Universal Service Fund

Charter Has Received Funding for 260,000 More Rural Builds Since Big RDOF Win

Charter has received funding to cover some of the costs of deploying broadband to 260,000 more rural locations from state and “other” sources, said Charter CEO Chris Winfrey. And there likely will be more to come. “Our BEAD chances are very good,” said Winfrey, in a reference to the upcoming $42.5 billion Broadband Equity Access and Deployment (BEAD) Program. The company was one the largest winners in the Rural Digital Opportunity Fund (RDOF) auction, which awarded funding for an area to the company that committed to deploying service for the lowest level of government support.

Affordable Connectivity Program Recertification

Recertification is an annual requirement for Affordable Connectivity Program (ACP) subscribers. Service providers with Federal Communications Commission-approved alternative verification processes or that use a school-based eligibility verification process for the national school lunch or breakfast program must conduct recertification for those subscribers. For all other ACP subscribers, the Universal Service Administrative Company (USAC) conducts recertification to ensure that ACP subscribers are still eligible for the benefit.

Lifeline in crosshairs as Senate weighs USF reforms

Is the Lifeline program effective? Should E-Rate be expanded to cover school-related connectivity outside of campuses? Would it make sense to fold the Affordable Connectivity Program (ACP) into the Universal Service Fund (USF)? These were some of the questions asked and answered at a Senate Commerce Committee hearing on the state of universal service. Sen John Thune (R-SD) claimed the Lifeline program is “riddled with waste, fraud and abuse” and chided the Federal Communications Commission for failing to evaluate whether the program is functioning as intended.

Sens. Luján, Thune Announce Bipartisan Working Group on the Universal Service Fund and Broadband Access

Senators Ben Ray Luján (D-NM) and John Thune (R-SD) announced a bipartisan Senate working group to evaluate and propose potential reforms to the Universal Service Fund (USF). The goal of this working group is to create a bipartisan forum to guide education, awareness, and policy-making on this topic.

A Discussion About the State of Universal Service

All people in the United States shall have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges.

How to Fix the Universal Service Fund

The Universal Service Fund (USF) is inefficient, ineffective, and funded by a regressive tax mechanism. Several reforms could improve the program:

House Commerce Committee Continues Oversight of Federal Broadband Programs

The House Commerce Committee's Subcommittee on Oversight and Investigation held a hearing on May 10 discussing federal funding for broadband deployment as part of ongoing efforts to

Why is TDS So Keen on Extending A-CAM? And What’s at Stake for the FCC?

TDS has been taking every opportunity to talk up the Federal Communications Commission's Alternative Connect America (A-CAM) program and why the company is so excited about a possible extension to the program, even as the US gets set to award an unprecedented $42.5 billion for the Broadband Equity, Access, and Deployment (BEAD) rural broadband program. “A-CAM has been absolutely revolutionary for improving our hardest-to-serve rural areas,” said TDS Senior Vice President of Corporate Affairs Andrew Petersen. TDS is rather unique among publicly-held broadband providers in that it is eligible

The FCC and USF

The Federal Communications Commission quietly won two court cases over the last month that most folks have not heard about. A group of complainants brought a suit against the FCC, saying that the agency didn’t have explicit direction from Congress for the creation of the Universal Service Fund (USF) or the authority to delegate the operation of the USF to a third party.

FCC Seeks Comment on Modifying the Calculation of Broadband Benchmarks

The Federal Communications Commission's Wireline Competition Bureau (WCB or Bureau)—in coordination with the Office of Economics and Analytics—seeks comment on modifying the calculation of the FCC's broadband reasonable comparability benchmarks for the Urban Rate Survey (URS or Survey). In particular, the Bureau seeks comment on methods for calculating benchmarks for a wider spectrum of service speeds as well as other proposed improvements. The FCC seeks comments on whether it should change how it calculates its broadband benchmarks using data collected through the URS.

Connection found: Rural broadband bill gets its day in the Senate

A bipartisan effort to push the Federal Communications Commission to expand internet access to rural areas will finally get a Senate hearing, two years after the bill was first introduced. The Reforming Broadband Connectivity Act has support in both the House and Senate and will get its day in the Senate Commerce Committee Thursday, May 11th, 2023. The bill — introduced by Sen. Amy Klobuchar (D-MN) in the Senate and Rep. Joe Neguse (D-CO) in the House — orders the FCC to determine ho

Do Broadband Subsidies for Schools Improve Students’ Performance? Evidence from Florida.

Studies exploring the relationship between technology in the classroom and students’ outcomes have yielded mixed results. We contribute to the debate by examining the effects of broadband subsidies to schools on school performance measures in Florida. Specifically, using a nearly universal panel of Florida schools in the period 2016-2019, we assess the effect of federal broadband subsidies to schools via the E-Rate program on school grades.

