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	<title type="text">Karl Bode | The Verge</title>
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	<updated>2026-06-23T12:57:04+00:00</updated>

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				<name>Sean Gonsalves</name>
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			<title type="html"><![CDATA[Elon Musk and the plot to hijack America’s broadband]]></title>
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			<updated>2026-06-23T08:57:04-04:00</updated>
			<published>2026-06-23T07:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="Amazon" /><category scheme="https://www.theverge.com" term="Elon Musk" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[At 9PM ET on the night of May 28th, a Blue Origin New Glenn rocket sat on the launchpad at the Cape Canaveral Space Force Station. The craft was in the middle of a hot-fire test awaiting the arrival of Amazon Leo satellites, the first of 24 batches to be shuttled into low Earth orbit [&#8230;]]]></summary>
			
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<p class="has-drop-cap wp-block-paragraph">At 9PM ET on the night of May 28th, a <a href="https://www.theverge.com/science/939677/blue-origin-explosion-nasa-leo-setback-delays">Blue Origin New Glenn rocket</a> sat on the launchpad at the Cape Canaveral Space Force Station. The craft was in the middle of a hot-fire test awaiting the arrival of <a href="https://leo.amazon.com/?utm_source=g&amp;utm_medium=cpc&amp;matchtype=e&amp;device=c&amp;campaignid=23201895525&amp;adgroupid=190873968434&amp;gclid=CjwKCAjw8uTQBhAdEiwAVvtJyuHdWlfOpRUh_G_lc1rRDKnpEOW-l8uycck3WOgGiupD48MAxkmPEhoCJDYQAvD_BwE&amp;gad_campaignid=23201895525&amp;gbraid=0AAAABA3uejD6u0yZFIov4fJnl6EgP5L2E">Amazon Leo</a> satellites, the first of 24 batches to be shuttled into low Earth orbit for an <a href="https://www.theverge.com/tech/909122/amazons-starlink-competitor-leo-gets-a-new-date">ambitious satellite internet venture</a>. The effort was backed by hundreds of millions of taxpayer dollars, leveraging a Biden-era law meant to address America’s digital divide.</p>

<p class="wp-block-paragraph">But <a href="https://www.reuters.com/science/blue-origin-says-it-faced-anomaly-during-hot-fire-test-2026-05-29/">before the satellites even reached the launch site</a>, Jeff Bezos’ rocket exploded into a massive fireball, its wreckage left smoldering on the ground. It was an unintentionally perfect metaphor for a once-in-a-generation attempt to fix the creaky US broadband system, now a flaming mess melting into a slush fund for billionaires.</p>

<p class="wp-block-paragraph">Bezos — along with newly minted trillionaire Elon Musk — has become one of the biggest beneficiaries of <a href="https://www.ntia.gov/funding-programs/high-speed-internet-programs/broadband-equity-access-and-deployment-bead-program">Broadband Equity, Access, and Deployment</a> (BEAD), a $42.45 billion broadband expansion program passed as part of President Joe Biden’s 2021 “<a href="https://en.wikipedia.org/wiki/Build_Back_Better_Plan">Build Back Better</a>” initiative. BEAD was intended to give long-underserved communities billions of dollars for high-quality, future-proof fiber networks.&nbsp;</p>

<p class="wp-block-paragraph">But under President Donald Trump and a coalition of MAGA-allied tech moguls, Build Back Better has been transformed into “tear down quickly,” leaving states mired in bureaucracy and delays. Five years later, only a handful of the millions of Americans slated for an internet access upgrade actually got one, and there’s little accountability in sight.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/06/gettyimages-1259092530.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="Under Biden, BEAD was meant to prioritize deploying fiber across the US. | Bloomberg via Getty Images" data-portal-copyright="Bloomberg via Getty Images" />
<p class="wp-block-paragraph">Established in November 2021, BEAD was the flagship program addressing a rare bipartisan congressional goal: Identify broadband coverage gaps, then deploy affordable, next-generation internet access across the US by 2030. The program worked in tandem with the $2.75 billion <a href="https://www.congress.gov/bill/117th-congress/house-bill/1841">Digital Equity Act</a> to boost digital skills training and the $14 billion <a href="https://www.fcc.gov/acp">Affordable Connectivity Program</a> (ACP) that subsidized internet access for low-income households.</p>

<p class="wp-block-paragraph">Even the nation’s Republican governors were initially ecstatic about BEAD. Then-governor of Arkansas Asa Hutchinson <a href="https://www.nga.org/news/commentary/house-passes-bipartisan-infrastructure-package/">hailed the plan</a> as a “historic investment [that] will help fund states and territories’ core infrastructure priorities.”</p>

<p class="wp-block-paragraph">The massive program, however, had a slow start. States and the federal government spent the first few years figuring out how to adhere to Congress’ demand to address the country’s <a href="https://www.theverge.com/2018/9/24/17882842/us-internet-broadband-map-isp-fcc-wireless-competition">historically awful broadband maps</a>, then ensure that taxpayer-funded broadband was deployed equitably in a country with a long history of <a href="https://www.theverge.com/23983055/fcc-broadband-access-digital-discrimination-redlining-rules-enforcement">digital discrimination</a>. For much of the 2024 election season, the newswires were filled with Republican complaints that BEAD deployment was taking too long and had become a classic government boondoggle.&nbsp;</p>

<p class="wp-block-paragraph">Meanwhile, congressional Republicans — most of whom voted against the infrastructure bill and its companion American Rescue Plan Act (ARPA) —&nbsp;sought to undercut BEAD and similar programs. In April 2023, Texas Sen. Ted Cruz and a dozen GOP lawmakers <a href="https://www.thune.senate.gov/public/_cache/files/d4e51503-5d28-4744-9033-18c9e38da22d/C3ACEFE761F313B6ABBD99AC63692025.as4.20.2023-bead-nofo-letter-to-ntia-1-.pdf">sent a letter</a> to former National Telecommunications and Information Administration (NTIA) boss Alan Davidson, whose agency administered the program, with a laundry list of complaints.&nbsp;</p>

<p class="wp-block-paragraph">Republicans deemed the Digital Equity Act, designed to remove discriminatory barriers to widespread internet adoption, too “woke.” And the Republican-controlled Congress severed funding for the ACP, which provided a $30 discount off of monthly internet bills for <a href="https://acpdashboard.com">23 million low-income households</a>, purportedly to save the public money. (Subsequent studies showed the ACP <a href="https://www.brattle.com/wp-content/uploads/2025/02/Paying-for-Itself-How-the-Affordable-Connectivity-Program-Delivers-More-Than-It-Costs.pdf">generated billions more in taxpayer benefits than it cost</a>.)</p>

<p class="wp-block-paragraph">Even the “abundance” wing of the Democratic Party, <a href="https://www.techdirt.com/2025/04/01/jon-stewart-and-ezra-klein-help-gop-paint-infrastructure-bill-broadband-grants-as-a-useless-boondoggle/">represented by figures like <em>The New York Times</em>’ Ezra Klein</a>, lamented that BEAD was taking too long for what they believed was no coherent reason.</p>

<p class="wp-block-paragraph">Ignored by critics was the fact that <a href="https://www.theverge.com/2018/9/24/17882842/us-internet-broadband-map-isp-fcc-wireless-competition">completely remapping the entirety of US internet access</a> took significant time, and was something private monopolies and Republicans <a href="https://arstechnica.com/tech-policy/2020/09/att-hopes-youll-forget-its-years-long-fight-against-accurate-broadband-maps/">had long opposed</a> because it risked highlighting monopoly domination and a lack of competition. Critics of government delays also ignored that the ARPA had been quickly deploying <a href="https://www.techdirt.com/2025/02/24/arpa-is-quietly-funding-cheap-50-65-a-month-community-owned-gigabit-fiber-access-to-long-neglected-neighborhoods/">affordable next-generation fiber</a> to more than 20 million Americans with a focus on affordability <em>and</em> little bureaucracy, something Republicans who voted against it were <a href="https://www.theintermountain.com/news/local-news/2024/03/federal-state-local-officials-attend-broadband-initiative-announcement/">happy to</a> <a href="https://www.politico.com/news/2024/06/10/house-republicans-infrastructure-funding-vote-no-00162361">take credit for</a>.</p>

<p class="wp-block-paragraph">Still, the election-season campaigning against BEAD succeeded in painting Biden-era broadband expansion efforts as wasteful government bureaucracy. A Trump presidency, the public was told, would fix everything.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/06/gettyimages-2150469035.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="6th grader Luis Coronado, Jr. at his home computer." title="6th grader Luis Coronado, Jr. at his home computer." data-has-syndication-rights="1" data-caption="The Affordable Connectivity program benefited people like 12-year-old Luis Coronado, Jr., of Los Angeles County. | &lt;p&gt;Genaro Molina/Los Angeles Times via Getty Images&lt;/p&gt;" data-portal-copyright="&lt;p&gt;Genaro Molina/Los Angeles Times via Getty Images&lt;/p&gt;" />
<p class="wp-block-paragraph">When Trump took office for the second time in 2025, MAGA billionaire Howard Lutnick was confirmed as commerce secretary and set about overhauling BEAD —&nbsp;proclaiming that the program “has not connected a single person to the internet and is in dire need of a readjustment.” That readjustment included a BEAD <a href="https://www.ntia.gov/sites/default/files/2025-06/bead-restructuring-policy-notice.pdf">Restructuring Policy Notice</a> that eliminated <a href="https://broadbandusa.ntia.gov/news/latest-news/statement-us-secretary-commerce-howard-lutnick-bead-program">“woke”</a> program affordability and equity requirements and lowered quality control standards for new networks. Perhaps most consequentially, it undermined one of Congress’ central goals: improving American fiber.&nbsp;</p>

<p class="wp-block-paragraph">The infrastructure law’s text didn’t mandate construction of specific network technologies, but it explicitly called for BEAD to prioritize terrestrial fiber networks over wireless or cable broadband.&nbsp; Congress recognized that it would be foolish to spend thousands of dollars per home every five to 10 years to deliver obsolete connections like coaxial cable-based broadband or settle for congested “good enough” satellite networks.</p>

<p class="wp-block-paragraph">Lutnick, however, demanded state proposals be “technology neutral.” He insisted the changes would “<a href="https://www.ntia.gov/press-release/2025/benefit-bargain-reforms-turbocharge-speed-and-savings">turbocharge speed and savings,</a>” dubbing them “the benefit of the bargain.” In reality, the changes turned BEAD’s focus toward nascent satellite internet companies run by tech moguls. It redirected <a href="https://www.telecompetitor.com/opensignal-can-starlink-make-the-grade-as-a-bead-provider/">$738.8 million</a> into the already deeply subsidized pockets of Elon Musk, President Trump’s biggest campaign donor, with another <a href="https://bbcmag.com/its-undeniable-elon-musk-won-big-from-beads-revised-guidance/">$311 million</a> for Bezos’ Amazon Leo. Billions more in subsidies for both billionaires — for networks that already exist or would have been deployed anyway — are waiting in the wings.&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>&#8220;Forgive me if I’m suspicious of the Trump administration’s focus on freezing BEAD&#8221;</p></blockquote></figure>

<p class="wp-block-paragraph">The NTIA did not respond to a request for comment on BEAD. SpaceX did not respond to a request for comment. Amazon would not comment on the record.&nbsp;</p>

<p class="wp-block-paragraph">Since many states had already submitted BEAD proposals under the old guidelines, the Trump administration’s changes effectively set their progress back to zero, forcing them to dramatically retool their plans. Maine Connectivity Authority President Andrew Butcher <a href="https://communitynetworks.org/content/driving-towards-better-broadband-maine-buckles-difficult-road-ahead">characterized</a> it as having to do “two years of work in two months.” Many other states began to kick back against the costly and time-consuming changes and lowered standards.</p>

<p class="wp-block-paragraph">“Fiber is a gold standard for future-proof technology that will grow with consumers’ data needs over time,” Rep. Doris Matsui (D-CA) said at the INCOMPAS Policy Summit in March 2025. “So forgive me if I’m suspicious of the Trump administration’s focus on freezing BEAD in the name of bringing in so-called technology-neutral rules.”&nbsp;</p>

<p class="wp-block-paragraph">By the summer of 2025, a <a href="https://westgov.org/images/files/DOC_Secretary_BEAD_Program_WGA_correspondence.pdf">bipartisan coalition of state governors</a> urged Lutnick — and newly appointed NTIA boss Arielle Roth — to award “funding as quickly as possible,” warning that his BEAD revamp could cause further delays and increase costs for states and tribes. Ignoring the governors, Lutnick and Roth barreled forward.&nbsp;</p>

<p class="wp-block-paragraph">While their revisions would certainly trim BEAD’s budget substantially, the “savings” generated by the “benefit of the bargain” changes came with real-world consequences that would soon become clear.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/06/gettyimages-2204569411.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="&lt;p&gt;Elon Musk and Howard Lutnick chat on the White House lawn.&lt;/p&gt; | &lt;p&gt;ROBERTO SCHMIDT/AFP via Getty Images&lt;/p&gt;" data-portal-copyright="&lt;p&gt;ROBERTO SCHMIDT/AFP via Getty Images&lt;/p&gt;" />
<p class="wp-block-paragraph">Louisiana, home to Speaker of the House and Trump loyalist Mike Johnson, became the first state to receive its first tranche of BEAD money in <a href="https://gov.louisiana.gov/news/4990">November 2025</a>. The state’s original BEAD plan, approved by the NTIA before Lutnick’s revamp, had directed more than 90 percent of new network funding toward future-proof fiber. But under the revised plan, <a href="https://troycarter.house.gov/media/press-releases/rep-carter-challenges-trump-administrations-taxpayer-funded-handout-elon-musk">that figure dropped to 78 percent</a>. The money arrived a year later than initially expected, and only after state leaders agreed to significant new subsidies for Musk.<br></p>

<p class="wp-block-paragraph"><br>The changes would prove devastating for a long-promised fiber network in Lake Providence — an East Carroll Parish community of about 3,500 in one of the most economically disadvantaged parts of the state.&nbsp;</p>

<p class="wp-block-paragraph">Under the original BEAD proposal, the ISP initially chosen by the state to build out fiber in Lake Providence, Conexon, was supposed to receive <a href="https://www.govtech.com/network/in-rural-louisiana-fiber-internet-project-hits-speedbump">$6.2 million</a>. But when the “benefit of the bargain” revamp forced the state to redo its plans, those Lake Providence residences were <a href="https://broadbandbreakfast.com/r/535ae53e?m=1057e25d-9a1b-4843-a7e0-5585368cf141">deemed ineligible</a> for funding for fiber connections. That taxpayer money was instead funneled directly to Elon Musk and Starlink — in exchange for satellite service <em>that had been available there for years already</em>.<br><br>While Starlink is useful for remote locations with no other broadband options, the service is generally <a href="https://www.washingtonpost.com/technology/2026/06/11/starlink-is-star-spacex-ipo-is-it-monopolizing-rural-internet/">considered too expensive for lower-income families</a> dealing with soaring consumer costs. Data has also shown that Musk’s LEO space constellation is <a href="https://thexlab.org/wp-content/uploads/2025/07/Starlink_Analysis_Working_Paper_v0.2.pdf">plagued by congestion</a> that makes it ill suited to addressing the US digital divide at significant scale.<br></p>

<p class="wp-block-paragraph"><br>Nathanael Wills is a lead organizer for <a href="https://www.deltainterfaith.org/">Delta Interfaith</a>, a nonprofit coalition of local churches in northeast Louisiana, where he has been pushing for better broadband in East Carroll Parish for the past six years. He says the elimination of affordability and equity provisions, and the downgrade from future-proof fiber, will result in few if any real-world improvements.&nbsp;</p>

<p class="wp-block-paragraph">“The most frustrating part is that it was a zero dollar investment in infrastructure,” Wills told <em>The Verge</em>. “Nothing fundamentally changed. People with Starlink are going to just get mailed a box and many won’t be able to install it. And we still won’t have anybody really served,” leaving the community with “no growth in our economic potential.”</p>

<figure class="wp-block-pullquote"><blockquote><p>&#8220;No jobs will be created from this — no installation jobs, zero construction jobs, or even any small stimulus.&#8221;</p></blockquote></figure>

<p class="wp-block-paragraph">“No money will stay here,” he said. “No jobs will be created from this — no installation jobs, zero construction jobs, or even any small stimulus.”</p>

<p class="wp-block-paragraph">Other states, including Virginia, have balked at settling for Starlink instead of faster and higher-capacity fiber. But Musk has leveraged his political power within the Trump administration to try and have state broadband plans blocked, filing <a href="https://www.documentcloud.org/documents/28182730-spacex-comments-to-va-final-proposal-final/">comments with the state</a> that anything other than the prioritization of Starlink poses “a massive waste of federal taxpayer money.”<br></p>

