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FCC Seeking Comment On Two Section 253 Petitions For Preemption Of Local Rules Preventing Broadband Providers From Accessing Public Rights-Of Way
July 8, 2026 – The FCC’s Wireline Competition Bureau is seeking public comment on two petitions for preemption and declaratory ruling filed pursuant to Section 253(d) of the Communications Act. Comments in response to either petition are due on or before August 24, 2026. Reply comments are due September 23, 2026. Section 253(a) of the Communications Act states that no state or local statute or regulation, or other state or local legal requirement, may prohibit or have the effect of prohibiting the ability of any entity to provide any interstate or intrastate telecommunications service. Section 253(d) states that if, after notice and an opportunity for public comment, the FCC determines that a state or local government has permitted or imposed any statute, regulation, or legal requirement that violates subsection (a) or (b), the FCC shall preempt the enforcement of such statute, regulation, or legal requirement to the extent necessary to correct such violation or inconsistency.
The first Section 253 petition was filed by Gateway Infrastructure, LLC d/b/a Gateway Fiber. The company is seeking a declaratory ruling preempting the City of Maple Grove, Minnesota, from imposing and requiring a cable communications system franchise agreement as a predicate to issue public right-of-way use permits. Gateway Fiber is not a cable operator, nor has it held itself out as one. It has a certificate of authority from the Minnesota Public Utilities Commission to provide regulated telecommunications services in Minnesota. Gateway Fiber explains that the City of Maple Grove is requiring the company to enter into a cable franchise agreement, and the city has said “it will defer action on permit applications until the franchising process has been completed.” Gateway Fiber argues that the City of Maple Grove’s “refusal to act on permits pending completion of a Cable Franchise is barred by Section 253(a) of the Act because it has the effect of (1) prohibiting Gateway from operating its network to provide telecommunications services; and (2) preventing Gateway from building out fiber in new geographic areas.
The second petition was filed by Lumos Fiber of Ohio, LLC. Lumos Fiber is seeking a declaratory ruling preempting Stark County, Ohio, and Mahoning County, Ohio, from enforcing certain right-of-way requirements that, acting both independently and in combination, have prohibited the company from providing telecommunications service in violation of Section 253(a). More specifically, Lumos Fiber requests that the FCC preempt: (1) per-foot construction charges, inspection fees, and a professional survey requirement imposed by Stark County, Ohio; and (2) a professional survey requirement imposed by Mahoning County, Ohio. Lumos Fiber says these local requirements have forced Lumos to cancel large-scale fiber expansions in both counties, and since the requirements fall far outside the safe harbors in Sections 253(b) and 253(c), they subject to mandatory preemption under Section 253(d).
FCC Announces Tentative Agenda For July 22nd Open Meeting
July 1, 2026 – Federal Communications Commission Chairman Brendan Carr has announced the following tentative agenda for the FCC’s next open meeting scheduled for Wednesday, July 22, 2026:
Upper C-Band Auction Rules – To maintain U.S. spectrum leadership, create a robust spectrum pipeline, and fulfill Congress’ direction in the One Big Beautiful Bill Act, the Commission will consider a Report and Order, Order of Proposed Modification, and Order on Reconsideration that makes 160 megahertz of the Upper C-band available in the contiguous United States for flexible-use, next-generation terrestrial wireless services via a system of competitive bidding. The introduction of new wireless services may begin in December 2030, following the first tranche of adjacent band radio altimeter retrofits to be required by FAA. Among other steps, the item also adopts measures designed to ensure successful co-existence with adjacent band radio altimeters, creates a transition process to fairly and expeditiously relocate incumbent satellite operations, establishes rebates to support the FAA’s radio altimeter retrofit requirements, and resolves various pending petitions for reconsideration related to the 2020 Report and Order and Order of Proposed Modification reconfiguring the Lower C-band. (GN Docket No. 25-59, 18-122)
Space Modernization for the 21st Century – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that would overhaul the Commission’s rules for licensing space and earth stations to increase speed, predictability, and flexibility in order to support the American space economy. The Order would replace part 25 with a new rule part—part 100—that would create a “licensing assembly line” to process applications. The FNPRM would seek comment on and propose additional changes which build upon the new part 100. (SB Docket No. 25-306)
