NTCA worries cuts to USF support could chill rural broadband investment

NTCA–The Rural Broadband Association urged the Federal Communications Commission to waive scheduled cuts to Universal Service Fund (USF) support for rural operators, arguing a reduction in financial assistance could force them to raise rates for consumers or halt planned network investments. The organization’s concern relates to the Connect America Fund Broadband Loop Support and High-Cost Loop Support programs. Both are targeted at smaller operators and are designed to make the economics of deploying and providing broadband service in rural areas more sustainable. Unlike other USF programs, these provide reimbursement for costs already incurred rather than advances for future costs. Michael Romano, NTCA’s SVP Industry Affairs and Business Development, said the cut slated for 2021 was upwards of $110 million across all the operators participating in the program. The reduction amount for 2022 is yet to be announced but is likely to be even higher, he said. According to Romano, the same conditions that were the basis for the waiver in 2021 are still present and a reduction in funding would fly in the face of broader government messaging around the importance of broadband connectivity.