<p class="wp-block-paragraph"><br>The biggest, richest telecom monopolies have always had an <a href="https://www.theverge.com/23763482/municipal-broadband-biden-internet-funds-telecom-lobbying">outsize influence on US telecom policy</a>, resulting in no shortage of bad ideas (including <a href="https://www.theverge.com/23763482/municipal-broadband-biden-internet-funds-telecom-lobbying">state bans on community-owned fiber</a>) and consistent <a href="https://statescoop.com/whistleblower-case-att-erate/">taxpayer subsidy fraud</a>. Elon Musk is just the latest opponent in a never-ending battle to ensure state and federal governments serve the public interest —&nbsp;but a powerful one.</p>

<p class="wp-block-paragraph">By the end of 2025, <a href="https://www.ntia.gov/funding-programs/internet-all/broadband-equity-access-and-deployment-bead-program/progress-dashboard">33 of the 56 states and territories</a> promised fast funding had not even received confirmation of their grant awards — nearly 60 percent short of Lutnick’s promised goal of delivering 100 percent fund approval by the end of 2025.</p>

<p class="wp-block-paragraph">Endless program changes later, less than <a href="https://statescoop.com/first-bead-internet-connections-go-live/">a few hundred homes in Nebraska and Louisiana</a> have actually been connected to the internet under BEAD as of June 2026 — via fixed wireless connections much slower than fiber. <a href="https://connectednation.org/bead-tracker">$19.94 billion</a> in state funding has been approved, but very little of that funding has been received or spent, and the Trump administration has made it clear those allocations can shift on a dime if states aren’t dutifully obedient, Bezos- and Musk-friendly, and appropriately “anti-woke.”</p>

<p class="wp-block-paragraph">Meanwhile, Bezos’ Blue Origin has yet to successfully deploy an operational commercial LEO satellite constellation into its target orbit, and there are currently no active customers. It may take <a href="https://www.space.com/space-exploration/launches-spacecraft/blue-origin-says-new-glenn-rocket-will-launch-again-before-the-end-of-the-year-after-explosion">until the end of the year</a> for launch facilities to be fully repaired and launches to resume.&nbsp;</p>

<p class="wp-block-paragraph">Back on Earth in Nebraska, the chaos and confusion sown by the “benefit of the bargain” changes has been enough to convince three BEAD grant winners in the Cornhusker State to walk away from the program and abandon their plans entirely, as <a href="https://nebraskaexaminer.com/2026/05/22/a-bead-on-nebraska-broadband-state-reopens-provider-applications-with-over-300m-still-in-limbo/?ref=broadbandbreakfast.com">a recent expose by the <em>Nebraska Examiner</em></a><em> </em>uncovered.</p>

<p class="wp-block-paragraph">“It’s disheartening to see ISPs in Nebraska returning their BEAD awards, and I’m afraid that we are going to see more of this, and later, defaults in the program,” says Gigi Sohn, a former FCC official who now runs the American Association for Public Broadband, an organization that advocates for direct local ownership and control of essential telecom infrastructure.</p>

<figure class="wp-block-pullquote"><blockquote><p>Endless program changes later, less than a few hundred homes in Nebraska and Louisiana have actually been connected to the internet under BEAD</p></blockquote></figure>

<p class="wp-block-paragraph">“This administration’s hyper-focus on cost, particularly in the most rural parts of the country, coupled with rising prices thanks to the war and tariffs &#8230; will result in more and more communities being left behind,” Sohn told <em>The Verge</em>.</p>

<p class="wp-block-paragraph">As states are forced to retool their plans for fiber networks they may no longer be able to afford, Bezos and Musk potentially stand to see billions in additional subsidies for network access that already exists or they already intended to deploy. As in Louisiana, this will also mean communities don’t reap the local economic benefits of building out fiber.</p>

<p class="wp-block-paragraph">Having blown through the “end of 2025” promise, the Trump administration threw another monkey wrench into the process at the tail end of last year. <a href="https://www.fierce-network.com/broadband/20b-fight-looms-over-bead-non-deployment-funds">The administration threatened to illegally withhold</a> an estimated <a href="https://arstechnica.com/tech-policy/2025/11/us-states-could-lose-21-billion-of-broadband-grants-after-trump-overhaul/">$21 billion in BEAD “nondeployment” funds</a>, or monies left over after states finished their internet access deployments. These funds were specifically slated for digital skill training, devices, and improving service in apartment buildings that house an overwhelming number of the Americans left behind in the digital economy. But if states held telecom companies accountable for high prices, empty promises, and inequitable deployment efforts, or even <a href="https://arstechnica.com/tech-policy/2025/06/ted-cruz-bill-states-that-regulate-ai-will-be-cut-out-of-42b-broadband-fund/">tried to regulate AI</a>, the administration said, they could be clawed back.</p>

<p class="wp-block-paragraph">The threat prompted a gold rush to grab funds for other purposes. Sen. Joni Ernst (R-IA), for instance, introduced a bill to amend the Infrastructure Investment and Jobs Act to <a href="https://www.benton.org/sites/default/files/JoniErnst.pdf">claw back the nondeployment funds</a> to instead reduce the federal deficit.&nbsp;</p>

<p class="wp-block-paragraph">The opportunistic scurrying to hijack funds even angered many Republicans, resulting in a <a href="https://www.fischer.senate.gov/public/_cache/files/9c77f84c-3ede-4f73-bdb0-6154c7598016/12.16.25-ntia-letter.pdf?ref=broadbandbreakfast.com">bipartisan group of 14 senators</a> writing a letter to the NTIA late last year calling for the agency to follow the law as Congress intended.</p>

<p class="wp-block-paragraph">As of this writing, final guidance from the NTIA on the nondeployment funds has <a href="https://communitynetworks.org/content/bead-non-deployment-fund-guidance-no-show-creating-more-delays">still not been issued</a>, despite the NTIA having missed multiple internal deadlines to release it.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/06/gettyimages-2207409135.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="Rolls of fiber from Cajun Broadband, which was awarded $33 million to bring high-speed internet to rural Louisiana. | Photo by Kathleen Flynn for the Washington Post" data-portal-copyright=" Photo by Kathleen Flynn for the Washington Post" />
<p class="wp-block-paragraph">The midterms loom large over a Trump administration facing increasingly terrible polling, which could shift the political winds around BEAD. “If the Democrats take either or both houses, there will be far more oversight,” former FCC official Blair Levin told <em>The Verge</em>. Either way, telecom experts say lawmakers should start pressing much harder about the program’s significant delays and shortcomings. “Now would be a very good time for an oversight hearing to give Secretary Lutnick and Administrator Roth an opportunity to explain when the nondeployment guidance will come, and how they plan to deal with returned BEAD awards and defaults,” Sohn suggested.&nbsp;</p>

<p class="wp-block-paragraph">But it seems unlikely that Lutnick, Roth, or Republicans will face real consequences for undermining a historic broadband expansion opportunity and frustrating a broad bipartisan coalition of states. “I have many policy disagreements with what Roth and NTIA have done, but I know of no facts or circumstances that would cause me to think she has any civil or criminal liability for her actions,” Levin said.</p>

<p class="wp-block-paragraph">Meanwhile, many states appear afraid to candidly critique administration behavior for risk of losing out on a generational influx of broadband cash.</p>

<p class="wp-block-paragraph">“We are withholding judgment until we hear about the nondeployment funds,” Christine Hallquist, executive director of the Vermont Community Broadband Board, told <em>The Verge</em>. “We are going to be angry, happy, or somewhere in between. If given the freedom [with nondeployment funds], we will be happy.”</p>

<p class="wp-block-paragraph">Despite ample political lip service paid to affordability, equitable internet access tends to take a back seat in press and policy circles in the AI hype era. The 2028 presidential election could usher forth an NTIA leadership change and some useful reforms, though two and a half years may prove too long a wait for states looking for competent federal guidance.</p>

<p class="wp-block-paragraph">While many taxpayers may still see improved internet access regardless, the program remains a faint echo of its initial ambitions. BEAD was originally designed to improve affordable connectivity for all Americans, whether marginalized communities in Detroit or red state rural Trump supporters. Now, community leaders see an unrecognizable crony capitalist bureaucracy.&nbsp;</p>

<p class="wp-block-paragraph">“We’re fed up,” Wills says. “The BEAD program has failed us here. We’re not happy, and there’s a great need.”&nbsp;</p>
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					</entry>
			<entry>
			
			<author>
				<name>Karl Bode</name>
			</author>
			
			<title type="html"><![CDATA[The Trump administration promised a fourth wireless carrier — America got a hot mess instead]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tech/766795/dish-echostar-wireless-network-trump" />
			<id>https://www.theverge.com/?p=766795</id>
			<updated>2025-08-28T11:41:54-04:00</updated>
			<published>2025-08-27T12:20:53-04:00</published>
			<category scheme="https://www.theverge.com" term="Analysis" /><category scheme="https://www.theverge.com" term="Mobile" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[With Dish Network owner EchoStar selling $23 billion in valuable spectrum to AT&#38;T, any pretense that the TV provider will become a serious wireless competitor is dead. But the project was always doomed to fail, and despite plenty of assurances by the Trump administration and other companies involved, the very obvious writing was always on [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2025/08/257920_Dish_network_wireless_CVirginia.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="has-text-align-none wp-block-paragraph">With Dish Network owner EchoStar selling <a href="https://www.theverge.com/report/766038/dish-echostar-spectrum-att-sale-fourth-carrier">$23 billion in valuable spectrum to AT&amp;T</a>, any pretense that the TV provider will become a serious wireless competitor is dead. But the project was always doomed to fail, and despite plenty of assurances by the Trump administration and other companies involved, the very obvious writing was always on the wall. </p>

<p class="has-text-align-none wp-block-paragraph">Back in 2020, the first Trump administration <a href="https://www.theverge.com/2020/4/1/21202726/tmobile-sprint-acquisition-ceo-finished-john-legere-steps-down">rubber-stamped T-Mobile’s $26 billion merger with Sprint</a>. There were endless warnings from unions, economists, and consumer groups that the <a href="https://www.theverge.com/2019/5/21/18634195/t-mobile-sprint-merger-conditions-access-coverage">consolidation would harm US wireless competition</a>, resulting in layoffs, worse service, and higher prices — warnings that <a href="https://www.theverge.com/2023/8/24/23844278/t-mobile-layoffs-5000-workers-merger">quickly came true</a>.</p>

<p class="has-text-align-none wp-block-paragraph">More than 9,000 T-Mobile employees <a href="https://www.geekwire.com/2023/3-years-after-sprint-merger-t-mobile-employs-9k-fewer-people-insists-it-upheld-pledge-on-jobs/">lost their jobs</a>, the wireless sector <a href="https://www.lightreading.com/operations/us-mobile-prices-sky-high-after-t-mobile-s-sprint-buy-report">stopped seriously competing on price</a>, and T-Mobile increasingly began to behave exactly like the competitors it once promised to disrupt.</p>

<p class="has-text-align-none wp-block-paragraph">The first Trump administration approved the deal <a href="https://www.techdirt.com/2019/10/22/fcc-approved-t-mobile-sprint-merger-without-even-seeing-full-details/">without even reading the proposal</a>. Trump’s “antitrust enforcer” at the Department of Justice at the time, Makan Delrahim, was criticized for <a href="https://www.nytimes.com/2019/12/19/technology/sprint-t-mobile-merger-antitrust-official.html">using his free time and personal devices to help the companies gain approval</a>. T-Mobile also found itself under fire for <a href="https://www.reuters.com/article/us-sprint-corp-m-a-trump/t-mobile-spent-195000-at-trump-hotel-in-d-c-since-merger-announcement-idUSKCN1QM1ZY/">ramping up patronage of Trump hotels</a> to try and seal the deal. (It’s the kind of pay-to-play arrangements that have become <a href="https://www.theverge.com/news/696422/paramount-settlement-trump-cbs-lawsuit">decidedly</a> <a href="https://www.theverge.com/news/668614/verizon-frontier-acquisition-fcc-approval">uglier</a> during Trump’s second term.)</p>

<p class="has-text-align-none wp-block-paragraph">To downplay the harm from the T-Mobile deal, Trump officials worked with Dish and T-Mobile to construct a complicated plan they claimed would counter the harms of consolidation. Under the proposal, Dish would acquire Boost Mobile from Sprint — and valuable spectrum from T-Mobile — to cobble together a fourth wireless competitor and restore balance to the US wireless market.</p>

<p class="has-text-align-none wp-block-paragraph">The plan was <a href="https://www.techdirt.com/2019/07/31/dojs-plan-to-fix-t-mobile-merger-isnt-going-to-work/">destined for failure</a>. US regulators, with a history of coddling telecoms, never really seemed capable of the kind of competent oversight required to nanny the build to fruition. The two remaining US wireless industry giants, AT&amp;T and Verizon, were heavily incentivized to lobby the government to ensure added competition never materialized.</p>

<p class="has-text-align-none wp-block-paragraph">Dish Network also had very little experience in wireless, which became obvious when <em>The Verge</em> found Dish’s 5G network to be <a href="https://www.theverge.com/2022/11/24/23445995/dish-5g-network-genesis-las-vegas-trial">a disappointing mess</a> with limited phone support, patchy coverage, <a href="https://www.theverge.com/2022/11/24/23445995/dish-5g-network-genesis-las-vegas-trial">middling connectivity speeds</a>, and a <a href="https://www.theverge.com/2022/6/15/23168270/dish-network-5g-project-genesis-sign-up-issues-addresses">janky website and sign up process</a>.</p>

<p class="has-text-align-none wp-block-paragraph">As part of the deal, Dish struck an agreement with the Federal Communications Commission (FCC) that the new network would reach 75 percent of the country using its valuable spectrum assets. And while the company met some early deadlines, it didn’t take long for Dish to start <a href="https://www.theverge.com/news/679023/dish-network-echostar-interest-payments-tv-satellite-fcc-investigation-spacex">missing debt interest payments</a>, forcing the FCC to <a href="https://www.fierce-network.com/wireless/echostar-gets-more-time-meet-5g-buildout-requirements">grant extensions to prevent the plan from becoming an embarrassment</a>.</p>

<p class="has-text-align-none wp-block-paragraph">With growing talk of a potential bankruptcy, Dish managed to buy itself a little time by <a href="https://www.theverge.com/2024/1/2/24022413/dish-network-echostar-acquisition-5g-boost-mobile-wireless">orchestrating an all-stock merger with EchoStar</a> in 2023, a deal the companies insisted would create “a global leader in terrestrial and non-terrestrial wireless connectivity.”</p>

<p class="has-text-align-none wp-block-paragraph">But with hints that Dish’s wireless ambitions were already circling the drain, the remaining wireless giants (<a href="https://arstechnica.com/tech-policy/2025/06/fcc-threat-to-revoke-echostar-spectrum-licenses-draws-widespread-backlash/">and Space X</a>) began hungrily eyeing the company’s valuable spectrum assets. Last May, the FCC, led by Brendan Carr, announced it was <a href="https://www.lightreading.com/regulatory-politics/fcc-to-investigate-echostar-s-5g">launching an investigation</a> into Dish and EchoStar’s compliance with FCC 5G buildout requirements.</p>

<p class="has-text-align-none wp-block-paragraph">Carr’s threats to pull EchoStar’s spectrum licenses (less than a year after the company had negotiated an extension with the previous administration) annoyed unions, consumer groups, and “free market” Conservative groups alike, <a href="https://arstechnica.com/tech-policy/2025/06/fcc-threat-to-revoke-echostar-spectrum-licenses-draws-widespread-backlash/">albeit for different reasons</a>.</p>

<p class="has-text-align-none wp-block-paragraph">EchoStar’s <a href="https://www.theverge.com/report/766038/dish-echostar-spectrum-att-sale-fourth-carrier">sale of $23 billion in Dish spectrum licenses to AT&amp;T this week</a> appears to be the direct result of direct pressure by Trump officials. The arrangement demolishes Dish’s ambition to become a fourth wireless carrier, empowers AT&amp;T as a dominant carrier, and ends any hopes that the US can fix the competitive harm caused by the merger of Sprint and T-Mobile.</p>

<p class="has-text-align-none wp-block-paragraph">The deal is a windfall for Dish and EchoStar, which acquired the spectrum in question for <a href="https://www.mobileworldlive.com/dish-network/analysis-echostar-network-dream-crashes-and-burns/">$13.5 billion</a>. EchoStar saw its stock value <a href="https://www.investopedia.com/echostar-stock-soars-70-percent-as-it-sells-spectrum-to-at-and-t-for-usd23b-amid-fcc-pressure-11797473">jump 70 percent on the news</a> and is likely to use the proceeds to fund its low Earth orbit satellite constellation.&nbsp;</p>

<p class="has-text-align-none wp-block-paragraph"><br>Dish’s wireless ambitions may stumble forth headless for a while, but <a href="https://www.lightreading.com/5g/echostar-s-future-as-a-facilities-based-wireless-carrier-is-toast-amid-spectrum-sale-to-at-t">analysts indicate</a> the company still has an estimated $30 billion in additional spectrum assets that are also likely to be steadily carved up and sold to the nation’s biggest suitors.</p>

