Broadband program still in doubt
As we have previously reportedAmerican Senator Ted Cruz (R-Texas) and other Republicans want to review the accounts financing plans. Cruz accused the NTIA of “technological bias” because the agency decided that fiber networks should prioritize other types of technology and Republicans object to the application of the Biden administration of a requirement that low -cost plans are offered.
He US law That created Bead requires that Internet suppliers who receive federal funds offer at least one “low -cost broadband service option for eligible subscribers”, but also says that the NTIA can not “regulate rates charged by band service wide “. Republicans claim that the NTIA has gone too far in the direction of rates regulation, and Internet suppliers complained about NTIA guide that the “strongly encouraged” states to establish a fixed rate of $ 30 per month for the low -cost service option.
Cruz, who is president of the Senate Committee of Commerce, said that Congress will make an exhaustive review of the program at the beginning of 2025. Levin’s research note said the NTIA had probably arrested the expense even if the Trump administration had not tried Freeze funds.
“Even without the memorandum, we would not have been surprised to see NTIA stop the expense informally while waiting for guidance on how the Trump administration wishes to continue with the program,” Levin wrote. New Street Research expects to see changes similar to those proposed by Cruz.
“We expect a break in the financing of accounts, and maybe USF [Universal Service Fund] Financing also, but it is more anticipated than, because financing helps to the republican areas, the pause will be relatively short, “Levin wrote.” Even so, we recognize considerable uncertainty about the moment and the limitations in the future spending of accounts. “