Communications

Telegram CEO Arested In France (yahoo.com) 163

Telegram's billionaire founder/CEO Pavel Durov was arrested Saturday night outside Paris, reports Reuters, citing French TV news stations TF1 TV and BFM TV which attributed the news to unnamed sources: Durov was travelling aboard his private jet, TF1 said on its website, adding he had been targeted by an arrest warrant in France as part of a preliminary police investigation. TF1 and BFM both said the investigation was focused on a lack of moderators on Telegram, and that police considered that this situation allowed criminal activity to go on undeterred on the messaging app.
Thanks to long-time Slashdot reader sinij for sharing the news.
Social Networks

Families Can Sue App Developer For Breaking Its Anti-Bullying Pledge, Says Court (theverge.com) 37

The Verge's Adi Robertson reports: An appeals court revived a lawsuit against the anonymous messaging service Yolo, which allegedly broke a promise to unmask bullies on the app. In a ruling (PDF) issued Thursday, the Ninth Circuit Court of Appeals said Section 230 of the Communications Decency Act shouldn't block a claim that Yolo misrepresented its terms of service, overruling a lower court decision. But it determined the app can't be held liable for alleged design defects that allowed harassment, letting a different part of that earlier ruling stand.

Yolo was a Snapchat-integrated app that let users send anonymous messages, but in 2021, it was hit with a lawsuit after a teenage user died by suicide. The boy, Carson Bride, had received harassing and sexually explicit messages from anonymized users that -- he believed -- he likely knew. Bride and his family attempted to contact Yolo for help, but Yolo allegedly never answered, and in some cases, emails to the company simply bounced. Snap banned Yolo and another app targeted in the lawsuit, and a year later, it banned all anonymous messaging integration. Bride's family and a collection of other aggrieved parents argued that Yolo broke a legally binding promise to its users. They pointed to a notification where Yolo claimed people would be banned for inappropriate use and deanonymized if they sent "harassing messages" to others. But as the ruling summarizes, the plaintiffs argued that "with a staff of no more than ten people, there was no way Yolo could monitor the traffic of ten million active daily users to make good on its promise, and it in fact never did." Additionally, they claimed Yolo should have known its anonymous design facilitated harassment, making it defective and dangerous.

A lower court threw out both of these claims, saying that under Section 230, Yolo couldn't be held responsible for its users' posts. The appeals court was more sympathetic. It accepted the argument that families were instead holding Yolo responsible for promising users something it couldn't deliver. "Yolo repeatedly informed users that it would unmask and ban users who violated the terms of service. Yet it never did so, and may have never intended to," writes Judge Eugene Siler, Jr. "While yes, online content is involved in these facts, and content moderation is one possible solution for Yolo to fulfill its promise, the underlying duty ... is the promise itself." The Yolo suit built on a previous Ninth Circuit ruling that let another Snap-related lawsuit circumvent Section 230's shield. In 2021, it found Snap could be sued for a "speed filter" that could implicitly encourage users to drive recklessly, even if users were responsible for making posts with that filter. (The overall case is still ongoing.) On top of their misrepresentation claim, the plaintiffs argued Yolo's anonymous messaging capability was similarly risky, an argument the Ninth Circuit didn't buy -- "we refuse to endorse a theory that would classify anonymity as a per se inherently unreasonable risk," Siler wrote.

The Almighty Buck

Telecom Behind AI Biden Robocall Settles With FCC For $1 Million (cyberscoop.com) 20

New submitter ElimGarak000 shares a report from CyberScoop: The Texas-based voice service provider that sent AI-generated robocalls of President Joe Biden to New Hampshire voters ahead of its Democratic presidential primary has agreed to pay a $1 million fine and implement enhanced verification protocols designed to prevent robocalls and phone number spoofing in a settlement with the Federal Communications Commission. The fine represents half the amount the FCC was originally seeking in an enforcement action proposed against Lingo Telecom in May. Despite that, agency leaders characterized the settlement (PDF) as a successful effort to defend U.S. telecommunications networks and election infrastructure from nascent AI and deepfake technologies. [...]

In addition to the fine, the settlement requires Lingo Telecom to follow regulatory protocols that were put in place in 2020 to ensure telecommunications carriers authenticate caller identities using their networks. The protocols, known as STIR/SHAKEN, require carriers like Lingo to digitally verify and formally attest to the FCC that callers are legitimate and own the phone number they display on Caller ID. In the New Hampshire robocall case, Kramer and Life Corporation spoofed the phone number of Kathy Sullivan, a former state Democratic party official who was running a write-in campaign for Biden.