Improving the Effectiveness of the Robocall Mitigation Database – The Commission will consider a Further Notice of Proposed Rulemaking that aims to materially strengthen the integrity of the United States voice ecosystem and further deter illegal calls by proposing measures to ensure that only legitimate, transparent, and accountable providers gain or maintain access to the Robocall Mitigation Database. (WC Docket Nos. 24-213, 17-97; CG Docket No. 17-59)
Strengthening Rules Governing Dangerous Gear – The Commission will consider a Third Report and Order and Third Further Notice of Proposed Rulemaking aimed at further strengthening national security in the equipment authorization program by closing component-level and supply-chain loopholes in the Commission’s Covered List rules. The item would close the “component part loophole” by prohibiting authorization of devices that incorporate logic-bearing hardware components produced by Covered List entities; clarify that the marketing rules reach online marketplaces that list, distribute, or offer unauthorized equipment and require those marketplaces to display the FCC ID at the online point of sale; require full certification for any modification or permissive change made by a Covered List entity; and adopt a narrowed, statutorily-grounded definition of “critical infrastructure” in response to the D.C. Circuit’s partial remand. The accompanying Further Notice would seek comment on bifurcating the Covered List into producer/provider-based and production location-based categories, enhancing supply-chain transparency through hardware and software bills of materials, and strengthening enforcement. (ET Docket No. 21-232)
The FCC’s Wednesday July 22, 2026 open meeting is scheduled to commence at 10:30 a.m. ET in the Commission Meeting Room of the Federal Communications Commission, 45 L Street, N.E., Washington, D.C. The meeting is open to the public, but the FCC headquarters building is not open access, and all guests must check in with and be screened by FCC security at the main entrance on L Street. All FCC open meetings are streamed live at www.fcc.gov/live.
Mergers & Acquisitions: Verizon Buying Carolina West Wireless
July 1, 2026 – Verizon has entered into an agreement to acquire regional mobile wireless service provider Carolina West Wireless. Carolina West Wireless was formed in 1991 and is headquartered in in Wilkesboro, North Carolina. It is owned by two telecommunications cooperatives, Skyline Telephone and Surry Telephone. In a notification to its customers, Carolina West Wireless stated it will discontinue its wireless services effective September 30, 2026. The company has had a close relationship with Verizon since 2011 when CWW joined Verizon Wireless’ LTE in Rural America program.
Mergers & Acquisitions: Fox Acquiring Roku
July 1, 2026 – Fox Corporation has announced that it has entered into an agreement to acquire Roku, Inc. Pursuant to the agreement, “Fox will acquire Roku for $160.00 per share in combination of cash and Fox Class A common stock, valuing Roku at approximately $22 billion in enterprise value.” The announcement contains the following additional details:
The transaction combines FOX’s leading sports, news and entertainment content and the Tubi service, with Roku’s leading connected TV platform, The Roku Channel, first-party data and direct relationship with more than 100 million global streaming households. Together, FOX and Roku will create a scaled next-generation media and technology company positioned at the intersection of two of the most important forces reshaping video consumption: the enduring primacy of live sports and news, and the continued rise of streaming.
FOX and Roku are committed to continuing to operate Roku as an open, partner-friendly platform and to the continued ubiquitous distribution of FOX content. On a pro forma basis, the combined company will become the third-largest player in U.S. television by share of viewing, with an attractive mix of FOX’s sports, news, and entertainment content, alongside streaming services Tubi and The Roku Channel. That distribution and engagement scale spans every major viewing environment – broadcast, cable, local and streaming – creating broad and diversified reach that benefits viewers, partners and advertisers.
June 2026
FCC Announces Auction 113 Results – 7 Bidders Win 200 AWS-3 Licenses
June 26, 2026 – The FCC’s Wireless Telecommunications Bureau (WTB) has announced the results and winners of Auction 113 – the auction of Advanced Wireless Services licenses in the 1695–1710 MHz, 1755–1780 MHz, and 2155–2180 MHz bands (AWS-3 bands). Bidding concluded on June 23, 2026, with seven bidders winning a total of 200 licenses. Auction 113 raised a total of $3,572,347,950 in net bids and $3,572,889,200 in gross bids. The biggest winners of Auction 113 were the three nationwide mobile wireless providers:
AT&T Spectrum Holdings II, LLC – 10 licenses – $120.774 million net payment
Cellco Partnership (Verizon) – 82 licenses – $3.162 billion net payment
T-Mobile License LLC – 102 licenses – $277.787 million net payment
Mergers & Acquisitions: Citizens Mutual Telephone Cooperative (Iowa Cooperative) Acquiring Van Buren Telephone Company, Inc. (Iowa Cooperative)
June 23, 2026 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Van Buren Telephone Company, Inc. (VBT) and Citizens Mutual Telephone Cooperative (CM Tech), requesting consent to transfer control of VBT to CM Tech. Comments are due on or before July 7, 2026. Reply comments are due July 14, 2026.
