Universal Service Fund

It’s No Time to Disarm in the War Against the Digital Divide

The pandemic spurred policymakers and community leaders around the country to create programs to connect those without home broadband service or computers. These programs have had an impact. New government data show sharp increases in broadband and computer adoption in the 2019-to-2021 time frame. Initiatives such as the Affordable Connectivity Program (ACP) have helped address “subscription vulnerability” for low-income households. With progress evident, it is time to extend and build on the ACP and local affordability programs.

The Future of Universal Service is Still in the Future

When it comes to broadband, the Infrastructure Investment and Jobs Act is about more than money. For example, Congress also directed the Federal Communications Commission to consider the impact of the law's $65 billion broadband investment on the FCC's existing broadband support programs under the umbrella of the Universal Service Fund (known to wonks as the USF).

It is Time to Reimagine Lifeline

Low-income households are spending too much on connectivity. Prior to the pandemic, the Federal Communications Commission’s Lifeline program supported mainly wireless communication services for low-income households; its $9.25/month subsidy resulting in service plans that restricted voice and data usage. To address Americans’ online connectivity needs during the pandemic, Congress directed the FCC to launch the Emergency Broadband Benefit (EBB) program—a historic expansion of financial support for universal service.

What's Next for the Affordable Connectivity Program?

As Congress found in the Infrastructure Investment and Jobs Act, access to affordable, reliable, high-speed broadband is essential to full participation in modern life in the United States. The aim of the Affordable Connectivity Program is to ensure broadband is affordable for any household no matter its income. Although the Federal Communications Commission has met an incredibly tight timeline to adopt rules and launch the new Affordable Connectivity Program, there is still a great deal of work to be done. Here's a quick look at what remains on the FCC's agenda.

Introducing the Affordable Connectivity Program

Congress created the Affordable Connectivity Program through the Infrastructure Investment and Jobs Act, building on the Emergency Broadband Benefit Program created earlier in 2021. For the EBB Program, Congress provided the Federal Communications Commission with $3.2 billion to make monthly broadband service bills more affordable for low-income households. The Infrastructure Investment and Jobs Act adds an additional $14.2 billion for the Affordable Connectivity Program, while leaving in place the EBB Program's basic framework.

Your Chance to Weigh in on the Future of the Universal Service Fund

In November 2021, President Joe Biden signed into law the largest U.S. investment ever in broadband access, affordability, and adoption. With $65 billion flowing to broadband, Congress also asked the Federal Communications Commission to determine what impact the Infrastructure Investment and Jobs Act will have in achieving universal service goals for broadband. This week, the FCC launched a proceeding seeking public comment on how to best make sure everyone in the U.S. can use broadband.

An Evolving Level of Service

How will the Infrastructure Investment and Jobs Act impact universal service policy and, specifically, the Lifeline program? The new law sets up a transition from the Emergency Broadband Benefit, a program that is only six months old, to the new, more permanent Affordable Connectivity Program.

Lifeline Needs A Lifeline

In less than three months, nearly 800,000 low-income people who receive telephone subsidies through the Universal Service Fund's Lifeline program will be negatively impacted by changes scheduled to go into effect at the Federal Communications Commission on December 1, 2021. The FCC needs to change course and help more Americans keep connected to communications services that are essential to navigate the ongoing public health and economic crisis. Most importantly, the FCC should act swiftly and hit the pause button on the 2016 plan to zero-out support for voice-only services.

How Do We Pay For Universal Service?

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.

USForward: FCC Must Reform USF Contributions Now - An Analysis of the Options

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.

Lifeline Program 2020 Program Evaluation

The key findings of this report reflect the need to establish a clearer connection between Federal Communications Commission policy and how Universal Service Administrative Company operationalizes this policy through an FCC-directed Lifeline program strategic plan. Currently no such document exists. This prescriptive document will significantly contribute to the resolution of many of the findings. Broadly, findings, observations, and recommendations span two main categories:

Is the FCC’s reverse auction fatally wounded or just bloodied?

