As the states begin distributing $42.45 billion of Broadband Equity, Access, and Deployment (“BEAD”) funding for unserved and underserved areas, some broadband providers will pressure utility pole owners to agree to unreasonable pole attachment terms and conditions to facilitate this rollout, which pole owners must resist in order to protect their utility pole distribution systems. Tom Magee, Partner
As states accelerate the BEAD broadband subrecipient election process during the first quarter of the year, there will be heightened scrutiny on the accuracy and effectiveness of the challenge process to identify locations that are not already subject to existing federal or state broadband funding obligations or planned broadband service deployments. At the same time, there will be a renewed focus at the FCC, in Congress, and in the states to remove perceived barriers to broadband deployment related to access to rights-of-way and poles. Sean Stokes, Partner
I expect a renewed push to explore sharing of spectrum resources between Federal government users and FCC licensees. The FCC’s loss of auction authority has raised concerns with relying on auctions as the primary method of assigning spectrum and the Commission will continue to explore alternative methods of putting spectrum resources to use in the public interest. Greg Kunkle, Partner
The Supreme Court’s decision in the Universal Service Fund (“USF”) case is messy and inconclusive, with no immediate impact on the program’s viability. The notion of assessing a USF tax on large content providers proves to be intractable, following heavy lobbying by the content industry and line-drawing problems as to what entities would be subject to such a tax. Direct congressional appropriation appears to be the last option standing, but the overall issue remains unresolved throughout 2025. A push for a major update to the Telecommunications Act will gain momentum.
Additionally, as BEAD funding starts rolling, it will become evident in Q1 that many locations are not covered by any proposal for reliable broadband service, reflecting an unanticipated lack of interest by service providers. Starlink and Amazon low Earth orbit services will likely fill in the gaps. Finally, I expect that the 5G Fund is canceled, mid-sized broadband providers will be gobbled up in a flurry of merger and acquisition activity, and middle-mile and long-haul fiber investment will continue, driven by AI and data center connectivity demands. Casey Lide, Partner
I expect Congress to reinstate the FCC’s auction authority and am optimistic that a portion of the proceeds from an FCC auction in the next year or two will be allocated to supporting the country’s NG911 transition. Wes Wright, Partner
The time required for the FCC to issue consent to transactional filings for wireless licenses required under Section 310(d) of the Communications Act will continue to be longer than in previous years. Wireless licensees entering into agreements that involve the assignment or transfer of licenses should take this into consideration and plan on filing as early as possible before scheduled closing. Tim Doughty, Partner
A heightened focus on critical infrastructure cybersecurity will prompt the FCC to expand, and broaden the applicability of, its Covered List, which identifies communications equipment and services deemed an unacceptable risk to national security. Liam Fulling, Associate
The Commission’s recent opening of the 6 GHz band to very low power devices will lead to a proliferation of unlicensed and Wi-Fi-enabled innovations, particularly in the education and healthcare industries, as wearables and mixed reality devices become more affordable and accessible. Jackson Cherner, Associate