Telecommunications regulation in the United States runs on two tracks: the Federal Communications Commission oversees interstate and international communications, spectrum, licensing, mergers, and consumer protections, while state public utility commissions handle local phone service, physical infrastructure, and intrastate disputes. The rulebook has moved significantly in the past two years, particularly on broadband classification, robocall rules covering AI-generated voices, supply-chain restrictions, and the return of the FCC’s spectrum auction authority. What follows is the current state of play.
Who Regulates What
The FCC was created by the Communications Act of 1934 to centralize authority over interstate and international wire and radio communications.1U.S. Government Publishing Office. Communications Act of 1934 The Telecommunications Act of 1996 expanded that mandate to promote competition, reduce entry barriers for new technologies, and extend universal service goals to broadband.2Federal Communications Commission. Universal Service Together, those statutes give the FCC jurisdiction over spectrum, licensing, equipment standards, and the conduct of carriers operating across state lines.
State public utility commissions run alongside. They regulate intrastate matters like local telephone service, landline infrastructure, utility pole safety, and conduit access.3Federal Communications Commission. State Public Utility Commission Contact List They certify companies to provide local exchange service and resolve complaints about local service quality. Federal law preempts state rules in many digital-communication areas, but for a complaint about your landline, the state commission is the first stop. A single carrier often answers to the FCC on its interstate operations and to one or more state commissions on its local ones.
How Broadband Is Classified and Where Net Neutrality Stands
Whether the government treats an internet service provider more like a phone company or more like a website depends on one distinction in 47 U.S.C. § 153. A “telecommunications service” offers telecommunications directly to the public for a fee; an “information service” offers the capability to generate, store, process, or retrieve information via telecommunications.4Office of the Law Revision Counsel. 47 USC 153 – Definitions Classifying broadband under Title II makes providers common carriers with stricter obligations on how they handle traffic. Classifying it under Title I gives providers more flexibility and limits the FCC’s enforcement tools.
In April 2024, the FCC adopted its “Safeguarding and Securing the Open Internet” order, which reclassified broadband under Title II and reinstated rules against blocking, throttling, and paid prioritization.5Federal Communications Commission. FCC Restores Net Neutrality That order was short-lived. On January 2, 2025, the Sixth Circuit vacated the rule in Ohio Telecom Ass’n v. FCC, holding that broadband is an “information service” and mobile broadband is a “private mobile service” under the Communications Act.6U.S. Court of Appeals for the Sixth Circuit. In Re MCP No. 185 – Federal Communications Commission The FCC removed the rules from its books.
As of mid-2026, broadband providers sit under Title I and no federal net neutrality rules are in effect. ISPs are not currently bound by federal prohibitions on blocking, throttling, or paid prioritization. Some states have enacted their own net neutrality laws, and enforceability varies. Anyone relying on older guidance that describes active federal net neutrality protections should know those protections no longer exist at the federal level.
Consumer Protections
Robocalls and the TCPA
The Telephone Consumer Protection Act, at 47 U.S.C. § 227, restricts autodialed calls and prerecorded voice messages. Companies generally cannot use an automatic dialing system or a prerecorded voice to call a cell phone without the called party’s prior express consent. Prerecorded calls to residential landlines also require consent unless a narrow emergency or other exemption applies.7Office of the Law Revision Counsel. 47 USC 227 – Restrictions on Use of Telephone Equipment
If you receive an illegal robocall, you can sue in state court. The statute provides $500 per violation, and a court can triple that to $1,500 per call if the violation was willful or knowing.7Office of the Law Revision Counsel. 47 USC 227 – Restrictions on Use of Telephone Equipment That financial exposure is what motivates legitimate companies to scrub call lists against the National Do Not Call Registry. The FCC can impose separate forfeiture penalties on top of the private damages.
AI-Generated Voices
In February 2024, the FCC issued a declaratory ruling confirming that AI-generated voices count as “artificial” voices under the TCPA. Any call using AI to simulate a human voice requires the same prior express consent as a traditional prerecorded message.8Federal Communications Commission. FCC Declaratory Ruling, CG Docket No. 23-362 The ruling applies regardless of how convincing the synthetic voice is.
Customer Proprietary Network Information
Carriers collect detailed data about your calling habits, including the time, destination, and duration of calls. Federal rules classify this as Customer Proprietary Network Information and require carriers to obtain your approval before using it for most marketing.9eCFR. 47 CFR Part 64 Subpart U – Privacy of Customer Information Carriers can use CPNI without consent for limited purposes like surveys or marketing services you already subscribe to. Anything beyond that, particularly sharing with third parties, requires opt-in approval.
