December 2020

Dora the Explorer knew that maps were important to find one’s way. Unfortunately, the Federal Communications Commission (FCC) is still learning that lesson, particularly when it comes to broadband for the nation’s schools, libraries, healthcare providers, and other community anchor institutions. It’s no secret that the FCC’s current broadband maps are flawed.

The Federal Communications Commission universal service support fund's revenue base has been shrinking while the payouts have risen. As a result, the contribution factor, an ad valorem tax on the revenue base, rose from 16.7% in 2017 to 21.2% in 2020. We propose two solutions to the funding problem: A near-term funding reform proposal that widens the revenue base by replacing the current definition of assessable services (interstate and international) with a more inclusive definition of all communication services that have a telecommunications component.