How Long Will it Take Congress to Revamp the Universal Service Fund?
Critics urged the FCC to expand the fund’s contribution sources, but the agency chose to punt the decision to Congress.
Ahmad Hathout
The Federal Communications Commission this summer waived away the issue of revamping the Universal Service Fund, pointing to the need for Congress to give it the authority to make changes to the multi-billion-dollar fund that goes to support basic telecommunications services to low-income Americans and rural communities.
Up to this point, the agency had a virtual megaphone to its ear with critics saying that it needs to make the changes necessitated by the fact that the nearly $9-billion fund this quarter is supported only by dwindling legacy voice service revenues as more Americans move over to broadband-driven communications services.
The 12 Days of Broadband 2022 (click to open)
- On the First Day of Broadband, my true love sent to me:
A Symmetrical Gigabit Network - On the Second Day of Broadband, my true love sent to me:
24 Reverse-Preemption Pole Attachment States (2022 edition) - On the Third Day of Broadband, my true love sent to me:
Section Two-30 of the Communications Decency Act - On the Fourth Day of Broadband, my true love sent to me:
$42.5 billion in Broadband Equity, Access and Deployment funds - On the Fifth Day of Broadband, my true love sent to me:
5 Federal Communications Commissioners - On the Sixth Day of Broadband, my true love sent to me:
Wi-Fi 6E - On the Seventh Day of Broadband, my true love sent to me:
7.7% annual inflation rate - On the Eighth Day of Broadband, my true love sent to me:
8,132,968 census blocks and a national Broadband Fabric - On the Ninth Day of Broadband, my true love sent to me:
$9 Billion Universal Service Fund - On the Tenth Day of Broadband, my true love sent to me:
$10 Billion Remaining in the Affordable Connectivity Program - On the Eleventh Day of Broadband, my true love sent to me:
11th Year of Xi Jinping’s rule in China - On the Twelfth Day of Broadband, my true love sent to me:
12 or More State Broadband Officers
Over the past year, the conversation over what to do with the fund has reached ever-increasingly levels of urgency. The contribution percentage — the tax on voice service providers that is often passed down to consumers — climbs with the demands of the fund. In other words, there is an inverse relationship with taxed revenues and the contribution percentage — the lower the voice revenues to draw from, the higher the percentage demanded from fund, which is adjusted by the Universal Service Administrative Company every quarter.
