Carr's agenda as the agency's incoming chair doesn't require an FCC majority to move forward, New Street Research's Blair Levin noted Monday. Part of that is because Carr can get Congress to act, and some is due to the delegated authority FCC bureaus have, Levin said. Carr's efforts to investigate tech companies and amplify the voice of conservatives on social media platforms don't require a formal FCC proceeding, he said. For example, Carr can tie up Skydance's proposed Paramount purchase, which would signal other networks that unfavorable news coverage could affect M&A approvals. In addition, Carr could have the FCC general counsel issue a policy statement about Section 230 of the Communications Decency Act that eliminates the expansive immunities courts have read into the statute, Levin said. And Carr doesn't need a majority to stop work on items with which he disagrees, such as bulk billing rules, Levin said. Outgoing Chairwoman Jessica Rosenworcel "never effectively used her bully pulpit [and thus] had the least consequential term as Chair in modern FCC history," he argued. She failed on such issues as losing spectrum auction authority and not getting an extension of the affordable connectivity program, Levin said. Mentioning Levin's note during a Practising Law Institute event Tuesday, Carr said Levin would need “a food taster” at that night's FCBA annual dinner. Levin's note is a reminder that “it's all downhill from here" for his upcoming stint as chairman, Carr said. “They like you on the way in, they definitely do not on the way out, and I don't expect that pattern to be broken any time soon,” he said. Rosenworcel Chief of Staff Narda Jones said during a different PLI panel that she hadn't read Levin's essay but that her boss was proud of the FCC’s work “to reach communities and stakeholders who haven't necessarily been the focus of the commission's work before.” She pointed to the ACP, formation of the Space Bureau, maternal health mapping, and the Missing and Endangered Persons alarm code as important achievements of the Rosenworcel FCC.
Affordable Connectivity Program (ACP)
What is the Affordable Connectivity Program (ACP)?
The Affordable Connectivity Program was a recently expired subsidy for low-income households to lower the cost of purchasing broadband internet and connected devices. The program was signed into law as part of the 2021 Infrastructure Investment and Jobs Act and administered by the FCC up until June 1, 2024, due to expiration of the ACP’s funding.
Will the ACP Return?
Congress continues to debate restoring ACP funding, with immediate next steps likely to come from the Senate Commerce Committee or Congressional discussions on revising the Universal Service Fund.
Senate Commerce Committee ranking member Ted Cruz, R-Texas, could shift the direction Congress’ USF revamp takes when he becomes the panel’s chairman in January, lawmakers and lobbyists told us. Observers believe his impact on what Congress decides will partially depend on how the U.S. Supreme Court rules when it reviews the FCC appeal of the 5th U.S. Circuit Court of Appeals' ruling in favor of Consumers' Research's challenge of the USF contribution methodology (see 2411220050). A high court ruling upholding the 5th Circuit could shift momentum in favor of Cruz’s proposal that Congress make USF funding part of the appropriations process, officials said.
A possible shakeup of the federal Universal Service Fund (USF) will be top of mind for state telecom regulators in the year ahead, NARUC Telecom Committee Chair Tim Schram said in an interview earlier this month at the association’s Anaheim meeting. USF is one of several areas of uncertainty in 2025, said three state consumer advocates in a separate interview at the collocated National Association of State Utility Consumer Advocates (NASUCA) conference.
A plan for cutting regulations and federal institutions such as the FCC could target broadband access programs and media regulations, but it's likely that a wave of litigation will stymie it, administrative law professors and attorneys told us. Future Department of Government Efficiency (DOGE) heads Vivek Ramasawamy and Space X CEO Elon Musk laid out their plans in a Wall Street Journal opinion column. “It's not to say that maybe some of these changes shouldn't be happening, but, you know, they're taking a wrecking ball to fix something that requires a little bit more finesse than that,” said University of Idaho law professor Linda Jellum. Asked about possible DOGE cuts at the FCC, incoming FCC Chairman Brendan Carr last week told reporters, “There's no question, there's tons of room for driving more efficiency at the FCC." He didn't elaborate.