The FCC cited Lingo's inability to properly implement and enforce STIR/SHAKEN as a key failure in a February cease-and-desist letter, and again in May when the agency proposed a $2 million enforcement action. The company was also named in a civil lawsuit filed by the League of Women Voters and New Hampshire residents, seeking damages over the incident. Per terms of the settlement, Lingo Telecom must hire a senior manager knowledgeable in STIR/SHAKEN protocols and develop a compliance plan, new operating procedures and training programs. They must also report any incidents of non-compliance with STIR/SHAKEN within 15 days of discovery.
"Every one of us deserves to know that the voice on the line is exactly who they claim to be," FCC Chairwoman Jessica Rosenworcel said in a statement. "If AI is being used, that should be made clear to any consumer, citizen, and voter who encounters it. The FCC will act when trust in our communications networks is on the line."
Communications

Apple is Building Its Own Cellular Modem, Playing 'Long Game' to Drop Qualcomm (bloomberg.com) 92

Bloomberg's Mark Gruman remembers how Apple's hardware group "allowed Apple to dump Intel chips from its entire Mac lineup."

And they're now building an in-house cellular modem: For more than a decade, Apple has used modem chips designed by Qualcomm... But in 2018 — while facing a legal battle over royalties and patents — Apple started work on its own modem design.... It's devoting billions of dollars, thousands of engineers and millions of working hours to a project that won't really improve its devices — at least at the outset...

Over the past few years, Apple's modem project has suffered numerous setbacks. There have been problems with performance and overheating, and Apple has been forced to push back the modem's debut until next year at the earliest. The rollout will take place on a gradual basis — starting with niche models — and take a few years to complete. In a sign of this slow transition, Apple extended its supplier agreement with Qualcomm through March 2027... But Qualcomm has said that Apple will still have to pay it some royalties regardless (the chipmaker believes that Apple won't be able to avoid infringing its patents).

So it's hard to tell how big the benefits will be in the near term. Down the road, there are plans for Apple to fold its modem design into a new wireless chip that handles Wi-Fi and Bluetooth access. That would create a single connectivity component, potentially improving reliability and battery life. There's also the possibility that Apple could one day combine all of this into the device's main system on a chip, or SoC. That could further cut costs and save space inside the iPhone, allowing for more design choices. Furthermore, if Apple does ultimately save money by switching away from Qualcomm, it could redirect that spending toward new features and components.

AT&T

As 17,000 AT&T Workers Strike, Some Customers Experience 'Prolonged' Outages (newsobserver.com) 40

17,000 AT&T workers from the CWA union went on strike Friday. NPR notes the strike affects workers in nine states: Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. A North Carolina newspaper says the union will remain on strike until they believe AT&T "begins to bargain over a new contract in good faith" after their previous contract expired back on August 3.

And meanwhile, their article notes that the strike comes as some AT&T customers in North Carolina's Raleigh-Durham-Chapel Hill area "report prolonged internet outages." Saturday afternoon, AT&T also reported internet outages within a circle of northern Charlotte neighborhoods. "As far as the impact, the trained, experienced CWA members who are on strike do critical work installing, maintaining and supporting AT&T's residential and business wireline telecommunications network," CWA communications director Beth Allen said. "Customers should be aware that these workers will not be available to respond to service calls during the strike."

Since at least Wednesday, AT&T internet customers in Durham have reported being without residential service. According to the company's website, outages have been detected across a wide section of the city, including downtown and around Duke University.

AT&T has alerted some affected residents in southwest Durham their internet service "should be online" by Tuesday morning.

An AT&T spokesperson told the newspaper that "We have various business continuity measures in place to avoid disruptions to operations and will continue to provide our customers with the great service they expect."

A union executive said in a statement that AT&T's contract negotiators "did not seem to have the actual bargaining authority required by the legal obligation to bargain in good faith. Our members want to be on the job, providing the quality service that our customers deserve. It's time for AT&T to start negotiating in good faith so that we can move forward towards a fair contract."
Communications

AT&T and Verizon Ask FCC To Throw a Wrench Into Starlink's Mobile Plan (arstechnica.com) 94

AT&T and Verizon are urging the FCC to reject SpaceX's plan to offer cellular service with T-Mobile, arguing that it would cause harmful interference to terrestrial mobile networks. Ars Technica reports: Filings urging the Federal Communications Commission to deny SpaceX's request for a waiver were submitted by AT&T and Verizon this week. The plan by SpaceX's Starlink division also faces opposition from satellite companies EchoStar (which owns Dish and Hughes) and Omnispace. SpaceX and T-Mobile plan to offer Supplemental Coverage from Space (SCS) for T-Mobile's cellular network using SpaceX satellites. As part of that plan, SpaceX is seeking a waiver of FCC rules regarding out-of-band emission limits.

