- Enhanced Scrutiny of Foreign Ownership in Telecommunications Assets. The Federal Communications Commission (FCC) will continue to increase its attention on its oversight of foreign-owned telecommunications assets and infrastructure. This scrutiny extends beyond direct ownership into secondary market arrangements, including Indefeasible Rights of Use, which are particularly common for submarine cable systems. By way of example, in November 2024, the FCC launched its first comprehensive review of licensing rules for submarine cables in decades. The review aims to modernize regulations for this critical infrastructure, introducing new periodic reporting requirements and potentially shortening the current 25-year license terms to encourage more frequent renewal applications. We expect this trend of the FCC enhancing its national security assessment portfolio to continue under the next administration.
- Increased Support for Direct-to-Device Satellite Technology. The telecommunications landscape is being transformed by the rapid advancement of direct-to-device satellite technology. This technology represents a significant shift from traditional satellite phone services, offering potential for enhanced voice and video capabilities directly from space to consumer devices without requiring specialized hardware, and it’s becoming more feasible to incorporate into consumer level tech. The FCC, particularly under new leadership, is expected to work toward streamlining approval processes for satellite applications and support broader implementation of these services. The commission's support for U.S. leadership in space and greater efficiency in processing applications could also impact satellite services more broadly, including commercial lunar missions and low Earth orbit mega-constellations providing broadband services.
- Broadcast Industry Consolidation. In 2025 we are likely to see a push to change broadcast ownership regulations either through legislation or regulatory action, potentially leading to increased industry consolidation. The national television broadcast ownership cap currently limits station ownership to coverage of 39% of the country, and there are signs we may see that cap lifted or modified. Brendan Carr, President-elect Donald Trump’s announced appointee for chair of the FCC, mentioned the desire to loosen the agency’s ownership rules in a chapter he wrote on the FCC for Project 2025. The ultra-high frequency discount policy for full-power broadcast television stations, which is generally considered unnecessary today, is also expected to be revised or eliminated as part of this regulatory evolution. Radio broadcast ownership regulations had survived revisions during the Biden administration but efforts to loosen those regulations are likely under new FCC leadership during the second Trump administration. A significant enough regulatory shift would trigger a wave of mergers and acquisitions in both broadcast radio and television sectors.
- Global Security Standards Alignment. U.S. telecommunications security policies are increasingly influencing global regulatory frameworks, particularly in Europe. This trend encompasses both operational security requirements and ownership restrictions. The focus extends beyond traditional infrastructure security to include cybersecurity requirements for carriers. The U.S. federal government has designated communications as a critical infrastructure sector, and we’ve seen other bodies only recently begin to follow suit. The European Union’s Critical Entities Resilience Directive came into effect in October 2024, requiring EU countries to carry out risk assessments on essential services and to identify critical entities by July 2026. Digital Infrastructure and Space are among the 11 sectors covered by the directive. Around the same time, the United Nations released its Technical Guide on Protecting Critical Energy Infrastructure, which in part reads, “The interdependencies between CEI and other critical sectors, such as transportation, communication, and water supply, exacerbate the impact of attacks, potentially leading to cascading failures across multiple infrastructures.” As investment in digital infrastructure and telecommunications continues to grow on a global scale, regulatory scrutiny will grow with it.
- Future of Section 230. When Trump identified Carr as the next FCC chair, Carr posted on social media that he would “dismantle the censorship cartel and restore free speech rights for everyday Americans.” This statement was directed at Big Tech and Section 230 of the Communications Act, which protects online platforms from civil liability. Carr has been an unequivocal supporter of efforts to reign in Section 230’s protections, and it will likely be a top priority of his at the helm of the FCC to enact those changes within its authority. We also expect efforts from the Republican-controlled Senate under the leadership of Sen. John Thune (R-SD) to propose changes to that provision to hold platforms more accountable.
About the authors:
Frank G. Lamancusa is the chair of the Telecommunications Group at Greenberg Traurig. He focuses on enforcement, regulatory and antitrust counseling, and dispute resolution for clients in or adjacent to the telecommunications industry. Frank previously served in the Enforcement Bureau of the FCC and as a trial lawyer for the Telecommunications Task Force within the U.S. Department of Justice’s Antitrust Division.
Timothy (“Tim”) Bransford provides guidance to clients on satellite and wireless regulatory issues before the FCC and international regulators. He provides advice on regulations pertaining to the launch and operation of communications, deep space research, and imaging satellite networks. Tim also assists clients in coordinating and obtaining approval to operate satellite ground stations and terrestrial wireless networks.
Denise Wood advises technology and communications companies on commercial and regulatory matters with a particular focus on subsea and terrestrial network infrastructure and space and satellite issues, representing a diverse clientele of technology and communications companies. She also provides regulatory guidance and advocacy with respect to current wireless and satellite telecommunications proceedings before the FCC.