Latest news with #AccessandDeploymentProgram

Yahoo
25-04-2025
- Business
- Yahoo
West Virginia broadband switch to satellite internet may cost jobs, hurt consumers
FAIRMONT — The state of West Virginia spent two years of painstaking work settling on fiber optic cable as the best way to expand broadband service in the state. The Morrisey administration may undo that decision after taking a 90-day review period. 'Basically, we're going to throw away two years worth of work getting everything where it was,' Jeff Anderson, president of Communication Workers of America Local 2010 and a telecom engineer, said. 'Governor Morrisey has decided to go along with this complete change in thought process. Hundreds of people had input, went through a painstaking process and likely there will be a significant amount that will be directed to satellite internet, specifically Starlink — Elon Musk — and it's just not a great transition.' The state spent the past two years putting together a proposal for the Broadband Equity, Access and Deployment Program. The Biden Administration set BEAD up in 2021 to provide funding for a nationwide broadband infrastructure roll out to rural and underserved areas. The program was built with fiber in mind. The state of West Virginia's proposal was also one of the first three to be approved by the National Telecommunications and Information Administration. In a press release, the Morrisey administration stated its intent to make its proposal more consistent with the Trump administration's broadband goals. The governor's office did not respond to a request for comment for this story. Anderson said in that two years of work, satellite internet had been eliminated as a possibility because it's not easy to upgrade. A large consideration was that whatever technology the state used, it had to have a service life of at least 50 years. The advantage fiber has — once the lines are laid down — the internet speeds consumers will receive are dictated by the equipment put on either end of the line. It's how telecoms such as Frontier are able to deliver service improvements 14 times faster over a span of three years. Satellites, by contrast, don't have the same flexibility. After five or seven years, Anderson said the satellite system starts to accumulate problems which results in the need to either launch more satellites or purge users from the system. SpaceX charges $1,200 per pound to orbit. A third generation Starlink satellite weighs about 4,188 pounds. A conceivable cost to launch a single additional Starlink satellite to augment the network could cost as much as $5.03 million. Planetside equipment is much easier to access by comparison. More than that, Anderson said capacity constraints present in a satellite system can end up throttling the speeds users get during peak times. Users who rely on telework would also experience suboptimal performance since satellite service bottlenecks upload speed. Telework is upload intensive. Relying on Starlink is like slapping a bandage on the state's broadband problem, Anderson said. Anderson hasn't been the only one to raise these concerns. The Intermountain reported that the Grant County Commission sent a letter to Morrisey arguing fiber is a more affordable solution for Grant County residents, and has better technical support from local internet service providers. 'From our experience, you cannot talk to technical support when asking for help from Starlink,' they wrote in the letter. Bill Bissett, chairman of the West Virginia Broadband Enhancement Council, also told the Intermountain that fiber is the best deployment of broadband, with the longest life, best throughput and what's needed for Morrisey's push to turn the state into a hub for data centers. Anderson sits on the West Virginia Workforce Council, and he said they spent a lot of time talking to lawmakers and other stakeholders, as well as the broadband council. They received input from education leaders in higher education, K-12, business and labor, all who provided the input which eventually boiled down to fiber as the best choice. However, the complication fiber advocates face is that after receiving notification the state would receive $1.2 billion for fiber, none of it has materialized yet. 'To be honest, it turned into a very difficult process, a process I don't believe another state in the country was able to negotiate through the process and all the steps,' Sen. Mike Oliverio, R-Monongalia, said. 'I think new administration at the state level, the Morrisey administration, really needs to take a step back and look at how technology has changed in roughly the last 24 months, and what actual dollars are going to be available and try to make some decisions.' Politico reported last September that the requirements for funding in BEAD, specifically those tied to affordability requirements telecommunication companies say is too tight, delayed disbursement of the funds. Oliverio placed blame on the Biden administration for making states jump through too many hoops for the program. National level Republicans turned the program into a culture war issue, blaming Diversity, Equity and Inclusion for delays, but Democrats argued it was reasonable to ensure companies that receive federal money roll the program out in a responsible way that consumers could afford. Although the state had its BEAD proposal approved by NTIA, Sen. Joey Garcia, D-Marion, said none of the funding from the BEAD program has been allocated yet. Politico reported in September the Biden administration expected funding to roll out by 2025. Garcia said that although Starlink may part of the solution for broadband access in West Virginia, fiber, once built, will provide lower rates for consumers. 