Telecommunications Regulatory Outlook

Policy Trends & Strategic Implications

By: Drew Campbell & Byron Campbell, Capitol Insights

March 2025

TABLE OF CONTENTS

1. Introduction
2. Evolving Regulatory Landscape
   • 2.1 Federal Regulatory Trends
   • 2.2 State-Level Developments
   • 2.3 Global Regulatory Perspectives
3. Key Regulatory Focus Areas
   • 3.1 Broadband Deployment & Digital Equity
   • 3.2 Spectrum Management & Allocation
   • 3.3 Network Security & Resilience
   • 3.4 Competition Policy & Market Structure
   • 3.5 Emerging Technologies Regulation
4. Industry Impact Analysis
   • 4.1 Wireless Carriers
   • 4.2 Wireline & Fiber Providers
   • 4.3 Cable & Video Services
   • 4.4 Satellite Services
   • 4.5 Equipment Manufacturers & Vendors
5. Strategic Considerations
   • 5.1 Regulatory Engagement Strategies
   • 5.2 Compliance Frameworks
   • 5.3 Business Planning Implications
6. Conclusion & Outlook

1. Introduction

The telecommunications regulatory environment continues to evolve rapidly in response to technological innovation, changing market dynamics, and shifting policy priorities. This analysis examines current regulatory trends and their implications for telecommunications companies, infrastructure providers, and related stakeholders.

The past few years have witnessed significant developments in telecommunications regulation, driven by:

• Renewed focus on closing the digital divide and promoting universal broadband access
• Growing concerns about network security, supply chain integrity, and critical infrastructure protection
• Accelerating deployment of 5G networks and the beginning of 6G research
• Emergence of new satellite technologies and non-traditional connectivity solutions
• Increased attention to competition policy in digital markets
• Evolving perspectives on spectrum management and allocation

These developments are reshaping the regulatory landscape and creating both challenges and opportunities for industry participants. This report provides a comprehensive overview of current trends, with particular attention to U.S. federal and state-level regulation, while also considering relevant global perspectives. The analysis offers insights into potential strategic responses to the evolving regulatory framework.

2. Evolving Regulatory Landscape

The telecommunications regulatory environment is shaped by multiple authorities at the federal, state, and international levels, creating a complex and sometimes overlapping framework.

2.1 Federal Regulatory Trends

At the federal level, the following trends are reshaping the regulatory landscape:

Federal Communications Commission (FCC) Priorities: The FCC has prioritized several key initiatives:

• Implementation of the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program in coordination with NTIA
• Renewed attention to the Universal Service Fund (USF) sustainability and reform
• Updating pole attachment rules to accelerate broadband deployment
• Enhancing network resilience and reliability requirements
• Implementing the Secure and Trusted Communications Networks Act provisions

National Telecommunications and Information Administration (NTIA) Initiatives: The NTIA has taken a more prominent role through:

• Administration of major broadband funding programs under the Infrastructure Investment and Jobs Act
• Development of the National Broadband Map to guide funding allocations
• Increased focus on spectrum policy coordination and planning
• Implementation of the Public Wireless Supply Chain Innovation Fund

Congressional Action: Congress has demonstrated renewed interest in telecommunications policy through:

• Oversight of broadband funding implementation
• Consideration of comprehensive spectrum legislation
• Hearings on industry competition and consolidation
• Exploration of privacy frameworks that could impact telecommunications providers

Executive Branch Influence: The executive branch has shaped telecommunications policy through:

• National security reviews of international transactions and investments
• Executive orders on cybersecurity and supply chain security
• Interagency coordination on broadband deployment and digital equity
• Trade policy affecting equipment and technology transfers

The current federal regulatory approach reflects a balance between promoting connectivity and addressing national security concerns, with significant attention to infrastructure investment and deployment.

2.2 State-Level Developments

State regulatory authorities continue to assert their role in telecommunications oversight, creating a sometimes complex relationship with federal regulation:

State Broadband Offices: Nearly all states have established dedicated broadband offices to:

• Coordinate with federal agencies on funding programs
• Develop state-specific broadband plans and funding mechanisms
• Implement digital equity and inclusion initiatives
• Establish state-level broadband maps and challenge processes

Public Utility Commissions: State PUCs remain active in:

• Oversight of service quality and consumer protection
• Review of mergers and acquisitions affecting in-state operations
• Administration of state universal service funds
• Implementation of emergency services and network reliability requirements

State Legislative Action: State legislatures have advanced various telecommunications initiatives:

• Broadband grant and deployment programs
• Pole attachment and rights-of-way legislation
• Small cell and wireless infrastructure deployment frameworks
• Consumer privacy and data security requirements
• Municipal broadband authorization or restriction

Preemption Tensions: Continuing tensions between federal and state authority have emerged in several areas:

• Network neutrality regulation
• Broadband service classification and oversight
• Consumer protection jurisdiction
• Infrastructure siting and deployment rules

State-level regulation continues to create both opportunities and challenges for telecommunications providers, particularly those operating across multiple jurisdictions.