Data Breach Notification
When a carrier discovers a security breach, federal rules impose a specific sequence. The carrier must electronically notify the U.S. Secret Service and FBI within seven business days of reasonably determining a breach occurred. After that filing, the carrier must wait an additional seven full business days before notifying affected customers or the public.10eCFR. 47 CFR 64.2011 The waiting period gives investigators time to assess the breach. If a carrier believes customers face immediate and irreparable harm, it can notify them sooner after consulting with the investigating agency. Law enforcement can also extend the waiting period for up to 30 days if disclosure would compromise a criminal investigation.
Licensing and Build-Out
Operating a wireless service, radio station, or other regulated telecommunications service requires an FCC license. The first step is obtaining an FCC Registration Number through the Commission Registration System, which assigns a 10-digit identifier used to track all filings and payments.11Federal Communications Commission. Commission Registration System
Applicants must disclose ownership details identifying any individual or entity holding a 10 percent or greater interest, whether through voting stock, nonvoting stock, limited partnership interests, or LLC membership.12eCFR. 47 CFR 1.2112 – Ownership Disclosure Requirements for Applications The disclosure extends to indirect ownership calculated by multiplying percentages through each link in the chain. This transparency prevents unauthorized foreign control and lets the FCC identify who actually controls a licensee.
For wireless and radio-frequency applications, Form 601 is the primary filing, requiring technical specifications on transmitter coordinates, frequency bands, power levels, antenna heights, and emission designators.13Federal Communications Commission. FCC Form 601 – Main Form Instructions Applications go through the Universal Licensing System.14Federal Communications Commission. Applying for a New License in the Universal Licensing System After filing, the FCC issues a public notice inviting objections. Certain routine applications receive streamlined treatment and are automatically granted 31 days after the public notice.15Federal Communications Commission. Transfer of Control Complex applications can take 180 days or longer.16Federal Communications Commission. Informal Timeline for Consideration of Applications for Transfers or Assignments of Licenses
Getting the license is not the end. The FCC attaches build-out requirements to wireless licenses, requiring the licensee to construct infrastructure and provide service within a set period. Requirements vary by band and service type, sometimes defined as a percentage of the licensed area’s population, sometimes as narrative benchmarks.17U.S. Government Accountability Office. Spectrum Management – FCC’s Use and Enforcement of Buildout Requirements Enforcement is largely self-reported. Licensees certify they have met their milestones, and if they haven’t, the FCC automatically terminates the license. Extensions are possible if the licensee shows the delay resulted from circumstances beyond its control.
Enforcement and Civil Penalties
The FCC’s primary enforcement tool is the forfeiture penalty under 47 U.S.C. § 503. The base statutory maximum is $100,000 per violation for common carriers, with a cap of $1,000,000 for a single continuing violation.18Office of the Law Revision Counsel. 47 USC 503 – Forfeitures After inflation adjustments, the 2025 levels (still in effect for 2026 because no inflation adjustment was published for this year) are substantially higher:19Federal Register. Annual Adjustment of Civil Monetary Penalties to Reflect Inflation
- Common carriers: up to $251,322 per violation, with a $2,513,215 cap for a continuing violation.
- Broadcast licensees and cable operators: up to $62,829 per violation, with a $628,305 cap for a continuing violation.
- Equipment manufacturers and service providers: up to $144,329 per violation, with a $1,443,275 cap.
- All other cases: up to $25,132 per violation, with a $188,491 cap.
An investigation may be triggered by a consumer complaint, a competitor’s filing, or the FCC’s own monitoring. If the agency finds a likely violation, it issues a Notice of Apparent Liability for Forfeiture, evaluates the response, and issues a final order.20Federal Communications Commission. Enforcement Primer Settlements typically result in a consent decree with a compliance plan and a voluntary payment to the Treasury. The FCC generally faces a one-year statute of limitations for issuing a Notice of Apparent Liability, so investigations move quickly.
Supply-Chain Restrictions and Equipment Authorization
The FCC maintains a Covered List under the Secure Networks Act identifying telecommunications equipment and services deemed an unacceptable risk to national security. Equipment from listed companies cannot receive new FCC authorizations. The list includes telecommunications equipment and video surveillance products from Huawei, ZTE, Hytera Communications, Hangzhou Hikvision, and Dahua Technology, along with cybersecurity products from Kaspersky Lab and international telecom services from several Chinese state-linked carriers.21Federal Communications Commission. List of Equipment and Services Covered By Section 2 of The Secure Networks Act More recently, certain foreign-produced drones and routers were added.
