Latest news with #andDeployment
Int'l Business Times
a day ago
- Business
- Int'l Business Times
The $42 Billion Broadband Problem: Why America's Internet Fix May Be Missing the Point
In 2021, Congress passed the Infrastructure Investment and Jobs Act with a bold promise: bring high-speed internet to every American household. At the heart of that promise was BEAD, the Broadband Equity, Access, and Deploym ent program, a $42.45 billion effort to finally connect the rural and underserved communities left behind by decades of uneven telecom investment. But nearly three years later, the program's progress is being called into question. Not because the funding isn't there, it is. Every U.S. state and territory has received funding, and most have submitted deployment plans. The issue, critics say, lies in how that money is being used. According to a recent estimate, as much as 90% of BEAD funding is currently directed toward fiber-optic buildouts, the gold standard for internet infrastructure, but also one of the most expensive and time-consuming technologies to deploy. In many rural areas, trenching fiber can cost upwards of $50,000 per mile, with some states reporting estimates as high as $77,000 per household. The criticism has been building. In April 2025, over 100 bipartisan state legislators warned that rigid BEAD mandates could "undo years of planning and delay deployment by more than a year." Others have called the program's execution wasteful and needlessly slow, with one California county supervisor noting, "The need is there and the funding is there, but it's just a very inefficient process." "The obsession with fiber is understandable, it's fast, it's reliable, and it's scalable," says Tom Starr, Chairman Emritus and former President of the Broadband Forum and one of the architects behind many of the global standards for broadband deployment. "But insisting on fiber everywhere, no matter the terrain or cost, is like insisting every town needs a subway. It's a one-size-fits-all solution in a country that clearly isn't." Starr also serves as an advisor to Actelis Networks, a company focused on enabling fiber-grade broadband performance over a mix of fiber and existing legacy infrastructure. In an environment where time and funding are limited, this type of hybrid deployment can serve as a valuable complement to fiber, not a replacement, but an accelerator. The company's approach is simple: use fiber where it makes sense, but in places where copper or coaxial cables already exist, such as old telephone lines or MDU (multi-dwelling unit) buildings, amplify and bring to fiber performance what's already there, without replacing the infrastructure. Solutions like Actelis' GL900 and GL800 enable fiber-grade, secure, symmetrical gigabit-speed internet over legacy copper or coax lines, dramatically reducing both the cost and time required to bring a user online. The timing may be right. In June 2025, the NTIA, the federal agency overseeing BEAD, quietly overhauled the program's rules, stripping out its fiber-first preference and requiring states to consider all "reliable broadband technologies" on an equal footing. Under the new "Benefit of the Bargain" policy, state broadband offices must now re-evaluate whether alternative solutions might offer similar performance at lower cost. For companies like Actelis, this is significant. "We've been saying from day one: if the goal is to connect as many people as possible, as quickly as possible, you have to be pragmatic," says Barlev. "BEAD wasn't meant to be a fiber subsidy. It was meant to end the digital divide." The urgency is real. While BEAD planning continues, private-sector providers, including 5G wireless carriers and satellite operators like Starlink, are rapidly signing up customers in unserved regions. According to one analysis, over half of the locations identified as "unserved" in 2022 have since been covered by other programs or private investment, making them inelgible for BEAD funding. That means the remaining households are likely the hardest and most expensive to reach, making the case for flexible, lower-cost solutions even stronger. There's also the issue of equity. When tens of thousands of dollars are spent to bring fiber to a single remote farm, that's money not spent connecting ten homes elsewhere. "Every dollar we overspend is a household that stays offline. We can do better." says Barlev. Still, not everyone is convinced. Some industry groups argue that anything short of full fiber risks entrenching second-class digital infrastructure. But that argument assumes newer automatically means better, and ignores that fiber too, has its challenges. Already back in 2002, an FCC study noted that typical metro fiber networks experience 13 cable cuts per 1,000 miles per year, roughly one cut every four days on a 30,000-mile route, causing hours-long outages and expensive repairs. Fiber also requires skilled splicing and testing, and can degrade with tight bends over time. Meanwhile, copper and coaxial networks have consistently delivered reliable voice and data service for decades, and modern hybrid deployments can now meet or exceed BEAD's own performance standards. More importantly, they can be deployed much faster, bringing service to Americans who might otherwise wait years for fiber. In that context, these hybrid approaches may offer a path forward, not as a compromise, but as a strategy. One that helps communities leap ahead, builds smartly on what already exists, and makes every dollar of BEAD funding go further.