'If we're just going to allocate money toward having Starlink, at some point, consumers are going to be responsible for that,' Garcia said. 'I think that's going to be an issue for how many West Virginians can afford it.' There's also the Elon Musk shaped elephant to consider. Anderson pointed out how close Musk is to the Trump Administration. The administration has already shown a willingness to bolster one of Musk's companies by holding a Tesla car show on the White House lawn after consumers started boycotting Tesla over Musk's work to dismantle the federal government through DOGE, as well as his two Nazi salutes at inauguration rallies. The Trump Administration is rewriting the BEAD program to enable federal dollars to go toward satellite internet. Charlie Dennie, former director of the state's Broadband Office, told Mountain State Spotlight the state's changes to its proposal would allow Musk to collect more dollars from BEAD. Evan Feinman, who had his contract renewal as head of NTIA rejected by the Trump administration, wrote in a farewell letter that stranding all or part of rural America with worse internet so the world's richest man can get richer was another betrayal in a long line of them from Washington. However, the administration argued it's adopting a technology neutral approach. Anderson brought up an additional dimension of how switching to satellite might hurt the state. Jobs. 'All of the [telecom] companies around here locally, in anticipation of getting this funding, we have ramped up our employee base and provided a lot of people with good local jobs,' he said. 'If this funding is slashed or cut completely, a lot of people will be laid off or let go in general. It's going to be a real hit to the economy.' Anderson said they expect a final decision from Morrisey on May 9.
Yahoo
08-04-2025
- Business
- Yahoo
Top Democrats Launch Probe Into Elon Musk's Efforts to Get Even Richer
Democrats on the House Oversight Committee sent a letter to the Department of Commerce Tuesday as part of a new investigation into Elon Musk's glaring conflicts of interest. In a six-page letter to acting General Counsel John K. Guenther, Ranking Member Gerry Connolly and Vice Ranking Member Jasmine Crockett requested information about how Commerce intends to prevent Musk from skirting ethics rules to use the department to enrich himself. The letter, shared exclusively with The New Republic, outlined several instances where Commerce's operations had openly benefited Musk's businesses. The representatives requested that the department provide a range of communications and documents by April 22 to demonstrate how the officials intended to prevent the billionaire bureaucrat from exploiting the government. 'At Commerce, where Mr. Musk's companies have received significant financial benefits and have the potential to receive vast amounts of new business, his defiance of recusal laws and control of Commerce's operations directly benefit his businesses,' the members wrote. 'The known conflicts of interest presented by this arrangement are illegal and must be addressed immediately.' The representatives argued that Musk had been wrongly classified as a 'special government employee' as part of an effort to skirt ethics requirements and that his authority to conduct sweeping cuts and recommend massive layoffs as the head of the Department of Government Efficiency was consistent with being in a high-level officer position that requires Senate confirmation. Still, ethics laws were in place to prevent special government employees from taking part in matters that could affect their personal finances. 'The law, however, has not stopped Mr. Musk. On the contrary, Mr. Musk's ability to enrich himself through DOGE is a textbook example of corruption at the taxpayers' expense,' the letter stated. The letter cited several instances in which Donald Trump's Department of Commerce had been poised to enrich Musk's businesses, which have raked in a whopping total of $38 billion from government contracts over the past 20 years. The letter pointed to DOGE's mass layoffs at the National Oceanic and Atmospheric Administration, launching concerns that Musk intended to use contracts for his companies SpaceX and Starlink to fill in the holes he'd created and that he could reasonably access information at NOAA that could give him an advantage over his competitors. In March, Commerce Secretary Howard Lutnick announced that his department would begin an overhaul of the Broadband Equity, Access and Deployment Program, or BEAD. After four years, the $42.5 billion project to expand internet access across the country hadn't yet connected a single person, and Lutnick blamed 'woke mandates, favoritism towards certain technologies, and burdensome regulations.' Lutnick's promise of a 'tech-neutral' approach, which will make way for the use of satellites in addition to fiber-optic cables, could offer a bigger piece of the pie to Musk's Starlink. The company was originally expected to haul in around $4.1 billion under the previous rules but could rake in anywhere from $10 billion to $20 billion if Lutnick's changes are accepted. BEAD's outgoing director sent a blistering email to colleagues warning that Musk was poised to profit at the expense of the very people they were trying to help. 