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Telecommunications Modernization and Competition

Current Status

Existing Law: The Federal Communications Commission (FCC) was established by the Communications Act of 1934 (47 U.S.C. 151 et seq.) and is charged with regulating interstate and foreign communications by wire and radio in the public interest. The Telecommunications Act of 1996 made substantial modifications leading to the current regulatory structure. Section 706 (47 U.S.C. § 1302) requires the Commission to annually initiate an inquiry concerning the availability of advanced telecommunications capability to all Americans, and if the determination is negative, to take immediate action to accelerate deployment by removing barriers to infrastructure investment and promoting competition.
Current Authority: The FCC is an independent Federal regulatory agency responsible directly to Congress, charged with regulating interstate and international communications by radio, television, wire, satellite, and cable. Its jurisdiction covers the 50 states and territories, the District of Columbia, and U.S. Possessions. The FCC is directed by five commissioners appointed by the President and confirmed by the Senate for five-year terms. The FCC's authority to auction spectrum licenses lapsed almost two years ago (March 9, 2023).
Existing Limitations: In April 2024, the FCC re-adopted net neutrality rules by 3–2 vote, but on January 2, 2025, the United States Court of Appeals for the Sixth Circuit ruled that the FCC lacked the authority to adopt net neutrality regulations, holding that the regulations violated federal law because broadband Internet service providers are classified as information service providers, not telecommunications service providers. The Universal Service Fund faces constitutional challenges with circuit split rulings—the Sixth Circuit ruled the fund is constitutional while the Fifth Circuit ruled it unconstitutional. The Supreme Court accepted review in FCC v. Consumers' Research for its 2024-2025 term.

Problem

Specific Harm

Rural Broadband Gap: In a 2024 study, the FCC reported that 45 million Americans lack access to the minimum broadband standard (100/20 Mbps). Nearly 25 million Americans still lack access to broadband connectivity and of those, 19 million live in rural communities. According to the FCC, 39 percent of rural Americans lack access to broadband service, compared to only 4 percent of urban Americans.

Robocall Scam Losses: Over the past 12 months, Americans have lost a collective $25.4 billion to phone scams. In 2024, approximately 56 million Americans were victims of scam calls. In 2023, Americans received approximately 53 billion robocalls, an average of 161 calls per person annually. Victims of scam texts lost an average of $1,452 during the same period. In 2024, scams cost an estimated $12.5 billion, a 25 percent increase over the year prior, according to the FTC.

Universal Service Fund Inefficiency: USF funding exceeded $8.5 billion in 2024, rising by more than $400 million over 2023. As of 2024, the rate for the USF budget was 34.4% of a telecom company's interstate and international end-user revenues. Since 1995, when the USF was established, the U.S. has spent more than $150 billion in universal service subsidies. However, ample research has demonstrated that the program is inefficient, ineffective, and funded by a regressive tax mechanism. In the year 2000, USAC's administrative expenses were about $43 million. In 2022, they had increased to almost $330 million. The USF now spends more than half as much on administrative expenses as it does on Rural Health Care ($500 million) and Lifeline ($610 million). The FCC's entire budget in 2022 was only slightly higher at about $390 million.

Spectrum Auction Authority Lapse: FCC spectrum auction authority expired on March 9, 2023—more than two years ago. The renewal of the auctions is estimated to generate approximately $88 billion in revenue. Over the past 20 years, competitive spectrum auctions have generated nearly $100 billion more than Congressional Budget Office (CBO) projections, routinely outperforming estimates by 60-300 percent.

Tower Siting and Pole Attachment Delays: Mobile network operators need approval from local governments for every cell site installation. According to some operators, new small cell deployment requires 18 to 24 months and maximum delay is caused by the government approval process. Statistics provided by electric utilities indicate that actual pole attachment costs exceed estimated costs 50 to 90 percent of the time. Comcast cited 13,000 Virginia locations facing delayed deployments from pole disputes. Pole replacement costs can range from $600 to more than $6,000 per pole, creating a significant financial burden on ISPs. In Kentucky, the Warren Rural Electric Cooperative Corporation restricted ISPs to only 120 pole attachment applications per month—at this rate, achieving full broadband connectivity in targeted areas could take up to 14 years.