 

It would not be a stretch to say that the Federal Communications Commission’s Rural Digital Opportunity Fund (RDOF) reverse auction has left a bad taste in a lot of mouths. While the FCC was quick to announce success immediately after the close of the auction simply because most eligible areas were assigned, many policy makers and communities see the results as highly problematic and have roundly criticized the outcome, leaving us to ask: Is the FCC’s reverse auction fatally wounded or just bloodied?

Show Us the Money: Federal Broadband Support During the COVID-19 Pandemic

A number of readers have reached out to us at Benton asking for help figuring out where to find all the pools of broadband support appropriated by Congress over the past year. So we've decided to create this placeholder for all the funding we've seen in the CARES Act, the Consolidated Appropriations Act, 2021, and the American Rescue Plan.

Focusing on Affordability

With a proposal to spend $100 billion to ensure that all Americans have affordable and reliable internet service, the Biden Administration has made closing the digital divide a huge priority. Much remains to be done to fill in the specifics of what this means, but two types of policy tools come to mind when thinking about how to address the digital divide. Top of mind is promoting competition. Fostering competition means investing in new infrastructure, thereby giving consumers more choice for very high-speed service.

What Will the FCC Do Next with Lifeline?

What constitutes a lifeline in 2021? Is it a phone? A smartphone? A fixed-location broadband connection? Or some combination of all these services?

American Rescue Plan: Broadband and the Social Safety Net

On March 11, President Joe Biden signed the American Rescue Plan, the latest effort to address the continued impact of COVID-19 on the economy, public health, state and local governments, individuals, and businesses.

On Democracy, Unity, & Broadband

Probably like you, I made sure to make time to watch the Inauguration on January 20. Whenever a President is sworn in, his Inauguration speech sets the tone for his entire Administration.

How Not to Close the Digital Divide -- Part 1,421

It is Day 1,421 of the Trump Administration. Federal Communications Commission Chairman Ajit Pai, from Day 1, has insisted that closing the digital divide is the Trump FCC's top priority. This week, the FCC announced the winners of over $9 billion worth of rural broadband subsidies -- the "single largest step ever taken to close the digital divide," according to Chairman Pai. But looking at the results may leave millions of rural residents apprehensive -- and disconnected.

Broadband for America Now

In October 2019, the Benton Institute for Broadband & Society issued Broadband for America’s Future: A Vision for the 2020s. The agenda was comprehensive, constructed upon achievements in communities and insights from experts across the nation. The report outlined the key building blocks of broadband policy—deployment, competition, community anchor institutions, and digital equity (including affordability and adoption).

Moving forward together: Supporting state and local broadband leadership

In the midst of the COVID-19 crisis, the General Assembly is considering Gov. Northam’s request to increase funding to bring better broadband to all Virginians. Such support is important, as students stay home and learn, adults stay home and work, and seniors stay home even as they visit their doctor. Funding for broadband would be an important step — and a wake-up call to the federal government. Virginia’s broadband challenges are multifaceted. In rural areas, nearly a third of households have no access to broadband.

Get in Line for the Rural Digital Opportunity Fund Auction

This week, the Federal Communications Commission established procedures for the first phase of the Rural Digital Opportunity Fund auction (Auction 904, if you're scoring at home).

Four Steps Towards E-Rate Connectivity and Competition

A quarter-century ago, the idea of “educational technology” popularized the notion that children would benefit if computers in schools and libraries were connected to the internet.

Supporting the Increasingly Important Missions of Community Anchor Institutions

Community anchor institutions should be at the center of any comprehensive national strategy to promote the availability and use of High-Performance Broadband. Community anchor institutions use broadband to provide essential services to their community, such as education, information access, and telehealth services. But in the 21st century, community anchors’ missions are moving beyond their walls. Libraries no longer deliver knowledge that is housed only within their buildings or the covers of hardbound books.

The FCC Wants to Hear More About Net Neutrality

In early October 2019, the United States Court of Appeals for the District of Columbia Circuit issued its ruling in Mozilla Corporation vs Federal Communications Commission, the case that challenged the Federal Communications Commission's repeal of network neutrality rules (the Restoring Internet F