The Senate Commerce Committee’s surprise adoption Wednesday of an amendment to the Proper Leadership to Align Networks for Broadband Act (S-2238) that would allocate $7 billion in stopgap funding for the FCC’s lapsed affordable connectivity program likely imperils chamber passage of that measure, lawmakers and lobbyists told us. Debate over the pro-ACP amendment and a proposal that attached $3.08 billion to fully fund the FCC’s Secure and Trusted Communications Networks Reimbursement Program also signaled continued friction among panel members over the Spectrum and National Security Act (S-4207).
Reps. Nikki Budzinski, D-Ill., and Mike Carey, R-Ohio, led filing of a House companion to the Secure and Affordable Broadband Extension Act (S-4317) Tuesday in a bid to give the FCC’s lapsed affordable connectivity program $6 billion in stopgap funding for FY 2024. Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., filed S-4317 in May after he unsuccessfully attempted to attach identical language to the FAA reauthorization package (see 2405090068). The measure would couple the stopgap ACP funding with changes to the program’s scope and eligibility rules. Affordable Broadband Campaign spokesperson Gigi Sohn praised Budzinski and Carey for filing S-4317’s House companion. In a statement, Sohn said, “There is no excuse not to move this legislation forward.” Also praising the lawmakers were the ACLU, Common Sense Media, Incompas, National Digital Inclusion Alliance, National Lifeline Association, New America’s Open Technology Institute and Public Knowledge.
Members of the congressional Universal Service Fund revamp working group are considering whether, and how much, the 5th U.S. Circuit Court of Appeals' ruling will affect their rollout of a framework for overhauling the program. The court ruled last week that the FCC's USF contribution factor is unconstitutional (see 2407240043). Experts believe lawmakers will likely factor the ruling into the framework, but it could be moot should the U.S. Supreme Court reverse the decision on appeal (see 2407260044). Uncertainty about USF’s future will likely extend the working group’s already lengthy process, lobbyists told us.
Wisconsin Gov. Tony Evers (D) said Friday he will ask the legislature to spend more on broadband in the next state budget. Evers made the announcement as his broadband task force released its fourth annual report. Spending $345 million in state and federal funds for broadband since 2019 has brought Wisconsin a broadband adoption rate of about 88%, the report said. “Through our investments, more than 410,000 homes and businesses will be connected to new or improved high-speed internet service, but as this report shows, we've got more work to do,” said Evers. The report’s recommendations include continued state spending on broadband, more workforce training, streamlined permitting and locating processes and greater coordination with tribes and localities. To fill the gap the end of the federal affordable connectivity program (ACP) left, the task force recommended creating “a state internet assistance program to increase broadband affordability and adoption.”
Charter Communications' internet subscriber numbers took a hit in Q2 from June's expiration of the affordable connectivity program, the company said Friday. It followed Comcast saying ACP wasn't a big weight yet but is expected to be a notable drag in Q3.
The 5th U.S. Circuit Court of Appeals' ruling Wednesday against the FCC's Universal Service Fund contribution factor for the first quarter of 2022 will likely have little to no immediate impact on the commission's USF-funded programs and providers contributing to the fund, trade groups and legal experts told us (see 2407240043). It's uncertain how the U.S. Supreme Court would interpret conflicting rulings of the 5th, 6th and 11th circuits. Consumers' Research asked SCOTUS in a supplemental brief filed Thursday (docket 23-456) to grant rehearing as a result of the circuit split.
Kentucky Gov. Andy Beshear and North Carolina Gov. Roy Cooper possess the best telecom policy credentials among the main contenders to be the Democrats’ vice presidential nominee, broadband advocates and other policy observers told us. All the contenders hold broadly similar views to Vice President Kamala Harris on broadband and telecom policy matters, but could bring different perspectives to the ticket, experts said in interviews last week.
Verizon lost 410,000 prepaid wireless customers tied to the end of the affordable connectivity program in Q2, the company said Monday as it became the first major wireless carrier to report earnings since the impact of ACP's demise could be measured. Overall prepaid customer losses were 624,000. But Verizon also gained a net 148,000 postpaid customers, which beat expectations. Revenue of $32.8 billion just missed consensus estimates. Though most numbers were positive, Verizon was down 6.08% to $39.09 for the day.
The U.S. Supreme Court’s recent decisions in Loper Bright Enterprises v. Raimondo, which overruled the Chevron doctrine (see 2406280043), and in SEC v. Jarkesy (see 2406270063) were “a good thing,” FCC Commissioner Brendan Carr said Wednesday during a Multicultural Media, Telecom and Internet Council webinar. Other former FCC officials disagreed sharply with the rulings that appear to expand judges' power while reining in regulatory agencies like the FCC.
Former President Donald Trump’s selection of Senate Commerce Committee member Sen. J.D. Vance, R-Ohio, as his running mate puts a backer of additional funding for the FCC’s lapsed affordable connectivity program on the presidential ticket of a party that has many members who criticized the initiative. Vance is lead Senate GOP co-sponsor of the ACP Extension Act (HR-6929/S-3565) and subsequent Secure and Affordable Broadband Extension Act (S-4317). Both propose giving the affordability program billions of dollars in stopgap funding for FY 2024 (see 2401100056). Vance also helped lead an unsuccessful bid to include $6 billion in ACP funding in May as part of the 2024 FAA Reauthorization Act (see 2405090052). Vance, a freshman senator, opposed former-FCC nominee Gigi Sohn and Commissioner Anna Gomez during their confirmation processes last year (see 2307120073).