Politico
26-06-2025
- Business
- Politico
Bessent asks lawmakers to megabill's 'revenge tax,' citing progress in global talks
The Senate parliamentarian is asking the Senate Commerce Committee to rework its 10-year moratorium on enforcing state artificial intelligence laws, according to ranking member Maria Cantwell. The parliamentarian had asked Commerce Chair Ted Cruz (R-Texas) to rewrite the language in the GOP megabill to make clear it wouldn't impact $42 billion in broadband funding, Cantwell (D-Wash.) told POLITICO. 'That's what was a last night request from the parliamentarian,' Cantwell said. 'Yeah, that's what's going on.' Cruz's communications director Macarena Martinez said in a statement to POLITICO Thursday, 'Out of respect, we are not going to comment on private consultations with the Parliamentarian,' and added, 'The Democrats would be wise not to use this process to wishcast in public.' What's the problem? At issue is the scope of funding that will be conditioned on states complying with a 10-year pause on enforcing their AI laws. Cruz has said enforcing the moratorium would be required for states to tap into a new $500 million fund for building out AI infrastructure. The parliamentarian approved that language, a narrowed version of an earlier proposal to tie the moratorium to the $42 billion Broadband Equity, Access, and Deployment program. Democrats have argued that the latest moratorium would still affect all $42 billion. Talking points circulated by Cruz on Wednesday saying his bill 'forbids states collecting new BEAD money from strangling AI deployment with EU-style regulation' only added to the confusion, suggesting the provision could apply to the entire broadband program. Cruz's office told POLITICO Wednesday that the Congressional Budget Office 'has confirmed this applies only to the unobligated $500M.' The Senate parliamentarian is under fire after striking major pieces of Medicaid policy from being included in the megabill on Thursday. Majority Leader John Thune has said the GOP would not seek to override decisions from the Senate's rules referee. Republican doubts: The AI moratorium has divided Republicans. A group of GOP senators, including Sens. Marsha Blackburn of Tennessee, Josh Hawley of Missouri and others, sent a letter to Thune on Wednesday urging the removal of the moratorium language, according to a person familiar with the matter. 'States should not be punished for trying to protect their citizens from the harms of AI,' Blackburn said in a post on X on Thursday. Sen. Kevin Cramer (R-N.D.) said he is concerned about the scope of the provision and needs to 'get clarity' on if it would apply to the whole BEAD program. 'There's some communication challenge here about whether we're talking about a $500 million pot, or whether we're talking about the entire $40 billion — and the difference is significant. It matters,' Cramer told POLITICO. 'If I can't get assurances that it's not just the smaller pot, it'd be hard for me to get to yes.' The Article 3 Project, a prominent conservative advocacy group, said it would 'fully support these bold and fearless Republican Senators and their effort to protect America's children, creators, and foundational property rights.' Arkansas Gov. Sarah Huckabee Sanders, who served as White House press secretary in the first Trump administration, came out against the moratorium language in The Washington Post on Thursday. She warned it would lead to 'unintended consequences and threatens to undo all the great work states have done to protect our citizens from the misuse of artificial intelligence.' Tech support: The tech industry has lent broad support to the moratorium. The National Venture Capital Association praised it in a letter to Thune on Thursday. 'The current fragmented AI regulatory environment in the United States creates unnecessary challenges for startups, stifles innovation, and threatens our dominance in the industry,' wrote Bobby Franklin, the organization's president. Other major tech groups, including the Business Software Alliance, the Consumer Technology Association and NetChoice, have also strongly supported the language.