VBT, an Iowa corporation and member-owned cooperative, provides local exchange service and exchange access service as an incumbent local exchange carrier (LEC) to approximately 1,553 access lines in the Van Buren, Jefferson, and Lee counties of Iowa. It also provides internet access services. VBT delivers 100% fiber-to-the-premises (FTTP) service throughout its approximately 340 square-mile service area. VBT receives Enhanced A-CAM support and CAF ICC support.
CM Tech, an Iowa corporation and member-owned cooperative, provides local exchange service and exchange access service as an incumbent LEC to approximately 1,454 access lines in the Davis, Wapello, and Van Buren counties of Iowa. CM Tech delivers 100% fiber-to-the-premises (FTTP) service throughout its approximately 1,000 square-mile service area. It provides service as a competitive LEC in portions of Mahaska, Keokuk, Wapello, Monroe, Jefferson, Van Buren, and Lee counties, Iowa. CM Tech does not receive any recurring federal universal service fund high-cost support in connection with its competitive LEC operations. CM Tech also manages, pursuant to a management services agreement, the operations of Farmers Telephone Company, an unaffiliated ILEC located in Batavia, Iowa. CM Tech receives Enhanced A-CAM support and CAF ICC support.
Pursuant to the proposed transaction, CM Tech will acquire all outstanding shares of stock in VBT through a reverse triangular merger. Citizens HoCo, Inc., an Iowa corporation and direct, wholly owned subsidiary of CM Tech, will merge with and into VBT, with VBT surviving the merger as a direct, wholly owned subsidiary of CM Tech. Citizens HoCo will cease to exist. VBT will continue to operate as a direct, wholly owned subsidiary of CM Tech.
Following closing, CM Tech will operate approximately 1,365 square miles of fiber network, serving nearly 6,100 total business and residential customers in southeast Iowa. The applicants state that this additional scope and scale will provide greater financial stability, support continued investment in core operations, and improve and enhance service offerings for the customers and communities served by the combined entity. CM Tech will maintain and improve VBT’s existing fiber network.
New Record! USF Contribution Factor For Third Quarter Of 2026 – 38.8%
June 12, 2026 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the third quarter of 2026 will be 38.8 percent. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved.
The 38.8% contribution factor for 3Q 2026 is a new all-time high. The previous record for the highest USF contribution factor was 38.1% which was used for 4Q 2025. Also, the 38.8% contribution factor for 3Q 2026 is an increase of 1.8% from the 37% contribution factor that was used for 2Q 2026. Historical information on quarterly universal service fund contribution factors is available online from the FCC.
For the third quarter of 2026, the Universal Service Administrative Company (USAC) projects $7.221914 billion in total interstate and international end-user telecommunications revenues will be collected (2Q was $7.553337, and 1Q was $7.604471).
USAC estimates that $2.003130 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the third quarter of 2026 (2Q was $2.022700, and 1Q was $2.060770). Total third quarter 2026 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: $550.73 million (2Q was $641.92 million, and 1Q was $648.93 million)
Rural Health Care: $183.04 million (2Q was $178.84 million, and 1Q was $181.11 million)
High-Cost: $1.07906 billion (2Q was $1.01156 billion, and 1Q was $1.00545 billion)
Lifeline: $190.30 million (2Q was $190.38 million, and 1Q was $225.28 million)
U.S. Conference Of Mayors Passes Resolution Opposing Federal Preemption Of Local Regulation Of Broadband Networks
June 7, 2026 – During its annual meeting, the United States Conference of Mayors has passed a “resolution expressing strong opposition to federal preemption of local authority for the benefit of the telecommunications industry.” The Mayors’ resolution opposes passage of the American Broadband Deployment Act of 2025 (H.R.2289) which is awaiting a full vote of the U.S. House of Representatives. The resolution also opposes two Federal Communications Commission (FCC) proceedings concerning preemption of onerous local broadband permitting rules: Build America: Eliminating Barriers to Wireless Deployments (WT Docket Number 25-276), and Eliminating Barriers to Wireline Deployments (WC Docket Number 25-253).