'Stranding all or part of rural America with worse internet so that we can make the world's richest man even richer is yet another in a long line of betrayals by Washington,' former BEAD Director Evan Feinman wrote in mid-March. But Starlink isn't the only one of Musk's businesses to benefit from the actions of Commerce. When Tesla's sinking stock started tanking last month, Lutnick appeared on Fox News to urge viewers to buy shares of the billionaire bureaucrat's electric car company. 'I mean who wouldn't invest in Elon Musk, you gotta be kidding me!' Lutnick raved. Notably, Cabinet members do not typically endorse products, as the Code of Federal Regulations bars public servants from 'using their office's platform to endorse companies and products.' And Lutnick isn't Musk's only ally at Commerce. Michael Grimes, a finance executive who worked closely on deals for Musk's companies, was recently made senior adviser at Commerce, where he will reportedly head a U.S. sovereign wealth fund that could potentially direct billions to his old friend. The letter also pointed to Trump's dismissal of the inspector general at Commerce, who would've acted as a watchdog for any corruption or abuse. Connolly and Crockett's letter set an April 22 deadline for Commerce to provide detailed lists of all Commerce matters involving Musk's businesses, all steps Commerce is taking to ensure compliance with ethics laws related to Musk's businesses, and all actions Commerce is taking to ensure that Musk was not receiving information that would give him a business advantage over his competitors. The letter also requested the names of any federal employees at Commerce who had been 'in any way removed' from their positions by Musk or DOGE, as well as a list of all exemptions that Commerce has received from Trump's freeze on federal funding.
Yahoo
24-03-2025
- Business
- Yahoo
Broadband Program Changes Stir Uncertainty for Rural Black Communities
A promise made by former President Joe Biden to connect millions of Americans to reliable and affordable high-speed internet service may become another casualty of President Donald Trump's campaign to eliminate diversity, equity, and inclusion initiatives across the nation. A top outgoing official at the U.S. Department of Commerce warned that funds for the Broadband, Equity, Access and Deployment Program, also known as BEAD, may be diverted to Trump adviser Elon Musk's satellite internet company, Starlink. The BEAD program provides $42.5 billion to states and territories to build and deploy high-speed internet to underserved areas. Evan Feinman, who until March 16 directed the program at the Commerce Department, wrote in an email last week that the broadband initiative — one of the centerpieces of the Infrastructure Investment and Jobs Act — was in jeopardy. Just days later, on March 18, Federal Communications Commissioner Geoffrey Starks resigned from his position, cutting short his term that was set to expire in 2027. Starks was one of two Democrats and only Black commissioner for the FCC. Feinman argued that Starlink's connections, which rely on Musk's satellites, are inferior to using fiber optic cables, which is prioritized in the BEAD program. 'Stranding all or part of rural America with worse internet so that we can make the world's richest man even richer is yet another in a long line of betrayals by Washington,' Feinman wrote in the email. Politico first reported on Feinman's email. Expanding access to high-speed internet service, particularly in rural communities, is seen as a crucial step in alleviating the digital divide — the gap between those who can easily use, access, and afford technology, and those who cannot. Such disparities amplify the deep racial and economic inequalities in education, jobs, and health care for rural Black households in the South, where the greatest divide exists. The BEAD program is also seen as a key element of promoting equity and leveling the technological playing field for communities of color. However, there has been a lag in broadband deployment because of red tape, administrative delays, and the program's affordability requirements. Digital equity advocates say that such delays were to be expected because the program's initial timeline indicated it would take until 2026 to implement. Technology experts like Mignon Clyburn, a former FCC commissioner and the first woman to serve as acting chair, also expressed worry that significantly altering the program could result in some marginalized populations being left behind — including veterans, seniors, and households with low incomes. 