Cox, Rhode Island Settle Lawsuit over BEAD Overbuild Funding

WASHINGTON, Jan. 21, 2025 – Cox Communications and the Rhode Island Commerce Corp. have resolved a dispute over how the state plans to use $108 million in federal broadband funding, according to court documents.

In a joint statement Friday, the two parties announced that the litigation had 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,” the statement read.

The terms of last week’s settlement were unclear. However, Cox’s vice president of public and government affairs, Stephanie Frederico, hinted at changes to the map plans approved by the National Telecommunications and Information Administration.

“Although we did not prevail on every front, the approved maps allay our concerns related to overbuilding and the creation of duplicative networks. As a result, Cox has withdrawn all legal challenges related to the state’s BEAD deployment plan,” she said Friday.

Cox filed the suit on Sept. 23, 2024, after Rhode Island denied the company’s petition to challenge the state’s plans.

The Rhode Island Superior Court ruled on Nov. 7, 2024, that the case be dismissed, as the court could not “reach the merits of Cox Communications’ claim,” and said the suit must be filed in federal court in D.C.

This led to the appeal that Cox rescinded on Friday.

The litigation was based on Cox’s assertion that the state’s data used to determine which homes needed high-speed internet incorrectly labeled 30,000 homes as underserved and eligible for the Broadband Equity, Access, and Deployment funds.

The company is a primary service provider in the contested areas and wanted to avoid overbuilding and network duplication.