<p class="has-text-align-none wp-block-paragraph">&#8220;More spectrum sales will surely follow, and if today&#8217;s transaction is any indication, those, too, could fetch more than we had imagined,” Moffett Nathanson analyst Craig Moffett predicted in an investor <a href="https://www.moffettnathanson.com/media-research?ID=fca35820-c2c5-4845-88f0-48d5856c6916">research note</a>.</p>

<p class="has-text-align-none wp-block-paragraph">Unfortunately, the Dish gambit only really functioned as a way for Dish Network to string regulators along while its costly spectrum assets appreciated, while also providing industry-friendly regulators a convoluted and costly distraction from the harms caused by their rubber-stamping of further harmful telecom consolidation.&nbsp;</p>

<p class="has-text-align-none wp-block-paragraph">One <a href="https://www.techdirt.com/2024/05/16/report-sprint-t-mobile-merger-immediately-killed-wireless-price-competition-in-u-s/">2024 study by telecom analysis firm Rewheel</a> found that the T-Mobile and Sprint merger effectively put an end to wireless price competition in the United States.</p>

<p class="has-text-align-none wp-block-paragraph">“Five years on, the Sprint T-Mobile 4-to-3 mobile merger made the U.S. one of the most expensive mobile markets in the world,” the Finland-based research firm stated. “While monthly prices were falling and continue to fall across mobile markets…after the merger prices in the U.S. either stopped falling altogether or fell at a much slower rate.”</p>

<p class="has-text-align-none wp-block-paragraph">Meanwhile, T-Mobile, which once heralded as a pro-consumer disruptor in US wireless, increasingly looks exactly like Verizon and AT&amp;T – two companies that former trash-talking CEO John Legere used to <a href="https://www.theverge.com/2019/7/26/8930691/tmobile-ceo-trashes-verizon-att-5g-plans">mercilessly ridicule</a>. Promises by T-Mobile that the Sprint merger would be a huge job creator instead resulted in more than <a href="https://www.geekwire.com/2023/3-years-after-sprint-merger-t-mobile-employs-9k-fewer-people-insists-it-upheld-pledge-on-jobs/">9,000</a> layoffs.</p>

<p class="has-text-align-none wp-block-paragraph">This was <a href="https://www.theverge.com/2019/5/21/18634195/t-mobile-sprint-merger-conditions-access-coverage">all repeatedly predicted</a> by economists, analysts, and consumer groups. Those warnings were ignored, repeatedly, by government officials across multiple administrations. The end result is a costly, embarrassing, completely avoidable mess.</p>

<p class="has-text-align-none wp-block-paragraph">The Trump administration’s second term has already featured no limit of <a href="https://www.theverge.com/news/668614/verizon-frontier-acquisition-fcc-approval">additional telecom merger approvals</a>, which will likely result in mass layoffs and worse, less affordable service. Combined with the administration’s relentless quest to <a href="https://www.theverge.com/2024/6/28/24180118/supreme-court-chevron-deference-decision-opinion">defang federal corporate oversight and consumer protection</a>, consumers are likely to be paying the price for decades to come.&nbsp;</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Karl Bode</name>
			</author>
			
			<title type="html"><![CDATA[Brendan Carr’s FCC is an anti-consumer, rights-trampling harassment machine]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tech/656653/brendan-carr-fcc-anti-consumer-harassment-dei-trump" />
			<id>https://www.theverge.com/?p=656653</id>
			<updated>2026-02-19T11:46:43-05:00</updated>
			<published>2025-04-28T09:15:14-04:00</published>
			<category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Law" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Regulation" /><category scheme="https://www.theverge.com" term="Speech" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[In less than 100 days the Federal Communications Commission (FCC) has been converted from a media and telecom watchdog into a bizarre, rights-trampling grievance machine built for one purpose: to coddle and protect the ego of President Donald J. Trump. Gone is the agency that used to occasionally care about whether broadband maps were accurate [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2025/04/257575_Trump_100_days_FCC_ADAVIS.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="has-drop-cap has-text-align-none wp-block-paragraph">In less than 100 days the Federal Communications Commission (FCC) has been converted from a media and telecom watchdog into a bizarre, rights-trampling grievance machine built for one purpose: to coddle and protect the ego of President Donald J. Trump.<br><br>Gone is the agency that used to occasionally care about <a href="https://www.theverge.com/2018/9/24/17882842/us-internet-broadband-map-isp-fcc-wireless-competition">whether broadband maps were accurate</a> or if consumers are being <a href="https://www.theverge.com/2024/10/15/24271148/fcc-data-cap-impact-consumers-inquiry">ripped off by sneaky cable industry fees</a>. Gone is the agency that <a href="https://www.seattletimes.com/opinion/editorials/fcc-restore-limits-to-media-ownership/">sometimes cared about media consolidation</a>, or had begun taking a closer look at <a href="https://www.theverge.com/23983055/fcc-broadband-access-digital-discrimination-redlining-rules-enforcement">decades of discrimination in next-generation broadband deployment</a>.<br><br>In its place is an FCC custom-built to harass companies and organizations that fail to support Trumpism, usually via a rotating crop of publicity-seeking pseudo-investigations that often have a fleeting relationship to factual reality or the law.&nbsp;</p>

<p class="has-text-align-none wp-block-paragraph">Media and telecom policy experts have been taken aback by the quick transformation under Chairman Brendan Carr, who they say has abused agency authority and the law to <a href="https://www.theverge.com/decoder-podcast-with-nilay-patel/612069/fcc-brendan-carr-elon-musk-donald-trump-first-amendment-free-speech-censorship">harass journalists</a>, cajole <a href="https://www.theverge.com/2024/11/1/24285305/trump-lawsuit-cbs-harris-interview-fcc-broadcast-censorship">insufficiently deferential media companies</a>, and bully telecom giants into <a href="https://www.theverge.com/news/622590/verizon-becomes-the-fccs-next-dei-target">taking an obedient knee to the administration</a>.&nbsp;<br><br>“I have been shocked at the lengths that the Chairman will go to use the FCC as a vessel to address the president’s personal grievances,” says Gigi Sohn, a respected consumer advocate and former FCC staffer whose nomination to the agency was <a href="https://www.theverge.com/2023/3/7/23629307/gigi-sohn-withdraws-fcc-commissioner-nomination">derailed by industry lobbying in 2023</a>. “His implied threats over the DEI policies of major telecom and media companies have also gone beyond what I would have expected — but they 100 percent mirror what the president is doing with corporations, law firms, and universities.”</p>

<h2 class="wp-block-heading has-text-align-none">Donald Trump’s personal censor</h2>

<p class="has-text-align-none wp-block-paragraph">Carr has lacked a voting majority for the first few months of his tenure, and in lieu of substantive policymaking, he’s focused on <a href="https://www.theverge.com/news/634244/fcc-brendan-carr-dei-us-mergers-acquisitions">abusing FCC authority</a> to bully companies seeking major merger approval —&nbsp;with the help of a <a href="https://www.damemagazine.com/2025/01/02/americas-right-wing-propaganda-problem-might-be-terminal/">right-wing media echoplex</a> keen on amplifying manufactured offenses. The goal is supporting Trump personally — but also, civil rights leaders say, bolstering his administration’s effort to <a href="https://www.theverge.com/politics/613660/war-on-dei-smoke-screen-civil-rights-racism-eugenics">normalize discrimination and bigotry while reframing it as government efficiency</a>.&nbsp;</p>

<p class="has-text-align-none wp-block-paragraph">“Carr is meddling into areas such as private contractual relationships between broadcast networks and affiliates for which the FCC has no jurisdiction,” says Andrew Jay Schwartzman, an expert on media law and senior counselor for the Benton Institute for Broadband &amp; Society. “While my trepidation quotient was high, he has far exceeded my worst expectations. Chairman Carr is out to prove he is the Trumpiest of all Trumpers.”</p>

<p class="has-text-align-none wp-block-paragraph">Paramount/CBS, which is planning an <a href="https://variety.com/2025/biz/news/skydance-paramount-merger-extension-fcc-approval-1236362262/">$8 billion merger with Skydance</a>, has been a primary target for <a href="https://apnews.com/article/trump-cbs-60-minutes-2c8a32df63f3ec50cfffe94a26436fda">administration ire</a>. Trump <a href="https://www.theverge.com/2024/11/1/24285305/trump-lawsuit-cbs-harris-interview-fcc-broadcast-censorship">filed a legally dubious lawsuit against CBS last fall</a>, claiming brevity edits of a <em>60 Minutes</em> interview with Kamala Harris violated federal law. Experts across the ideological spectrum say it was an obvious <a href="https://www.theverge.com/decoder-podcast-with-nilay-patel/612069/fcc-brendan-carr-elon-musk-donald-trump-first-amendment-free-speech-censorship">effort to trample journalistic free speech</a>.<br><br>Carr also claims, without evidence, that CBS’s edits violated the FCC’s <a href="https://www.fcc.gov/broadcast-news-distortion">broadcast news distortion</a> rule, which is extremely rarely used to punish news outlets that falsify news reports, or take documented bribes in exchange for favorable or misleading news coverage.<br><br>Trump has called for CBS to <a href="https://www.cnn.com/2025/04/14/media/trump-fcc-60-minutes-cbs/index.html">lose its local broadcast licenses</a> for <em>60 Minutes</em> segments critical of his policies on Ukraine and Greenland. Carr has obediently launched a slew of new <a href="https://www.techdirt.com/2025/01/24/brendan-carr-trumps-free-speech-warrior-wastes-no-time-violating-trumps-new-free-speech-executive-order/">investigations into several local broadcasters</a>, threatening the revocation of their broadcast licenses if they engage in journalism disfavorable to the administration.</p>

<p class="has-text-align-none wp-block-paragraph">Carr also recently threatened the local NBC broadcast licenses of Comcast, because the administration <a href="https://arstechnica.com/tech-policy/2025/04/trumps-fcc-chair-threatens-comcast-demands-changes-to-nbc-news-coverage/">didn’t like Comcast-owned <em>MSNBC</em>’s coverage of Kilmar Abrego Garcia</a>, the Maryland man illegally kidnapped by the Trump administration and sent to an El Salvador work prison.</p>

<p class="has-text-align-none wp-block-paragraph">A bipartisan collection of five former FCC officials <a href="https://www.fcc.gov/ecfs/document/1032657330681/1">recently told the FCC</a> Carr’s actions are turning the FCC into the “White House’s personal censor.” Carr’s Democratic fellow FCC Commissioner, Anna Gomez, <a href="https://www.lightreading.com/regulatory-politics/fcc-s-gomez-lashes-out-at-administration-wide-campaign-to-censor-and-control-">told attendees of a broadcaster conference</a> earlier this month that the chairman is “weaponizing” the FCC&#8217;s licensing authority to “censor and control” journalism.<br><br>Carr, who has historically opposed meaningful oversight or scrutiny of telecom giants like Comcast and AT&amp;T, has also launched <a href="https://www.theverge.com/news/603532/fcc-npr-pbs-investigations-brendan-carr">multiple investigations into public broadcasters</a> claiming, without evidence, they are violating rules restricting them from airing traditional commercials. The move comes as the administration <a href="https://arstechnica.com/tech-policy/2025/04/white-house-aims-to-defund-npr-and-pbs-in-move-slammed-as-cultural-sabotage/">looks to cut already modest NPR and PBS funding</a>.&nbsp;</p>

<p class="has-text-align-none wp-block-paragraph">“Carr is carrying out Trump’s bidding to exact revenge and quell dissent in the media sector,” says Victor Pickard, professor at the University of Pennsylvania&#8217;s Annenberg School for Communication. “The rationale for going after public media — purportedly because they’re airing commercials — seems especially disingenuous.”</p>

<p class="has-text-align-none wp-block-paragraph">Meanwhile, Verizon (which is seeking <a href="https://www.theverge.com/2024/9/5/24236519/verizon-frontier-fiber-network-acquisition-20-billion">a $20 billion merger with Frontier</a>) and Comcast (rumored to be eyeing a merger with <a href="https://www.forbes.com/sites/korihale/2020/01/06/take-over-spirit-t-mobile-looking-to-merge-with-comcast/">T-Mobile</a>) have both faced “investigations” by Carr for failing to embrace the administration’s assault on popular civil rights reforms. Legal experts suggest Carr has no solid legal footing on which to penalize either company. Carr has launched an equally <a href="https://www.theverge.com/politics/639148/trumps-censor-in-chief-targets-disney">dubious investigation into Disney</a> for “violating FCC equal employment opportunity regulations by promoting invidious forms of DEI discrimination.”<br><br>Even if the targeted companies aren’t actually guilty of anything, the accusations — repeated across Trump-friendly media sources, including Breitbart, The Daily Wire, OAN, Newsmax, Fox News, Sinclair Broadcasting, and countless others — cement the idea in the public’s head that they might be.<br><br>“Whether it has any ‘legal’ basis is beside the point,” Sohn says. “The point of these exercises is to intimidate regulatees to see if they will bend to his will. So far, it’s working.”</p>

<h2 class="wp-block-heading has-text-align-none">Have your terrible cake and eat it too</h2>

<p class="has-text-align-none wp-block-paragraph">To Carr, the FCC has all the power in the world or none at all, depending on who’s in charge and who stands to benefit.&nbsp;</p>

<p class="has-text-align-none wp-block-paragraph">The Trump administration hasn’t been subtle about its plan to hollow out the administrative state, giving large corporations carte blanche to misbehave. The Supreme Court’s <a href="https://www.theverge.com/2024/6/28/24180118/supreme-court-chevron-deference-decision-opinion">Loper Bright ruling</a> effectively destroyed U.S. regulators’ independence to enforce or create consumer protections without the explicit approval of a Congress widely viewed as too corrupt to function.<br><br>Combined with <a href="https://www.theverge.com/news/644031/doge-federal-communications-commission-directory">DOGE cuts</a> and <a href="https://www.whitehouse.gov/presidential-actions/2025/02/ensuring-accountability-for-all-agencies/">executive orders</a>, the goal is to defang corporate regulatory oversight and consumer protection at unprecedented new scale. Many of Carr’s more bombastic efforts are providing cover for less headline-grabbing fare like ensuring the FCC can’t stand up to the whims of massive, unpopular U.S. broadband providers.<br><br>Data suggests that regional telecom monopolies have long <a href="https://www.theverge.com/23983055/fcc-broadband-access-digital-discrimination-redlining-rules-enforcement">discriminated against minority and less affluent communities</a> when it comes to broadband repairs and fiber upgrades. Journalists have also found broadband providers charge minority, low-income neighborhoods <a href="https://themarkup.org/still-loading/2022/10/19/dollars-to-megabits-you-may-be-paying-400-times-as-much-as-your-neighbor-for-internet-service">more money for slower broadband speeds</a> than their less diverse, more affluent counterparts.</p>

<p class="has-text-align-none wp-block-paragraph">Carr has already <a href="https://docs.fcc.gov/public/attachments/DOC-409054A1.pdf">taken steps to unwind</a> the FCC’s efforts to address discrimination in broadband deployment. He’s <a href="https://arstechnica.com/tech-policy/2024/11/cable-companies-and-trumps-fcc-chair-agree-data-caps-are-good-for-you/">hinted at plans to end</a> FCC oversight of <a href="https://www.theverge.com/2024/10/15/24271148/fcc-data-cap-impact-consumers-inquiry">issues like predatory usage caps</a>, or the use of sneaky fees to <a href="https://www.theverge.com/2024/3/15/24101802/cable-tv-bill-fee-satellite-tv-providers-subscription-price-fcc">covertly jack up the advertised price of internet access</a>. He’s also made it clear he’d like to <a href="https://www.axios.com/pro/media-deals/2024/11/18/brendan-carr-fcc-local-tv-ownership">eliminate whatever’s left of U.S. media consolidation limits</a>.<br><br>As part of his “<a href="https://www.theverge.com/news/628288/fcc-chair-brendan-carr-deregulate-delete">Delete, Delete, Delete</a>” initiative, Carr has framed this as an act of government efficiency, though experts like Sohn and Pickard see it more as a symptom of corruption and regulatory capture. Everyone from telecoms to robocallers <a href="https://arstechnica.com/tech-policy/2025/04/isps-and-robocallers-love-the-fcc-plan-to-delete-as-many-rules-as-possible/">are lining up</a>, demanding Carr dismantle popular consumer protections they’ve deemed harmful to their bottom lines.<br><br>Carr has indicated he’d also like to leverage authority the FCC doesn’t have to regulate social media companies like TikTok and erode <a href="https://www.law.cornell.edu/uscode/text/47/230">Section 230 of the Communications Decency Act</a>, a foundational cornerstone of free expression on the internet.<br><br>“Once he gets a majority, I expect that he may start to move on the items that he discussed in his <a href="https://static.project2025.org/2025_MandateForLeadership_CHAPTER-28.pdf">Project 2025 chapter</a> — deregulating media and broadband companies, attempting to preempt states’ and localities’ permitting processes, and seeing how far he can move to interpret Section 230 before the courts give him the Loper Bright treatment, which will not turn out well for him,” Sohn says.</p>

