Issues FCC Should Address in Future of the Universal Service Fund Proceeding

In a meeting with the Federal Communications Commission's Telecommunications Access Policy Division, USTelecom argued that the Commission should commit to launching a proceeding to modernize the Universal Service Fund (USF)  contributions system by ensuring that the services and entities that contribute reflect the purposes and beneficiaries of the USF. USTelecom said the FCC should request additional authority from Congress as necessary to ensure it can substantially expand the contributions base. USTelecom also said that the Future of the Universal Service Fund proceeding should address the following needs:

• The continuing availability of ongoing support for capital and operating expenses in high-cost areas in the near-term and after the allocation of Infrastructure Investment and Jobs Act funds;
• Reconciling the Lifeline and Affordable Connectivity Programs so that there are clear objectives for either two distinct low-income programs or a single unified program;
• Considering how subsidy programs can be more efficient by removing providers from the middle where possible;
• Providing more clarity on the availability of USF support for disaster recovery; and
• Reexamining incumbent local exchange carrier (“ILEC”)-specific obligations in light of the changing nature of USF and the fact that ILECs no longer receive USF in many areas but continue to be subject to legacy obligations, even in areas where the FCC or another federal or state agency is funding a competitor to serve the same area.