Expect big changes to BEAD, with the Donald Trump administration and congressional Republicans rewriting the rules and putting more emphasis on efficient use of funding, tech policy experts said Tuesday at the annual State of the Net conference. Consultant Mike O'Rielly, a former FCC commissioner, said NTIA isn't likely to process any state's final proposals in the near term as it awaits where the administration and Congress take BEAD. States must be flexible and ready to pivot once that new direction becomes clear, he added.
Charter Communications sees broadband subscriber competition from fixed wireless access (FWA) having peaked and predicts that fiber overbuilding will slow down. In a call with analysts Friday as Charter reported its Q4 2024 results, CEO Chris Winfrey said the broadband environment is "still competitive in terms of fiber and cellphone internet overlap." But, he said, "we better be better this year than we were ... last year" -- especially with the loss of the Affordable Connectivity Program (ACP) no longer dragging down results, as it did in the second half of 2024. Charter executives used the term "cellphone internet" five times in Friday's call.
With the Affordable Connectivity Program (ACP) out of the picture, Lifeline's monthly benefits aren't covering the growing broadband affordability gap, the National Lifeline Association said in a letter to FCC Chairman Brendan Carr posted Wednesday (docket 21-450). NaLA said its most recent survey of more than 68,000 consumers found that 40% of respondents reduced their food spending to afford the monthly internet bill, 20% indicated they were unable to work remotely or accept shift work, and nearly 20% said their children were having difficulty completing homework. In addition, 36% reported having discontinued telehealth after ACP ended in 2024, and 70% said they relied on ACP and/or Lifeline benefits to access healthcare services, including telehealth. Lifeline’s $9.25 monthly subsidy “comes nowhere close to making basic retail internet service offerings affordable,” NaLA said, since most prepaid mobile broadband plans with at least 5GB of data and mobile hot spot cost $30 or more, and none offer a free smartphone. NaLA said it pushed for interim funding for a reformed ACP, and it supports long-term funding for a single low-income support program inside the USF.
The U.S. District Court for the District of Columbia granted an administrative stay late Tuesday afternoon that temporarily blocked a White House OMB memo, which called for a freeze on most federal grants and loans, from going into effect. The Trump administration memo already faced an array of legal challenges, including a planned lawsuit from a coalition of Democratic attorneys general from New York, California, Illinois, Massachusetts, New Jersey and Rhode Island. Broadband officials and industry advocates raised questions about the memo's constitutionality and the future of certain FCC programs, such as Lifeline. Others warned the freeze could have serious implications for NTIA's BEAD program.
FCC Chairman Brendan Carr will undoubtedly continue focusing on his core issues of deregulation, competition, infrastructure development and national security, Venable lawyers Craig Gilley and Liz Clark Rinehart wrote Thursday. How quickly he can steer the agency in that direction will depend on Congress' speed in confirming Olivia Trusty as the third Republican commissioner, giving him the majority he needs, they added. A Carr administration means the agency will change course on communications policy issues including net neutrality, broadband regulation, digital equity, spectrum, rationalizing federal infrastructure spending and BEAD, and content moderation online, they said. Carr will likely take a narrower view of the scope of FCC authority and use competition, rather than regulation, to protect consumers. However, he will be a more aggressive regulator on national security matters. GOP control of Capitol Hill and the White House makes net neutrality "a non-issue over the next four years," though whether the FCC can explicitly preempt state net neutrality regulations remains an open question, the lawyers said. If the FCC's digital discrimination rules survive the current challenge before the 8th U.S. Circuit Court of Appeals, Carr's FCC would likely revisit and repeal them, they said. The Republican-controlled Congress isn't likely to restore Affordable Connectivity Program funding, "given where Congressional Republicans are on budget issues." They said they expect Carr's FCC to focus on streamlining rules for fiber and infrastructure deployment, such as limiting fees that states and local governments can charge for permit application reviews.
House Commerce Committee leaders drew battle lines during and after a Thursday Communications Subcommittee hearing over GOP proposals to move spectrum legislation as part of an upcoming budget reconciliation package (see 2501070069). House Commerce ranking member Frank Pallone of New Jersey and other Democrats strongly objected to using reconciliation as a spectrum vehicle because it would allocate future license sales revenue to fund tax cuts instead of telecom priorities. Lawmakers from both parties again cited long-standing DOD objections to repurposing the 3.1-3.45 GHz band and other military-controlled frequencies as a continued flashpoint in spectrum legislative talks in this Congress (see 2501070069).
Mounting net subscriber losses made 2024 the worst year ever for cable's broadband business, but there are reasons for optimism in 2025, MoffettNathanson's Craig Moffett told investors last week. The rate of growth and share gain of fixed wireless access and fiber overbuilding are "unmistakably decelerating," he said. Moreover, subscriber losses should be much smaller this year, especially with the end of the Affordable Connectivity Program no longer hurting results. He said AT&T entering the fixed wireless market hasn't fully offset the deceleration of Verizon and T-Mobile in that space. It's doubtful whether the pace of fiber overbuilding continues, he said, adding SpaceX's Starlink satellite broadband will likely remain a player in rural markets only.
FCC Chairwoman Jessica Rosenworcel's final monthly meeting was largely a victory lap for the outgoing leader, with commission officials offering more than two hours of testimony Wednesday detailing accomplishments during her tenure. Also, Commissioner Anna Gomez criticized what she called an "apparent campaign to bring broadcasters and content platforms to heel" -- a seeming jab at Commissioner Brendan Carr's commitment to battle a "censorship cartel" (see 2411180059, 2412160052 and 2411080046).
Joe Kane, Information Technology and Innovation Foundation broadband and spectrum policy director, urged Congress Monday to “create a more targeted and durable” version of the FCC’s lapsed affordable connectivity program “by aligning funding priorities with the remaining causes of the digital divide." Kane added: "By prioritizing affordability rather than deployment, the new program can connect low-income households without new federal spending.” He suggested Congress should revise ACP rules to provide its previous $30 monthly broadband subsidy but restrict it to “households at or below 135 percent of the federal poverty level or in their first three months of unemployment insurance.” Now-Vice President-elect JD Vance and Senate Communications Subcommittee then-Chairman Ben Ray Lujan, D-N.M., in May proposed the same change to ACP eligibility as part of an unsuccessful bid to give the program $6 billion in stopgap funding via an FCC reauthorization package (see 2405080047). There “is good reason to think” ACP’s eligibility criteria, including allowing a household to qualify if its combined income were up to 200% of the federal poverty line, “were overinclusive,” Kane said. He discounted proposals restricting ACP funding to first-time broadband subscribers, saying objections “on these grounds make the category mistake of conflating affordability with choices made under a budget constraint.”
The office of Republican FCC Commissioner Brendan Carr, President-elect Donald Trump's pick to become chairman, said Thursday night he doesn’t oppose Senate Commerce Committee GOP Telecom Policy Director Arielle Roth as a potential nominee to fill the commission seat Chairwoman Jessica Rosenworcel will vacate Jan. 20. Carr Chief of Staff Greg Watson pushed back against reports framing Carr as opposing a Roth nomination, a position that would put him in conflict with Senate Commerce Chairman Ted Cruz, R-Texas. Cruz is strongly backing Roth behind the scenes, leading some to see her as the front-runner for Rosenworcel's seat, communications sector lobbyists told us (see 2412110046).