Emergency Services Disparities: A 2017 article published in JAMA surgery found that the national average from the time of a 911 call to arrival on scene was 7 minutes. However, that time increases to more than 14 minutes in rural settings, with nearly 1 of 10 encounters waiting almost 30 minutes for the arrival of EMS. An estimated 240 million calls are made to 9-1-1 in the U.S. each year. In many areas, 80% or more are from wireless devices.

Who is Affected

Approximately 57 million people, or 18% of the total U.S. population, live in rural communities.
Based on 21 percent of U.S. adults reporting losing money in a phone scam, the total number of phone scam victims in the U.S. was estimated to be 56,154,197. The average phone scam victim reported losing $452, equating to a total of $25.4 billion.
Hispanic and Black Americans were twice as likely to lose money to phone scams in 2023. Black Americans are more likely than Hispanic or White Americans to have ever been victims of a phone scam (47% vs. 36% and 25%).

Gaps in Current Law

Municipal Broadband Preemption: 16 states across the U.S. have monopoly-protecting, anti-competition preemption laws in place that either prevent or restrict local municipalities from building and operating publicly-owned, locally-controlled networks. These states maintain these laws despite the fact that wherever municipal broadband networks operate, the service they deliver almost always offers faster connection speeds, more reliable service, and lower prices.

BEAD Program Implementation: The BEAD Program is a $42.45 billion federal grant program that aims to connect every American to high-speed internet by funding partnerships to build infrastructure. To conform to the Infrastructure Investment and Jobs Act, state legislatures would have to reverse preemption laws as the IIJA specifically says that state BEAD plans must "ensure the participation of non-traditional broadband providers." NTIA officials have said the agency will not withhold BEAD funds from states that do not remove those barriers.

Accountability Failures

As of September 28, 2025, only 44 percent of phone companies had completely installed the mandated STIR/SHAKEN robocall-blocking software, down from 47 percent in 2024. Congress approved the TRACED Act in 2019 by a 514 to 4 vote.

The GAO and other government watchdogs have called for the FCC to better define objectives and to determine whether USF programs are meeting those objectives in a cost-effective manner.

Proposed Reform

Primary Policy Change

Restore FCC Spectrum Auction Authority and Create Comprehensive Telecommunications Modernization Framework

This Act restores FCC spectrum auction authority, modernizes the Universal Service Fund contribution mechanism, strengthens robocall enforcement, streamlines infrastructure deployment, and removes barriers to municipal broadband while preserving local control.

New Requirements

1. Spectrum Management Modernization

Restore FCC spectrum auction authority with provisions for secondary market trading and dynamic allocation
Require NTIA and FCC coordination on federal spectrum sharing opportunities
Mandate spectrum efficiency reviews for federal incumbents

2. Universal Service Fund Reform

Expand contribution base to include edge providers and broadband-only services
Impose hard budget cap indexed to inflation with annual GAO efficiency review
Require USAC administrative cost ratio not to exceed 4% of disbursements
Establish unified broadband affordability mechanism consolidating High-Cost and Lifeline programs

3. Common Carrier Framework Update

Establish technology-neutral interconnection obligations for broadband-capable networks
Require IP-based interconnection standards for voice services
Mandate reasonable network management disclosure requirements

4. Rural Telecommunications Beyond Broadband

Require carriers receiving USF support to maintain voice-grade service with 99.9% reliability
Mandate E-911 location accuracy improvements for wireless calls in rural areas
Require Next Generation 911 compliance for all PSAPs receiving federal funding