<p class="has-text-align-none wp-block-paragraph">This, it should be noted, is a dramatic and ideologically inconsistent shift from Carr’s time as a commissioner during Trump’s first term, where he repeatedly proclaimed that popular FCC efforts to protect consumers —&nbsp;from <a href="https://www.theverge.com/2017/3/1/14779462/fcc-halts-internet-privacy-requirements-title-ii">broadband privacy rules</a> to <a href="https://www.theverge.com/2025/1/2/24334309/net-neutrality-struck-down-sixth-circuit-chevron-deference">net neutrality protections</a> —&nbsp;were a dramatic abuse of agency authority.</p>

<h2 class="wp-block-heading has-text-align-none">The fight for the future is local</h2>

<p class="has-text-align-none wp-block-paragraph">With competent federal consumer protection across agencies dead for the foreseeable future, and the FCC launching a frontal attack on American journalism, most experts agree the responsibility for protecting the public interest now shifts to the state and local level.&nbsp;</p>

<p class="has-text-align-none wp-block-paragraph">“Go to every state who will listen and get them to reinstate, or strengthen, their authority over broadband,” Sohn suggests. “Help unserved and underserved communities build their own broadband networks. The fight at the FCC is a losing battle, and while it should not be ignored entirely, putting too many eggs in the FCC basket is not a winning strategy for underfunded and undermanned advocates for competition and consumer protection.”<br><br>Seven states have passed net neutrality laws. Some states, like New York and California, have been eyeing laws requiring that broadband providers <a href="https://arstechnica.com/tech-policy/2025/01/isp-failed-to-comply-with-new-yorks-15-broadband-law-until-ars-got-involved/">provide affordable broadband access to low-income residents</a>. A growing number of states are passing “<a href="https://www.theverge.com/23951200/right-to-repair-law-apple-ifixit-iphone">right to repair</a>” reforms, all while highly localized, worker-owned independent media is <a href="https://www.poynter.org/business-work/2025/worker-owned-news-publications-media-coops/">gaining steam</a>.&nbsp;</p>

<p class="has-text-align-none wp-block-paragraph">But states facing all manner of costly new legal fights across healthcare and immigration may not have the attention, staff, or resources to pick up the slack on corporate oversight and consumer protection. Courts and federal agencies may also try to further curtail state rights, like Trump’s first FCC did when its net neutrality repeal <a href="https://www.techdirt.com/2022/04/22/big-telecoms-quest-to-ban-states-from-protecting-broadband-consumers-continues-to-go-poorly/">tried to ban states from protecting broadband consumers</a>.</p>

<p class="has-text-align-none wp-block-paragraph">An informed electorate is a cornerstone of whatever comes next, something that can’t be attained without significant U.S. media reform, Pickard notes.<br><br>“We need to defend our media, especially public broadcasting, against Trump-inspired attacks,” he says. “But we also need to go on offense at the state and municipal levels to make public investments in local media institutions, which are rapidly disappearing.”</p>

<p class="has-text-align-none wp-block-paragraph">Pickard’s research has found the collapse of quality local journalism has resulted in vast <a href="https://www.usnewsdeserts.com/spotlight-research/democracy-needs-good-journalism-questions-with-victor-pickard/">news deserts</a> where the American public is increasingly uninformed or misinformed. His university has also found that countries that invest heavily in publicly funded media <a href="https://www.asc.upenn.edu/news-events/news/public-media-can-improve-our-flawed-democracy">tend to have healthier democracies</a>, which explains some politicians’ interest in targeting them.&nbsp;</p>

<p class="has-text-align-none wp-block-paragraph">“For the long term we need something far more ambitious,” Pickard says. “For starters, we need to fund our public media in line with global norms and create structural alternatives — truly democratic and independent news outlets —&nbsp;to replace failing commercial models that are so easily captured and cowed by oligarchs.&#8221;</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Karl Bode</name>
			</author>
			
			<title type="html"><![CDATA[The battle to stop broadband discrimination has only just begun]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/23983055/fcc-broadband-access-digital-discrimination-redlining-rules-enforcement" />
			<id>https://www.theverge.com/23983055/fcc-broadband-access-digital-discrimination-redlining-rules-enforcement</id>
			<updated>2023-12-05T08:30:00-05:00</updated>
			<published>2023-12-05T08:30:00-05:00</published>
			<category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Regulation" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[For the better part of a generation, low-income and minority US communities have struggled to gain access to affordable broadband. It&#8217;s not an accident: numerous studies indicate that major internet service providers, or ISPs &#8212; despite billions in taxpayer subsidies &#8212; have consistently avoided low-income, minority, and tribal neighborhoods when it comes to affordable fiber [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="Illustration by Sisi Kim for The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/25125214/236836_Infrastructure_RURAL_EV_CHARGHING_Sisi_Kim_1_.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="wp-block-paragraph">For the better part of a generation, low-income and minority US communities have struggled to gain access to affordable broadband. It&rsquo;s not an accident: numerous studies indicate that major internet service providers, or ISPs &mdash; despite <a href="https://www.theverge.com/2021/7/26/22595004/fcc-spacex-rural-broadband-rdof-parking-lots-airports">billions in taxpayer subsidies</a> &mdash; have consistently avoided low-income, minority, and tribal neighborhoods when it comes to affordable fiber upgrades.&nbsp;</p>

<p class="wp-block-paragraph">It&rsquo;s something federal policymakers historically haven&rsquo;t done much about &mdash; until now. The 2021 infrastructure bill set aside <a href="https://www.theverge.com/2023/6/26/23773434/broadband-funding-biden-white-house-ntia">$42.5 billion for broadband</a>. It also tasked the FCC with crafting new rules taking aim at &ldquo;<a href="https://www.fcc.gov/task-force-prevent-digital-discrimination">digital discrimination</a>.&rdquo; On November 15th, the agency obliged, <a href="https://www.theverge.com/2023/11/15/23962881/fcc-anti-digital-discrimination-pass">passing rules banning ISPs from broadband discrimination</a> based on income, race, and religion.</p>

<p class="wp-block-paragraph">&ldquo;These rules are strong,&rdquo; FCC boss Jessica Rosenworcel said in a statement. &ldquo;I am grateful to so many in the civil rights community who have helped us give it meaning and the companies that worked with us to improve our process.&rdquo;</p>

<p class="wp-block-paragraph">But while activists are thrilled the government has formally acknowledged decades of inequity, they say the FCC went out of its way to avoid criticizing ISPs that have historically discriminated. They also worry that, at an agency with a shaky track record on consumer protection, the rules may not be consistently enforced.</p>
<h2 class="wp-block-heading" id="gDkT0o">A problem generations in the making</h2>
<p class="wp-block-paragraph">US broadband has long suffered from a lack of regional competition. Most Americans <a href="https://ilsr.org/report-most-americans-have-no-real-choice-in-internet-providers/">live under either an internet monopoly or a duopoly</a>, resulting in patchy coverage, slow speeds, <a href="https://theacsi.org/news-and-resources/news/2022/06/08/broadband-isps-have-a-serious-customer-satisfaction-problem-and-these-ones-ranked-lowest/">terrible customer service</a>, and some of the <a href="https://www.cable.co.uk/broadband/pricing/worldwide-comparison/#speed">highest prices for broadband in the developed world</a>.&nbsp;</p>

<p class="wp-block-paragraph">The problem is particularly pronounced in low-income, minority, tribal, and other marginalized communities that have long been victims of redlining, or institutionalized discrimination in everything from <a href="https://www.nytimes.com/2021/08/17/realestate/what-is-redlining.html">home loan approval</a> to the delivery of next-generation infrastructure.&nbsp;</p>

<p class="wp-block-paragraph">In 2017, minority residents of <a href="https://www.cleveland.com/business/2017/08/clevelanders_file_fcc_complain.html">Cleveland</a> and <a href="https://thehill.com/policy/technology/352267-att-hit-with-second-complaint-of-discrimination-against-low-income/">Detroit</a> filed <a href="https://www.digitalinclusion.org/wp-content/uploads/2017/08/EMBARGOED-PRESS_ATT-FCC-FILING_08.24.2017.pdf">formal complaints with the FCC</a>, noting they were consistently paying AT&amp;T premium prices for sluggish DSL, while neighbors in more affluent, less diverse communities received faster, cheaper service. The petitioners&rsquo; broadband was so slow, it hampered the ability of their children to access online homework.&nbsp;&nbsp;</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“Broadband has been deployed where good infrastructure exists, and for decades infrastructure investments were determined by racist government policy”</p></blockquote></figure>
<p class="wp-block-paragraph">&ldquo;Redlining, in any form, is often framed as &lsquo;disinvestment in communities of color,&rsquo;&rdquo; Paul Goodman, a lawyer at the Center for Accessible Technology, told <em>The Verge</em>. &ldquo;That&rsquo;s only half the picture. Redlining is an investment transfer &mdash; money that should go to communities of color and low-income communities is instead redirected to wealthier, whiter communities.&rdquo;</p>

<p class="wp-block-paragraph">The lack of affordable internet access severs these communities from modern healthcare, education, and employment opportunities. The problem was highlighted during peak covid-19 lockdowns, when low-income families resorted to <a href="https://people.com/human-interest/calif-students-internet-hotspot-taco-bells-wifi/">huddling in the dirt outside fast food restaurants</a> just to attend online class.</p>

<p class="wp-block-paragraph">&ldquo;The digital divide is in many ways a side effect of redlining and the &lsquo;urban renewal&rsquo; projects of the 1970s, because broadband has been deployed where good infrastructure exists, and for decades infrastructure investments were determined by racist government policy,&rdquo; Adria Tinnin, director of race equity policy at The Utility Reform Network, told <em>The Verge</em>. &ldquo;In other words, it&rsquo;s not that an ISP has an explicitly racist policy, it&rsquo;s that they are building on top of infrastructure that was determined by racism, thereby reproducing the negative effects.&rdquo;</p>

<p class="wp-block-paragraph">Discrimination has long been present in the <a href="https://www.npr.org/2021/04/07/984784455/a-brief-history-of-how-racism-shaped-interstate-highways">construction of US highways</a> and the delivery of <a href="https://www.theguardian.com/inequality/2022/oct/06/detroit-power-outages-impact-minority-low-income-neighborhoods">reliable and affordable electricity</a>. The deployment of next-generation fiber <a href="https://www.fox10phoenix.com/news/arizona-laying-fiber-optic-conduit-along-highways-to-connect-rural-areas">often runs parallel with both</a>, shaped by decisions made decades or generations earlier.</p>

<p class="wp-block-paragraph">The National Digital Inclusion Alliance (NDIA) has been tracking the problem for years. The organization closely studied broadband deployment gaps in <a href="https://www.digitalinclusion.org/blog/2017/03/10/atts-digital-redlining-of-cleveland/">Cleveland</a> and <a href="https://www.digitalinclusion.org/blog/2017/09/06/more-digital-redlining-att-deployment-and-poverty-in-detroit-and-toledo/">Detroit</a> and found large local ISPs consistently refused to upgrade broadband networks in minority neighborhoods or areas where poverty rates exceed 35 percent.</p>

<p class="wp-block-paragraph">ISPs like AT&amp;T have <a href="https://arstechnica.com/information-technology/2017/03/att-allegedly-discriminated-against-poor-people-in-broadband-upgrades/">repeatedly denied</a> they ever engaged in any form of digital discrimination. In 2021, the company <a href="https://www.cnet.com/home/internet/features/the-broadband-gaps-dirty-secret-redlining-still-exists-in-digital-form/">claimed</a>, without evidence, that the NDIA&rsquo;s findings were based on &ldquo;antiquated, inaccurate and cherry-picked data.&rdquo;&nbsp;</p>

<p class="wp-block-paragraph">While it&rsquo;s no surprise that publicly traded telecoms are often fixated on ensuring an adequate return on their investment, these companies have been given untold billions in <a href="https://www.theverge.com/2018/6/11/17439456/net-neutrality-dead-ajit-pai-fcc-internet">regulatory favors</a>, <a href="https://www.vice.com/en/article/ywkn4b/study-throwing-taxpayer-money-at-giant-isps-hasnt-fixed-americas-broadband-problem">subsidies</a>, and <a href="https://www.cbsnews.com/news/at-t-got-a-giant-tax-cut-but-has-laid-off-thousands-union-says/">tax breaks</a> in exchange for the promise of even broadband deployment. While ISPs may deny that they engage in digital discrimination, the data keeps getting clearer.&nbsp;</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>Poorer customers are getting hit with higher prices for slower speeds</p></blockquote></figure>
<p class="wp-block-paragraph">Last year, <a href="https://themarkup.org/still-loading/2022/10/19/dollars-to-megabits-you-may-be-paying-400-times-as-much-as-your-neighbor-for-internet-service"><em>The Markup</em> studied 800,000 broadband promotions</a> across 38 cities and found that big ISPs not only refuse to upgrade poor and minority neighborhoods but they also charge these customers more money for slower speeds than those in more affluent and less diverse areas. In many locations, the broadband coverage gaps line up perfectly with <a href="https://dsl.richmond.edu/panorama/redlining/#loc=5/39.1/-94.58">historic redlining data</a>.</p>

<p class="wp-block-paragraph">Fixing the problem has proven to be a complicated mess, in part because the government has historically failed to <a href="https://www.theverge.com/2018/9/24/17882842/us-internet-broadband-map-isp-fcc-wireless-competition">accurately map affordable broadband availability</a>, rein in sector consolidation, or share broadband pricing data. Big ISPs have long <a href="https://arstechnica.com/tech-policy/2020/09/att-hopes-youll-forget-its-years-long-fight-against-accurate-broadband-maps/">fought against improved broadband mapping</a> or public price comparisons for fear it would highlight market failure.</p>

<p class="wp-block-paragraph">The telecom industry has <a href="https://www.lightreading.com/broadband/industry-hints-at-possible-legal-challenges-to-fcc-s-digital-discrimination-rules?mc_cid=e3190e9f79&amp;mc_eid=eb527a594e">already threatened to sue the FCC</a> over the new rules and is particularly incensed at the government&rsquo;s plan to tackle <a href="https://arstechnica.com/tech-policy/2023/11/internet-providers-say-the-fcc-should-not-investigate-broadband-prices/">discriminatory broadband pricing</a>. Industry-allied GOP senators <a href="https://www.nexttv.com/news/gop-to-fcc-back-off-from-overbroad-digital-equity-rules">wrote the FCC</a> to complain the rules would harm &ldquo;the practical business choices and profit-related decisions that sustain a vibrant and dynamic free enterprise system.&rdquo;</p>

<p class="wp-block-paragraph">But real-world data indicates that US broadband is far from a vibrant and competitive free market. In reality, it&rsquo;s a collection of powerful regional monopolies and duopolies that often lobby the government into apathy as they charge captive subscribers a premium for patchy, expensive internet access. It&rsquo;s a problem that&rsquo;s <a href="https://www.pewresearch.org/short-reads/2021/06/22/digital-divide-persists-even-as-americans-with-lower-incomes-make-gains-in-tech-adoption/">always worse for marginalized Americans</a>.&nbsp;</p>
<h2 class="wp-block-heading" id="b9SOhC">A very promising start, but activists say it’s not enough</h2>
<p class="wp-block-paragraph">Simply creating a framework that tethers historical discrimination to modern broadband redlining is a huge step forward, opening the door to meaningful action down the road, said Shayna Englin, director for the LA-based Digital Equity Initiative.</p>

<p class="wp-block-paragraph">&ldquo;It could be a lot stronger in a myriad of ways,&rdquo; Englin said. &ldquo;But I will say, we are absolutely celebrating where it landed on the definition of discrimination and access. That makes a world of difference and opens up at least, as far as we see, new avenues that are actionable.&rdquo;&nbsp;</p>

<p class="wp-block-paragraph">NDIA executive director Angela Siefer shared those sentiments in comments to <em>The Verge</em>, noting that the FCC&rsquo;s decision to craft rules that cover both &ldquo;disparate treatment&rdquo; (inequity caused by active, provable discrimination) and &ldquo;disparate impact&rdquo; (inequity in deployment, regardless of intent) will be historically useful moving forward.&nbsp;</p>

<p class="wp-block-paragraph">Short of executives putting discriminatory intent in an email to staff, intentional discrimination in broadband deployment can be difficult to prove. Including guidelines that cover disparate impact will be helpful to police systemic discrimination, regardless of conscious intent, activists say.&nbsp;</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“This is a huge win.”</p></blockquote></figure>
<p class="wp-block-paragraph">&ldquo;The Digital Discrimination draft rules are not all we wanted but we got the most important &mdash; the definition of digital discrimination includes disparate impact,&rdquo; Siefer said. &ldquo;This was not easy. NDIA spent a ridiculous amount of time on this because it is so important. And we got it. This is a huge win.&rdquo;</p>

