Closing the digital divide requires a coalition on reform of the Universal Service Fund

COVID-19 has exacerbated the digital “haves” and “have nots” through remote work, learning, and telehealth, yet our government’s main agency to support greater access and adoption is inadequately funded and functioned to meet this moment. AT&T recently published a blogpost lamenting the rise in contributions to the Universal Service Fund (USF) and arguing for funding reform. The USF funds a series of subsidy programs aimed at ameliorating the digital divide. It is bankrolled by contributions from telecommunication companies in the form of a levy on telephone bills. That amount has risen to 26 percent, up from 14 percent a decade ago. This means that 26 percent of profits earned on interstate and international phone calls goes to the USF. These contributions are passed down to consumers’ bills as an additional surcharge. AT&T is not wrong to argue for “USF reform.” But AT&T cannot shirk its obligations and should contribute to build partners for an “all of the above” strategy to fund and support the USF. We need to build a coalition around reform that puts communities and stakeholders at the forefront. A connected America is too important to leave to the largest corporations alone. This includes regulators, USF contributing companies, receiving companies, and the rural and marginalized communities USF is designed to serve. Broadband, after all, is not about technology, money and policy: Broadband is about people.

Christopher Ali, is an Associate Professor in the Department of Media Studies at the University of Virginia and Faculty Fellow with the Benton Institute for Broadband & Society.

Harin Contractor was the former Economic Policy Advisor to the U.S. Secretary of Labor. He also founded the Data Analytics team at the Universal Service Administrative Company (USAC).