AT&T's petition to deny the SpaceX waiver request said the FCC's "recent SCS order appropriately recognized that SCS deployments should not present any risk to the vital terrestrial mobile broadband networks upon which millions of Americans rely today. The Commission authorized SCS as secondary to terrestrial mobile service, correctly explaining that the SCS framework must 'retain service quality of terrestrial networks, protect spectrum usage rights, and minimize the risk of harmful interference.'" AT&T said SpaceX's requested "ninefold increase" to the allowable power flux-density limits for out-of-band emissions "would cause unacceptable harmful interference to incumbent terrestrial mobile operations. Specifically, AT&T's technical analysis shows that SpaceX's proposal would cause an 18% average reduction in network downlink throughput in an operational and representative AT&T PCS C Block market deployment." Verizon's opposition to the waiver request similarly said that SpaceX's proposal "would subject incumbent, primary terrestrial licensee operations in adjacent bands to harmful interference." Wireless phone performance will suffer, Verizon said [...].
SpaceX and T-Mobile told FCC staff that their plan will not harm other wireless operations and predicted that competitors will make misleading claims. SpaceX also argued that the FCC's emissions limit is too strict and should be changed.
Android

Google's Pixel 9 Phones Are the First To Get Satellite SOS For Android (theverge.com) 21

Google's Brian Rakowski announced today that the new Pixel 9 lineup will be the first Android phones to feature Satellite SOS. The Verge reports: The feature launches first in the US "regardless of your carrier plan," Rakowski said, though it won't be available in Hawaii and Alaska, per a support page. According to fine print shown during Google's livestream, the service will be included "at no additional charge for the first two years after activation of devices." A blog post by Rakowski qualifies that further, saying that it will be free for those first two years "on Pixel." And it's unclear when the feature might arrive for other Android phones.
Republicans

FBI Investigating After Trump Campaign Says It Was Hacked (thehill.com) 75

Over the weekend, former President Donald Trump's campaign said that it had been hacked, with internal documents reportedly obtained illegally by foreign sources to interfere with the 2024 election. While the Trump campaign claimed that Iran was responsible, it is unclear who exactly was behind the incident. The FBI said it was aware of the allegations and confirmed Monday that it is "investigating this matter." The Hill reports: U.S. agencies have thus far failed to comment on the claims that Iran was responsible for the hack, even as recent intelligence community reports have noted growing Iranian efforts to influence the U.S. election. "This is something we've raised for some time, raised concerns that Iranian cyber actors have been seeking to influence elections around the world including those happening in the United States," John Kirby, the White House's national security communications adviser, told reporters Monday. "These latest attempts to interfere in U.S. elections is nothing new for the Iranian regime, which from our vantage point has attempted to undermine democracies for many years now."

A report from the Office of the Director of National Intelligence released last month noted Iranian efforts designed to "fuel distrust in U.S. political institutions and increase social discord." "The IC has observed Tehran working to influence the presidential election, probably because Iranian leaders want to avoid an outcome they perceive would increase tensions with the United States. Tehran relies on vast webs of online personas and propaganda mills to spread disinformation," the report states, including being particularly active on exacerbating tensions over the Israel-Gaza conflict.

Businesses

Canceling Subscriptions Should Be As Easy As Signing Up, Newly Proposed federal Rule Says (go.com) 52

In an effort to beef up protections for consumers against corporations, the Biden administration on Monday announced a handful of policies to crack down on "headaches and hassles that waste Americans' time and money." From a report: Through the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC), the administration will ask companies to make it as easy to cancel subscriptions and memberships as it is to sign up for them, and through the Consumer Financial Protection Bureau, a new rule will require companies to let customers cut through automated customer service "doom loops" by pressing a single button to reach a real person.

"For a lot of services, it takes one or two clicks on your phone to sign up. It should take one or two clicks on your phone to end the service," White House Domestic Policy Advisor Neera Tanden said on a call with reporters to discuss the new policies. Consumers could see the new rule applied to gym memberships or subscriptions with phone and internet companies. The administration will also call on health insurance companies to allow claims to be submitted online, rather than requiring insured customers to print out and mail forms in for coverage.