FCC Announces Tentative Agenda For June 25th Opening Meeting
June 4, 2026 – Federal Communications Commission (FCC) Chairman Brendan Carr has announced the following tentative agenda for the FCC’s June 25, 2026 open meeting:
Cutting Red Tape and Accelerate the Buildout of Wireline Infrastructure – The Commission will consider a Notice of Proposed Rulemaking that would propose and seek comment on standards for when state and local statutes, regulations, and legal requirements have a prohibitive effect on the provision of wireline telecommunications services in violation of Section 253 of the Communications Act, particularly through the imposition of excessive delays and fees that impede infrastructure deployments and disincentivize investments in new infrastructure. (WC Docket No. 25-253)
Reviewing E-Rate Program and Student Screen Time – The Commission will consider a Notice of Proposed Rulemaking that seeks comment on measures the Commission can take to better protect children when using E-Rate-funded networks, the Commission’s progress in ensuring affordable access to high-speed broadband to and within schools and libraries, and whether the Commission’s current interpretation of the Children’s Internet Protection Act is the best reading of the statute, and a Further Notice of Proposed Rulemaking that proposes actions to strengthen E-Rate program integrity and streamline program administration. (WC Docket Nos. 26-133; 13-184; 21-93; 21-455)
Improving Next Generation 911 Reliability and Interoperability – The Commission will consider a Second Report and Order and Second Further Notice of Proposed Rulemaking to improve reliability and interoperability in the nation’s Next Generation 911 (NG911) transition. The item would modernize and streamline 911 reliability rules for IP-based networks, promote interstate interoperability of NG911 systems, and eliminate unnecessary regulatory burdens. (PS Docket Nos. 21-479, 13-75)
Modernizing of the Nation’s Alerting Systems – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that take steps to modernize the Emergency Alert System (EAS) and Wireless Emergency Alerts (WEA). The Report and Order aims to preserve the public’s trust in EAS by requiring targeted cybersecurity improvements to protect the system from cybercriminals and our nation’s adversaries. The Further Notice would propose additional ways to modernize EAS and WEA to make them more helpful to alerting authorities, less burdensome for participating communications providers, and better able to save lives. (PS Docket Nos. 25-224, 22-329, 15-91, 15-94)
Accelerating the Buildout of Submarine Cables – The Commission will consider a Second Report and Order and Second Further Notice of Proposed Rulemaking that would accelerate buildout of secure submarine cable infrastructure, while strengthening national security. (OI 24-523, MD 24-524)
The FCC’s Thursday June 25, 2026 open meeting is scheduled to commence at 10:30 a.m. ET in the Commission Meeting Room of the Federal Communications Commission, 45 L Street, N.E., Washington, D.C. The meeting is open to the public, but the FCC headquarters building is not open access, and all guests must check in with and be screened by FCC security at the main entrance on L Street. All FCC open meetings are streamed live at www.fcc.gov/live.
May 2026
Nebraska To Open Another BEAD Program Application Round; Three Awardees Reportedly Turn Down Funding
May 22, 2026 – The Nebraska Broadband Office (NBO) has announced it will open another application round for the Broadband Equity Access and Deployment (BEAD) Program after three awardees allegedly turned down their funding awards. News of the additional funding round was provided in a press release announcing that seven awardees completed their subgrant agreements.