<p class="wp-block-paragraph">At the same time, many digital equity activists contacted by <em>The Verge</em> expressed concern that the order doesn&rsquo;t go far enough to penalize existing bad actors and may not be consistently enforced by an agency with a rocky history of standing up to politically powerful telecom giants <a href="https://www.nytimes.com/2015/08/16/us/politics/att-helped-nsa-spy-on-an-array-of-internet-traffic.html">closely tethered to US domestic surveillance</a> and <a href="https://arstechnica.com/information-technology/2017/03/att-gets-6-5-billion-to-build-us-wide-public-safety-network/">first-responder systems</a>.</p>

<p class="wp-block-paragraph">Consumers will soon have a new system to file discrimination complaints with the FCC, which will be forwarded on to the ISP. If the ISP doesn&rsquo;t address the concerns, the agency says its enforcement bureau will step in to take action and will conduct &ldquo;self-initiated Commission investigations&rdquo; when warranted by available data. Past discrimination will see no penalties. And the process will largely rely on these complaints rather than proactive FCC investigations, although the FCC says it will take action if consistent patterns reveal themselves.</p>

<p class="wp-block-paragraph">&ldquo;Nothing in these rules would address historical, existing and the ongoing redlining and discrimination against BIPOC and low income communities by large corporate ISPs,&rdquo; Brandon Forester, a media and telecom reform activist at MediaJustice, told <em>The Verge</em>. &ldquo;The FCC expressly declined to look at or eliminate existing discrimination.&rdquo;</p>

<p class="wp-block-paragraph">Forester noted that the FCC complaint process is cumbersome and not publicly transparent, and consumers stuck on slow, expensive broadband may not even understand they&rsquo;re being discriminated against. Given the FCC voting majority shifts with the winds of each presidential election, future, consistent action on complaints is also far from certain.&nbsp;</p>

<p class="wp-block-paragraph">&ldquo;Even if a complaint rises to the level of the FCC intervening, we still have a secret process that isn&rsquo;t public, won&rsquo;t remediate the discrimination, and at best the FCC may quietly fine the ISP,&rdquo; Forester said. &ldquo;So there&rsquo;s very little disincentive for ISPs who are discriminating to change their behavior. Secret fines and settlements, without any real remediation for the discriminatory behavior, simply becomes a cost of business calculation.&rdquo;</p>
<h2 class="wp-block-heading" id="T4MnmZ">Tackling monopoly power head-on</h2>
<p class="wp-block-paragraph">Activists say that to truly address discrimination in broadband deployment, federal regulators have to more seriously tackle market failure and monopoly power. These entrenched monopolies work tirelessly to <a href="https://www.theverge.com/2015/5/1/8530403/chattanooga-comcast-fcc-high-speed-internet-gigabit">undermine competitive alternatives</a> while lobbying the federal government to ensure <a href="https://www.theverge.com/2023/7/20/23800161/gigi-sohn-fcc-nomination-dark-money-campaign-net-neutrality-profile">regulatory oversight is as feckless as possible</a>.</p>

<p class="wp-block-paragraph">&ldquo;We have to acknowledge that we have widespread market failure in the market for residential telecommunications, and that market failure has been driven by incumbent providers, who have not only failed to deliver on promises to close the digital divide, but have actively thwarted any federal policy that would help new entrants gain a foothold,&rdquo; Goodman said.&nbsp;</p>

<p class="wp-block-paragraph">Goodman noted that the government has a long history of throwing billions of dollars at regional monopolies in exchange for networks that routinely wind up only partially deployed, whether in <a href="https://arstechnica.com/tech-policy/2020/10/att-took-283-million-but-didnt-deploy-required-broadband-mississippi-says/">rural Mississippi</a>, the <a href="https://apnews.com/ca2ccda20606450db47925fd4a426241">hills of West Virginia</a>, or the <a href="https://www.nytimes.com/2017/03/13/nyregion/ny-sues-verizon-fios.html">streets of New York City</a>.</p>

<p class="wp-block-paragraph">&ldquo;We have to stop giving broadband subsidies to ISPs that have built their profitability off of digital discrimination,&rdquo; Goodman said. &ldquo;Those providers have repeatedly made decisions that resulted in disparate access to broadband, and now they are demanding taxpayer funds to solve a problem which ISPs themselves have created.&rdquo;</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“They are demanding taxpayer funds to solve a problem which ISPs themselves have created”</p></blockquote></figure>
<p class="wp-block-paragraph">Activists say there&rsquo;s a path forward. Federal support of <a href="https://communitynets.org/content/open-access#:~:text=Unlike%20more%20common%20network%20arrangements,will%20provide%20services%20on%20it.">open-access fiber networks</a> and <a href="https://www.theverge.com/23763482/municipal-broadband-biden-internet-funds-telecom-lobbying">community-owned broadband</a> (including by cooperatives and city-owned utilities) can challenge monopoly power, boost competition, and lower the cost of market entry. The end result: faster, cheaper, and more equitable broadband access inherently less prone to discrimination.&nbsp;</p>

<p class="wp-block-paragraph">But it&rsquo;s hard to fix a problem you can&rsquo;t or won&rsquo;t measure. While there <a href="https://www.theverge.com/2021/3/22/22345533/fcc-broadband-data-collection-program-fix-the-internet">has been progress</a> since Congress passed a 2020 law demanding the FCC do a better job on broadband mapping, both <a href="https://publicknowledge.org/broadband-data-act-a-step-forward-but-doesnt-go-far-enough-to-solve-fcc-data-problems/">consumer groups</a> and <a href="https://broadbandnow.com/news/lawmakers-call-fcc-broadband-maps-inaccurate">state leaders</a> say it remains very much an active problem. And the agency still refuses to collect and publicly share essential broadband pricing data.</p>

<p class="wp-block-paragraph">Some of the FCC&rsquo;s inaction can be blamed on an industry-backed blockade of popular FCC nominees like Gigi Sohn, leaving it without a voting majority for much of President Joe Biden&rsquo;s first term. But even with <a href="https://www.theverge.com/2023/9/7/23863365/anna-gomez-fcc-commissioner-senate-confirmation-net-neutrality">the recent confirmation of Anna Gomez</a>, activists remain skeptical that the agency has the political backbone to consistently stand up to industry giants when it truly matters.&nbsp;</p>

<p class="wp-block-paragraph">Neglected neighborhoods aren&rsquo;t waiting for the FCC to get its act together. <a href="https://communitynets.org/content/community-network-map">Hundreds of US communities</a> have been building community-owned and -operated broadband networks in a quest for better, faster, and cheaper internet access. That includes Cleveland, which recently launched a plan to deploy citywide fiber and wireless broadband <a href="https://communitynets.org/content/clevelands-two-pronged-attack-make-worse-connected-city-label-relic-past">for as little as $18 a month</a>.</p>

<p class="wp-block-paragraph">Whether the FCC&rsquo;s digital discrimination protections can begin to truly repair generations of injustice remains unclear. Industry lawsuits could derail rule implementation until long after infrastructure bill subsidies begin to flow, complicated by looming, industry-backed Supreme Court rulings aimed at <a href="https://www.politico.com/news/2023/10/13/supreme-court-chevron-defense-case-00121535">undermining the independent authority of US regulators</a>.</p>

<p class="wp-block-paragraph">The next presidential election will matter as well; while the creation of digital discrimination rules was a congressional mandate, Republican FCC leadership &mdash; which historically has <a href="https://www.theverge.com/2015/1/21/7865511/heres-how-the-new-republican-congress-plans-to-undercut-net-neutrality">sided with the telecom industry on most issues of substance</a> &mdash; could simply choose not to enforce them.</p>

<p class="wp-block-paragraph">Still, the federal government&rsquo;s belated formal acknowledgment of systemic discrimination remains monumental and historic all the same, providing a much stronger foundation for those on the front lines of the fight for equitable and affordable access.&nbsp;</p>

<p class="wp-block-paragraph">Joshua Edmonds, CEO of equity activism nonprofit DigitalC, is working closely with Cleveland city officials to help build its new network. He told <em>The Verge</em> he was cautiously optimistic about the FCC&rsquo;s rules and was quick to acknowledge the historic precedent.</p>

<p class="wp-block-paragraph">&ldquo;It&rsquo;s one thing for an activist group to say that, or even a local equity champion, but for the FCC to acknowledge that digital discrimination has persisted, that&rsquo;s moving in the right direction,&rdquo; he said, adding that he has been impressed by the agency&rsquo;s community outreach sessions in cities like Baltimore, Los Angeles, and Topeka.</p>

<p class="has-end-mark wp-block-paragraph">&ldquo;But what does it mean to be penalized?&rdquo; he asked. &ldquo;Is it a public facing walk of shame? What actually is it? I think this FCC has big ambitions, and I laud them. I think the question that I have is: with big ambitions, do you guys have teeth? And I don&rsquo;t know if they do or not.&rdquo;</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Karl Bode</name>
			</author>
			
			<title type="html"><![CDATA[The Dish ‘fix’ for the T-Mobile-Sprint merger seems more shortsighted than ever]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/2021/7/21/22585761/dish-t-mobile-att-sprint-competition-editorial" />
			<id>https://www.theverge.com/2021/7/21/22585761/dish-t-mobile-att-sprint-competition-editorial</id>
			<updated>2021-07-21T05:00:00-04:00</updated>
			<published>2021-07-21T05:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="Features" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[To sell regulators on their $26 billion mega merger, T-Mobile and Sprint executives told anyone who&#8217;d listen that the deal would provide near-miraculous benefits. But economists warned that US telecom merger promises are historically meaningless, and the reduction in overall competitors would &#8212; sooner or later &#8212; result in higher prices and job cuts.&#160; Instead [&#8230;]]]></summary>
			
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<figure>

<img alt="" data-caption="" data-portal-copyright="Illustration by Alex Castro / The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/21696755/acastro_200804_1777_dish_0001.0.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="wp-block-paragraph">To sell regulators on their $26 billion mega merger, T-Mobile and Sprint executives told anyone who&rsquo;d listen that the deal would provide <a href="https://www.theverge.com/2019/5/21/18634195/t-mobile-sprint-merger-conditions-access-coverage">near-miraculous benefits</a>. But economists warned that US telecom merger promises <a href="https://www.theverge.com/2019/11/13/20962739/t-mobile-sprint-nextel-merger-prices-rural-coverage-promises">are historically meaningless</a>, and the reduction in overall competitors would &mdash; sooner or later &mdash; result in higher prices and job cuts.&nbsp;</p>

<p class="wp-block-paragraph">Instead of heeding their warnings and blocking the deal, US antitrust enforcers <a href="https://www.nytimes.com/2019/12/19/technology/sprint-t-mobile-merger-antitrust-official.html">concocted an elaborate workaround</a>: they would erect Dish Network as the nation&rsquo;s new fourth major wireless carrier. Under the plan Dish received some T-Mobile spectrum, the Boost Mobile prepaid brand, and the assurance that T-Mobile would help Dish run a Mobile Virtual Network Operator (MVNO) while it got its own nationwide network up and running.</p>

<p class="wp-block-paragraph">But squabbling between the companies culminated this week in Dish announcing it would be <a href="https://www.theverge.com/2021/7/19/22583799/dish-network-att-mvno-t-mobile-5g-4g">replacing T-Mobile with AT&amp;T</a> as its primary partner, indicating that T-Mobile and Dish were simply incapable of getting along, and the government was never that interested in forcing them.</p>

<p class="wp-block-paragraph">&ldquo;If T-Mobile is able to shirk this regulatory obligation with impunity, what&rsquo;s to prevent future consent orders from being ignored?&rdquo; Hal Singer, an economist who testified against the merger approval tells <em>The Verge</em>.</p>

<p class="wp-block-paragraph">Earlier this year, Dish called T-Mobile a &ldquo;<a href="https://www.theverge.com/2021/4/29/22409800/dish-charlie-ergen-t-mobile-cdma-shutdown-grinch">grinch</a>&rdquo; for shutting down its CDMA network earlier than Dish had expected. In complaints to <a href="https://www.axios.com/dish-california-regulators-t-mobile-inquiry-reopen-9d87c61c-8349-440c-97eb-8cde807ba9bf.html">state</a> and <a href="https://www.axios.com/dish-tmobile-network-shutdown-fcc-466e406c-db9d-4318-8cec-3579a54fdf04.html">federal</a> regulators, Dish accused T-Mobile of reneging on its merger promises, and claimed the shutdown risked leaving many of Boost&rsquo;s 9 million wireless customers without service in 2022. T-Mobile has denied fault and effectively accused Dish of <a href="https://www.theverge.com/2021/4/2/22364126/boost-mobile-3g-cdma-t-mobile-shutdown-customers-costs">not understanding its own agreement</a>.</p>

<p class="wp-block-paragraph">So far the Biden administration, focused largely on Big Tech policy conversations, hasn&rsquo;t taken much action in the telecom space. The administration <a href="https://www.theverge.com/2021/7/9/22570567/biden-net-neutrality-competition-eo">has yet to fully staff the FCC</a>, and only <a href="https://www.theverge.com/2021/7/20/22585590/joe-biden-jonathan-kanter-antitrust-lina-khan-tim-wu-google">just appointed a DOJ antitrust enforcer this week</a>. Dish&rsquo;s deployment goals are far off, and any meaningful government action, if it comes at all, likely remains years away.&nbsp;</p>

<p class="wp-block-paragraph">The deal gives Dish until 2025 to deploy its wireless network to 70 percent of the population. Given that 70 percent of the US lives on roughly 3 percent of the country&rsquo;s landmass, that shouldn&rsquo;t have been a particular challenge. (Dish hasn&rsquo;t given any public indication that it&rsquo;s nearing that goal yet.) But it&rsquo;s getting to 95 percent coverage where Dish needs help, given that the remaining chunk lives on ten times the land mass as the initial 70 percent.</p>

<p class="wp-block-paragraph">That&rsquo;s where Dish&rsquo;s $5 billion deal with AT&amp;T comes in. Under <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001001082/000100108221000019/dish-20210714x8k.htm">the proposal</a>, AT&amp;T will grant Dish MVNO customers access to AT&amp;T&rsquo;s 4G and 5G networks in rural and harder to reach markets, as Dish focuses on building out its own 5G network in major cities. Dish will still have access to T-Mobile&rsquo;s network until 2027, but AT&amp;T will now be Dish&rsquo;s primary partner.</p>

<p class="wp-block-paragraph">In a research note to investors, Wall Street analyst Craig Moffett argues that while Dish&rsquo;s relationship with T-Mobile may have soured, the deal with AT&amp;T likely increased Dish&rsquo;s chance of survival as a wireless operator &mdash; for the time being.</p>

<p class="wp-block-paragraph">&ldquo;Under the T-Mobile agreement, Dish had until 2025 to satisfy the FCC, but only two more years afterwards to satisfy the much more exacting demands of customers,&rdquo; Moffett says. &ldquo;That was always the real challenge.&rdquo;</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>How many major cellular carriers does it take to prop up their supposed competitor?</p></blockquote></figure>
<p class="wp-block-paragraph">Given that AT&amp;T has never offered CDMA access, the arrangement won&rsquo;t solve Dish&rsquo;s complaints about T-Mobile&rsquo;s decision to shutter its CDMA network, potentially harming Boost Mobile subscribers. AT&amp;T, meanwhile, nabs significant wholesale revenue with the dangerous bet that Dish will never become successful enough to erode AT&amp;T market share.&nbsp;</p>

<p class="wp-block-paragraph">But with Dish bleeding <a href="https://www.fiercewireless.com/financial/dish-sheds-363k-wireless-subs-warns-t-mobile-3g-shutdown">wireless</a> and <a href="https://www.hollywoodreporter.com/business/business-news/dish-loses-230000-pay-tv-subscribers-in-first-quarter-4175362/">TV subscribers</a> at an alarming rate, the clock is ticking on Dish&rsquo;s overall survivability. In the next six years, Dish has to remain financially viable, build out a massive and popular next-generation wireless network, keep state and federal regulators happy, and somehow steal meaningful market share from a US telecom sector historically averse to being meaningfully disrupted by competition.</p>

<p class="wp-block-paragraph">It&rsquo;s a big ask for a company long criticized &mdash; <a href="https://www.fiercewireless.com/wireless/t-mobile-takes-huge-swing-at-dish-for-hoarding-spectrum">including by T-Mobile in 2018</a> &mdash; for gobbling up troves of valuable spectrum, then not delivering on its promises to put that spectrum to use. While the government deal bars Dish from selling its spectrum for six years, analysts have long pondered if Dish will just string regulators along, sell its spectrum, then use the immense profits to laugh off any remaining regulatory, legal, and contractual obligations.&nbsp;</p>

