Federal money meant to modernize Alaska's internet is instead helping sustain some of the slowest—and least-used—service in the country,
ProPublica reports. In a joint investigation with the
Anchorage Daily News, reporter Kyle Hopkins details how the FCC has funneled $4.6 billion since 2016 to Alaska telecoms through the Universal Service Fund, a surcharge quietly tacked onto Americans' phone bills. That works out to more than $600 per Alaskan per year, yet the state still lags near the bottom for hard-wired broadband access, with some communities unwired and others paying hundreds a month for speeds far below federal standards.
The investigation focuses heavily on Summit Telephone, a tiny provider owned by 75-year-old Roger Shoffstall, a convicted tax evader and self-described sovereign citizen. Despite serving relatively few customers, Summit still receives more than $1 million a year in federal subsidies. Its fastest internet service reaches just 25 Mbps—one-fourth of the FCC's broadband benchmark—while many residents have switched to Starlink or cellphone service instead. Critics say the subsidy system keeps rewarding companies whether customers actually use the networks or not. Boston College law professor Daniel Lyons argued the FCC has failed to properly evaluate the program, saying: "It's not proven how successful it is."
The FCC is now considering whether to overhaul or sunset parts of the subsidy program as scrutiny intensifies over whether the billions being spent are producing meaningful internet access. Meanwhile, some publicly subsidized lines appear effectively abandoned. ProPublica describes one rural Alaska cabin where a Summit internet box sat unplugged while the homeowner relied on cellphone service instead. Watching satellites pass overhead, resident Philip Marshall summed up the changing reality in one word: "Starlink." Read the full investigation on ProPublica.
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