The future of AI in the U.S. Depends on Fiber Optic and Licensing Reforms

The AI boom is turning the broadband bottleneck in the United States into an economic burden, and telecom industry executives testified before Congress on Thursday that the solution begins with fiber optics – and faster licensing approvals.

At the “Intelligent Networks” hearing held by the Senate Committee on Commerce, Science, and Transportation, USTelecom CEO Jonathan Spalter and Cisco Chief Architect Bob Everson both pointed out that AI is changing the form and direction of network traffic. The traffic not only shifts from the traditional downlink heavy asymmetric mode to a symmetric form, but also significantly increases the amount of data transmitted in the network.

Spatter said: “For 30 years, the Internet as we know it is like a highway. Imagine that there are eight lanes into the city, but only two lanes for the return trip. This asymmetric design is based on the assumption that ‘people and devices always receive more data than they send’. As we enter the AI phase of the Internet, this assumption is being completely broken. “

Everson added that Cisco’s testing showed that AI agents generate 450% more traffic than humans performing the same task, with 70% of the additional traffic coming from inference.

Spalter believes that fiber optic is the best choice for the AI era because its design allows for symmetric data streams without the need for upgrades. Like Spalter, Nebraska Public Service Commissioner Dan Watermeier emphasized the importance of fiber optic in safeguarding the country’s AI future, pointing out that other access technologies such as wireless, cable, and satellite rely on fiber optic networks. He added that fiber optic has been proven to be more resilient than some other technologies.

Asad Ramzanali, Director of AI and Technology Policy at Vanderbilt Policy Accelerator, said, “Fiber optic networks are the way data enters and exits AI data centers. To enable Americans to benefit from AI, every American must be able to access this system. We must prioritize the deployment of high-speed, reliable, and symmetrical networks that cover every household across the country. “

Persistent licensing issues

Spalter stated that the biggest obstacle for fiber optic providers to prepare for AI is not technology, but government approval processes. He specifically pointed out that licensing is a barrier to AI readiness and mentioned the “horror story” of federal licensing. Although operators can deploy networks within weeks or days, the licensing process often delays them for months or even years.

He called on Congress to pass three bills to address this issue – the CLOSE THE GAP Act, the Broadband and Telecommunications RAIL Act, and the Accelerated Broadband Licensing Act – and warned that without action, the country’s leadership position could be at risk.

Spalter said, “Without licensing reforms to accelerate fiber optic network deployment, not only AI, but our entire innovation economy is at risk of being frozen. It is the biggest stumbling block in our innovative economy. Only with equal emphasis on licensing reform can fiber optic networks be rapidly built on a large scale. “

Everson also called on Congress to modernize the licensing process to enable rapid deployment of new infrastructure, and urged Congress to consider the cost of operating AI ready networks when considering the future of the troubled Universal Service Fund. Watermeier emphasized that provider support from the Universal Service Fund will be “crucial” to ensure that rural communities can participate in the AI economy.

Watermeier stated, “For ordinary citizens, AI technology is only useful when they have access to broadband connectivity.”

However, Senator Ben Ray Luján believes that shifting the $42.5 billion BEAD project funding from fiber optic to other technologies is the bigger issue. He asked, “If we take the money from your hands, what’s the use of licensing reform? We can clear all obstacles, but what’s the point if you don’t have the money.”

Spalter stated that the provider plans to advance network construction through a combination of public and private funding, as well as public-private partnerships. The changes to the BEAD project have resulted in over $20 billion in unused funds, and NTIA is still developing rules for the use of these funds. Senator Shelley Capito suggested that these funds could be used to strengthen the construction of AI networks. Spalter stated that USTelecom has learned from NTIA that non deployment funding guidelines are about to be released, and “we hope it will be in September”. He added that “any funding should be an accelerator for the basic purpose of the BEAD project” and supported its use in areas such as resilience building, network training, accelerated licensing, and 911 architecture modernization.

Cybersecurity becomes the focus

Cybersecurity was also mentioned multiple times throughout the hearing. Senator Todd Young asked about the importance of real-time information sharing for operators to defend against AI driven attacks. Spalter stated that this is crucial, but pointed out that the authorization for information sharing by operators under CISA 2015 rules will expire at the end of September. He said, “Given the increasingly complex and advanced threats we face, this requires long-term reauthorization. Without the capabilities embedded in CISA 2015, we would not only be tied up with one hand, but both hands would be tied up. “