What does Brendan Carr’s Appointment as Next FCC Chairman Mean for US Fiber Broadband?
Almost all telecom industry professionals anticipated this, and Donald Trump appointed Commissioner Brendan Carr as the next chairman of the Federal Communications Commission (FCC). It remains to be seen how the FCC under Carr’s leadership will develop, but Fierce Network has stated that they do have a fairly good understanding of how it will handle certain policy issues, particularly in broadband.
-As the Chairman of the FCC, Carr is likely to support Elon Musk’s efforts to push BEAD funding for satellite broadband, while also expressing opinions on spectrum policy issues that benefit Starlink.
-Project 2025 outlines many of Carr’s positions on telecommunications and technology policies, most of which are not within the jurisdiction of the FCC.
-Industry organizations FBA and ITIF have issued some cautious comments on this news.
Trump said in a statement last Sunday that Carr “will end the regulatory wave that has put America’s job creators and innovators in trouble and ensure that the FCC serves rural areas”.
Carr has been serving as a commissioner since 2017 and emphasized his policy views in the FCC section of the Project 2025 proposal. For example, he advocates for improving spectrum coordination processes and ending wasteful broadband spending policies. He also advocates that large technology companies should contribute to the Universal Service Fund (USF).
According to Blair Levin, a policy analyst at New Street Research, it is even more difficult to predict how Carr will “reconcile the contradictions between his past positions and the influence that the Trump White House wants to exert.
Musk’s Business
Billionaire Elon Musk, owner of SpaceX and its subsidiary satellite service Starlink, is expected to become an important figure in telecommunications and technology policies. Trump announced last week that Musk and entrepreneur Vivek Ramaswamy will lead a new ‘government efficiency department’. Musk may also push for a refocusing on the BEAD program, shifting from fiber optic to satellite broadband to address the digital divide.
Although Carr does not have direct influence over BEAD, “we believe he will support Musk’s efforts to transfer funds originally intended for fiber optics to satellites,” Levin wrote in a report to investors on Monday. Musk may also urge the FCC to allocate more spectrum to Starlink.
However, Project 2025 does not explicitly state what we can expect from the FCC under Carr’s leadership.
Levin stated that most of Carr’s suggestions, such as cracking down on various technology platforms, are in the hands of other government agencies. Apart from calling on Congress to require tech companies to contribute to USF, Carr did not elaborate on his views on distribution system reform.
Furthermore, Carr did not mention in this chapter how he will respond to the expiration of the Affordable Connectivity Program (ACP) or the transition of the telecommunications industry from copper cables.
According to Levin, these are two issues that the FCC may have significant market impact on.
John Heitmann, legal counsel for the National Lifeline Association (NaLa), recently told Fierce that the FCC under Carr’s leadership may take on “more limited responsibilities” on telecommunications issues, and the agency will seek congressional answers to any major policy questions.
If following tradition, Rosenworcel would resign near the inauguration date of Trump on January 20th. The ruling party usually maintains a 3-2 majority in the FCC in order to implement the president’s policy agenda.
This means Carr needs to wait for confirmation from the third Republican before advancing his agenda, “Policyband publisher Ted Hearn wrote in Monday’s communication.
Industry groups express praise – with reservations
Various industry groups, including wireless organizations CTIA and VNet, ITIF, NTCA (Rural Broadband Association), and Fiber Broadband Association (FBA), have issued statements congratulating Carr on his appointment.
Joe Kane, Director of Broadband and Spectrum Policy at ITIF, stated that Carr “should be careful not to let the FCC go beyond its scope of responsibility” in his new role.
“Adhering to the FCC’s limited jurisdiction agenda will be crucial,” Kane stated. “Expanding the regulatory scope to target ‘large-scale technology’ or other political goals with partisan undertones would be inconsistent with the authorization of the new government.”
FBA President Gary Bolton stated that the US government still has a lot of work to do to ensure that every community has access to the valuable applications of high-speed broadband connectivity.
“We will continue to unswervingly support all policy makers and provide them with research, resources and expertise to help them make the best decisions for Americans,” he said.