NTCA-USF Study on Universal Service Contribution Methodology

The authors were previously asked to analyze from an economic perspective the appropriate contribution methodology for the federal Universal Service Fund (USF). In a prior study, they analyzed the effects of modifying and expanding the “contribution base,” i.e., the supply of financial resources for the USF, to include both voice and broadband connections. In particular, the prior study investigated the economic effects of modifying and expanding the contribution base on broadband adoption rates. In this new report, the authors have been asked by NTCA to evaluate and respond to critiques of the prior study as submitted to the Federal Communications Commission. The authors continue to find that modifying the USF contribution methodology to include both voice and broadband connections within the contribution base would not have a material impact on broadband adoption or retention.