5. Infrastructure Deployment Acceleration

Establish 60-day federal shot clock for small cell permits; 90-day for macro facilities
Require pole owners to process attachment applications within FCC timelines or permit self-help
Cap pole attachment make-ready cost overruns at 10% above estimates without attacher consent
Mandate utility pole inspection data sharing with prospective attachers

6. Municipal Broadband Clarification

Prohibit states from conditioning BEAD fund recipients' eligibility on waiving municipal participation
Preserve state authority over non-federal broadband programs
Require states to certify no discriminatory treatment of municipal providers in BEAD applications

7. Robocall Enforcement Enhancement

Mandate 100% STIR/SHAKEN implementation for all originating voice providers
Require gateway providers to implement Know Your Customer verification
Authorize FCC to mandate call blocking for non-compliant providers
Establish FCC-FTC-State AG joint enforcement working group

New Prohibitions

Prohibition on spectrum warehousing beyond 36 months without deployment
Prohibition on pole owners charging attachers for pre-existing safety violations
Prohibition on voice providers originating calls without valid caller ID authentication
Prohibition on conditioning infrastructure permits on discriminatory aesthetic requirements not applied uniformly

Enforcement

GAO Oversight: Annual audits of USF programs, spectrum utilization efficiency, and BEAD implementation outcomes

FCC Inspector General: Enhanced authority for fraud investigation in USF and robocall enforcement

Judicial Conference: Expedited review procedures for telecommunications infrastructure permit appeals

Penalty Structure:

Robocall violations: Up to $10,000 per call for willful violations; treble damages for repeat offenders
Spectrum warehousing: License forfeiture after notice and cure period
Pole attachment non-compliance: Automatic attacher self-help rights with cost recovery
STIR/SHAKEN non-compliance: Removal from voice network within 30 days of FCC order

What Changes

Before

FCC lacks spectrum auction authority; cannot conduct commercial auctions
USF funded by narrowing base of traditional telecom revenues at 34.4% contribution rate
16 states preempt municipal broadband participation
Tower siting delays of 18-24 months; pole attachment disputes delay thousands of locations
44% of voice providers compliant with robocall blocking mandates
$25.4 billion annual consumer losses to phone scams
39% of rural Americans lack broadband access
EMS response times in rural areas exceed 14 minutes on average

After

Restored auction authority generating estimated $88 billion over 10 years
Broadened USF contribution base reducing per-provider rates; capped administrative costs
Municipal providers eligible for federal broadband funding without state interference
60-90 day permit shot clocks; standardized pole attachment timelines and cost caps
100% STIR/SHAKEN compliance with gateway provider verification
Enhanced joint federal-state enforcement reducing scam call origination
Accelerated rural deployment through streamlined infrastructure rules
Improved E-911 location accuracy and NG911 transition support

ROI

Federal Budget Impact (10-Year, CBO-Scoreable)

Costs:

Item	10-Year
FCC Enforcement Staff Augmentation	$0.5B
NG911 Transition Support	$1.5B
GAO Oversight Expansion	$0.2B
Contingency (15%)	$0.3B
Total	$2.5B

Savings:

Item	Gross	Capture	Net
Spectrum Auction Revenue¹	$88.0B	100%	$88.0B
USF Administrative Efficiency²	$3.3B	50%	$1.65B
Reduced Duplicative Broadband Programs³	$5.0B	40%	$2.0B
Total			$91.65B

¹The renewal of the auctions is estimated to generate approximately $88 billion in revenue. ²Based on capping USAC administrative costs at 4% of disbursements vs. current trajectory ³GAO found more than 133 funding programs administered by 15 agencies, of which 25 were mainly focused on broadband.

