Kansas Broadband & Telecom News - June 2025
U.S. Supreme: The Universal Service Fund Is Constitutional, No Violation Of The Nondelegation Doctrine
June 26, 2025 – The U.S. Supreme Court has issued a decision in FCC et al. v. Consumers’ Research which concludes that the federal universal service fund (USF) contribution system does not violate the nondelegation doctrine. Justice Kagan delivered the 6-3 opinion of the Court, in which Chief Justice Roberts, Justice Sotomayor, Justice Kavanaugh, Justice Barrett, and Justice Jackson joined. Justice Kavanaugh and Justice Jackson filed concurring opinions. Justice Gorsuch filed a 37-page dissenting opinion, in which Justice Thomas and Justice Alito joined.
In its challenge to the constitutionality of the USF, the Consumers’ Research group generally made the following arguments: the USF revenue-raising structure violates the nondelegation doctrine; Section 254 constitutes an unconstitutional delegation of Congress’ taxing power; and the FCC’s sub delegation of authority to the Universal Service Administrative Company (USAC), the FCC-designated administrator of the USF, is illegal. The nondelegation doctrine limits Congress’ ability to delegate power to federal agencies. Under the Constitution, all legislative powers are vested in the United States Congress. However, Congress can and often does delegate substantial discretion to executive agencies to implement and enforce federal laws. When doing so, Congress must provide an intelligible principle which adequately guides the Executive agency. This is the core of the nondelegation doctrine. The “intelligible principle” must sufficiently “guide the delegee’s use of discretion.” If a court finds Congress makes a delegation to an agency with “no guidance whatsoever,” the court will strike it down.
In the majority opinion, Justice Kagan framed the questions in the case as “whether the universal-service scheme—more particularly, its contribution mechanism—violates the Constitution’s nondelegation doctrine, either because Congress has given away its power to the FCC or because the FCC has given away its power to a private company.” The Court’s answer to both is a resounding no.
The Court applied its long-standing nondelegation doctrine analysis – did Congress set out an “intelligible principle” to guide the power delegated to the FCC, and did Congress make clear both “the general policy” the FCC must pursue and “the boundaries of the delegated authority.” The Court found that the universal service statute, Section 254 of the Communications Act, directs the FCC to collect contributions that are “sufficient” to support universal-service programs. More importantly, the word “sufficient” sets both a floor and a ceiling—the FCC cannot raise less than what is adequate or necessary to finance its universal-service programs, but it also cannot raise more than that amount. Ultimately, the Court concluded that “under the usual intelligible-principle test, the universal-service contribution scheme clears the nondelegation bar.”
The Court rejected the argument put forth by challenger Consumers’ Research that a different or more stringent nondelegation test should be applied because USF contribution fees are taxes. The Court said Skinner v. Mid-America Pipeline Co. “made clear that whether a charge is a tax or a fee is irrelevant to the nondelegation inquiry.”
The Court found no violation of the so-called private nondelegation doctrine. Consumers’ Research claimed that the FCC conferred governmental power on the Universal Service Administrative Company (USAC), a private party, by giving USAC “carte blanche” to set each quarterly USF contribution factor. The Court determined that USAC is “broadly subordinate” to the FCC, may not make policy, and must carry out all its tasks consistent with the FCC’s rules, orders, and directives. The Court stated that “as long as an agency thus retains decision-making power, it may enlist private parties to give it recommendations.” Also, the Court rejected the nondelegation “combination theory.” In the decision below, the Fifth Circuit found that the combination of Congress’s delegation to the FCC and the FCC’s “subdelegation” to the USAC violated the Constitution, even if neither delegation did so independently. The Court said the Fifth Circuit’s logic does not work – a measure implicating (but not violating) one does not compound a measure implicating (but not violating) the other, in a way that pushes the combination over a constitutional line.
The Court’s opinion overturns a July 2024 en banc decision by the U.S. Court of Appeals for the Fifth Circuit which declared the USF contribution mechanism to be an unconstitutional tax and a violation of the nondelegation doctrine. Consumers’ Research, Cause Based Commerce, Inc., and various individual consumers brought the original legal challenge to the USF. The FCC (24-354) and a group of public interest and trade associations (24-422) sought Supreme Court review, with both petitions consolidated under Docket 24-354 for the Court’s 2024 October Term.
