Universal Service Fund

The U.S. Court of Appeals for the 6th Circuit joined the 5th Circuit in rejecting an attack on the constitutionality of the Federal Communications Commission’s Universal Service Fund (USF). The  USF is a critical means of reducing the cost of broadband and other telecommunications services for schools, hospitals and libraries, for low-income consumers, and for residents of rural America. The Benton Institute for Broadband & Society, MediaJustice, and the National Digital Inclusion Alliance are intervenors supporting the FCC in this case.

The Federal Communications Commission proposed $8,778,527.39 in fines against 22 applicants in the Rural Digital Opportunity Fund (RDOF) Phase I Auction (Auction 904) for apparently violating Commission requirements by defaulting on their bids between May 3, 2022, and December 16, 2022. Two applicants also failed to submit their audited financial paperwork, resulting in an additional monetary liability. The FCC provided clear guidance in its rules and notices on the monetary forfeitures associated with defaults in Auction 904.

The Southern Vermont Communications Union District’s rollout of high-speed fiberoptic cable to Bennington County is entering its second year—and by fall 2023, the work will be done. Consolidated Communications, the firm contracted by the Southern Vermont CUD, ran ahead of schedule stringing cable in Bennington and Shaftsbury in 2022, and has started work in Manchester. A job that was anticipated to take as long as five years in the CUD’s 14 towns is now expected to be completed in a matter of months. How did that happen, when other CUDs had a head start on the Southern Vermont CUD?

Lingering concerns about whether money from the $42.5 billion Broadband Equity Access and Deployment (BEAD) program will be used to fund overbuilds of other government-subsidized projects flared up again recently. Concerns seemed to center on what BEAD will mean for those receiving funding from the Rural Digital Opportunity Fund (RDOF) program.

The groundwork for a well-connected Delaware dates back to 1997 with a pioneering collaboration between the state's departments of technology & information, transportation, and education. The Delaware Department of Transportation constructed extensive fiber for transportation purposes, quickly placing Delaware at the cutting edge of intelligent state transportation systems. This initial public investment in fiber infrastructure also supported a broad array of public institutions.

Charter Communications, Comcast, and Cox Communications all met with Federal Communications Commission officials earlier in March 2023 to discuss A-CAM issues. A-CAM refers to the FCC’s Alternative Connect America Model program, which supports broadband deployments in eligible high-cost areas.

New York State is approaching universal broadband through both access and adoption—and recognizes that affordability is a key barrier to adoption. In January 2022, Gov. Hochul unveiled ConnectALL, a $1 billion public-private initiative to deliver affordable broadband to millions of New Yorkers and transform the state's digital infrastructure through new investments. The initiative includes: 

On March 28, lawmakers from both the House of Representatives and US Senate reintroduced bipartian legislation to expand broadband access to rural communities. The Reforming Broadband Connectivity Act would strengthen funding mechanisms for the Federal Communications Commission’s (FCC) Universal Service Fund (USF), which promotes universal access to broadband and other telecommunications services. Currently, the USF is primarily funded through landline fees, disproportionately impacting seniors, who are more likely to use landlines than other Americans.

FCC Commissioner Geoffrey Starks said, “I’m pleased that the Fifth Circuit agreed with what I and many others—including bipartisan members of Congress—have said about the Universal Service Fund. It is constitutional, both in concept and implementation. The Universal Service Fund continues to connect rural communities, schools, libraries, healthcare providers, and low-income households all across the country.