<p class="wp-block-paragraph">Moffett tells <em>The Verge</em> that Dish has already spent upward of $10 billion in long-term cellular tower leases, and risks losing its spectrum in addition to financial penalties for missing deployment goals. Singer, however, remains unimpressed by the integrity of the merger arrangement with the government and still thinks an early Dish exit remains possible.</p>

<p class="wp-block-paragraph">&ldquo;The decree always gave Dish an easy out,&rdquo; Singer says. &ldquo;The real target of the regulation was T-Mobile. And now T-Mobile is getting to slither out.&rdquo;</p>

<p class="wp-block-paragraph">The saga could also end with <a href="https://www.cnbc.com/2021/07/19/dish-and-atts-new-wireless-partnership-potentially-foreshadows-directv-deal.html">AT&amp;T buying Dish Network</a>, AT&amp;T nabbing Dish&rsquo;s vast spectrum holdings, the US wireless industry consolidating even further, and everybody involved pretending none of this ever happened.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“jobs positive from day one” turned out to be a joke</p></blockquote></figure>
<p class="wp-block-paragraph">Meanwhile, other merger promises remain unfulfilled. T-Mobile&rsquo;s promise that the deal would create new jobs &mdash; still viewable over <a href="https://www.t-mobile.com/news/un-carrier/new-t-mobile-creating-jobs">at the company&rsquo;s website</a> &mdash; wound up not being worth much. Despite claiming the deal would be &ldquo;jobs positive from day one and every day thereafter,&rdquo; the company has <a href="https://www.theverge.com/2021/5/11/22429587/t-mobile-sprint-merge-jobs-promise-pandemic">eliminated 5,000 positions so far</a>, much as critics like Singer predicted.&nbsp;</p>

<p class="wp-block-paragraph">Historically, antitrust enforcers are supposed to look at the available evidence of a proposed union and act accordingly. In the case of Sprint and T-Mobile, the Trump FCC approved the deal <a href="https://docs.fcc.gov/public/attachments/DOC-360243A1.pdf">before even seeing impact analysis</a>, and the Trump DOJ&rsquo;s top antitrust enforcer Makan Delrahim <a href="https://www.nytimes.com/2019/12/19/technology/sprint-t-mobile-merger-antitrust-official.html">personally worked with all three companies</a> to ensure deal approval.</p>

<p class="wp-block-paragraph">Instead of simply blocking the merger and finding a way to prop up Sprint, the resulting solution always required a great deal of optimism in both the integrity of corporate merger promises and the competency of US regulators. Now consumers are left waiting for a network that may never arrive, based on relationships that were sour from the start.</p>

<p class="wp-block-paragraph">&ldquo;Just as Delrahim scripted it,&rdquo; Singer jokes.</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Karl Bode</name>
			</author>
			
			<title type="html"><![CDATA[AT&#038;T promised a TV revolution — instead, we got a giant mess]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/2021/3/3/22310994/att-directv-uverse-spinoff-sale-television-hbo-max-deal" />
			<id>https://www.theverge.com/2021/3/3/22310994/att-directv-uverse-spinoff-sale-television-hbo-max-deal</id>
			<updated>2021-03-03T10:34:01-05:00</updated>
			<published>2021-03-03T10:34:01-05:00</published>
			<category scheme="https://www.theverge.com" term="AT&amp;T" /><category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Features" /><category scheme="https://www.theverge.com" term="Mobile" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[Last week, AT&#38;T announced it would be spinning off its TV business &#8212; including DirecTV, AT&#38;T TV, and U-verse &#8212; in a deal it claimed would greatly benefit the company&#8217;s customers, employees, and shareholders. The deal provides AT&#38;T with a $7.8 billion cash infusion to pay down debt and recent wireless spectrum purchases, and a [&#8230;]]]></summary>
			
							<content type="html">
											<![CDATA[

						
<figure>

<img alt="" data-caption="" data-portal-copyright="Illustration by Alex Castro / The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/11534175/acastro_180613_1777_at_t_timewarner_0002.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="wp-block-paragraph">Last week, AT&amp;T announced <a href="https://www.theverge.com/2021/2/25/22301840/att-tpg-directv-tv-uverse-new-company-announced">it would be spinning off its TV business</a> &mdash; including DirecTV, AT&amp;T TV, and U-verse &mdash; in a deal it claimed would greatly benefit the company&rsquo;s customers, employees, and shareholders. The deal provides AT&amp;T with a $7.8 billion cash infusion to pay down debt and <a href="https://www.theverge.com/2021/2/24/22299903/fcc-cband-auction-results-verizon-att-tmobile">recent wireless spectrum purchases</a>, and a 70 percent stake in the &ldquo;new&rdquo; DirecTV. But it also values the entire operation at around $16.25 billion, a massive loss from the $67 billion AT&amp;T paid just a few years earlier for just DirecTV alone.</p>

<p class="wp-block-paragraph">&ldquo;It&rsquo;s fair to say that some aspects of the transaction have not played out as we had planned,&rdquo; AT&amp;T said of the deal, trying to put a good face on a more than $50 billion loss, &ldquo;such as pay TV households in the US declining at a faster pace across the industry than anticipated when we announced the deal back in 2014.&rdquo;</p>

<p class="wp-block-paragraph">It&rsquo;s the latest chapter in AT&amp;T&rsquo;s long journey to transform from a boring old telecom into a dominant player in new media. Six years, 54,858 layoffs, two mergers, and nearly $175 billion later, AT&amp;T is only marginally closer to streaming TV dominance. Instead, customers and employees are footing the bill for their bad decisions in the form of TV rate hikes and layoffs that show no sign of slowing down.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“One of the worst acquisitions of all time”</p></blockquote></figure>
<p class="wp-block-paragraph">Wall Street telecom analyst Craig Moffett surveyed the wreckage in a research note to investors, in which he noted the deal does little to tackle $157 billion in remaining AT&amp;T debt.</p>

<p class="wp-block-paragraph">&ldquo;AT&amp;T&rsquo;s DirecTV is inarguably one of the worst acquisitions of all time,&rdquo; Moffett said. &ldquo;They bought it for $67 billion in 2013.&nbsp;Even at the overly-generous valuation reported last night, they are exiting at a price 76% below what they paid for it just seven years ago.&rdquo;</p>

<p class="wp-block-paragraph">It wasn&rsquo;t supposed to be this way. AT&amp;T executives once dreamed of creating an online video juggernaut that could rival the power of Google and Facebook in the online advertising space, using must-watch HBO content &mdash; and AT&amp;T&rsquo;s wireless network &mdash; as the glue holding the effort together. That dream fueled the <a href="https://about.att.com/story/att_to_acquire_directv.html">DirecTV acquisition in 2014</a> (which executives promised would deliver &ldquo;enhanced innovation&rdquo; and &ldquo;significant benefits for consumers&rdquo;) as well as <a href="https://www.theverge.com/2018/6/15/17468612/att-time-warner-acquisition-court-decision">the Time Warner acquisition in 2018</a> (which <a href="https://about.att.com/story/att_to_acquire_time_warner.html">we were told</a> would usher forth the &ldquo;next wave of innovation in converging media and communications&rdquo;).</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>54,858 employees laid off since 2017</p></blockquote></figure>
<p class="wp-block-paragraph">But for AT&amp;T, a company built on the back of the far <a href="https://www.theverge.com/22177154/us-internet-speed-maps-competition-availability-fcc">less competitive and innovative US broadband sector</a>, that dream proved hard to realize. First, AT&amp;T unveiled so many discordant TV brands across both its traditional cable and streaming platforms, even <a href="https://www.cordcuttersnews.com/att-is-confusing-att-tv-with-att-tv-now-creating-mass-confusion/">the company&rsquo;s own employees got confused</a>. The company then attempted to dig out from under its massive merger debt load by imposing <a href="https://arstechnica.com/information-technology/2020/11/att-raises-directv-prices-again-amid-customer-losses-and-possible-sale/#:~:text=AT%26T%20has%20announced%20another%20round,a%20notice%20on%20its%20website.">repeated price increases</a> on subscribers already tired from years of relentless rate hikes. A discounted $15-per-month streaming TV offering, used to <a href="https://money.cnn.com/2018/04/19/media/att-watch-streaming-service/index.html">lure regulators into approving the Time Warner merger</a>, quickly <a href="https://www.fastcompany.com/90521422/att-is-killing-its-cheap-tv-bundle-for-cord-cutters">disappeared</a> as soon as the merger ink had dried. AT&amp;T&rsquo;s customers, paying an average of <a href="https://investors.att.com/~/media/Files/A/ATT-IR/financial-reports/quarterly-earnings/2020/q3-2020/3Q20_Trending_Schedule.pdf">$130.55</a> per month for television, quickly revolted. As a result, AT&amp;T has lost 8 million pay TV subscribers in just the last four years.</p>

<p class="wp-block-paragraph">But the casualties from AT&amp;T&rsquo;s merger go well beyond the financial.</p>

<p class="wp-block-paragraph">As streaming shifted from pesky upstart to the mainstream, younger consumers began viewing traditional satellite television as an antiquated relic of a bygone era. As a result, companies like Dish Network and DirecTV were <a href="https://www.leichtmanresearch.com/major-pay-tv-providers-lost-about-1570000-subscribers-in-2q-2020/">particularly hard hit</a> by the cord-cutting revolution.</p>

<p class="wp-block-paragraph">Yet, in 2017, company executives made repeated television appearances promising that if the Trump administration passed its tax relief plan, the company would respond with billions in investment and thousands of &ldquo;<a href="https://www.cnbc.com/2017/05/04/att-ceo-says-a-corporate-tax-cut-would-mean-thousands-more-jobs-for-hard-hat-workers.html">high-paying, really good jobs with great benefits</a>.&rdquo; Similar promises were made by both AT&amp;T and <a href="https://cwa-union.org/news/cwa-fighting-maintain-good-jobs-in-att-time-warner-merger">unions</a> ahead of each merger.</p>

<p class="wp-block-paragraph">After receiving an estimated <a href="https://www.cbsnews.com/news/at-t-got-a-giant-tax-cut-but-has-laid-off-thousands-union-says/">$42 billion</a> in tax cuts from the Trump administration, the company has instead laid off an estimated <a href="https://cwa-union.org/news/releases/instead-of-cutting-jobs-att-must-lead-recovery">54,858 employees since 2017</a>. AT&amp;T imposed additional layoffs at Time Warner properties, <a href="https://deadline.com/2020/08/dc-comics-dc-universe-hit-layoffs-warnermedia-1203009714/">including HBO and DC</a>, and shuttered businesses like <a href="https://www.theverge.com/2019/6/21/18701446/dc-comics-vertigo-shutting-down-reorganization-dc-kids-black-label">DC&rsquo;s popular Vertigo label</a> in a desperate bid to cut costs.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“A sprawling collection of businesses battling well-funded competitors”</p></blockquote></figure>
<p class="wp-block-paragraph">Elsewhere, AT&amp;T remained under steady fire for failing to upgrade its aging DSL lines to fiber, a problem particularly pronounced in <a href="https://www.digitalinclusion.org/blog/2019/08/06/atts-digital-redlining-of-dallas-new-research-by-dr-brian-whitacre/">marginalized neighborhoods</a>. Attention and resources that may have helped address the country&rsquo;s stubborn digital divide were instead funneled into an aggressive proposal designed largely to appease shareholders, consumer groups say.&nbsp;</p>

<p class="wp-block-paragraph">&ldquo;[Former AT&amp;T CEO Randall Stephenson] was getting a ton of pressure to generate cash flow to support the dividend, but also pressure to increase the stock price,&rdquo; S. Derek Turner, Research Director at consumer group Free Press, told <em>The Verge</em>. &ldquo;Buying DirecTV on credit did that. The deal benefited whomever held AT&amp;T&rsquo;s stock as a dividend source. The customers and potential customers in AT&amp;T service areas didn&rsquo;t benefit.&rdquo;</p>

<p class="wp-block-paragraph">But even some investors grew angry with AT&amp;T&rsquo;s &ldquo;growth for growth&rsquo;s sake&rdquo; strategy. Activist investors at Elliott Management <a href="https://www.businesswire.com/news/home/20190909005482/en/Elliott-Management-Sends-Letter-to-Board-of-Directors-of-ATT">penned a letter to AT&amp;T</a> in late 2019 complaining the company had spent nearly $200 billion to become &ldquo;a sprawling collection of businesses battling well-funded competitors,&rdquo; instead of focusing on core competencies like wireless.</p>

<p class="wp-block-paragraph">The end result of AT&amp;T&rsquo;s ambition wasn&rsquo;t entirely fruitless: HBO Max, the latest in a long line of attempted streaming TV brand refreshes, could still challenge other rising streaming services like Disney Plus or Comcast&rsquo;s Peacock. But however successful HBO Max winds up being, it&rsquo;s a product that shouldn&rsquo;t have cost $200 billion and 55,000 jobs to create.&nbsp;</p>

<p class="wp-block-paragraph">Ironically, AT&amp;T&rsquo;s failure comes despite the fact that it spent the better part of a decade lobbying to tilt the regulatory playing field in its favor, culminating in the company&rsquo;s successful 2017 <a href="https://www.theverge.com/2019/7/9/20687903/net-neutrality-was-repealed-a-year-ago-whats-happened-since">assault on net neutrality and the Federal Communications Commission&rsquo;s consumer protection authority</a>. But even abusing broadband usage caps to <a href="https://www.theverge.com/2020/6/2/21277402/hbo-max-att-data-caps-netflix-disney-plus-streaming-services-net-neutrality#:~:text=AT%26T%20later%20confirmed%20to%20The,data%20caps%20on%20unlimited%20plans.">give itself a tactical advantage</a> over streaming competitors didn&rsquo;t help.&nbsp;</p>

<p class="wp-block-paragraph">Ultimately, no amount of money or political power could buy the TV dominance the company&rsquo;s executives envisioned. And as AT&amp;T struggles to offload the mammoth debt load created by its ambition, employees and customers continue to foot the bill.</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Karl Bode</name>
			</author>
			
			<title type="html"><![CDATA[AT&#038;T tried to buy out the streaming wars — and customers are paying for it]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/2020/1/30/21115181/att-direct-tv-time-warner-acquisition-debt-streaming-wars" />
			<id>https://www.theverge.com/2020/1/30/21115181/att-direct-tv-time-warner-acquisition-debt-streaming-wars</id>
			<updated>2020-01-30T11:35:25-05:00</updated>
			<published>2020-01-30T11:35:25-05:00</published>
			<category scheme="https://www.theverge.com" term="AT&amp;T" /><category scheme="https://www.theverge.com" term="Entertainment" /><category scheme="https://www.theverge.com" term="Features" /><category scheme="https://www.theverge.com" term="Mobile" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="Streaming" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[Over the past five years, AT&#38;T has spent hundreds of billions of dollars preparing for the streaming wars, going on a spree of mergers and acquisitions to build a juggernaut that could stand against companies like Netflix, Apple, and Amazon. But as this week&#8217;s earnings showed, it&#8217;s not working quite the way AT&#38;T executives had [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="Illustration by Alex Castro / The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/11534193/acastro_180613_1777_at_t_timewarner_0001.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="wp-block-paragraph">Over the past five years, AT&amp;T has spent hundreds of billions of dollars preparing for the streaming wars, going on a spree of mergers and acquisitions to build a juggernaut that could stand against companies like Netflix, Apple, and Amazon. But as this week&rsquo;s earnings showed, it&rsquo;s not working quite the way AT&amp;T executives had hoped.</p>

<p class="wp-block-paragraph">The numbers were grim &mdash; not just for AT&amp;T, but for conventional cable in general. According to AT&amp;T&rsquo;s <a href="https://investors.att.com/~/media/Files/A/ATT-IR/financial-reports/quarterly-earnings/2019/4q-2019/4Q19_Trending%20Schedules.pdf">fourth quarter earnings</a> report, the company lost 4.1 million pay TV subscribers in 2019 &mdash; 1.16 million of them in the last three months of the year alone. Around 945,000 AT&amp;T customers dropped the company&rsquo;s traditional TV services last quarter, and another 219,000 customers hung up on AT&amp;T&rsquo;s creatively named AT&amp;T TV Now internet video platform, previously named DirecTV Now.</p>