Federal permitting problems could become notable impediments to BEAD deployment projects, Lukas Piertzak, NTIA senior broadband policy adviser, acknowledged Wednesday. Yet Piertzak also said a clawback of BEAD funding next year seems unlikely. BEAD, as well as NTIA's tribal connectivity and middle-mile programs, are perhaps insulated because of their bipartisan support not just from federal lawmakers but also governors and local officials, he added. Piertzak spoke during a panel discussion in T-Mobile's Washington office organized by ALLvanza, Multicultural Media, Telecom and Internet Council, LGBT Tech, and OCA – Asian Pacific American Advocates.
Congressional GOP leaders are doubtful about lawmakers' chances of reaching a year-end deal on an additional $3.08 billion for the FCC's Secure and Trusted Communications Networks Reimbursement Program even as some Democrats are softening their insistence that the funding move in tandem with stopgap money for the FCC's lapsed affordable connectivity program. Sen. Steve Daines of Montana, Rep. August Pfluger of Texas and nine other Republicans wrote congressional leaders Monday to press for rip-and-replace funding in a bid to highlight the issue amid the lame-duck frenzy.
During a Thursday Incompas virtual event, communications industry lawyers offered few clues about which lawmakers will fill vacant top GOP slots on the House and Senate Communications subcommittees, but CEO Chip Pickering forecast substantial leadership continuity on both chambers’ Commerce committees. Pickering and lawyers who spoke at the event, meanwhile, saw limited prospects during the lame-duck session that Congress would advance a spectrum legislative package or funding for the FCC’s lapsed affordable connectivity program and Secure and Trusted Communications Networks Reimbursement Program.
Minus the end of the affordable connectivity program (ACP), EchoStar saw its wireless subscriber numbers growing in Q3, CEO Hamid Akhavan said Tuesday as the company announced Q3 financial results. EchoStar said it ended Q3 with 912,000 Hughesnet satellite broadband subscribers, and that it's adding subscribers as it offers high-speed unlimited data via its Jupiter 3 satellite. It finished the quarter with 7 million Boost wireless subscribers, and discounting ACP issues, it added 62,000 subscribers in Q3, it said. ACP-related subscriber churn crested in Q3, said Jeff Boggs, senior vice president-finance for EchoStar's Hughes. He said ACP should have significant impacts in Q4. Akhavan noted the proposed sale of Dish Network to DirecTV is expected to close in late 2025. If the DirecTV deal doesn't go through, then EchoStar still has "a path forward" using cash from other sources, he said. EchoStar ended Q3 with revenue of $3.9 billion, down from $4.1 billion in Q3 2023 due to fewer subscribers, it said. In addition, it ended Q3 with 8 million pay-TV subscribers -- 5.9 million Dish subscribers and 2.1 million Sling TV subscribers. It said its 5G voice service covers 208 million Americans, and it plans to expand coverage to Boston, Pittsburgh and Seattle in coming weeks, taking it to more than 216 million Americans covered by year's end. Akhavan said that while few devices were compatible with its terrestrial network at the start of the year, today it has a larger portfolio, including iPhones 15 and 16 and most Android devices. EchoStar expects it will notably grow its Boost Mobile market share in 2025. Asked about not joining the Mobile Satellite Services Association, Akhavan said it's largely a "spectrum availability partnership" and EchoStar's spectrum holdings are sufficient without needing to join.
ANAHEIM, Calif. -- The NARUC Telecom Committee on Monday cleared draft resolutions on phone number conservation, the Universal Service Fund and utility coordination on broadband deployment. A USF panel that day described how reform could happen with Republicans controlling the FCC and Congress next year. Also, the affordable connectivity program (ACP) could return in 2025 despite Washington’s partisan climate, said Sanford Williams, deputy chief of staff for FCC Chairwoman Jessica Rosenworcel, during a collocated National Association of State Utility Consumer Advocates (NASUCA) meeting. State utility regulators are holding their annual meeting here this week.
Cable One saw slight broadband subscriber losses in Q3 owing to the end of the affordable connectivity program, it said Thursday as it announced results. The company said it ended Q3 with 960,000 broadband residential primary service units (PSU) -- flat from Q3 2023 -- and lost 5,300 subscribers in Q3 from ACP. If not for the ACP losses, it would have had 1,900 net additions for the quarter, it noted. Cable One said it ended Q3 with 112,000 video residential PSUs, down from 141,000 a year earlier; and 70,000 residential voice PSUs, compared to 82,000 a year earlier. Multiple cable operators saw ACP-related hits to their broadband numbers in Q3 (see 2411050006).