CISA Announces New Dates For Virtual Town Hall Meetings On Cyber Incident Reporting For Critical Infrastructure Act Of 2022 (CIRCIA) Rulemaking – Communications Sector Townhall Scheduled For June 16, 2026
May 26, 2026 – The U.S. Department Of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) has announced a revised schedule for a series of virtual town hall meetings to gather stakeholder input on the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) rulemaking. There will be four townhall meetings consisting of two general sessions and two sessions focused on critical infrastructure sectors. All town hall meetings are tentatively scheduled to take place from 11:30 a.m. to 3:30 p.m. Eastern Time. Registration is required to attend each town hall meeting, and can be completed at www.cisa.gov/circia. Registration closes two business days before each meeting. CISA has announced the following virtual town hall meetings that are scheduled to be held on the following dates:
Monday, June 15, 2026 – General Session 1
Tuesday, June 16, 2026 – Critical Infrastructure Sectors Grouping A – Communications Sector; Dams Sector; Emergency Services Sector; Food and Agriculture Sector; Government Facilities Sector; Healthcare and Public Health Sector; Transportation Systems Sector; and Water and Wastewater Sector.
Wednesday, June 17, 2026 – General Session 2
Thursday, June 18, 2026 – Critical Infrastructure Sectors Grouping B – Chemical Sector; Commercial Facilities Sector; Critical Manufacturing Sector; Defense Industrial Base Sector; Energy Sector; Financial Services Sector; Information Technology Sector; and Nuclear Reactors, Materials, and Waste Sector.
NTCA–The Rural Broadband Association Urges NTIA To Publicly Release BEAD Performance Testing Results
May 19, 2026 – NTCA–The Rural Broadband Association has sent a letter to the head of National Telecommunications and Information Administration (NTIA), requesting that NTIA require the public release of the Broadband Equity, Access, and Deployment (BEAD) program performance testing results. Broadband projects funded under BEAD are required to meet specific capacity, latency, and availability standards, such as speed of at least 100 Mbps for downloads and 20 Mbps for uploads. Subgrantee awardees are required to complete network testing to verify that the performance requirements have been met. In its letter, NTCA urges NTIA “to further advance accountability and transparency, however, by publicly releasing (or directing Eligible Entities to publish, as applicable) the results of each subgrantee’s performance testing.” NTCA says that posting the information on NTIA’s website will allow policymakers and the public to determine whether BEAD awardees are following through on their obligations.
Fixed Wireless Provider Vistabeam Activates First BEAD-Funded Broadband Connection
May 14, 2026 – The National Telecommunications and Information Administration (NTIA) has announced that Vistabeam has activated the first household broadband connection funded through the Broadband Equity, Access, and Deployment (BEAD) Program. The household is located near Ogallala, Nebraska, and it now receives broadband service with speeds exceeding 800/200 Mbps. Vistabeam is a fixed wireless provider that covers over 50,000 square miles across western Nebraska, northeastern Colorado, and southeastern Wyoming. Vistabeam was awarded BEAD funding for three tower upgrades totaling $423,375 to serve 93 locations across Nebraska.
SpaceX Wants FCC To Eliminate High Cost USF Support Programs
May 13, 2026 – SpaceX has filed an ex parte letter addressing the FCC’s forthcoming Notice of Proposed Rulemaking (NPRM) on the Universal Service Fund (USF) High-Cost Program. The FCC is expected to approve and release the NPRM at its May 20 open meeting. SpaceX’s ex parte covers its meetings with advisors to the FCC Chairman and the two Commissioners, as well as the FCC’s Wireless Bureau. During those meetings, SpaceX discussed the draft version of the NPRM and recommended changes to certain parts that deal with satellite broadband service. SpaceX is the parent company of low-Earth orbit satellite broadband provider Starlink.
Notably, SpaceX claims that the FCC should establish a plan to sunset the USF High-Cost support mechanisms. SpaceX claims that universal broadband access has been achieved because of unsubsidized terrestrial broadband providers, low-Earth orbit satellite systems, and the BEAD program. SpaceX then goes on to talk about the improvements Starlink it has made to its service, such as increased speeds, reduced latency, and additional capacity of its satellite constellations. Finally, SpaceX provided redline changes to six paragraphs in the NPRM.