'My communities have been ignored for too long. I want sustainable, affordable, robust technologies. Those people don't deserve to be cheapened. They deserve to have the best that our resources have to offer,' Clyburn said in an interview, emphasizing that the federal government needs to ensure 'that the people currently on the wrong side of the technology divide do not stay there throughout several more lifetimes.' Newly appointed Commerce Secretary Howard Lutnick called for a 'rigorous review' of the BEAD program. He criticized Biden's regulations for the program and emphasized the need to overhaul it with a 'tech neutral approach' so that satellite services like Starlink could have a greater chance to participate in it. In recent years, Republican lawmakers have condemned the program because of its DEI labor requirements and other factors. But some of their Republican colleagues have pushed back against their efforts while advocating for their states to continue the work. In a statement, Lutnick said that he is adamant about 'ripping out the Biden Administration's pointless requirements.' 'The Department is exploring ways to cut government red tape that slows down infrastructure construction,' the statement read. 'We will work with states and territories to quickly get rid of the delays and the waste.' While Trump administration officials appear to prefer satellite over fiber internet, multiple experts said satellite doesn't fix the problem because it's not affordable, nor does it work in all regions. Starlink, which services 4 million people, uses satellites to connect internet service to dishes then to devices. Two years ago, the FCC denied Starlink's application for $900 million in subsidies for rural broadband because the company did not meet the service requirements, according to The New York Times. For residential service at homes, the price starts at $80 a month, according to its website. To assist those in need, the federal government created the Affordable Connectivity Program, which provided a discount of up to $30 per month ($75 for tribal households) toward internet service and mobile services, and a one-time discount up to $100 toward a laptop, desktop computer, or tablet for eligible low-income households. More than 23 million Americans were enrolled. However, Congress did not reauthorize the program. Since the program ended, 40% of Americans cut spending on food to afford internet service, whereas 36% discontinued telehealth services, a recent survey by the National Lifeline Association found. At least 80% of those who were enrolled live at or below the poverty line. The only other program available is the FCC's Lifeline Program, but recipients only receive a $9.25 monthly discount, which critics say isn't enough. Read More: Disconnected Rural Black America and the Digital Divide If consumers can't afford internet service, it undermines efforts to promote equity, said Brandon Forester, senior campaign lead at Media Justice. 'Having a low-cost option makes it more viable for an internet service provider to build out. That's also true about having digital equity practitioners. If they have people in the community that are helping people sign up for their services and are helping people use their services, that's a benefit,' Forester said. 'If we're getting rid of digital equity, that's another loss. When the lights go on on these networks, is there going to be anybody there to connect to them? Maybe, maybe not.' With the current program, installing fiber creates jobs and workforce development, which could be dismantled, said Alisa Valentin, broadband policy director at Public Knowledge. She also points to the hard work of state broadband offices and federal workers, and doesn't want it to be in vain. 'We want to ensure that broadband is deployed where it is needed the most to avoid wasting time and resources. We want to get this right. This is a historic amount of funds that I'm so proud that we were able to come together across government, across public interest organizations, across industries to make sure that this happens,' she said. 'We got to make sure we finish the job.' Beyond BEAD, advocates and experts say there are threats looming for other programs and legislation, including the Digital Equity Act, which provides $2.75 billion to establish three grant programs that 'promote digital equity and inclusion.' The Digital Equity Act increases access to digital technology, education, and economic opportunities. The uncertainty is forcing states to cease work, questioning the future of their programming. For example, in Texas, the broadband office paused grants and contracts because of the Trump administration's shift of federal priorities. There are some states moving forward despite the uncertainties. Clyburn said she doesn't foresee states rolling back the work they've done because they simply want to get to the finish line to connect communities, expand the workforce, build partnerships and 'level the playing field,' and they shouldn't be penalized over political bias. This is the time for advocates to keep fighting and doing the work, said Kristenn Fortson, communications director for the National Digital Inclusion Alliance. The organization brings organizers to Washington to speak directly to lawmakers about their experiences and importance of these programs. 