America’s AI future depends on fiber, permitting reform, telecom execs tell Congress

- AI is upending legacy broadband assumptions, shifting traffic toward more symmetrical data flows and putting new pressure on U.S. networks - Telecom execs told Congress fiber is the backbone of America’s AI future - Permitting reform emerged as the industry’s top ask The AI boom is threatening to turn America’s broadband bottlenecks into an economic liability, and telecom executives told Congress on Thursday the fix starts with fiber — and faster permitting. Speaking at a hearing on “Intelligent Networks” before the Senate Committee on Commerce, Science and Transportation, both USTelecom CEO Jonathan Spalter and Cisco Chief Architect Bob Everson noted that AI is changing the shape and flow of network traffic. Not only is traffic shifting from the traditional downstream-heavy asymmetric pattern to more of a symmetrical form, but there’s also significantly more data flowing across networks. “For 30 years, the internet we've come to know was built kind of like a freeway. Imagine with eight lanes going into town but only two lanes coming back. And that asymmetric design was literally baked in on the assumption that we human beings and our devices would always receive more data than we send,” Spalter said. “As we move forward into this AI phase of the internet, that assumption is being completely shattered.” Everson added that Cisco’s testing has shown an agent generates 450% more traffic than a person performing the same task. And 70% of that additional traffic was from inference. Spalter argued fiber is uniquely suited for the AI era in that its design allows for symmetrical data flows without the need for upgrades. Like Spalter, Nebraska Public Service Commissioner Dan Watermeier stressed the importance of fiber in securing the country’s AI future, noting that other access technologies like wireless, cable and satellite rely on fiber networks. He added fiber has proven to be a more resilient technology than some others. “Fiber networks are how data moves in and out of AI data centers. And for Americans to benefit from AI, every American must have access to that system. We must reprioritize deploying high-speed, reliable and symmetrical networks that reach every home in this country,” fellow panelist Asad Ramzanali, Director of AI and Technology Policy at the Vanderbilt Policy Accelerator, stated. The persistent permitting problem For fiber providers, Spalter said the biggest barrier to becoming AI ready isn’t technology but rather government roadblocks. Stop us if you’ve heard this one before, but Spalter specifically called out permitting as the hurdle holding back AI readiness. He specifically called out federal permitting “horror stories.” While operators can deploy networks in weeks or days, they are often held up for months or even years by the permitting process, Spalter said. He called on Congress to pass three bills – the CLOSE THE GAP Act (S. 4561), Broadband and Telecommunications RAIL Act (S. 3268) and Accelerating Broadband Permits Act (S. 4448) – to address the issue and warned the country’s leadership could be at stake absent their action. “Without permitting reform to speed up fiber network deployment, not just AI, but our whole innovation economy is at risk of being put on ice,” he said. “It is the singular biggest barrier block and pebble in the shoe of our innovation economy. Fiber networks can only be built at scale and at speed if we can equally give attention to permitting reform.” Everson likewise called on Congress to modernize permitting to enable rapid deployment of new infrastructure and urged them to consider the cost of running AI-ready networks as they mull the future of the troubled Universal Service Fund (USF). Watermeier stressed that provider support from the USF will be “critical” in ensuring rural communities can participate in the AI economy. “For the average citizen, AI technology is only useful if they have access to broadband connectivity,” Watermeier said. Senator Ben Ray Luján (D-N.M.), however, argued changes to the $42.5 billion Broadband Equity, Access and Deployment (BEAD) program that shifted deployment money from fiber to other technologies are a bigger problem. “What good is permitting reform if the money is taken away from you? We can get everything out of the way but if you don’t have any money, what does it matter?” he asked. Spalter said providers plan to proceed with buildouts using a combination of public and private funds as well as public-private partnerships. The changes made to the BEAD program have left more than $20 billion in funding on the table. The National Telecommunications and Information Administration (NTIA) is still trying to work up rules for how this money can be used. Senator Shelley Capito (R-W.Va.) suggested the funds could go toward strengthening networks for AI. Spalter said USTelecom has heard from the NTIA that non-deployment funding guidance is forthcoming, “We hope in September.” He added that “any dollars should be accelerators of the fundamental purpose of the BEAD program” and backed uses spanning resiliency, cyber training, accelerating permitting and modernizing 911 architecture. Cybersecurity in focus Cybersecurity also came up repeatedly throughout the hearing. Senator Todd Young (R-Ind.) asked how important real-time information sharing is for operators looking to defend against AI-enabled attacks. Spalter cast it as critical but noted authorization for operators to do so under CISA 2015 rules expires at the end of September. “It needs to be reauthorized for the long haul given the increasing sophisticated and advanced threats that we're facing,” Spalter said. “Without that ability embedded in CISA 2015, we will have not just one hand tied behind our backs, but two hands tied behind our backs.” Read more about BEAD and permitting A $20B fight looms over BEAD non-deployment funds NTIA chief says 2 states have deployed BEAD dollars – but not for fiber Is permitting reform streamlining or steamrolling? Staggering railroad permit costs are still a big problem