Universal Service Fund

The Federal Communications Commission's Wireline Competition Bureau (WCB), in conjunction with the Office of Economics and Analytics (OEA), authorized Rural Digital Opportunity Fund (Auction 904) support for 1,764 winning bids identified. Almost all the winning bids were made by Resound Networks. Resound Networks won bids for the following states: Arizona, Arkansas, Colorado, Kansas, New Mexico, Oklahoma, Texas. Hughes Networks won two bids for the state of Rhode Island.

The year 2023 could prove to be a volatile year for the Federal Communications Commission as it wrestles with a number of lawsuits concerning its Universal Service Fund (USF) program.

On Friday, December 30, 2022, the Federal Communications Commission released its third Communications Marketplace Report. In the RAY BAUM’S Act of 2018, Congress requires the FCC to assess the state of competition in the communications marketplace.

The $8.6 billion Universal Service Fund, a linchpin of US communications funding since the late 1990s, helps more than 8 million people afford phone and internet service. The conservative advocacy group Consumers’ Research filed lawsuits in three US courts saying the program should be invalidated because its funding is set by regulators, rather than by Congress, which has taxing authority. There’s a high chance one of the courts will strike down the program in 2023, shifting the battle to the Supreme Court, where justices skeptical of US regulatory agencies could hand the challengers a win.

Federal Communications Commission Chairwoman Jessica Rosenworcel appointed seven members to the Board of Directors of the Universal Service Administrative Company (USAC). The three-year term for these positions begins on January 1, 2023.

While America’s digital divide has been improving, large chunks of the country, especially rural and tribal lands, are still lagging behind in connection, according to research and experts, and that significantly hampers their access to vital, potentially lifesaving information. Without cell towers, urgent emergency alerts can’t get to phones and it is more difficult for residents to warn one another of danger or contact authorities. It’s a tough sell to get private companies to spend the time and money to build towers in rural areas, according to reports and experts.

GeoLinks took home $84.6 million of the $234.9 million it won in the Federal Communications Commission’s Rural Digital Opportunity Fund (RDOF) auction for broadband projects in Arizona and Nevada. While its top priority is ramping up those fiber and fixed wireless builds, company President Ryan Adams said it's also keeping its eyes peeled for expansion opportunities from the Southwest to the East Coast which could help it scale over the next decade.

Congress and the Federal Communications Commission (FCC) will have plenty of telecommunications issues on their plate as the country heads into 2023. Tax breaks for grant funding; ReConnect reform; Pole attachment problems; and perhaps even net neutrality – again. But New Street Research’s Blair Levin said a handful of truly pressing policy issues appear poised to be decided by the states and courts. According to Levin, a recent ruling by the Supreme Court in the West Virginia v.

The Federal Communications Commission's Wireline Competition Bureau and the Office of Economics and Analytics announced they are ready to authorize Rural Digital Opportunity Fund (Auction 904) support for 1,764 Auction 904 winning bids. Nearly all of the winning bids are Resound Networks, a wireless internet service provider. Bids are to serve parts of Arizona, Arkansas, Colorado, Kansas, New Mexico, Oklahoma, and Texas. The FCC also announced that Xiber, a broadband provider headquartered in Indianapolis, is forfeiting bids in Illinois, Michigan, Ohio, and Texas. 

The authors were previously asked to analyze from an economic perspective the appropriate contribution methodology for the federal Universal Service Fund (USF). In a prior study, they analyzed the effects of modifying and expanding the “contribution base,” i.e., the supply of financial resources for the USF, to include both voice and broadband connections. In particular, the prior study investigated the economic effects of modifying and expanding the contribution base on broadband adoption rates.