'It's the grandfather who can now join his church virtually or FaceTime his grandchildren after being home bound for months. It's incarcerated women who are being taught digital skills so they can build a resume and successfully reenter society,' Fortson said. She added: 'We know from the history of any movement centered on equity and equality that nobody can really guarantee that for us; we have to fight for it. We keep on pushing for it like anybody else who's come before us, trying to make their communities a better place to live, a better place to thrive.' The post Broadband Program Changes Stir Uncertainty for Rural Black Communities appeared first on Capital B News.
Yahoo
16-03-2025
- Business
- Yahoo
Top broadband official exits Commerce Department with sharp Musk warning
A top Commerce Department official sent a blistering email to his former colleagues on his way out the door Sunday warning that the Trump administration is poised to unduly enrich Elon Musk's satellite internet company with money for rural broadband. The technology offered by Starlink, Musk's company, is inferior, wrote Evan Feinman, who had directed the $42.5 billion broadband program for the past three years 'Stranding all or part of rural America with worse internet so that we can make the world's richest man even richer is yet another in a long line of betrayals by Washington,' Feinman said. Key context: Feinman's lengthy email, totaling more than 1,100 words and shared with POLITICO, is a sign of deep discomfort about the changes underway that will likely transform the Broadband Equity, Access and Deployment Program. Commerce Secretary Howard Lutnick recently pledged a vigorous review of BEAD, with an aim to rip out what he sees as extraneous requirements and remove any preference for particular broadband technologies like fiber. Musk, who runs the Starlink satellite broadband service, stands to reap a greater share of these subsidies under the revised rules. Musk and Starlink did not respond to requests for comment. The program, created in the 2021 infrastructure law program, became a source of partisan fighting last year on the campaign trail as Republicans attacked the Biden administration for its slow pace. No internet expansion projects have begun using BEAD money, although some states were close at the beginning of this year. Feinman's critique: In his email, Feinman notes Friday was his last day leading BEAD and that he's 'disappointed not to be able to see this project through.' Commerce Department spokespeople didn't immediately respond to a request for comment on Feinman's email or the circumstances of his departure. Feinman's email warns the Trump administration could undermine BEAD and he encourages people to fight to retain its best aspects. Feinman said the administration should 'NOT change it to benefit technology that delivers slower speeds at higher costs to the household paying the bill,' adding that this isn't what rural America, congressional Republicans or Democrats, the states or the telecom industry wants. 'Reach out to your congressional delegation and reach out to the Trump Administration and tell them to strip out the needless requirements, but not to strip away from states the flexibility to get the best connections for their people,' Feinman wrote. He said he's not worried about the Trump administration nixing requirements around climate resiliency, labor and middle class affordability, saying those issues 'were inserted by the prior administration for messaging/political purposes, and were never central to the mission of the program.' Let projects go forth: Feinman is worried about the Trump administration killing state progress through changes to BEAD. Three states — Louisiana, Delaware and Nevada — are currently in 'limbo' due to their final approvals caught in National Institute of Standards and Technology review, Feinman noted. Louisiana had previously anticipated it would begin executing internet projects within the first 100 days of 2025. Feinman said these states should be allowed to proceed and let other states ready with final proposals under the old rules, like West Virginia, move forward if they want. 'Shovels could already be in the ground in three states, and they could be in the ground in half the country by the summer without the proposed changes to project selection,' Feinman wrote. What's next: Lutnick has yet to release specific guidance around changes to BEAD nor presented any timeline for doing so. The Senate also still needs to confirm Arielle Roth, Trump's nominee to lead the National Telecommunications and Information Administration, the Commerce Department agency overseeing the BEAD program. She is awaiting a Senate Commerce confirmation hearing.