Congress initially appropriated $1.9 billion for a “rip and replace” program to reimburse smaller carriers for removing prohibited equipment, but approved cost estimates from participants totaled roughly $4.98 billion, leaving a $3.08 billion shortfall. In December 2024, Congress authorized the FCC to borrow the remaining amount from the Treasury, and by April 2025 the FCC had distributed the additional funds, bringing each priority recipient up to 100 percent of its approved cost estimate.22Federal Communications Commission. Secure and Trusted Communications Networks Reimbursement Program
Separately, any device that emits radio-frequency energy must be authorized before it can be marketed, imported, or used in the United States. The two pathways are Supplier’s Declaration of Conformity and Certification, depending on the device. Products with digital logic that unintentionally emit RF energy are generally regulated under 47 CFR Part 15 Subpart B, while intentional radiators fall under Subparts C through F and H.23Federal Communications Commission. Equipment Authorization – RF Device
Mergers and Foreign Ownership Review
Telecom companies cannot merge or transfer control of their licenses without FCC approval. The process is governed by Section 214 of the Communications Act, which requires the Commission to find the transaction serves the public interest. Domestic transfers fall under 47 CFR §§ 63.03 and 63.04; international transactions fall under § 63.24. Joint applications covering both are common.15Federal Communications Commission. Transfer of Control If an acquisition would reduce or impair service to existing customers, the acquiring carrier must file a separate discontinuance application and notify affected subscribers.
Transactions involving foreign ownership face an additional layer of scrutiny from “Team Telecom,” formally the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector. Established under Executive Order 13913, this interagency committee reviews applications for national security and law enforcement risks and can impose mitigation conditions as a prerequisite for FCC authorization. Team Telecom does not independently enforce its conditions; compliance failures are referred to the FCC, which can revoke or terminate the license. The FCC confirmed in early 2026 that it will enforce Team Telecom mitigation agreements, establishing that commitments made during review function as binding conditions on the license.
The Universal Service Fund and Your Bill
The Universal Service Fund, established under 47 U.S.C. § 254, subsidizes telecommunications access in underserved areas and for vulnerable populations. Every carrier that provides interstate telecommunications services must contribute based on a percentage of its interstate and international end-user revenues.24Office of the Law Revision Counsel. 47 USC 254 – Universal Service Contributors include wireline companies, wireless carriers, and interconnected VoIP providers.2Federal Communications Commission. Universal Service
The quarterly contribution factor has climbed sharply and stood at 37.0 percent for the second quarter of 2026.25Federal Communications Commission. Contribution Factor and Quarterly Filings – Universal Service Fund That means carriers remit 37 cents of every dollar of qualifying revenue to the fund. Carriers typically pass this through to subscribers as a line item, which is why USF surcharges have become a visible part of monthly phone and internet charges.
The fund supports four programs. The Connect America Fund subsidizes high-speed internet infrastructure in rural and high-cost regions. Lifeline offers a monthly discount of up to $9.25 on phone, internet, or bundled service for eligible low-income subscribers, with up to $34.25 per month for subscribers on Tribal lands.26Federal Communications Commission. Lifeline Support for Affordable Communications E-Rate provides discounts of 20 to 90 percent to schools and libraries for internet access, telecommunications, and internal networking equipment, with higher discounts in high-poverty and rural areas.27Federal Communications Commission. E-Rate – Universal Service Program for Schools and Libraries The Rural Health Care program supports broadband connectivity for eligible rural health care providers. Carriers participating in these programs face strict auditing requirements and must file annual certifications that subsidies are being used for their intended purposes.
Spectrum Auction Authority
The FCC’s authority to auction spectrum licenses expired in March 2023, leaving the agency unable to assign new commercial spectrum for over two years. Congress reinstated that authority through September 30, 2034, as part of the FY2025 reconciliation law, though the reauthorization excludes certain bands in the 3.1–3.45 GHz and 7.4–8.4 GHz ranges from auction.28Congress.gov. Spectrum Provisions in P.L. 119-21, the FY2025 Reconciliation Law The same legislation amended the statute so the FCC can continue awarding licenses after an auction even if its general auction authority later expires, resolving a technical problem that had created uncertainty for future auction winners. The restoration matters for carriers seeking new spectrum for 5G deployment and next-generation wireless services.