<p class="wp-block-paragraph">AT&amp;T brushed aside the company&rsquo;s losses &mdash; and an afternoon stock slide &mdash; by <a href="https://investors.att.com/~/media/Files/A/ATT-IR/financial-reports/quarterly-earnings/2019/4q-2019/4Q19%20Highlights.pdf">telling investors</a> the subscriber losses were due to an intentional reduction in overall promotions, and a renewed &ldquo;focus on profitability&rdquo; at the Dallas-based company.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>AT&amp;T carried more than $151 billion in debt at the end of 2019</p></blockquote></figure>
<p class="wp-block-paragraph">But that&rsquo;s not the whole story. AT&amp;T spent huge amounts of money building a streaming-ready media conglomerate &mdash; from its $67 billion acquisition of DirecTV in 2015, to the <a href="https://www.theverge.com/2018/6/15/17468612/att-time-warner-acquisition-court-decision">hugely controversial</a> $108.7 billion merger with Time Warner in 2018 &mdash; and now that bill is coming due. The two deals saddled AT&amp;T with a mammoth mountain of debt, placing the telecom giant between a rock and a hard place. Even with the Trump tax cuts &mdash; estimated to have delivered AT&amp;T <a href="https://www.cbsnews.com/news/at-t-got-a-giant-tax-cut-but-has-laid-off-thousands-union-says/">a $42 billion windfall</a> &mdash; AT&amp;T still carried more than $151 billion in debt at the end of 2019, nearly all of it thanks to its M&amp;A appetites.</p>

<p class="wp-block-paragraph">AT&amp;T passed that debt on to its subscribers in the form of price hikes, which in turn accelerated the company&rsquo;s subscriber losses. And while those price hikes certainly helped AT&amp;T increase its revenues (average monthly revenue for traditional TV users was $131 at the end of 2019, up from $121.76 late last year), it came at a steep reputational cost.</p>

<p class="wp-block-paragraph">AT&amp;T employees have also bore the brunt of the company&rsquo;s debt-recovery efforts. The Communications Workers of America &mdash; the country&rsquo;s biggest telecom union &mdash; this week complained that AT&amp;T has laid off 37,818 jobs since the Tax Cuts and Jobs Act was passed in late 2017, the precise opposite of what the company promised while it was <a href="https://about.att.com/story/att_to_invest_an_additional_1_billion_in_the_united_states_if_competitive_tax_rate_enacted.html">lobbying for the law&rsquo;s passage</a>.</p>

<p class="wp-block-paragraph">AT&amp;T&rsquo;s TV ambitions weren&rsquo;t helped by a year filled with numerous additional missteps, including a growing roster of so many <a href="https://twitter.com/DrewFitzGerald/status/1156215999890448384?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1156215999890448384&amp;ref_url=https%3A%2F%2Fwww.techdirt.com%2Farticles%2F20190905%2F07444142926%2Fatts-terrible-new-tv-branding-confuses-even-att.shtml">seemingly conflicted and redundant streaming</a> brands (HBO Go, HBO Now, AT&amp;T Now, AT&amp;T TV, AT&amp;T WatchTV, AT&amp;T U-verse, DirecTV), even AT&amp;T support staff occasionally found themselves <a href="https://www.cordcuttersnews.com/att-is-confusing-att-tv-with-att-tv-now-creating-mass-confusion/">befuddled</a>.&nbsp;</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“It should have been obvious that that was never going to work out well”</p></blockquote></figure>
<p class="wp-block-paragraph">Craig Moffett, a Wall Street telecom and media sector analyst who downgraded AT&amp;T stock to a &ldquo;sell rating&rdquo; last November, told <em>The Verge</em> he expects things will likely get worse for AT&amp;T before they get better. And the company&rsquo;s looming launch of yet <a href="https://www.theverge.com/2019/10/29/20938039/hbo-max-price-launch-date-ad-free-att-friends-studio-ghibli">another $15 per month streaming service next May</a> &mdash; HBO Max &mdash; isn&rsquo;t likely to help.&nbsp;</p>

<p class="wp-block-paragraph">&ldquo;They bought legacy assets and then tried to spin a story about how it positioned them to disrupt the status quo,&rdquo; Moffett said. &ldquo;It should have been obvious that that was never going to work out well.&rdquo;</p>

<p class="wp-block-paragraph">Moffett said AT&amp;T&rsquo;s problems are compounded by the fact that the company has a large number of programming contracts set to expire this year. The new contracts will drive up AT&amp;T&rsquo;s costs, which in turn will be passed on to consumers, accelerating its existing cord cutting worries.&nbsp;&nbsp;</p>

<p class="wp-block-paragraph">AT&amp;T had originally hoped that the huge influx of subscribers acquired from DirecTV would provide the company greater leverage in negotiations with programmers. Similarly, it hoped that acquiring Time Warner and HBO gave the company access to top-shelf original programming that could help it do battle against deep-pocketed competitors like Apple and Amazon.&nbsp;</p>

<p class="wp-block-paragraph">But many on Wall Street (including <a href="https://www.businesswire.com/news/home/20190909005482/en/Elliott-Management-Sends-Letter-Board-Directors-ATT">some of AT&amp;T&rsquo;s own shareholders</a>) felt that acquiring a traditional satellite TV company on the eve of the cord cutting revolution never entirely made sense. Neither did driving up the company&rsquo;s debt load &mdash; then shoveling those costs onto the back of consumers already pissed off by the endless price hikes and <a href="https://www.theverge.com/2015/5/5/8556803/comcast-worst-company-in-america-customer-service">abysmal customer service</a> for which the pay TV sector is notorious.</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Karl Bode</name>
			</author>
			
			<title type="html"><![CDATA[T-Mobile has made big promises about its merger — but talk is cheap]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/2019/11/13/20962739/t-mobile-sprint-nextel-merger-prices-rural-coverage-promises" />
			<id>https://www.theverge.com/2019/11/13/20962739/t-mobile-sprint-nextel-merger-prices-rural-coverage-promises</id>
			<updated>2019-11-13T09:11:16-05:00</updated>
			<published>2019-11-13T09:11:16-05:00</published>
			<category scheme="https://www.theverge.com" term="Features" /><category scheme="https://www.theverge.com" term="Mobile" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="T-Mobile" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[To gain federal approval of their $26 billion merger, T-Mobile and Sprint have spent years promising a universe of incredible benefits, from lower prices to better rural wireless coverage. So far, agencies like the Federal Communications Commission have been more than happy to believe them. &#8220;The merger will promote robust competition in mobile broadband,&#8221; FCC [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="Illustration by Alex Castro / The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/19367784/acastro_191108_1777_t-mobile_0002.0.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="wp-block-paragraph">To gain <a href="https://www.theverge.com/2019/10/16/20917162/fcc-tmobile-sprint-merger-justice-department-ajit-pai-geoffrey-starks-jessica-rosenworel">federal approval</a> of their $26 billion merger, T-Mobile and Sprint have spent years <a href="https://www.theverge.com/2019/11/8/20954479/t-mobiles-5g-publicity-stunt-firefighters-merger-sprint">promising</a> a universe of incredible benefits, from lower prices to better rural wireless coverage. So far, agencies like the Federal Communications Commission have been more than happy to believe them.</p>

<p class="wp-block-paragraph">&ldquo;The merger will promote robust competition in mobile broadband,&rdquo; FCC chairman Ajit Pai said in a recent statement. &ldquo;Consumers will directly benefit from improvements in network quality and coverage, which in turn will foster innovation in a wide variety of sectors and services.&rdquo;</p>

<p class="wp-block-paragraph">But US telecom history suggests you shouldn&rsquo;t believe a word coming out of their mouths. From AT&amp;T&rsquo;s <a href="https://www.nytimes.com/2006/12/30/business/30tele.html">2006 merger with BellSouth</a> to Comcast&rsquo;s 2011 <a href="https://www.theverge.com/2013/2/12/3981788/comcast-to-acquire-ges-stake-in-nbc-universal-assume-full-ownership">merger with NBC</a>, telecom megadeals are routinely accompanied by any number of promises that are <a href="https://www.wsj.com/articles/comcast-role-in-aborted-hulu-sale-raises-questions-for-regulators-1429660758">promptly ignored</a> once the deal ink is dry. Instead, consolidation routinely delivers <a href="https://www.theverge.com/2015/5/5/8556803/comcast-worst-company-in-america-customer-service">terrible customer service</a> and ever-higher prices.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>The Sprint-Nextel deal became a colossal disaster</p></blockquote></figure>
<p class="wp-block-paragraph">Take Sprint&rsquo;s 2005 $35 billion merger with Sprint Nextel, which combined the then-fifth and third largest wireless carriers, for example. Sprint&rsquo;s <a href="https://wireless2.fcc.gov/UlsEntry/attachments/attachmentViewRD.jsp?applType=search&amp;attachmentKey=17993612&amp;affn=0179936128364392058496989">government filings</a> from the period promised that the integration of the Sprint Nextel networks would be largely seamless, popular features like Nextel&rsquo;s &ldquo;push to talk&rdquo; iDen network would be painlessly duplicated, and the company would deliver nationwide service in the 2.5GHz band reaching even the most distant rural markets. A <a href="https://www.businesswire.com/news/home/20041215005311/en/Sprint-Nextel-Combine-Merger-Equals">press release</a> heralded the creation of a &ldquo;premier communications company&rdquo; that would revolutionize the telecom sector, thanks to &ldquo;efficiencies&rdquo; and &ldquo;synergies&rdquo; that would be hugely beneficial to American consumers.</p>

<p class="wp-block-paragraph">Then, like now, FCC leaders took the promises at face value.</p>

<p class="wp-block-paragraph">&ldquo;This action will ensure that consumers continue to receive the benefits of wireless competition, such as reduced prices and increased coverage,&rdquo; former FCC boss Kevin Martin said in a statement approving the deal. &ldquo;In addition, consumers can expect improved service quality and more advanced services.&rdquo;</p>

<p class="wp-block-paragraph">But the deal became a <a href="https://blogs.wsj.com/deals/2008/02/28/sprint-nextel-officially-a-deal-from-hell/">colossal disaster</a>. Difficult integration of discordant technologies resulted in network and billing problems that drove millions of angry customers to the exits. Sprint&rsquo;s promises of a nationwide 2.5GHz network would never even come close to materializing. By 2008, Sprint was using the spectrum to push another doomed joint venture with a company named Clearwire. By the time the Clearwire expansion ended in 2011, it <a href="https://www.pcmag.com/news/318922/prepare-for-the-sprint-t-mobile-merger-lies">had reached</a> less than 44 percent of the public. By 2015, Clearwire would be shut down entirely.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>By 2015, Clearwire would be shut down entirely</p></blockquote></figure>
<p class="wp-block-paragraph">Sprint&rsquo;s promises that it would implement a copycat version of Nextel&rsquo;s popular push to talk technology on its 1xEV-DO Rev A platform also went nowhere. Trials for the company&rsquo;s QChat service didn&rsquo;t go well, and by 2008, <a href="https://www.howardforums.com/showthread.php/1571549-Is-Sprint-killing-off-Qchat/page2">the project was shuttered</a> to the annoyance of users.</p>

<p class="wp-block-paragraph">There were also familiar predictions that consolidation would help the market and Sprint itself. In filings, Sprint promised that the merged company would have the &ldquo;highest average revenue per user (ARPU) in the wireless industry and be positioned to lead the industry in sustainable revenue growth.&rdquo; With T-Mobile not yet a serious player, the Nextel deal left Cingular (fresh off its <a href="https://www.nytimes.com/2004/02/18/business/mobile-merger-the-overview-41-billion-offer-by-cingular-wins-at-t-wireless.html">similarly hyped 2004 merger</a> with AT&amp;T Wireless), Verizon, and Sprint as the three dominant major carriers.</p>

<p class="wp-block-paragraph">Many analysts lauded the reduction in overall competitors. &ldquo;Three major carriers can help keep prices low for customers, expenses lower for the companies and innovation high,&rdquo; telecom analyst Jeff Kagan <a href="https://www.cnet.com/news/sprint-nextel-agree-to-35-billion-merger/">proclaimed</a>. &ldquo;The wireless industry needed this wave of consolidation, and this merger will help the market.&rdquo; At the time, the FCC <a href="http://www.nbcnews.com/id/8816567/ns/business-us_business/t/regulators-ok-sprint-nextel-merger/#.XcnbOldKg2w">agreed</a>, insisting the deal would provide vast consumer benefits including lower prices.</p>

<p class="wp-block-paragraph">In reality, the deal was a financial catastrophe, with Sprint&rsquo;s revenues dropping every year from 2005 to 2008. In 2005, each company had a market cap of $33 billion; just three years later, the combined company&rsquo;s entire value would be $25 billion. It wouldn&rsquo;t be until 2013 when Sprint was able to reach the revenue levels it saw in 2005.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>More than 8,000 employees would lose their jobs</p></blockquote></figure>
<p class="wp-block-paragraph">Employment promises were just as hollow. Government <a href="https://wireless2.fcc.gov/UlsEntry/attachments/attachmentViewRD.jsp?applType=search&amp;attachmentKey=17993612&amp;affn=0179936128364392058496989">filings</a> had promised the FCC that the deal would &ldquo;generate economic growth and jobs in the United States.&rdquo; Then-Sprint CEO Gary Forsee <a href="https://www.bizjournals.com/kansascity/stories/2005/07/11/daily28.html">told media outlets</a> in 2005 that employees &ldquo;shouldn&rsquo;t expect to see a headline that there&rsquo;s thousands of jobs that are going to be cut on the first of November or any time along the way.&rdquo; By the end, <a href="https://www.pcworld.com/article/158305/sprint_layoffs.html">more than 8,000 employees</a> would lose their jobs.</p>

<p class="wp-block-paragraph">It&rsquo;s a troubling sign for the T-Mobile-Sprint merger, which is counting on the same magic of synergy and consolidation to make good on its promises. Hal Singer, an economist at Georgetown University, is one of seven antitrust experts that recently warned the government that the <a href="https://www.theverge.com/2019/10/10/20908539/t-mobile-sprint-merger-dish-network-failure-stopped-antitrust-experts-doj">deal should be blocked</a>.&nbsp;He told <em>The Verge</em> that when determining the harm of a potential merger, economists look to predictive metrics like <a href="https://faculty.haas.berkeley.edu/shapiro/alternative.pdf">upward pricing pressure</a> and <a href="https://www.ee-mc.com/tools/merger-control/diversion-ratio-analyses.html">diversion ratios</a> to simulate a merger&rsquo;s impact. In the case of T-Mobile and Sprint, the data clearly suggests that the deal will raise prices.</p>

<p class="wp-block-paragraph">It doesn&rsquo;t really matter that T-Mobile has cemented a reputation as a <a href="https://www.theverge.com/2016/1/7/10729714/john-legere-carrier-bullshit">trash-talking</a> consumer-friendly company (even if the latter reputation is often <a href="https://www.fiercewireless.com/wireless/t-mobile-cfo-less-regulation-repeal-net-neutrality-by-trump-would-be-positive-for-my">skin deep</a>). If the opportunity to raise rates is there, companies are obligated to their shareholders to take full advantage.&nbsp;</p>

<p class="wp-block-paragraph">&ldquo;Given the 4-3 nature of the merger the diversion ratio is off the charts and so are the predicted price effects,&rdquo; Singer said. Because T-Mobile and Sprint target a lot of the same customers (budget-conscious and prepaid users), the effects are even worse than usual, he added.</p>

<p class="wp-block-paragraph">Singer pointed to <a href="https://twitter.com/halsinger/status/1190653240725168128?s=21">a 2018 European study</a> showing that 4-3 consolidation in Europe has repeatedly resulted in higher prices, something that has also plagued the <a href="http://www.michaelgeist.ca/2019/01/the-canadian-wireless-story-comparative-data-shows-worlds-highest-carrier-revenues-per-sim/">Canadian market</a>.</p>

<p class="wp-block-paragraph">While the Department of Justice and FCC have approved the deal, T-Mobile still faces a <a href="https://www.theverge.com/2019/6/11/18661501/t-mobile-sprint-merger-state-attorney-general-lawsuit-block">multistate lawsuit</a> aimed at derailing the merger. Singer said <a href="https://en.wikipedia.org/wiki/United_States_v._Philadelphia_National_Bank">legal precedent</a> means the courts won&rsquo;t look kindly upon T-Mobile&rsquo;s claims that expanded 5G coverage in rural America &mdash; assuming that even happens &mdash; is enough to offset broader harm to other areas of the country.&nbsp;</p>

<p class="wp-block-paragraph">&ldquo;This bogus offset argument worked at the FCC,&rdquo;&nbsp;he said. &ldquo;But it shouldn&rsquo;t hold up in court.&rdquo;</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Karl Bode</name>
			</author>
			
