Rural Digital Opportunity Fund

Rep Elise Stefanik (R-NY) joined her colleagues in sending a letter to Acting Federal Communications Commission Chairwoman Jessica Rosenworcel pushing for an end to the delay of the Rural Digital Opportunity Fund (RDOF) distribution. In December 2020, the FCC announced Phase 1 awards under the RDOF, which would deploy broadband to 5.2 million unserved locations.

Reps Jahana Hayes (D-CT), and Marc Veasey (D-TX) introduced the Preventing Disruptions to Universal Services Funds Act (H.R.5400) to extend access to federal funds for telecommunications programs for three years, eliminating the need for a yearly fund recertification. The bill was created to ensure internet access for millions across the country is not disrupted by federal funding costs allowing for continuous access to available resources.

There is currently a policy debate circulating asking who should pay to fund the Federal Communications Commission’s Universal Service Fund. For decades the USF has collected fees from telephone carriers providing landline and cellular phones – and these fees have been passed on to consumers. As landline telephone usage has continued to fall, the fees charged to customers have increased. To fix this, there have been calls to spread fees more widely.

Christopher Ali, a professor at the University of Virginia, says in his upcoming book Farm Fresh Broadband that technology neutrality is one of the biggest policy failures of our time. Technology neutrality is a code word for allowing all internet service providers (ISPs) and technologies to be eligible for grant funding. It has been argued, mostly by ISPs that use slower technologies, that the Federal Communications Commission should not be in the game of picking winners and losers.

As the Infrastructure Investment and Jobs Act awaits a vote in the House of Representatives later this month, a debate over the future of the Federal Communications Commission's Universal Service Fund (USF) is already starting. Provisions in the infrastructure bill call for the FCC to quickly complete an evaluation of how the legislation will impact how the FCC's achieves the goal of deploying broadband to all Americans. Congress wants to know how the FCC can be more effective in achieving this goal. One brewing USF issue is how we pay for it.

The Federal Communications Commission's Wireline Competition Bureau, in conjunction with the Rural Broadband Auctions Task Force and the Office of Economics and Analytics, authorized Rural Digital Opportunity Fund support for 466 identified winning bids. The FCC will also soon post a state-level summary on the Auction 904 webpage.

The Federal Communications Commission’s (FCC) Universal Service Fund (USF or Fund) has been one of the nation’s most important tools for connecting our nation, including rural communities, low-income families, schools, libraries, and rural health care facilities. However, the funding mechanism that supports the Fund is under significant duress. The “contribution base” – the revenues used to calculate USF contributions – has declined 63% in the last two decades, from $79.9 billion in 2001 to $29.6 billion in 2021.

Starlink’s goal is to beam high-speed Internet from space, down to the most remote parts of the world. Even though SpaceX's satellite internet service is still being tested—with mixed reviews—the company is getting a lot of attention in Washington (DC) at a moment when the government is willing to spend taxpayer dollars on infrastructure and take chances on new broadband deployment methods.

Starlink hopes to bring high-speed satellite internet to many of the 3.7 billion people on this planet who currently have no internet connection at all. SpaceX’s internet service, which uses a growing fleet of 1,600 satellites orbiting Earth to deliver internet access to people on the surface, reported close to 90,000 users in July 2021. Underdeveloped parts of the world might find Starlink to be a boon, since many of these places do not have physical networks like the cable system.

The repercussions of the Federal Communications Commission’s Rural Digital Opportunity Fund (RDOF) Phase I auction are still being felt as waiver requests for winning bids roll in and disputes over whether or not certain bidders were qualified in the first place rage on.