Republicans

Trump's Campaign 'Says It Has Been Hacked', Reports CNN (cnn.com) 210

CNN reports: Former President Donald Trump's campaign said Saturday in a statement that it had been hacked.

Politico reported earlier Saturday that it had received emails from an anonymous account with documents from inside Trump's campaign operation. "These documents were obtained illegally from foreign sources hostile to the United States, intended to interfere with the 2024 election and sow chaos throughout our Democratic process," Trump campaign spokesperson Steven Cheung said in a statement to CNN.

Cheung pointed to a recent report published by Microsoft that said Iranian operatives had ramped up their attempts to influence and monitor the US presidential election by creating fake news outlets targeting liberal and conservative voters and by trying to hack an unnamed presidential campaign... Still, it's not clear whether Iran was responsible for the hack. CNN has reached out to the Iranian mission to the United Nations for comment...

Politico reported it had received emails that contained internal communications from a senior Trump campaign official and a [271-page] research dossier the campaign had put together on Trump's running mate, Ohio Sen. JD Vance. The dossier included what the Trump campaign identified as Vance's potential vulnerabilities...

In 2016, days before the Democratic National Convention, WikiLeaks published nearly 20,000 emails from the Democratic National Committee server.

Communications

FCC Proposes New Rules For AI-Generated Robocalls and Robotexts (engadget.com) 11

The FCC has proposed new rules governing the use of AI-generated phone calls and texts. Part of the proposal centers on create a clear definition for AI-generated calls, with the rest focuses on consumer protection by making companies disclose when AI is being used in calls or texts. A report adds: "This provides consumers with an opportunity to identify and avoid those calls or texts that contain an enhanced risk of fraud and other scams," the FCC said. The agency is also looking ensure that legitimate uses of AI to assist people with disabilities to communicate remains protected.
Communications

China Launches Satellites For Major Network To Rival Starlink (sciencealert.com) 63

An anonymous reader quotes a report originally published by Business Insider: A Chinese state-backed company has launched its first 18 satellites in its bid to build a vast orbital network aimed at rivaling Starlink, according to local media. The launch on Monday by Shanghai Spacecom Satellite Technology involved 18 satellites and one rocket, per The China Securities Journal, which is run by state news agency Xinhua. According to the outlet, the rocket lifted off from the Taiyuan satellite and missile launch center in Shanxi province.

These satellites mark the first step in the company's effort to create a 15,000-strong network of Low Earth Orbit satellites, which the firm has dubbed the "Thousand Sails Constellation." The company said it plans to reach that final tally by 2030, per The China Securities Journal. Domestic media has widely called the project the Chinese version of Starlink, which runs about 6,000 satellites. Elon Musk has said that he plans to eventually host a network of 42,000 satellites.

The Thousand Sails Constellation, also known as the G60 project, is one of three planned major satellite networks in the country. Each is expected to field 10,000 or more satellites. Most are anticipated to orbit between 200 and 1,200 miles above the Earth's surface, which is also where Starlink satellites are generally found. The three constellations, along with dozens of ambitious space projects from other Chinese firms, have been fueled by a recent push from the central government to loop the private sector into its science and technology goals.

Communications

SpaceX's New Direct-To-Cell Starlink Satellites Are Way Brighter Than the Originals (space.com) 70

According to a recent study, SpaceX's new Starlink direct-to-cell (DTC) satellites are nearly five times brighter than traditional Starlinks due to their lower orbit. While these satellites offer the promise of widespread connectivity, their increased brightness poses challenges for astronomical observations, prompting SpaceX to consider applying brightness mitigation techniques. Space.com reports: The higher luminosity of these DTCs compared to regular Starlinks is partly because they circle Earth at just 217 miles (350 kilometers) above the surface, which is lower than traditional Starlink internet satellites, whose altitude is 340 miles (550 kilometers), the study reported. [...] At the time the study was conducted, SpaceX had not yet applied its routine brightness mitigation techniques to the DTCs, such as adjusting their chassis and solar panels to reduce the portion of spacecraft illuminated by the sun, study lead author Anthony Mallama of the IAU Centre for the Protection of Dark and Quiet Skies from Satellite Constellation Interference (IAU-CPS) told Space.com.