State Policy Variation

States have adopted significantly different approaches to telecommunications regulation, creating a complex patchwork for multi-state operators. For example, 27 states have enacted small cell deployment legislation with varying provisions, while 18 states have imposed restrictions on municipal broadband. This variation necessitates state-specific compliance strategies and engagement approaches.

2.3 Global Regulatory Perspectives

International regulatory developments influence both global telecommunications policy and U.S. approaches:

European Union Framework: The EU's regulatory approach features:

• Implementation of the European Electronic Communications Code
• Digital Markets Act and Digital Services Act provisions affecting telecommunications
• Strengthened network security requirements under the NIS2 Directive
• Harmonized 5G security approach and vendor risk assessment

Asia-Pacific Developments: Key trends in major Asia-Pacific markets include:

• Accelerated 5G spectrum allocation and deployment requirements
• Increased focus on domestic technology development and standards
• Enhanced critical infrastructure protection frameworks
• Strategic competition in technology standards and development

International Standards Bodies: Organizations like the International Telecommunication Union (ITU) continue to influence global telecommunications through:

• Radio Regulations governing international spectrum use
• Technical standards development for next-generation networks
• Harmonization of security and interoperability requirements
• Coordination of satellite orbital slots and frequency assignments

Trade Agreements and Disputes: International trade frameworks increasingly address telecommunications through:

• Digital trade provisions in bilateral and multilateral agreements
• Equipment and technology export controls and restrictions
• Investment screening mechanisms affecting telecommunications
• Technical standards harmonization efforts

Global regulatory trends increasingly influence U.S. telecommunications policy, particularly in areas like supply chain security, technology standards, and cross-border data flows.

3. Key Regulatory Focus Areas

Several specific regulatory domains warrant particular attention due to their significant impact on telecommunications strategy and operations.

3.1 Broadband Deployment & Digital Equity

Closing the digital divide remains a central regulatory priority, with several key developments:

Infrastructure Investment and Jobs Act Implementation: The historic $65 billion investment in broadband includes:

• $42.5 billion for the BEAD Program targeting unserved and underserved areas
• $14.2 billion for the Affordable Connectivity Program (replacing the Emergency Broadband Benefit)
• $2.75 billion for Digital Equity Act programs
• $1 billion for middle mile infrastructure

Universal Service Fund Reform: The FCC is considering comprehensive USF reform addressing:

• Long-term sustainability of the contribution mechanism
• Coordination with other federal broadband funding
• Potential expansion of the contribution base to include broadband services
• Modernization of program objectives and priorities

Broadband Definition and Performance Standards: Regulatory frameworks increasingly feature:

• Updated speed and performance benchmarks (e.g., 100/20 Mbps for many funding programs)
• Quality of service and reliability requirements
• Affordability considerations in program design
• Technology neutrality balanced with performance requirements

Infrastructure Access Rules: Deployment-focused regulations address:

• Pole attachment rates, terms, and conditions
• Rights-of-way access and fee structures
• Dig once and conduit access requirements
• Building access for multiple tenant environments

Regulatory frameworks for broadband deployment increasingly emphasize not only availability but also affordability, reliability, and adoption, creating multifaceted compliance challenges.