Skybeam, LLC Requests Relinquishment Of ETC Designation In Kansas Study Area
June 25, 2025 – Skybeam, LLC has filed an application with the Kansas Corporation Commission (KCC) requesting relinquishment of its eligible telecommunications carrier (ETC) designation in its Kansas study area (416118). Skybeam sought ETC designation to participate in and receive funding from the FCC’s Rural Broadband Experiment (RBE) Program. It was granted ETC designation in February 2015 in certain census blocks in Marion, Butler, and Harvey counties in Kansas. The FCC awarded Skybeam RBE support for a ten-year term, beginning July 1, 2015, and ending June 30, 2025. Now that Skybeam has completed its RBE Program obligations, and its support term is ending, the company has requested relinquishment of its ETC designation. In its application, Skybeam states that it “is currently providing no voice or Lifeline services to consumers in Kansas.” Upon relinquishment of its ETC designation, Skybeam’s network that was constructed with the RBE funds is being assigned to Ideatek Telcom, LLC. Skybeam, which provides service under the business name of Rise Broadband, was acquired by Ideatek in October 2024. The KCC Docket Number for the proceeding is 25-SKYT-561-ETC.
Brightspeed Companies of Kansas Revise General Exchange Tariff To Grandfather Certain Residential Service Packages
June 24, 2025 – The Brightspeed Companies of Kansas have filed revisions to their Kansas General Exchange Tariff with the Kansas Corporation Commission (KCC) to grandfather certain residential service packages, effective July 26, 2025. The tariff changes are made pursuant to K.S.A.2005(q)(1)(F) which declares Brightspeed services to be price deregulated. The KCC Docket Number for the proceeding is 25-UTDT-550-TAR. Brightspeed’s tariff filing contains the following explanation:
“This filing grandfathers various packaged offers available to residential customers effective July 26, 2025. A grandfathered service is one that is no longer sold, and availability is limited to lines currently in service at existing locations. This change does not impact services or features currently provided on grandfathered accounts.”
Brightspeed Companies of Kansas Revise General Exchange Tariff To Introduce Voice Packages
June 24, 2025 – The Brightspeed Companies of Kansas have filed revisions to their Kansas General Exchange Tariff with the Kansas Corporation Commission (KCC) to introduce new voice packages. The tariff changes are made pursuant to K.S.A.2005(q)(1)(F) which declares Brightspeed services to be price deregulated. The KCC Docket Number for the proceeding is 25-UTDT-549-TAR. Brightspeed’s tariff filing contains the following explanation:
“This filing introduces Brightspeed Voice and Brightspeed Business Voice, optional service packages available to residential and business customers. Brightspeed respectfully requests an effective date of July 26, 2025.”
Brightspeed Companies of Kansas Revises General Exchange Tariff To Increase Trouble Isolation Charges
June 23, 2025 – The Brightspeed Companies of Kansas have filed revisions to their Kansas General Exchange Tariff with the Kansas Corporation Commission (KCC). The tariff change concerns trouble isolation charges, and is made pursuant to K.S.A.2005(q)(1)(F) which declares the Brightspeed services to be price deregulated. The KCC Docket Number for the proceeding is 25-UTDT-547-TAR. Brightspeed’s tariff filing contains the following explanation:
“This filing increases the Trouble Isolation Charge that applies when the company dispatches a technician to a customer’s premises in response to a customer-reported trouble and a trouble is found on the customer’s side of the NID. This charge does not apply when no trouble is found or when the trouble is detected in company’s facilities. Brightspeed respectfully requests an effective date of July 26, 2025.”
Brightspeed Companies of Kansas Tariff Revisions Grandfather MetroPlus Service
June 23, 2025 – The Brightspeed Companies of Kansas have filed revisions to their Kansas Local Exchange Service Tariff with the Kansas Corporation Commission (KCC). The KCC Docket Number for the proceeding is 25-UTDT-546-TAR. Brightspeed’s tariff revisions grandfather its MetroPlus service. The tariff filing contains the following explanation:
“This filing grandfathers MetroPlus, an optional service arrangement, effective July 26, 2025. A grandfathered service is one that is no longer sold, and availability is limited to lines currently in service at existing locations. This change does not impact services currently provided on grandfathered accounts. Brightspeed is a price-cap regulated carrier and makes this tariff filing in accordance with K.S.A. 2005(q)(1)(F) which declared the services contained herein as price deregulated.”