SpaceX began applying brightness mitigation techniques to regular Starlinks in 2020, after astronomers voiced serious concerns about the satellites' trails streaking across telescope images, rendering them unusable. Prior to launch, the company now applies a mirror-like dielectric surface to the underside of each Starlink chassis, to help reflect sunlight into space rather than scattering it toward Earth. Post launch, the company adjusts spacecraft chassis and solar panels to further reduce luminosity. Together, these techniques are very effective, reducing Starlink satellites' brightness by a factor of 10, Mallama said. If SpaceX applies these brightness mitigation techniques to the DTCs, which are nearly the same size as the regular Starlinks, the DTCs would still be 2.6 times brighter than their traditional counterparts, Mallama and his colleagues reported in the recent study, which was reviewed internally by IAU-CPS and posted to the preprint server arXiv last month.

However, while DTCs are brighter objects, they move at a faster apparent rate and spend more time in Earth's shadow than regular Starlinks, which would offset some of their negative impact on astronomy observations, the study noted. "I see it as a tradeoff in parameters rather than an absolute better/worse kind of situation," John Barentine, a principal consultant at Arizona-based Dark Sky Consulting who was not involved with the new study, told Space.com.

The Internet

Indonesia Bans Search Engine DuckDuckGo On Gambling, Pornography Concerns (reuters.com) 71

An anonymous reader quotes a report from Reuters: Indonesia said it has banned the privacy-oriented search engine DuckDuckGo, citing concerns that it could be used to access pornography and online gambling websites which are illegal in the country, the communications ministry said on Friday. Indonesia, with the world's biggest Muslim population, has strict rules that ban the sharing online of content deemed obscene. Social media platform Reddit and video-hosting platform Vimeo are blocked.

Usman Kansong, a communications ministry official, told Reuters that DuckDuckGo had been blocked "because of the many complaints made to us about the rampant online gambling and pornography content in its search results." The ministry did not say how DuckDuckGo differs from other search engines such as Alphabet's Google but on its website, DuckDuckGo said it offered several products intended to "help people protect their online privacy" including the search engine, which it said has been praised by privacy advocates.

Government

Secret Service's Tech Issues Helped Shooter Go Undetected At Trump Rally (theguardian.com) 155

An anonymous reader quotes a report from The Guardian: The technology flaws of the U.S. Secret Service helped the gunman who attempted to assassinate Donald Trump during a rally in Butler, Pennsylvania, last month evade detection. An officer broadcast "long gun!" over the local law enforcement radio system, according to congressional testimony from the Secret Service this week, the New York Times reported. The radio message should have travelled to a command center shared between local police and the Secret Service, but the message was never received by the Secret Service. About 30 seconds later, the shooter, Thomas Crooks, fired his first shots.

It was one of several technology issues facing the Secret Service on 13 July due to either malfunction, improper deployment or the Secret Service opting not to utilize them. The Secret Service had also previously rejected requests from the Trump campaign for more resources over the past two years. The use of a surveillance drone was turned down by the Secret Service at the rally site and the agency also did not bring in a system to boost the signals of agents' devices as the area had poor cell service. And a system to detect drone use in the area by others did not work, according to the report in the New York Times, due to the communications network in the area being overwhelmed by the number of people gathered at the rally. The federal agency did not use technology it had to bolster their communications system. The shooter flew his own drone over the site for 11 minutes without being detected, about two hours before Trump appeared at the rally.
Ronald Rowe Jr, the acting Secret Service director, said it never utilized the technological tools that could have spotted the shooter beforehand.

A former Secret Service officer also told the New York Times he "resigned in 2017 over frustration with the agency's delays in evaluating new technology and getting clearance and funding to obtain it and then train officers on it," notes The Guardian. Furthermore, the Secret Service failed to record communications between federal and local law enforcement at the rally.
Communications

US Court Blocks Biden Administration Net Neutrality Rules (ksl.com) 103

schwit1 writes: A U.S. appeals court on Thursday blocked the Federal Communications Commission's reinstatement of landmark net neutrality rules, saying broadband providers are likely to succeed in a legal challenge. The agency voted in April along party lines to reassume regulatory oversight of broadband internet and reinstate open internet rules adopted in 2015 that were rescinded under then-President Donald Trump.

The Sixth Circuit U.S. Court of Appeals, which had temporarily delayed the rules, said on Thursday it would temporarily block net neutrality rules and scheduled oral arguments for late October or early November on the issue, dealing a serious blow to President Joe Biden's effort to reinstate the rules. "The final rule implicates a major question, and the commission has failed to satisfy the high bar for imposing such regulations," the court wrote. "Net neutrality is likely a major question requiring clear congressional authorization."

The Internet

Low-Income Homes Drop Internet Service After Congress Kills Discount Program (arstechnica.com) 240

An anonymous reader quotes a report from Ars Technica: The death of the US government's Affordable Connectivity Program (ACP) is starting to result in disconnection of Internet service for Americans with low incomes. On Friday, Charter Communications reported a net loss of 154,000 Internet subscribers that it said was mostly driven by customers canceling after losing the federal discount. About 100,000 of those subscribers were reportedly getting the discount, which in some cases made Internet service free to the consumer. The $30 monthly broadband discounts provided by the ACP ended in May after Congress failed to allocate more funding. The Biden administration requested (PDF) $6 billion to fund the ACP through December 2024, but Republicans called the program "wasteful."

Republican lawmakers' main complaint was that most of the ACP money went to households that already had broadband before the subsidy was created. FCC Chairwoman Jessica Rosenworcel warned that killing the discounts would reduce Internet access, saying (PDF) an FCC survey found that 77 percent of participating households would change their plan or drop Internet service entirely once the discounts expired. Charter's Q2 2024 earnings report provides some of the first evidence of users dropping Internet service after losing the discount. "Second quarter residential Internet customers decreased by 154,000, largely driven by the end of the FCC's Affordable Connectivity Program subsidies in the second quarter, compared to an increase of 70,000 during the second quarter of 2023," Charter said.

Across all ISPs, there were 23 million US households enrolled in the ACP. Research released in January 2024 found that Charter was serving over 4 million ACP recipients and that up to 300,000 of those Charter customers would be "at risk" of dropping Internet service if the discounts expired. Given that ACP recipients must meet low-income eligibility requirements, losing the discounts could put a strain on their overall finances even if they choose to keep paying for Internet service. [...] Light Reading reported that Charter attributed about 100,000 of the 154,000 customer losses to the ACP shutdown. Charter said it retained most of its ACP subscribers so far, but that low-income households might not be able to continue paying for Internet service without a new subsidy for much longer.

ISS

NASA Fires Lasers At the ISS (theverge.com) 28

joshuark shares a report from The Verge: NASA researchers have successfully tested laser communications in space by streaming 4K video footage originating from an airplane in the sky to the International Space Station and back. The feat demonstrates that the space agency could provide live coverage of a Moon landing during the Artemis missions and bodes well for the development of optical communications that could connect humans to Mars and beyond. NASA normally uses radio waves to send data and talk between the surface to space but says that laser communications using infrared light can transmit data 10 to 100 times faster than radios. "ISS astronauts, cosmonauts, and unwelcomed commercial space-flight visitors can now watch their favorite porn in real-time, adding some life to a boring zero-G existence," adds joshuark. "Ralph Kramden, when contacted by Ouiji board, simply spelled out 'Bang, zoom, straight to the moon!'"
The Internet

ISPs Seeking Government Handouts Try To Avoid Offering Low-Cost Broadband (arstechnica.com) 20

Internet service providers are pushing back against the Biden administration's requirement for low-cost options even as they are attempting to secure funds from a $42.45 billion government broadband initiative. The Broadband Equity, Access, and Deployment program, established by law to expand internet access, mandates that recipients offer affordable plans to eligible low-income subscribers, a stipulation the providers argue infringes on legal prohibitions against rate regulation. ISPs claim that the proposed $30 monthly rate for low-cost plans is economically unfeasible, especially in hard-to-reach rural areas, potentially undermining the program's goals by discouraging provider participation.
Communications

5th Circuit Court Upends FCC Universal Service Fund, Ruling It an Illegal Tax (arstechnica.com) 137

A U.S. appeals court has ruled that the Federal Communications Commission's Universal Service Fund, which collects fees on phone bills to support telecom network expansion and affordability programs, is unconstitutional, potentially upending the $8 billion-a-year system.

The 5th Circuit Court's 9-7 decision, which creates a circuit split with previous rulings in the 6th and 11th circuits, found that the combination of Congress's delegation to the FCC and the FCC's subsequent delegation to a private entity violates the Constitution's Legislative Vesting Clause. FCC Chairwoman Jessica Rosenworcel criticized the ruling as "misguided and wrong," vowing to pursue all available avenues for review.

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