FCC Issues Final Agenda For May 20 Opening Meeting
May 13, 2026 – The Federal Communications Commission has released the following final agenda for the FCC’s May 20, 2026 open meeting:
Robocalls / Enhancing Know-Your-Upstream-Provider Requirements – The Commission will consider a Further Notice of Proposed Rulemaking that would propose to enhance the STIR/SHAKEN framework used by voice providers to combat illegal robocalls by improving know-your-upstream-provider (KYUP) requirements and oversight, raising standards for STIR/SHAKEN attestations, and closing implementation loopholes. (WC Docket No. 17-97; CG Docket No. 17-59)
Broadband Mapping / Streamlining Broadband Data Processes and Reducing Unnecessary Regulatory Burdens –The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that would take several steps to streamline and improve the FCC’s Broadband Data Collection (BDC). This item would alleviate unnecessary regulatory burdens on service providers and challenge process participants by streamlining audits and verifications, improving challenge processes, and reducing regulatory burdens that add costs without a corresponding benefit to the quality of provider-reported data, all while ensuring that the data depicted on the National Broadband Map is accurate. (WC Docket Nos. 11-10, 19-195; GN Docket No. 25-133)
Modernizing the Disaster Information Reporting System (DIRS) – The Commission will consider a Third Report and Order to modernize DIRS by enhancing its capabilities while eliminating unnecessary reporting burdens. These actions will provide better information to emergency managers during disasters and allow communications service providers to focus their resources on service restoration instead of redundant paperwork at times when every second counts. (PS Docket Nos. 21-346, 15-80; ET Docket No. 04-35)
High-Cost USF / Launching ‘High-Cost’ Program Initiative – The Commission will consider a Notice of Proposed Rulemaking seeking comment on how a High-Cost Modernization initiative could best ensure that all Americans, particularly those in rural areas, have access to next-generation services in an ever-changing environment. (WC Docket Nos. 26-96, 10-90)
The FCC’s May 20, 2026 open meeting is scheduled to commence at 10:30 a.m. ET in the Commission Meeting Room of the Federal Communications Commission, 45 L Street, N.E., Washington, D.C. The meeting is open to the public, but the FCC headquarters building is not open access, and all guests must check in with and be screened by FCC security at the main entrance on L Street. All FCC open meetings are streamed live at www.fcc.gov/live.
NTIA Issues Guidance Related To BEAD Subgrantee Award Contracts – BEAD Subgrantees: Protect Your Rights
May 11, 2026 – The National Telecommunications and Information Administration (NTIA) has issued guidance related to the Broadband Equity, Access, and Deployment (BEAD) Program. Specifically, the guidance, titled “BEAD Subgrantees: Protect Your Rights,” informs BEAD subgrantees that their contracts with state broadband agencies must contain certain language mandated by the BEAD General Terms and Conditions. The required language is related to two topics: prohibition on utility-style rate regulation; and permitting commitments.
NTIA’s guidance informs subgrantees that “states are required to include specific contract language mandated by the BEAD General Terms and Conditions and may not omit, alter, or otherwise attempt to contract around such language in their subgrantee agreements.” NTIA further explains that subgrantees should confirm the required language is included, unaltered, in their award contracts, and should not sign agreements that omit or modify the provisions. Additional information on the required contract language is included in NTIA’s guidance document.
USAC Releases Data On Budget Control Mechanism For July 2026 – June 2027
May 8, 2026 – The Universal Service Administrative Company (USAC) has released information on the legacy rate-of-return Budget Control Mechanism (BCM) for July 2026 through June 2027. The budget control mechanism was created by the FCC in the 2016 Rate-of-Return Reform Order as a method for enforcing the rate-of-return carrier legacy support budget in the event total support is forecasted to exceed the budget in a given year. Carriers that receive universal service fund High Cost legacy support, which includes Connect America Fund Broadband Loop Support (CAF BLS), High Cost Loop (HCL) and Safety Valve Support (SVS), are subject to the BCM. When the BCM is applied, carriers receive pro rata support reductions, but no carrier’s support can be reduced below a certain minimum threshold level.
For July 1, 2026 to June 30, 2027, forecasted total support for legacy rate-of-return carriers is projected to exceed the budget by 93,387,847, resulting in a projected budget control adjustment factor of 6.697%. A table showing USAC’s summary of the BCM data and calculations is shown below, all of which are subject to change.
Gateway Fiber Says Minnesota Cities Are Trying To Force Broadband Providers To Enter Into Cable Franchise Agreements
May 7, 2026 – Gateway Fiber has filed an ex parte in the Federal Communications Commission’s (FCC) Eliminating Barriers to Wireline Deployments docket (WC Docket No. 25-253). The Company submitted the letter to provide additional data for the record in the proceeding. The FCC opened the docket in September 2025 with a Notice Of Inquiry into wireline deployment impediments, including state and local requirements that prohibit, or have the effect of prohibiting, the provision of wireline telecommunications services in violation of section 253 of the Communications Act of 1934.