KCC Order Applies Pro-Rata Reductions To RLEC Annual KUSF Support Amounts
June 17, 2025 – The Kansas Corporation Commission (KCC or Commission) has issued an Order Adopting KUSF Pro-Rata Support Reductions in the Kansas Universal Service Fund (KUSF) Year 29 docket (25-GIMT-141-GIT). The Order adopts the KCC Telecom Staff’s May 27, 2025, Report & Recommendation containing pro-rata reductions to each Rural Local Exchange Carrier’s (RLEC) annual KUSF support amount. The recalculation of KUF support amounts was needed because the KCC issued an Order in May 2025 which adjusted Moundridge Telephone Company’s annual KUSF support to $1,012,411, effective June 1, 2025, subject to any pro-rata reduction. This is the second KUSF adjustment in the past 30 days. A month ago, the KCC issued an Order Adopting KUSF Pro-Rata Support Reductions to account for an increase in annual KUSF support for Cunningham Telephone Company and a decrease in KUSF support for United Telephone Association, Inc. Total annual KUSF support distributed to all RLECs is capped $30 million. Once the cap is met, each RLEC’s annual KUSF support amount is pro-rated based on the amount each carrier would have received absent the cap.
Senate Confirms Olivia Trusty As FCC Commissioner
June 17, 2025 – The United States Senate has voted to confirm Olivia Trusty as the newest member of the Federal Communications Commission (FCC). With the recent departure of two Commissioners (Starks and Simington), there are now three FCC Commissioners: Chairman Brendan Carr (R), Olivia Trusty (R), and Anna Gomez (D). Under the Communications Act, the FCC needs three Commissioners for a quorum.
Federal USF Contribution Factor For Third Quarter Of 2025 – 36 Percent
June 11, 2025 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the third quarter of 2025 will be 36 percent. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved.
The 36 percent contribution factor for 3Q 2025 is a slight decrease from the 36.6 percent contribution factor that was used for 2Q 2025 and which was an all-time high. The USF contribution factor for 1Q 2025 was 36.3 percent. Historical information on quarterly universal service fund contribution factors is available online from the FCC.
For the third quarter of 2025, the Universal Service Administrative Company (USAC) projects $8.045954 billion in total interstate and international end-user telecommunications revenues will be collected ($8.223063 billion in collections were projected for 2Q 2025, and $8.176992 billion was projected for 1Q 2025). USAC estimates that $2.113790 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the second quarter of 2025 (the 2Q 2025 demand was estimated at $2.186160 billion, and the 1Q 2025 demand was estimated at $2.161100 billion).
Total third quarter 2025 demand includes projected program support, administrative expenses, and true-ups and adjustments, which breaks out among the USF support mechanisms as follows:
E-Rate Schools & Libraries: $639.18 million (2Q 2025 was $653.04 million, and 1Q 2025 was $657.15 million)
Rural Health Care: $179.03 million (2Q 2025 was $104.10 million, and 1Q 2025 was $129.50 million)
High-Cost: $1.05065 billion (2Q 2025 was $1.12390 billion, and 1Q 2025 was $1.08640 billion)
Lifeline: $244.93 million (2Q 2025 was $305.12 million, and 1Q 2025 was $288.05 million)
Do-Over! NTIA Policy Notice Makes Fundamental Changes To BEAD Program
June 6, 2025 – The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has issued a Restructuring Policy Notice that modifies the Broadband Equity, Access, and Deployment (BEAD) Program. The $42.45 billion BEAD Program was created by the Infrastructure Investment and Jobs Act (IIJA) to provide high-speed broadband internet access throughout the U.S. Each state and territory (Eligible Entity) will use BEAD Program funding to administer grant programs that make awards to subgrantees to deploy broadband to unserved and underserved locations in their state and territory.
