FCC Moves to Expand Rural Broadband Deployment by Modernizing and Reforming Universal Service Support for Small Carriers

Taking further steps to expand rural broadband deployment, the Federal Communications Commission unanimously approved modernization and reform of its universal service program supporting the nation’s small rural carriers, known as “rate-of-return” carriers. Providing approximately $20 billion in support over the next 10 years, modernizations of the universal service program for high-cost areas include enabling rate-of-return providers to meet consumer demand for stand-alone broadband.

Reforms include better targeting of support to communities that need it the most. Broadband is critical in the 21st Century, providing consumers with access to jobs, education and information, facilitating civic engagement, connecting local business and industry to global markets and more. Since the FCC’s universal service reforms of 2011, rate-of-return carriers have made substantial progress expanding broadband deployment, expanding their reach by 45%. But roughly 20 percent of all homes in rate-of-return areas still lack access to terrestrial fixed broadband meeting the FCC’s benchmarks for the high-cost program. Efficient, effective universal service support is critical to the expansion of affordable broadband in high-cost rate-of return areas that currently lack service. Following are the key elements of the item adopted by the Commission:

• Modernizes Existing Universal Service Program for Rate-of-Return Carriers
• Creates Two Paths to a “Connect America Fund” for Rate-of-Return Carriers
• Increase Fiscal Responsibility in the Universal Service Fund