In its ex parte letter, Gateway Fiber explains how it has been unable to obtain permits to construct fiber networks in four Minnesota cities “because those cities directed the Company to obtain a first-of-its kind cable communications system franchise agreement through local cable commissions.” Gateway Fiber is not a cable operator, nor has it held itself out as one. The Company further explains that Minnesota cities are attempting to require broadband providers to enter into cable franchise agreements that assess franchise fees because cities lack authority under Minnesota law to require local franchises for broadband service. Gateway Fiber included the following additional information in its letter:
The applicable Minnesota cities and local commissions appear to be requiring a cable communications system franchise agreement of BIAS providers like Gateway – rather than utilizing the historic public rights-of-way use permits – to impose several onerous requirements. One such requirement would impose a 5% franchise fee on gross revenues including from BIAS even though the Minnesota cities acknowledge they cannot impose such a fee on “cable operators.”
Other burdensome requirements include 100% build-out within city boundaries without exception, right for rate regulation by the city, continuity and uniformity of service without any exception, provision of public benefits to the city in addition to franchise fees, provision of a material performance bond and letter of credit, and stringent remedies for any non-compliance under the franchise agreement regardless of materiality of such non-compliance.
Court Overturns FCC Digital Discrimination Rules
May 6, 2026 – The U.S. Court of Appeals for the Eighth Circuit has issued an opinion that overturns the Federal Communications Commission’s (FCC) digital discrimination rules. In short, the Court concluded that the FCC exceeded its statutory authority in two respects – disparate impact liability and the definition of covered entities.
In November 2023, the FCC adopted a Report And Order containing “final rules to prevent digital discrimination of access to broadband services based on income level, race, ethnicity, color, religion, or national origin.” In general, the digital discrimination rules prohibited broadband providers’ policies or practices that (1) differentially impact consumers’ access to broadband internet access service based on their income level, race, ethnicity, color, religion or national origin, or (2) are intended to have such differential impact. In other words, the FCC adopted two theories of digital discrimination liability: disparate treatment and disparate impact. The scope of the rules also extended beyond broadband providers to entities that facilitate and otherwise affect consumer access to broadband internet access services.
Shortly after the digital discrimination rules were approved, petitions for review were filed by telecom and broadband industry associations in six U.S. Courts of Appeals, all of which sought to have them struck down, claiming the FCC exceeded its statutory authority; the rules are arbitrary, capricious, and an abuse of discretion; and the rules are otherwise contrary to law. The legal challenges were consolidated in the U.S. Court of Appeals for the Eighth Circuit.
That Court has now vacated the FCC’s digital discrimination rules. It found that Congress did not authorize disparate impact liability and the FCC exceeded its statutory authority in adopting a final rule authorizing the imposition of disparate impact liability. The Eighth Circuit also found that the FCC exceeded its statutory authority when it extended the final rule to cover entities other than broadband providers. While the rules have been vacated, the Court nonetheless remanded the issue back to the FCC because there is now “an unfinished obligation to ‘adopt final rules to facilitate equal access to broadband internet access service” in compliance with 47 U.S.C. § 1754.’”
FCC Proposes Enhanced Know-Your-Customer (KYC) Requirements To Help Prevent Robocalls
May 1, 2026 – The Federal Communications Commission (FCC) has issued a Further Notice of Proposed Rulemaking (FNPRM) that seeks comment on enhanced “Know-Your-Customer” (KYC) requirements that would apply to originating voice service providers. Comments in response to the FNPRM are due on or before June 25, 2026 and reply comments are due on or before July 27, 2026. In the FNPRM, the FCC generally seeks comment on the following: (1) seeks comment on customer identification requirements for new and renewing customers; (2) seeks comment on requirements for originating providers to verify, retain, and re-verify customer information; (3) seeks comment on requiring more information from certain customers including high-volume customers; (4) seeks comment on how any new KYC requirements can complement call branding and caller name requirements the Commission may adopt; and (5) proposes that the Commission assess penalties for violations of the KYC rule on a per call basis.