Universal Service Fund

[Commentary] On November 16, 2017, the Federal Communications Commission will vote on an item that will impact the commission's Lifeline program, which provides discounts on telecommunications services for qualifying low-income consumers. On October 26, FCC Chairman Ajit Pai released a draft of the item in advance of the November vote. Here we break down the rules that the FCC plans on changing immediately at the November meeting, the new proposals the FCC is seeking comment on, and the more general evaluation the FCC is launching into the program's "ultimate purposes." [Kevin Taglang]

Hundreds of state and local efforts to connect rural and remote schools to fiber-optic networks have been delayed or rejected by federal officials during the past two years, jeopardizing the push to bring high-speed internet to the country's hardest-to-connect classrooms. Broadband proponents say the problems stem from confusing barriers erected by the Federal Communications Commission and the Universal Service Administrative Company, which oversee and administer the E-rate, a $3.9 billion program to help schools and libraries pay for internet access and other telecommunications services.

[Commentary] Last week the Federal Communications Commission, led by Chairman Ajit Pai, announced two orders that will be voted on later in Nov, which would roll back hard fought civil rights advances — at a time when our educational and economic opportunities, as well as political participation, are increasingly dependent upon communications infrastructure and technology. 

Sen Amy Klobuchar (D-MN) led a bipartisan group of thirty-nine Sens in a letter urging the Federal Communications Commission to ensure its commitment to affordable and reliable broadband for consumers in hardest to reach communities across rural America. “A lack of resources to meet our [shared national broadband] goals is undermining investment and consumer access to affordable broadband across much of rural America. For this reason, we write to encourage the FCC to take the much-needed step of addressing the High-Cost Universal Service Fund budget shortfall,” the senators wrote.

The digital age continues to spark creative developments in education. Wireless gadgets are now commonplace in the typical American classroom. But while technology is helping thousands of students reach new heights in their education, many others are falling behind. Dubbed "the homework gap" by researchers, students without the use of reliable internet access at home find it harder to complete and submit homework assignments, further expanding the inequality already seen in low-income communities.

The Schools, Health & Libraries Broadband (SHLB) Coalition along with 35 health care providers and telehealth networks from across the country sent a letter to Congressional leaders today asking them to support an increase in funding for the Federal Communications Commission’s Rural Health Care (RHC) program. “This is a life and death issue for Rural America,” said John Windhausen, Executive Director of the SHLB Coalition.

The Federal Communications Commission has unanimously approved emergency assistance to restore connectivity in schools and libraries affected by Hurricanes Harvey, Irma, and Maria through the agency’s E-rate program.

Federal Communications Commission Chairman Ajit Pai wants to impose a budget cap on the Lifeline program that helps poor people buy broadband and phone service.

As I participate today in Silicon Harlem's annual conference, I'm reminded of the 929,000 New Yorkers, including those who live and work in the heart of Harlem, that depend on the Federal Communications Commission's Lifeline program for affordable telecommunications services. I am saddened to affirm, during a conference that seeks to find solutions to narrow technology divides and create enhanced opportunities for the disconnected, that the FCC majority has issued a so-called proposal for the Lifeline program which promises to jeopardize our efforts at ubiquitous and affordable services for the citizens of New York and the rest of the country.

If the goal of the current FCC majority is to widen existing divides, and ensure that our nation's most vulnerable are less likely to be connected, this item sets us on that path. It will harm those less fortunate, those who need to dial 911, stay in touch with their children's educators, keep a job, and stay healthy. The day we head down such a path, is a sad one indeed. I commit to doing everything in my power to ensure that the only universal service program designed to close the affordability gap, remains a shining and successful means for economically-strapped citizens to have voice and broadband services.

At our November open meeting, we'll be tackling top priorities: curtailing unlawful robocalls, unleashing 5G wireless connectivity, enabling the next generation of broadcast television, speeding infrastructure deployment, and modernizing our media ownership rules.

Lifeline: Speaking of bridging the digital divide, the Lifeline program is an important component of the Commission's efforts to bring digital opportunity to low-income Americans. But when I testified on Capitol Hill last month, I heard loud and clear from Democratic and Republican Senators alike that the program is in need of serious reform. For starters, we need to crack down on waste, fraud, and abuse. And we will. For instance, right now, Lifeline recipients in cities like Tulsa, Oklahoma, and Reno, Nevada receive an enhanced Tribal subsidy, intended for rural Tribal lands, of $34.25 a month, while those in other cities receive the standard $9.25 subsidy. Giving residents of Tulsa and Reno an extra $25 per month subsidy is a waste of money given that the cost of providing service in those cities is far lower there than it is in poorer, rural areas. Therefore, at our November meeting, the Commission will aim to close this loophole and limit the enhanced Tribal subsidy to those actually living on Tribal lands in rural areas. We'll also vote to solicit public input on how to effectively and efficiently direct Lifeline funds to the areas where they are most needed and to do so consistent with the FCC's legal authority. And we'll give Lifeline recipients better service and more choices–such as by eliminating a current prohibition on Lifeline broadband beneficiaries changing service providers for an entire year.

Media Ownership: We will be voting on modernizing our media ownership rules to reflect the marketplace of the present, not the past. President Clinton's first FCC Chairman stated, "Under current conditions, the FCC's [newspaper/broadcast cross-ownership] rule is perverse." In 2017, the FCC is poised to finally bring our media ownership rules into the digital age. If this proposed Order is adopted, the FCC would make five significant nods to reality. First, we would once and for all eliminate the newspaper/broadcast cross-ownership rule. In this day and age, if you want to buy a newspaper, you deserve a roadmap, not a roadblock. Second, we would eliminate the radio/television cross-ownership rule, which is unnecessary in today's marketplace given the Commission's separate local radio and local television ownership rules. Third, we would revise the local television ownership rule to eliminate the eight-voices test and incorporate a case-by-case review into the top-four restriction. This would better reflect the competitive conditions in local markets. Fourth, we would eliminate the attribution rule for television joint sales agreements, finding that JSAs serve the public interest by allowing broadcasters to better serve their local markets. And fifth, we would finally establish an incubator program to encourage greater diversity in and new entry into the media business and seek comment on what the details of that program should be.