Telcos on Universal Service Reform: Contribution Base Must Be Addressed

Reforming how the universal service program is funded is critical at a time when a wide range of reforms have been made to how universal service funding is spent, said several telephone companies and telecommunications associations in comments filed with the House Commerce Committee.

The comments were made in response to a white paper issued by the committee asking a range of questions about the Universal Service Fund that is governed by the Federal Communications Commission and funded by the telecommunications industry. Traditionally the USF was voice-focused but the FCC is in the process of transitioning the program into the broadband-focused Connect America Fund. Several commenters suggested expanding the services upon which USF fees are based. Those advocating expanding the universal service contribution base will face opposition, although the extent of that opposition may not be apparent from comments filed with Congress.