Politico
16-03-2025
- Business
- Politico
Top broadband official exits Commerce Department with sharp Musk warning
A top Commerce Department official sent a blistering email to his former colleagues on his way out the door Sunday warning that the Trump administration is poised to unduly enrich Elon Musk's satellite internet company with money for rural broadband. The technology offered by Starlink, Musk's company, is inferior, wrote Evan Feinman, who had directed the $42.5 billion broadband program for the past three years 'Stranding all or part of rural America with worse internet so that we can make the world's richest man even richer is yet another in a long line of betrayals by Washington,' Feinman said. Key context: Feinman's lengthy email, totaling more than 1,100 words and shared with POLITICO, is a sign of deep discomfort about the changes underway that will likely transform the Broadband Equity, Access and Deployment Program. Commerce Secretary Howard Lutnick recently pledged a vigorous review of BEAD, with an aim to rip out what he sees as extraneous requirements and remove any preference for particular broadband technologies like fiber. Musk, who runs the Starlink satellite broadband service, stands to reap a greater share of these subsidies under the revised rules. Musk and Starlink did not respond to requests for comment. The program, created in the 2021 infrastructure law program, became a source of partisan fighting last year on the campaign trail as Republicans attacked the Biden administration for its slow pace. No internet expansion projects have begun using BEAD money, although some states were close at the beginning of this year. Feinman's critique: In his email, Feinman notes Friday was his last day leading BEAD and that he's 'disappointed not to be able to see this project through.' Commerce Department spokespeople didn't immediately respond to a request for comment on Feinman's email or the circumstances of his departure. Feinman's email warns the Trump administration could undermine BEAD and he encourages people to fight to retain its best aspects. Feinman said the administration should 'NOT change it to benefit technology that delivers slower speeds at higher costs to the household paying the bill,' adding that this isn't what rural America, congressional Republicans or Democrats, the states or the telecom industry wants. 'Reach out to your congressional delegation and reach out to the Trump Administration and tell them to strip out the needless requirements, but not to strip away from states the flexibility to get the best connections for their people,' Feinman wrote. He said he's not worried about the Trump administration nixing requirements around climate resiliency, labor and middle class affordability, saying those issues 'were inserted by the prior administration for messaging/political purposes, and were never central to the mission of the program.' Let projects go forth: Feinman is worried about the Trump administration killing state progress through changes to BEAD. Three states — Louisiana, Delaware and Nevada — are currently in 'limbo' due to their final approvals caught in National Institute of Standards and Technology review, Feinman noted. Louisiana had previously anticipated it would begin executing internet projects within the first 100 days of 2025. Feinman said these states should be allowed to proceed and let other states ready with final proposals under the old rules, like West Virginia, move forward if they want. 'Shovels could already be in the ground in three states, and they could be in the ground in half the country by the summer without the proposed changes to project selection,' Feinman wrote. What's next: Lutnick has yet to release specific guidance around changes to BEAD nor presented any timeline for doing so. The Senate also still needs to confirm Arielle Roth, Trump's nominee to lead the National Telecommunications and Information Administration, the Commerce Department agency overseeing the BEAD program. She is awaiting a Senate Commerce confirmation hearing.