Does USF Reform Put RUS Loans at Risk of Default?

Loans recently made to small telcos by the Rural Utilities Service would no longer be “financially feasible” if the Federal Communications Commission caps the Universal Service fund, according to data filed by the RUS with the FCC. The filing came to light just as the nation’s largest and smallest telephone companies announced they had reached accord on Universal Service and inter-carrier compensation reform. Although the large carriers apparently have agreed on a USF cap to the areas they serve, the smaller carriers are recommending that Universal Service funding for their service areas be allowed to continue to grow