Politico
26-06-2025
- Business
- Politico
SALT members head to Treasury after rejecting SALT deal
The Senate parliamentarian is asking the Senate Commerce Committee to rework its 10-year moratorium on enforcing state artificial intelligence laws, according to ranking member Maria Cantwell. The parliamentarian had asked Commerce Chair Ted Cruz (R-Texas) to rewrite the language in the GOP megabill to make clear it wouldn't impact $42 billion in broadband funding, Cantwell (D-Wash.) told POLITICO. 'That's what was a last night request from the parliamentarian,' Cantwell said. 'Yeah, that's what's going on.' Cruz's communications director Macarena Martinez said in a statement to POLITICO Thursday, 'Out of respect, we are not going to comment on private consultations with the Parliamentarian,' and added, 'The Democrats would be wise not to use this process to wishcast in public.' What's the problem? At issue is the scope of funding that will be conditioned on states complying with a 10-year pause on enforcing their AI laws. Cruz has said enforcing the moratorium would be required for states to tap into a new $500 million fund for building out AI infrastructure. The parliamentarian approved that language, a narrowed version of an earlier proposal to tie the moratorium to the $42 billion Broadband Equity, Access, and Deployment program. Democrats have argued that the latest moratorium would still affect all $42 billion. Talking points circulated by Cruz on Wednesday saying his bill 'forbids states collecting new BEAD money from strangling AI deployment with EU-style regulation' only added to the confusion, suggesting the provision could apply to the entire broadband program. Cruz's office told POLITICO Wednesday that the Congressional Budget Office 'has confirmed this applies only to the unobligated $500M.' The Senate parliamentarian is under fire after striking major pieces of Medicaid policy from being included in the megabill on Thursday. Majority Leader John Thune has said the GOP would not seek to override decisions from the Senate's rules referee. Republican doubts: The AI moratorium has divided Republicans. A group of GOP senators, including Sens. Marsha Blackburn of Tennessee, Josh Hawley of Missouri and others, sent a letter to Thune on Wednesday urging the removal of the moratorium language, according to a person familiar with the matter. 'States should not be punished for trying to protect their citizens from the harms of AI,' Blackburn said in a post on X on Thursday. Sen. Kevin Cramer (R-N.D.) said he is concerned about the scope of the provision and needs to 'get clarity' on if it would apply to the whole BEAD program. 'There's some communication challenge here about whether we're talking about a $500 million pot, or whether we're talking about the entire $40 billion — and the difference is significant. It matters,' Cramer told POLITICO. 'If I can't get assurances that it's not just the smaller pot, it'd be hard for me to get to yes.' The Article 3 Project, a prominent conservative advocacy group, said it would 'fully support these bold and fearless Republican Senators and their effort to protect America's children, creators, and foundational property rights.' Arkansas Gov. Sarah Huckabee Sanders, who served as White House press secretary in the first Trump administration, came out against the moratorium language in The Washington Post on Thursday. She warned it would lead to 'unintended consequences and threatens to undo all the great work states have done to protect our citizens from the misuse of artificial intelligence.' Tech support: The tech industry has lent broad support to the moratorium. The National Venture Capital Association praised it in a letter to Thune on Thursday. 'The current fragmented AI regulatory environment in the United States creates unnecessary challenges for startups, stifles innovation, and threatens our dominance in the industry,' wrote Bobby Franklin, the organization's president. Other major tech groups, including the Business Software Alliance, the Consumer Technology Association and NetChoice, have also strongly supported the language.
