RI Commerce and Cox Resolve Conflict Over Use of $108M Grant, Feds Approve Plan

RI Commerce and Cox Resolve Conflict Over Use of $108M Grant, Feds Approve Plan

Rhode Island was awarded a federal telecom grant in June of 2023 by former Rhode Island governor and now Secretary of Commerce Gina Raimondo.

Finally, Rhode Island has gotten the green light to move forward after bureaucratic delays and lawsuits.

The Rhode Island Commerce Corporation announced Friday that the National Telecommunications and Information Administration (NTIA) has approved Rhode Island’s Broadband, Equity, Access and Deployment (BEAD) challenge process results. 

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In 2023, Raimondo and the Biden administration made big promises with the program.

“What this announcement means for people across the country is that if you don’t have access to quality, affordable high-speed Internet service now – you will, thanks to President Biden and his commitment to investing in America,” said Secretary Raimondo at the time. “Whether it’s connecting people to the digital economy, manufacturing fiber-optic cable in America, or creating good-paying jobs building Internet infrastructure in the states, the investments we’re announcing will increase our competitiveness and spur economic growth across the country for years to come.”

But for the last year, Rhode Island Commerce Corporation has emerged in controversy.

 

Cox Lawsuit

In September of 2024, Cox Communication sued the Rhode Island Commerce Corporation alleging that “Rather than using taxpayer funds to ensure high-speed access to all Rhode Islanders – including low-income Rhode Islanders in need – the Commerce Corporation has devised a program that will benefit wealthy parts of the State already served with high-speed internet in contravention of the program that it purports to implement.”

Further, Cox claims in the suit, “The Commerce Corporation has continued to keep hidden the data used to develop this flawed process and refuses to accept Cox’s data, instead insisting that Cox satisfy the impossible-to-meet challenge process. It has also rejected all of Cox’s many reasonable attempts to resolve these issues. Cox respectfully requests declaratory and injunctive relief.”

Stephanie Federico, vice president of public and government affairs for Cox Communications, and attorneys for the company said in September, "The mapping is just wrong, and Commerce claims that areas are underserved when they are not."

“Unfortunately, the Commerce plan and flawed mapping focus on parts of the state like Barrington, Newport, and Jamestown at the expense of Central Falls, Woonsocket, and Providence,” said Federico. “This program may not have gotten a lot of attention, but mayors and elected officials in urban core communities should be concerned because their constituents are getting left behind.”

 

Approved Plan, Lawsuit Suttered

Now, Commerce has announced their revised plan has been approved by the U.S. Department of Commerce clearing the way for the distribution from the federal government before the Trump administration takes over.

In addition, Cox has agreed to drop its lawsuit against Commerce.

In a joint statement on Friday, Commerce and Cox said, "The Rhode Island Commerce Corporation and Cox Communications are pleased to announce that the litigation between the parties has been voluntarily dismissed. Both parties have worked together to reach this resolution and are eager to move forward positively with a commitment to a shared goal of ensuring all Rhode Islanders have access to fast, reliable, and affordable internet."

 

Separately, Cox Stated:

“We are pleased this process has come to a successful conclusion for both the State of Rhode and Cox Communications. Through the NTIA challenge process and ongoing dialogue with Commerce, we were able to create a better understanding of Cox’s infrastructure and investment in Rhode Island,” said Stephanie Federico, Vice President, Public and Government Affairs, Cox Communications.

During the challenge process, Cox provided information and clarifying data that informed the final broadband infrastructure maps approved by the NTIA. The finalized maps reflect Cox’s network and performance.

“The finalized maps represent our network throughout Rhode Island and Cox’s performance in those service areas. Although we did not prevail on every front, the approved maps allay our concerns related to overbuilding and the creation of duplicative networks,” stated Federico. “As a result, Cox has withdrawn all legal challenges related to the state’s BEAD deployment plan.”

“We appreciate the Commerce Corporation’s willingness to engage in meaningful conversations these past few months and look forward to working in the spirit of cooperation to ensure BEAD funds are expended in a manner that produces equity and access to high-quality broadband Internet for all Rhode Islanders,” added Federico.