			<title type="html"><![CDATA[T-Mobile’s merger promises are meaningless]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/2019/5/21/18634195/t-mobile-sprint-merger-conditions-access-coverage" />
			<id>https://www.theverge.com/2019/5/21/18634195/t-mobile-sprint-merger-conditions-access-coverage</id>
			<updated>2019-05-21T14:36:02-04:00</updated>
			<published>2019-05-21T14:36:02-04:00</published>
			<category scheme="https://www.theverge.com" term="Antitrust" /><category scheme="https://www.theverge.com" term="Features" /><category scheme="https://www.theverge.com" term="Mobile" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Regulation" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="T-Mobile" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[For the last year, T-Mobile and Sprint have been telling anyone who&#8217;ll listen that their planned $26 billion merger will bring some incredible benefits to American consumers. To hear the companies tell it, the industry&#8217;s latest super-union will result in faster speeds, broader broadband deployment, and a dramatic boost in well-paying American jobs. But if [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/2405664/John_Legere_1_2040.0.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="wp-block-paragraph">For the last year, T-Mobile and Sprint have been telling anyone who&rsquo;ll listen that their planned $26 billion merger will bring some incredible benefits to American consumers. To hear the companies tell it, the industry&rsquo;s latest super-union will result in faster speeds, broader broadband deployment, and a dramatic boost in well-paying American jobs.</p>

<p class="wp-block-paragraph">But if you&rsquo;ve seen telecom mergers go through this process before, there&rsquo;s plenty of reason to be skeptical. Consolidation tends to make prices higher, connectivity worse, and customer service even more terrible. Pre-merger promises to do better are <a href="https://www.theverge.com/2018/7/26/17617792/spectrum-expand-braodband-network-fail-new-york-operations-charter-communications">usually hollow</a>, as consumer advocates, unions, and many <a href="https://news.bloomberglaw.com/mergers-and-antitrust/sprints-failing-firm-plea-likely-put-to-high-standard-test">antitrust experts</a> all agree. For Sprint and T-Mobile, the biggest new wrinkle is the promised arrival of 5G, but that new tech is just cover for the same promises of better service and broader access &mdash; promises that are shaky at best.</p>

<p class="wp-block-paragraph">To gain FCC approval, <a href="https://www.t-mobile.com/news/new-t-mobile-commitments">T-Mobile promised</a> to deploy a 5G network covering 97 percent of the US population within three years, and 99 percent of Americans within six years. &ldquo;The construction of this network and the delivery of such high-speed wireless services to the vast majority of Americans would substantially benefit consumers and our country as a whole,&rdquo; the FCC claimed.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“Vague and unenforceable”</p></blockquote></figure>
<p class="wp-block-paragraph">As a result, the FCC this week stated it would be <a href="https://www.theverge.com/2019/5/20/18632394/t-mobile-sprint-merger-fcc-chair-approval-fast-5g-rollout">approving the deal</a>, insisting the merger would be a net positive for American consumers. The deal still needs to be approved by the Department of Justice, which has shown <a href="https://www.bloomberg.com/news/articles/2019-05-20/doj-said-to-lean-against-approving-t-mobile-s-takeover-of-sprint">growing skepticism</a>, but as far as FCC boss Ajit Pai is concerned, T-Mobile&rsquo;s promises are money in the bank.</p>

<p class="wp-block-paragraph">In a <a href="https://docs.fcc.gov/public/attachments/DOC-357535A1.pdf">statement</a>, Pai claimed T-Mobile would &ldquo;suffer serious consequences&rdquo; if they failed to follow through on this deployment pledge. &ldquo;These consequences, which could include total payments to the U.S. Treasury of billions of dollars, create a powerful incentive for the companies to meet their commitments on time,&rdquo; Pai said.</p>

<p class="wp-block-paragraph">But Gigi Sohn, a lawyer with the FCC under the Obama administration, told <em>The Verge</em> T-Mobile&rsquo;s promises were &ldquo;vague and unenforceable,&rdquo; and it was unlikely Pai would follow through.</p>

<p class="wp-block-paragraph">&ldquo;I have little hope that this Chairman will enforce any of these promises, if he is even around when they become due,&rdquo; Sohn said. &ldquo;In nearly two and a half years, the Trump FCC has not taken even one action that is contrary to the interests of the big mobile carriers.&rdquo;</p>

<p class="wp-block-paragraph">Sohn pointed to the Pai FCC&rsquo;s failure to address the wireless industry&rsquo;s <a href="https://gizmodo.com/ajit-pai-warned-lying-to-congress-is-a-federal-crime-a-1834799010">ongoing location data scandals</a>, or or its failed promises in the wake of hurricanes in both <a href="https://www.vice.com/en_us/article/a3xkak/the-fcc-flubbed-the-puerto-rico-hurricane-response-and-wont-answer-questions-about-it">Florida and Puerto Rico</a>. As the net neutrality fight made clear, the Pai FCC&rsquo;s focus has been on prioritizing the industry&rsquo;s desires, not holding it accountable for misdeeds, she said. &nbsp;</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“A sad joke, and nothing more”</p></blockquote></figure>
<p class="wp-block-paragraph">&ldquo;Even if Chairman Pai&rsquo;s successor was more willing to enforce these conditions, they would certainly be subject to delaying tactics and litigation from the &lsquo;new&rsquo; T-Mobile,&rdquo; Sohn said.</p>

<p class="wp-block-paragraph">Both companies have already said they would have <a href="https://arstechnica.com/tech-policy/2018/05/t-mobile-and-sprint-dont-need-to-merge-for-5g-they-said-so-two-months-ago/">deployed these 5G networks anyway</a> to keep pace with AT&amp;T and Verizon, so the proposed merger can&rsquo;t fairly take credit for their 5G rollout. Reducing the total number of competitors only reduces the competitive incentive to improve service or invest in broader availability.</p>

<p class="wp-block-paragraph">Given the US government&rsquo;s history of <a href="https://www.theverge.com/2018/9/24/17882842/us-internet-broadband-map-isp-fcc-wireless-competition">terrible service maps</a>, confirming T-Mobile adhered to its promises would be an uphill climb, even for a third-party auditor. The government has only a fleeting idea where service currently is, making tracking improvement difficult. Industry lobbyists have <a href="https://www.techdirt.com/articles/20171017/10292938419/big-isps-lobby-to-kill-attempts-more-accurate-broadband-mapping.shtml">routinely fought against</a> better mapping.</p>

<p class="wp-block-paragraph">&ldquo;It&rsquo;s universally agreed upon that the FCC&rsquo;s maps are based on flawed data, and T-Mobile was caught red-handed claiming that its coverage in Vermont and other states <a href="https://www.burlingtonfreepress.com/story/news/local/vermont/2019/01/24/vermont-cell-phone-coverage-maps-dead-zone-verizon-att/2467205002/">was far greater than it was</a>,&rdquo; Sohn says. &ldquo;So we can&rsquo;t rely either on the government or T-Mobile to be accurate about whether these coverage conditions have been met or not.&rdquo;</p>

<p class="wp-block-paragraph">There are also good reasons to think rates would go up after the merger. In countries from <a href="http://www.michaelgeist.ca/2019/01/the-canadian-wireless-story-comparative-data-shows-worlds-highest-carrier-revenues-per-sim/">Canada</a> to <a href="https://www.rte.ie/news/business/2018/0703/976009-mobile-user-prices/">Ireland</a>, the reduction of major wireless competitors from four to three also directly contributed to significantly higher rates for mobile data. While T-Mobile promised the FCC it would avoid raising rates for a period of three years, that waiting period wouldn&rsquo;t protect consumers in the long term, as consumer group Free Press <a href="https://www.freepress.net/news/press-releases/chairman-pai-ignores-public-interest-recommend-approval-harmful-t-mobilesprint">argued in a statement</a> shortly after Pai announced his support.</p>

<p class="wp-block-paragraph">&rdquo;The supposed three-year price freeze is meaningless in a wireless market where prices are falling and likely would continue to drop in the absence of this merger,&rdquo; the group argued. &ldquo;The little bit of price competition people have enjoyed thanks to the rivalry between Sprint and T-Mobile could keep sending prices lower. So a meaningless and unenforceable promise to just tread water where we are now is a sad joke, and nothing more.&rdquo;</p>

<p class="wp-block-paragraph">Sprint claims it wouldn&rsquo;t survive without such a deal, but DOJ regulators have been <a href="https://news.bloomberglaw.com/mergers-and-antitrust/sprints-failing-firm-plea-likely-put-to-high-standard-test">skeptical toward that claim</a>. There are a number of other potential partners, including Comcast and Dish Network, that could buy out Sprint without eliminating a direct competitor.</p>

<p class="wp-block-paragraph">T-Mobile&rsquo;s history as a disruptive carrier in the wake of the failed AT&amp;T merger &mdash; not to mention its sometimes <a href="https://www.theverge.com/2016/1/7/10733452/john-legere-identity-crisis-fuck-fuck-fuc">profanity-using CEO</a> &mdash; seems to have convinced some of the company&rsquo;s fans that this merger will be better than the countless other mega deals before it. But consumer advocates say that&rsquo;s wishful thinking, and the data on the costs of consolidation is very clear.</p>
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			<author>
				<name>Karl Bode</name>
			</author>
			
			<title type="html"><![CDATA[The White House is using fuzzy math to justify net neutrality veto]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/2019/4/9/18302113/net-neutrality-veto-white-house-donald-trump-save-the-internet-act-broadband" />
			<id>https://www.theverge.com/2019/4/9/18302113/net-neutrality-veto-white-house-donald-trump-save-the-internet-act-broadband</id>
			<updated>2019-04-09T12:16:56-04:00</updated>
			<published>2019-04-09T12:16:56-04:00</published>
			<category scheme="https://www.theverge.com" term="Net Neutrality" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Report" />
							<summary type="html"><![CDATA[In a statement on Monday, the White House promised to veto the Save the Internet Act &#8212; a bill designed to restore net neutrality protections and undo the FCC&#8217;s extremely unpopular 2017 decision to repeal them. To justify the veto, the statement painted a picture of surging broadband investment and robust new networks, free to [&#8230;]]]></summary>
			
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<p class="wp-block-paragraph">In a statement on Monday, the White House <a href="https://www.theverge.com/2019/4/8/18301124/white-house-trump-net-neutrality-veto-bill-democrats-congress">promised to veto</a> the <a href="https://www.theverge.com/2019/3/6/18253176/net-neutrality-bill-democrats-law-fcc-house-senate-congress">Save the Internet Act</a> &mdash; a bill designed to restore net neutrality protections and undo the FCC&rsquo;s <a href="http://www.publicconsultation.org/united-states/overwhelming-bipartisan-public-opposition-to-repealing-net-neutrality-persists/">extremely unpopular</a> 2017 decision to repeal them. To justify the veto, the statement painted a picture of surging broadband investment and robust new networks, free to flourish now that Title II was out of the way.</p>

<p class="wp-block-paragraph">&ldquo;Since the new rule was adopted in 2018, consumers have benefited from a greater than 35 percent increase in average, fixed broadband download speeds, and the United States rose to sixth, from thirteenth, in the world for those speeds,&rdquo; the White House said. &ldquo;In 2018, fiber was also made available to more new homes than in any previous year, and capital investment by the Nation&rsquo;s top six Internet service providers increased by $2.3 billion.&rdquo;</p>

<p class="wp-block-paragraph">Unfortunately for the White House, there&rsquo;s no evidence to suggest any of those improvements had anything to do with killing net neutrality. Some of the data points aren&rsquo;t accurate, and others are the result of policies from past administrations.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>One figure comes from a telecom group’s press release</p></blockquote></figure>
<p class="wp-block-paragraph">The first portion of the government&rsquo;s data comes courtesy of an <a href="https://www.speedtest.net/reports/united-states/">Ookla broadband speed report from last December</a>, which found that average fixed broadband speeds increased by 35.8 percent in 2018. However, the speed tests at the heart of the report were conducted by Ookla users between Q2 and Q3 of last year. Net neutrality wasn&rsquo;t formally repealed <a href="https://www.washingtonpost.com/news/the-switch/wp/2018/06/11/the-fccs-net-neutrality-rules-are-officially-repealed-today-heres-what-that-really-means/?utm_term=.f709c454b5f7">until June 11th</a> of 2018 &mdash; or about halfway through the measurement period in question. There&rsquo;s no evidence to suggest the net neutrality repeal impacted these numbers one way or the other, and past analysis has shown recent broadband growth to be <a href="https://arstechnica.com/tech-policy/2019/02/ajit-pai-says-broadband-access-is-soaring-and-that-hes-the-one-to-thank/">well in line with past years</a>.</p>

<p class="wp-block-paragraph">The claim about record deployment of fiber (<a href="https://docs.fcc.gov/public/attachments/DOC-356271A1.pdf">a favorite of Pai&rsquo;s FCC</a>) also has less to do with deregulation than the White House would have you believe. At least half of 2018&rsquo;s 5.6 million new fiber-connected homes are included as a condition of AT&amp;T&rsquo;s merger with Time Warner, negotiated by the previous FCC. As part of that agreement, AT&amp;T agreed to deploy fiber to an additional <a href="https://arstechnica.com/information-technology/2015/07/att-gets-directv-merger-approval-must-deploy-fiber-to-12-5m-customers/">3 million homes every year</a>; a far cry from the &ldquo;light-touch regulatory scheme&rdquo; the government claims was responsible for the growth.</p>

<p class="wp-block-paragraph">There&rsquo;s a litany of other reasons why 2018 broadband speed improvements likely had nothing to do with net neutrality. Cable operators spent much of 2018 finishing up relatively inexpensive <a href="https://www.multichannel.com/news/comcast-reaches-the-finish-line-on-docsis-3-1-deployment">DOCSIS 3.1 cable upgrades</a>, which began before Trump was elected. Other improvements were courtesy of community broadband efforts the Trump FCC has <a href="https://www.techdirt.com/articles/20181214/09090241227/fccs-orielly-keeps-claiming-with-zero-evidence-that-community-broadband-is-ominous-threat-to-free-speech.shtml">actively opposed</a>.</p>

<p class="wp-block-paragraph">One of the other figures is pulled directly from a telecom lobbying group&rsquo;s press release. The White House boasted that telecoms had invested $2.3 billion in better networks over the course of 2018 &mdash; but the figure seems to have come from <a href="https://www.ustelecom.org/broadband-investment-in-2018-continues-on-upswing/">a press release sent out by USTelecom</a>, a major broadband lobbying group, which attributed the rise to the FCC&rsquo;s new hands-off approach. But not everyone agrees: consumer groups say the connection <a href="https://www.freepress.net/policy-library/broadband-investment-basics">isn&rsquo;t supported by hard data</a> &mdash; and <a href="https://arstechnica.com/information-technology/2017/05/title-ii-hasnt-hurt-network-investment-according-to-the-isps-themselves/">industry CEOs</a> have even disputed that the Title II was stifling investment.</p>

<p class="wp-block-paragraph">&ldquo;Whether we look at inflation-adjusted figures or nominal values, these companies did not invest $2.3 billion more in 2018 than they did in 2017,&rdquo; Free Press general counsel Matt Wood told <em>The Verge</em>. &ldquo;In fact, four of those six companies saw investment declines in 2018, and the total decline for all of them put together was more than $1.5 billion&rdquo; said Wood, who pointed to his group&rsquo;s <a href="https://www.freepress.net/our-response/expert-analysis/insights-opinions/raw-data-reveal-reality-title-ii-and-neutrality">own analysis of the data</a>.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“We’re getting more and more members of Congress on the record in support of real net neutrality protections”</p></blockquote></figure>
<p class="wp-block-paragraph">Wood said there are lots of reasons why industry investment ebbs and flows, including the level of competition ISPs face in their home territories. Few, if any, of those reasons have anything to do with the Pai FCC&rsquo;s decision to repeal net neutrality.</p>

<p class="wp-block-paragraph">&ldquo;To claim that large ISPs increased their spending when they did just the opposite&mdash;whatever the natural cause for such decreases&mdash;is a fraud designed to deter Members of Congress from voting for rules that their constituents need and <a href="http://www.publicconsultation.org/united-states/overwhelming-bipartisan-public-opposition-to-repealing-net-neutrality-persists/">demand by 4 to 1 margins</a>,&rdquo; Wood said.</p>

<p class="wp-block-paragraph">Regardless, the Save the Internet Act still faces long odds as it winds its way through the legislative process. While it may survive a vote today in the House, it faces a tougher uphill battle in passing the Senate and avoiding a Trump veto. Should it fail, the rules could still be restored by an ongoing lawsuit filed by <a href="https://www.theverge.com/2018/8/21/17763448/net-neutrality-state-attorneys-general-court-filing-fcc">23 state attorneys general</a>.</p>

<p class="wp-block-paragraph">&ldquo;It&rsquo;s obviously a long shot,&rdquo; Fight for the Future deputy director Evan Greer told <em>The Verge</em>. &ldquo;But so was stopping SOPA,&rdquo; they said, referring to a hugely controversial copyright law only thwarted due to <a href="https://www.theverge.com/2011/12/23/2657485/sopa-pipa-debate-boycott-petition-activism-bieber">immense internet backlash</a>.</p>

<p class="wp-block-paragraph">&ldquo;Either way, we&rsquo;re getting more and more members of Congress on the record in support of real net neutrality protections,&rdquo; Greer said. &ldquo;That&rsquo;s the key for restoring net neutrality in the long term, and the Save the Internet Act gives us a powerful path to push our way toward that goal.&rdquo;</p>
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