Result: Net +$89.15B · ROI 36:1

Societal Benefits

Benefit	Annual	NPV (3%)	NPV (7%)
Reduced Scam Losses¹	$12.7B	$108.3B	$89.2B
Rural Economic Growth²	$18.0B	$153.5B	$126.5B
Healthcare Access (Telemedicine)³	$4.0B	$34.1B	$28.1B
Total	$34.7B	$295.9B	$243.8B

¹50% reduction in $25.4 billion annual scam losses through enhanced enforcement ²USDA found that enhancing digital agriculture technologies could create at least $47 billion each year in additional gross benefit for the U.S. economy. Rural broadband e-connectivity is the driver of more than one-third of that potential value, equal to $18 billion of annual economic improvements. ³A 10% increase in broadband penetration can lead to an estimated 1.21% jump in GDP growth in developed economies.

Summary

Category	10-Year	Notes
Federal Budget	+$89.15B (36:1)	CBO-scoreable; primarily spectrum revenue
Societal	$243.8B - $295.9B	NPV at 7-3%; scam reduction, rural economic growth

Confidence: MEDIUM-HIGH

Spectrum revenue estimates have historically exceeded CBO projections by 167%¹
Rural economic benefits supported by peer-reviewed research²
Scam reduction estimates assume 50% effectiveness vs. current trajectory
Implementation dependent on sustained enforcement capacity

¹Over the past 20 years, actual auction revenues have exceeded CBO projections by 167%. Cumulative auction revenues surpassed CBO's estimates by a whopping $97 billion. ²Rural counties with high broadband adoption rates showed 44% higher GDP growth. High broadband use in rural communities creates an environment that fosters local businesses.

References

Federal Communications Commission. (2024). About the FCC. www.fcc.gov/about/overview
Communications Act of 1934, 47 U.S.C. § 151 et seq.
Telecommunications Act of 1996, Pub. L. 104-104, 110 Stat. 56
47 U.S.C. § 1302 (Section 706 - Advanced Telecommunications Incentives)
Truecaller/Harris Poll. (2024). U.S. Spam and Scam Report 2024
Wikipedia. (2024). Universal Service Fund
GAO. (2024). GAO-24-106967 - Telecommunications: Administration of Universal Service Programs
USAC. (2024). High Cost Program Overview
Broadband Breakfast. (2025). USF Funding Exceeded $8.5 Billion in 2024
NTIA. (2024). Closing the Rural Broadband Gap
FCC. (2024). Seventh Broadband Progress Report
American Action Forum. (2025). Primer: A Staffer's Guide to Spectrum Auction Reauthorization
CAGW. (2025). House Reconciliation Package Restores Spectrum Auction Authority
EPIC for America. (2025). Don't Underestimate Spectrum!
FCC. (2024). Rural Broadband Accountability Plan
Pew Charitable Trusts. (2025). Broadband Expansion May Hinge on States' Processes for Attaching Lines to Utility Poles
Community Networks. (2024). The State of State Preemption
HRSA. (2022). Access to Emergency Medical Services in Rural Communities
NENA. (2021). 9-1-1 Statistics
NTIA. (2024). BEAD Program Overview
Center on Rural Innovation. (2024). Beyond Connectivity: The Role of Broadband in Rural Economic Growth
World Bank/Qiang & Rossotto. (2009). Broadband and Economic Growth Study
USDA. (2019). Next Generation Precision Agriculture Report
YouMail. (2025). Robocall Index
U.S. PIRG Education Fund. (2024). Ringing in Our Fears 2024
FCC. (2024). FY 2025 Budget-In-Brief
FCC. (2023). Fourth Report and Order on Pole Attachments (FCC 23-109)
PMC/NIH. (2021). 5G Network Coverage Planning and Deployment Challenges
Federal Register. (2025). Build America: Eliminating Barriers to Wireless Deployments

Change Log

2025-12-09 - Created: Initial draft. Key sources: FCC regulatory documents, GAO reports on USF, Truecaller/Harris Poll scam data, NTIA BEAD program documentation, Congressional spectrum auction legislation, Pew pole attachment research, CORI rural economic studies, USDA precision agriculture reports.