FCC Has Reformed the High-Cost Program, but Oversight and Management Could be Improved

This report examines the Federal Communications Commission’s 1) plans for repurposing the high-cost program for broadband, and 2) plans to address previously identified management challenges as it broadens the program’s scope.

The Government Accountability Office reviewed and analyzed pertinent FCC orders, associated stakeholder comments, and reports related to the Universal Service Fund (USF) and interviewed federal and industry stakeholders, as well as economists and experts. The GAO recommends that the FCC A) establish a specific data-analysis plan for carrier data to determine program effectiveness, and B) consult with the Joint Board as it examines the factors for calculating carrier support payments. FCC concurred with the recommendations.

[GAO-12-738, July 25.]