The new Policy Notice modifies and replaces certain requirements outlined in the original May 2022 BEAD Notice of Funding Opportunity (NOFO). Each Eligible Entity must now comply with the requirements and obligations in the Policy Notice and submit and gain approval of a new Final Proposal. NTIA will complete its review of each Final Proposal within 90 days of submission. By issuing the changes, NTIA is hitting the reset button on the program – Eligible Entities must rescind all preliminary and provisional subaward selections and notify applicants that a further round of applications will be considered before final awards are made. Eligible Entities that have already completed subgrantee selection must conduct at least one “Benefit of the Bargain” round. The Policy Notice Fact Sheet provides the following summary of the changes to the BEAD Program:
INSTITUTING a Tech-Neutral Approach – NTIA will adopt a technology neutral approach for the BEAD subgrantee selection process by returning the definition of a “Priority Broadband Project” to statutory language. Removing the preference for a single technology will bring the full force of the competitive marketplace to bear and allow American taxpayers to obtain the greatest return on their investment.
REMOVING Burdensome Labor and Employment Requirements – NTIA will limit the labor and employment requirement of the statute to a certification of compliance with existing law and eliminate the central planning and DEI labor and employment edicts that disadvantaged both workers and providers, drove up costs, and undermined broadband buildouts.
ELIMINATING Climate Change Requirements – NTIA will eliminate the extraneous and burdensome obligations to conduct climate analyses. Instead, NTIA guidance will focus on ensuring reliability and resiliency of the network.
ENDING Oppressive Net Neutrality Requirements – NTIA will eliminate the NOFO requirement that micromanaged network management and imposed wholesale access requirements on applicants.
REMOVING Time-Consuming, DEI-Driven Coordination Requirements – NTIA will eliminate expansive, extralegal requirements on Eligible Entities to consult with a myriad of special interest groups, including representatives from demographic and identity-based organizations.
ENDING Needless Municipal Broadband Paperwork – NTIA will eliminate the flawed requirement in the Final Proposal that Eligible Entities favor participation of non-traditional broadband providers (such as municipalities or political subdivisions), an incentive that risked redirecting scarce funds to less capable providers.
ENDING Backdoor Rate Regulation – NTIA will refuse to accept any low-cost service option proposed in an Eligible Entity’s Final Proposal that attempts to impose a specific rate level (i.e., dollar amount) and instead call on Eligible Entities to permit providers to propose their existing, market driven low-cost plans to meet the statutory low-cost requirement. NTIA will also eliminate the requirement that Eligible Entities have a middle-class affordability plan, which was undefined and impossible to operationalize.
STREAMLINING Environmental Reviews – NTIA will require the use of an NTIA-developed tool to significantly reduce the time and effort required for broadband permitting. The Environmental Screening and Permitting Tracking Tool (ESAPTT) is designed to accelerate National Environmental Policy Act (NEPA) processing timelines by several months and will be utilized by all Eligible Entities deploying BEAD.
NTIA has released a slide deck, titled Understanding the BEAD Restructuring Policy Notice, which reviews major program shifts and compares and contrasts the BEAD NOFO & Restructuring BEAD Policy Notice.
FCC Commissioner Nathan Simington Announces Departure From Agency
June 4, 2025 – Federal Communications Commission Commissioner (FCC) Nathan Simington has announced he is leaving his position at the FCC:
I will be concluding my tenure at the Federal Communications Commission at the end of this week. It has been the greatest honor of my professional life to serve the American people as a Commissioner. I am deeply honored to have been entrusted with this responsibility by President Donald J. Trump during his first term.
Following Commissioner Simington’s departure, the FCC will only have two members: Chairman Brendan Carr and Commissioner Anna Gomez. Commissioner Geoffrey Starks announced his departure from the FCC in May. In January, President Trump nominated Olivia Trusty to serve as an FCC Commissioner. She is awaiting a Senate confirmation. Under the Communications Act, the FCC needs three Commissioners for a quorum.
New Kansas Corporation Commission Telecom Dockets Opened In June 2025
25-UTDT-546-TAR – Brightspeed Companies of Kansas Filing Tariff Revisions to Grandfather of MetroPlus.
25-UTDT-547-TAR – Brightspeed Companies of Kansas Revisions of Kansas General Exchange Tariff.
25-UTDT-549-TAR – Brightspeed Companies of Kansas Filing Tariff Revisions to Introduce Brightspeed Voice Packages.
25-UTDT-550-TAR – Brightspeed Companies of Kansas for Grandfathering Residential Bundles of Kansas General Exchange Service Tariff.
25-SKYT-561-ETC – Application of Skybeam, LLC for an Order Confirming Relinquishment of its Eligible Telecommunications Carrier Designation.