Rural Cellular Coverage

The cellular coverage in rural areas is drastically different than the national coverage maps that cellular carriers have been advertising for years. The Federal Communications Commission announced a process to address this issue in October 2020 when it announced the creation of a 5G Fund for Rural America. This will be a $9 billion fund that comes from the Universal Service Fund and that will provide subsidies for wireless carriers to build and equip new rural cell towers.

Sponsor: 

Subcommittee on Communications, Media and Broadband

Senate Commerce Committee

Date: 
Thu, 05/11/2023 - 10:00

The Universal Service Fund (USF) supports the expansion of telecommunications through four programs: the High Cost Program, Lifeline, E-Rate and the Rural Health Care Program. Demand for connectivity in all aspects of American life continues to grow, and it is essential to consider the current state of the USF to ensure it meets the needs of Americans today and in the future.



Benton Institute Welcomes Another Unanimous Verdict for FCC and Universal Broadband

The U.S. Court of Appeals for the 6th Circuit joined the 5th Circuit in rejecting an attack on the constitutionality of the Federal Communications Commission’s Universal Service Fund (USF). The  USF is a critical means of reducing the cost of broadband and other telecommunications services for schools, hospitals and libraries, for low-income consumers, and for residents of rural America. The Benton Institute for Broadband & Society, MediaJustice, and the National Digital Inclusion Alliance are intervenors supporting the FCC in this case.

FCC Proposes More than $8 Million in Fines Against 22 Rural Digital Opportunity Fund Applicants for Defaulting on Auction 904 Obligations

The Federal Communications Commission proposed $8,778,527.39 in fines against 22 applicants in the Rural Digital Opportunity Fund (RDOF) Phase I Auction (Auction 904) for apparently violating Commission requirements by defaulting on their bids between May 3, 2022, and December 16, 2022. Two applicants also failed to submit their audited financial paperwork, resulting in an additional monetary liability. The FCC provided clear guidance in its rules and notices on the monetary forfeitures associated with defaults in Auction 904.

Southern Vermont CUD fiber build will be completed in 2023

The Southern Vermont Communications Union District’s rollout of high-speed fiberoptic cable to Bennington County is entering its second year—and by fall 2023, the work will be done. Consolidated Communications, the firm contracted by the Southern Vermont CUD, ran ahead of schedule stringing cable in Bennington and Shaftsbury in 2022, and has started work in Manchester. A job that was anticipated to take as long as five years in the CUD’s 14 towns is now expected to be completed in a matter of months. How did that happen, when other CUDs had a head start on the Southern Vermont CUD?

Will BEAD fund RDOF overbuilds? It’s complicated

Lingering concerns about whether money from the $42.5 billion Broadband Equity Access and Deployment (BEAD) program will be used to fund overbuilds of other government-subsidized projects flared up again recently. Concerns seemed to center on what BEAD will mean for those receiving funding from the Rural Digital Opportunity Fund (RDOF) program.

Delaware Converting Broadband Deserts

The groundwork for a well-connected Delaware dates back to 1997 with a pioneering collaboration between the state's departments of technology & information, transportation, and education. The Delaware Department of Transportation constructed extensive fiber for transportation purposes, quickly placing Delaware at the cutting edge of intelligent state transportation systems. This initial public investment in fiber infrastructure also supported a broad array of public institutions.

Rural operators cheer, cable companies jeer proposed A-CAM changes

Charter Communications, Comcast, and Cox Communications all met with Federal Communications Commission officials earlier in March 2023 to discuss A-CAM issues. A-CAM refers to the FCC’s Alternative Connect America Model program, which supports broadband deployments in eligible high-cost areas.

New York is Working to ConnectALL

New York State is approaching universal broadband through both access and adoption—and recognizes that affordability is a key barrier to adoption. In January 2022, Gov. Hochul unveiled ConnectALL, a $1 billion public-private initiative to deliver affordable broadband to millions of New Yorkers and transform the state's digital infrastructure through new investments. The initiative includes: 

Lawmakers Introduce Bipartisan Legislation to Expand Access to Rural Broadband

On March 28, lawmakers from both the House of Representatives and US Senate reintroduced bipartian legislation to expand broadband access to rural communities. The Reforming Broadband Connectivity Act would strengthen funding mechanisms for the Federal Communications Commission’s (FCC) Universal Service Fund (USF), which promotes universal access to broadband and other telecommunications services. Currently, the USF is primarily funded through landline fees, disproportionately impacting seniors, who are more likely to use landlines than other Americans.

Reaction to USF Decision

FCC Commissioner Geoffrey Starks said, “I’m pleased that the Fifth Circuit agreed with what I and many others—including bipartisan members of Congress—have said about the Universal Service Fund. It is constitutional, both in concept and implementation. The Universal Service Fund continues to connect rural communities, schools, libraries, healthcare providers, and low-income households all across the country.