3.2 Spectrum Management & Allocation

Spectrum policy continues to evolve to accommodate growing demand and new technologies:

Mid-Band Spectrum Focus: Regulatory attention has centered on mid-band spectrum through:

• Completion of the C-band transition for 5G services
• Planning for additional mid-band auctions (e.g., 3.1-3.45 GHz)
• Ongoing coordination of shared access in the 3.5 GHz CBRS band
• Evaluation of the 4.9 GHz public safety band for potential sharing

Millimeter Wave Developments: High-band spectrum policy includes:

• Continued deployment in previously auctioned bands (24, 28, 37, 39, 47 GHz)
• Consideration of additional bands for 5G and fixed wireless
• Balancing terrestrial and satellite uses in shared bands
• Performance requirements to ensure efficient utilization

Unlicensed and Shared Spectrum: Expanding access to spectrum through:

• Implementation of 6 GHz rules for unlicensed use
• Consideration of additional unlicensed opportunities in 5.9 GHz and other bands
• Evolution of dynamic spectrum sharing frameworks
• Balancing licensed, unlicensed, and shared access models

Federal-Commercial Coordination: Addressing government spectrum needs through:

• Potential relocation of federal users from commercially valuable bands
• Development of sharing frameworks for federal and non-federal users
• Spectrum pipeline planning for long-term needs
• Enhanced coordination mechanisms between NTIA and FCC

Spectrum policy increasingly emphasizes efficiency, sharing, and flexibility to accommodate diverse uses and technologies, while still recognizing the value of exclusive access for certain applications.

3.3 Network Security & Resilience

Security and resilience requirements have become central to telecommunications regulation:

Supply Chain Security: Enhanced focus on equipment and vendor security through:

• Implementation of the Secure and Trusted Communications Networks Act
• Continued prohibitions on equipment from designated companies (e.g., Huawei, ZTE)
• Rip and replace program for existing covered equipment
• Enhanced review of international transactions with security implications

Cybersecurity Requirements: Evolving security frameworks include:

• Network security and risk management obligations
• Incident reporting requirements
• Security by design principles in network architecture
• Implementation of zero trust security approaches

Network Reliability and Resilience: Expanded focus on maintaining communications through:

• Enhanced backup power requirements
• Disaster response and recovery planning obligations
• Network redundancy and diversity expectations
• Critical infrastructure protection frameworks

International Security Coordination: Global alignment efforts including:

• Vendor security assessment frameworks
• Standards for secure network equipment and protocols
• Coordinated responses to global security threats
• Information sharing mechanisms for vulnerabilities and threats

Network security regulation has shifted from voluntary frameworks to mandatory requirements, reflecting the critical nature of telecommunications infrastructure and ongoing security challenges.

3.4 Competition Policy & Market Structure

Regulatory approaches to competition and market structure continue to evolve:

Merger Review Approaches: Evolving perspectives on industry consolidation include:

• Increased scrutiny of horizontal consolidation in wireless and broadband markets
• Growing attention to vertical integration implications
• Consideration of non-price effects including innovation and quality
• Enhanced coordination between FCC and antitrust authorities

Open Access and Interconnection: Policy frameworks addressing network access through:

• Wholesale access requirements in certain funding programs
• Interconnection frameworks for IP-based networks
• Special access and business data services regulation
• Consideration of open access models for subsidized infrastructure

Infrastructure Sharing Models: Promoting efficient deployment through:

• Tower and passive infrastructure sharing frameworks
• Neutral host models for in-building and venue coverage
• Middle mile open access requirements
• Balancing competition and investment incentives

Digital Platform Regulation: Emerging frameworks addressing:

• Integration between telecommunications and digital services
• Treatment of over-the-top services
• Platform competition and interoperability
• Network effects and market power considerations

Competition policy increasingly considers both traditional telecommunications markets and their intersection with adjacent digital services and platforms.

3.5 Emerging Technologies Regulation

Regulatory frameworks are evolving to address new technologies and services:

Non-Terrestrial Networks: Adapting regulations for:

• Low-Earth orbit satellite broadband constellations
• High-altitude platform stations and stratospheric systems
• Integration between satellite and terrestrial networks
• Spectrum sharing between different orbital regimes

Internet of Things and Massive Connectivity: Addressing challenges through:

• Spectrum allocations for IoT applications
• Numbering and addressing resource management
• Security and privacy frameworks for connected devices
• Interoperability and standards considerations

Network Virtualization and Disaggregation: Adapting policy for:

• Open RAN and virtualized network architectures
• Software-defined networking implications
• Security considerations in disaggregated networks
• Supply chain diversity and vendor ecosystems

Advanced Wireless Technologies: Preparing for next-generation services through:

• Initial 6G research and spectrum planning
• Advanced spectrum sharing techniques
• Terahertz band exploration
• Machine learning and AI in network optimization and management

Regulatory approaches increasingly aim to be technology-neutral while still addressing the unique characteristics and challenges of emerging technologies.

4. Industry Impact Analysis

The evolving regulatory landscape affects different segments of the telecommunications industry in varied ways.

4.1 Wireless Carriers

Key Regulatory Impacts:

Spectrum Availability and Costs: Future service capabilities and expansion will be shaped by:

• Access to sufficient mid-band spectrum for 5G coverage expansion
• Cost implications of clearing and sharing arrangements
• Spectrum aggregation limits and competitive assessments
• Build-out requirements and service milestones

Infrastructure Deployment Frameworks: Network expansion affected by:

• Small cell siting rules and local permitting processes
• Federal and state preemption of local restrictions
• Environmental and historical preservation review requirements
• Tribal consultation obligations for certain deployments

Security and Resilience Requirements: Operational approaches influenced by:

• Network equipment restrictions and security reviews
• Enhanced resilience standards for disaster preparedness
• Incident reporting and response obligations
• Increased focus on vendor and supply chain security

Competition Policy Evolution: Business models impacted by:

• Merger review standards and market concentration concerns
• Mobile Virtual Network Operator (MVNO) wholesale arrangements
• Roaming and interconnection requirements
• Integration with fixed broadband services

Strategic Implications:

• Increased focus on infrastructure sharing to manage deployment costs
• Growing importance of spectrum portfolio diversification
• Rising compliance costs for security and resilience requirements
• Strategic value of fixed-mobile integration capabilities

4.2 Wireline & Fiber Providers

Key Regulatory Impacts:

Broadband Funding Programs: Business opportunities and obligations shaped by:

• BEAD program funding prioritization for fiber deployment
• Performance requirements and affordability obligations
• Overbuilding protections and challenge processes
• Long-term maintenance and upgrade commitments

Infrastructure Access Regulations: Deployment economics affected by:

• Pole attachment reform and make-ready process streamlining
• Rights-of-way access terms and fee structures
• Dig once policies and conduit access requirements
• Building access frameworks for multi-tenant environments

Service Classification Issues: Operational implications from:

• Continued debate over broadband classification
• State-level open access and net neutrality requirements
• Universal service contribution obligations
• Quality of service standards and reporting requirements

Copper Network Transition: Legacy service evolution guided by:

• IP transition regulatory frameworks
• Service discontinuance requirements and processes
• Emergency services and accessibility obligations
• Intercarrier compensation reform implications

Strategic Implications:

• Unprecedented funding opportunities requiring strategic positioning
• Growing competitive advantage for fiber deployments
• Increasing focus on complete coverage within service territories
• Rising importance of comprehensive digital inclusion strategies

4.3 Cable & Video Services

Key Regulatory Impacts:

Broadband Competition Frameworks: Competitive positioning influenced by:

• Symmetrical speed requirements in funding programs
• Growing focus on upload performance standards
• Quality of service and transparency requirements
• Performance testing and verification frameworks

Franchise and Fee Structures: Business models affected by:

• Evolution of franchise requirements and fees
• PEG channel and institutional network obligations
• Over-the-top video regulatory classification
• State and local taxation approaches

Integration with Wireless Services: Convergence strategies shaped by:

• MVNO wholesale arrangement terms and conditions
• WiFi spectrum availability and power limits
• Spectrum access for private networks and targeted services
• Fixed wireless complement or competition considerations

Content Regulation and Accessibility: Service requirements including:

• Video description and closed captioning obligations
• Emergency alert system requirements
• Accessibility standards for user interfaces
• Content filtering and parental control frameworks

Strategic Implications:

• Growing incentives for fiber deployment and network upgrades
• Increasing importance of wireless/mobile integration capabilities
• Enhanced value of existing rights-of-way and pole attachments
• Rising competitive pressure from fiber overbuilders

4.4 Satellite Services

Key Regulatory Impacts:

NGSO Constellation Frameworks: Business models shaped by:

• Streamlined licensing for large constellations
• Orbital debris mitigation requirements
• Spectrum sharing frameworks between systems
• International coordination processes and requirements

Integration with Terrestrial Networks: Hybrid service approaches affected by:

• Spectrum sharing between satellite and terrestrial operators
• Terminal authorization and deployment rules
• Interconnection with terrestrial networks
• Emergency service obligations for voice offerings

Rural Broadband Funding Eligibility: Market opportunities influenced by:

• Technology-neutral funding program provisions
• Latency and performance benchmark requirements
• Complementary role with fiber in remote areas
• Cost-effectiveness evaluations for different technologies

International Market Access: Global deployment affected by:

• Landing rights and market access authorizations
• National security review processes