Politico
26-06-2025
- Business
- Politico
Parliamentarian requests AI moratorium rewrite
The Senate parliamentarian is asking the Senate Commerce Committee to rework its 10-year moratorium on enforcing state artificial intelligence laws, according to ranking member Maria Cantwell. The parliamentarian had asked Commerce Chair Ted Cruz (R-Texas) to rewrite the language in the GOP megabill to make clear it wouldn't impact $42 billion in broadband funding, Cantwell (D-Wash.) told POLITICO. 'That's what was a last night request from the parliamentarian,' Cantwell said. 'Yeah, that's what's going on.' Cruz's communications director Macarena Martinez said in a statement to POLITICO Thursday, 'Out of respect, we are not going to comment on private consultations with the Parliamentarian,' and added, 'The Democrats would be wise not to use this process to wishcast in public.' What's the problem? At issue is the scope of funding that will be conditioned on states complying with a 10-year pause on enforcing their AI laws. Cruz has said enforcing the moratorium would be required for states to tap into a new $500 million fund for building out AI infrastructure. The parliamentarian approved that language, a narrowed version of an earlier proposal to tie the moratorium to the $42 billion Broadband Equity, Access, and Deployment program. Democrats have argued that the latest moratorium would still affect all $42 billion. Talking points circulated by Cruz on Wednesday saying his bill 'forbids states collecting new BEAD money from strangling AI deployment with EU-style regulation' only added to the confusion, suggesting the provision could apply to the entire broadband program. Cruz's office told POLITICO Wednesday that the Congressional Budget Office 'has confirmed this applies only to the unobligated $500M.' The Senate parliamentarian is under fire after striking major pieces of Medicaid policy from being included in the megabill on Thursday. Majority Leader John Thune has said the GOP would not seek to override decisions from the Senate's rules referee. Republican doubts: The AI moratorium has divided Republicans. A group of GOP senators, including Sens. Marsha Blackburn of Tennessee, Josh Hawley of Missouri and others, sent a letter to Thune on Wednesday urging the removal of the moratorium language, according to a person familiar with the matter. 'States should not be punished for trying to protect their citizens from the harms of AI,' Blackburn said in a post on X on Thursday. Sen. Kevin Cramer (R-N.D.) said he is concerned about the scope of the provision and needs to 'get clarity' on if it would apply to the whole BEAD program. 'There's some communication challenge here about whether we're talking about a $500 million pot, or whether we're talking about the entire $40 billion — and the difference is significant. It matters,' Cramer told POLITICO. 'If I can't get assurances that it's not just the smaller pot, it'd be hard for me to get to yes.' The Article 3 Project, a prominent conservative advocacy group, said it would 'fully support these bold and fearless Republican Senators and their effort to protect America's children, creators, and foundational property rights.' Arkansas Gov. Sarah Huckabee Sanders, who served as White House press secretary in the first Trump administration, came out against the moratorium language in The Washington Post on Thursday. She warned it would lead to 'unintended consequences and threatens to undo all the great work states have done to protect our citizens from the misuse of artificial intelligence.' Tech support: The tech industry has lent broad support to the moratorium. The National Venture Capital Association praised it in a letter to Thune on Thursday. 'The current fragmented AI regulatory environment in the United States creates unnecessary challenges for startups, stifles innovation, and threatens our dominance in the industry,' wrote Bobby Franklin, the organization's president. Other major tech groups, including the Business Software Alliance, the Consumer Technology Association and NetChoice, have also strongly supported the language.
Axios
26-06-2025
- Business
- Axios
Scoop: Dozen-plus Senate Dems place holds on Commerce nominees
Fifteen Senate Democrats are placing holds on President Trump's nominees for Commerce Department posts in protest of new restrictions on a $40 billion high-speed internet access program. Why it matters: Senate Democrats across an array of committees have embraced holds on Trump nominees as a way to push back against administration policies they oppose. The Democrats, led by Jacky Rosen (D-Nev.) and Lisa Blunt Rochester (D-Del.), informed Commerce Secretary Howard Lutnick of the holds on Wednesday, according to a letter obtained by Axios. They're objecting to the administration's imposition of new rules on a federal program aimed at closing the digital divide — which yanked approval from both Nevada and Delaware to receive hundreds of millions of dollars in federal funding. The expedited consideration of Commerce Department nominees overseeing broadband policy and "related nominees" will be blocked, the Democratic lawmakers wrote. The big picture: Senate Democrats, rendered largely powerless against Trump's decisions to restrict funding from federal programs, have zeroed in on holds as one of the only tactics available to them. Just one senator on a committee can object to the expedited consideration of department and agency nominees. Committees regularly report nominees out in bunches to prevent a backlog of pending appointments. Senate Minority Leader Chuck Schumer (D-N.Y.) last month placed holds on all political nominees at the Justice Department. Sen. Brian Schatz (D-Hawaii) has placed holds on all State Department nominees, along with additional nominees for over a dozen different departments. Zoom in: The new rules for the Broadband Equity, Access, and Deployment (BEAD) program have sent states that want funding back, essentially, to square one of the process. They also ditch a preference for fiber, instead adopting a "technology-neutral" approach, aimed at cheaper alternatives. But fiber internet is generally considered the fastest internet option. "Congress did not intend for this program to sell rural Americans short and provide them with unreliable, intermittent service at speeds they may already have access to today," the lawmakers said in the letter to Lutnick.
