Universal Service Fund

The E-rate program supports nearly every school and library in America, annually providing billions of dollars of much-needed support for Internet access, telecommunications, and computer networking. Over 21,000 applicants and 4,100 vendors currently participate in the program. For most, their perception of the program is limited to a handful of funding requests and a few personal interactions with USAC customer service representatives. The purpose of this analysis is to provide stakeholders with a broader picture of the E-rate program.

We already know that the Federal Communication Commission’s current broadband maps are flawed – they overstate broadband availability, they don’t contain pricing information, and they rely too heavily on industry-provided data. The FCC is now seeking additional funding from Congress to improve its mapping efforts.

The Federal Communications Commission announced that 386 applicants are qualified to bid in the Rural Digital Opportunity Fund Phase I auction. The FCC's Rural Broadband Auctions Task Force, Office of Economics and Analytics, and Wireline Competition Bureau identified the qualified applicants and provided educational materials for participating in the auction. The number of qualified bidders represents a more than 75% increase in the number of bidders in 2018’s successful Connect America Fund Phase II auction and also includes bidding consortia that contain multiple service providers.

A Q&A with Federal Communications Commissioner Jessica Rosenworcel on the “homework gap,” the term she coined to describe a problem facing communities where kids can’t access the internet because infrastructure is inadequate, their families can’t afford it, or both. Commissioner Rosenworcel is passionate about getting the FCC to update the E-Rate program, a federal education technology service created in 1996 that offers schools and libraries discounted internet access. 

The Federal Communications Commission announced that $1,366,378 in E-Rate funding for 291 schools serving 220,584 students in 32 states and Puerto Rico has been committed so far during the second application window for funding year 2020. During the second filing window, schools can purchase additional bandwidth for this academic year to address needs resulting from the increasing shift to 1:1 student-to-device ratios in classrooms, live streaming of classroom instruction to students at home, and expanding use of cloud-based educational tools and platforms—all of which can significantly incr

On October 27, the Federal Communications Commission is expected to vote to create the 5G Fund for Rural America, a new program supported by the Universal Service Fund. The 5G Fund will replace the FCC's existing Mobility Fund which has been used to support deployment of 4G LTE networks in rural, insular, and high cost areas of the country. The FCC will distribute up to $9 billion in universal service support to bring mobile voice and 5G broadband service to rural areas of the country. The deployment of networks capable of providing this 5G service undoubtedly will be expensive.

The Federal Communications Commission announced the final list of areas that will be eligible for bidding in the Rural Digital Opportunity Fund Phase I auction, which will target up to $16 billion to census blocks with no fixed broadband service meeting the Commission’s minimum standards. In total, about 5.3 million unserved homes and businesses are located in areas eligible for bidding in the Phase I auction, which will begin on October 29. The auction will prioritize bids for the deployment of broadband networks providing higher speeds up to 1 Gbps and lower latency.

On Sept 17, 2020, 36 Democratic and 2 Independent Senators wrote to Federal Communications Commission Chairman Ajit Pai to demand that the FCC take immediate action to help children who lack internet access at home and are unable to participate in online learning. Specifically, they called on Chairman Pai to utilize the E-Rate program to close this "homework gap" without further delay.

Federal Communications Commission Chairman Ajit Pai announced that the items below are tentatively on the agenda for the October Open Commission Meeting scheduled for Tuesday, October 27, 2020: