Rural Telephone Companies Urge Focus on Operational Expenses for Universal Service

The Universal Service Fund should emphasize ongoing operational support for rural internet service providers rather than one-time construction funding, several rural broadband trade groups told lawmakers. “Unfortunately, at times in the past discussion surrounding the High-Cost Fund has focused so much upon construction—the question of initial network availability—that it has become confused with grants. Such a myopic focus on preliminary achievement of availability, however, neglects the more comprehensive and enduring question of sustainability,” the groups, led by NTCA, wrote. Managed by the Federal Communications Commission, the roughly $9 billion-per-year broadband subsidy supports rural broadband networks, plus internet discounts for low-income households, schools and libraries and healthcare centers.