Public Knowledge Files Comments Urging FCC to Drop USF Cap Proposal

Universal service is the core principle of US telecommunications policy, and Congress has directed the Federal Communications Commission to ensure affordable advanced telecommunications capabilities are available to everyone. Members of Congress from across the political spectrum, the Administration, the FCC, and state and local lawmakers vigorously agree that bringing the benefits of high-speed broadband to all areas of the US is a moral and economic imperative. However, the FCC’s proposal to cap the Universal Service Fund (USF) jeopardizes the FCC’s ability to use the agency’s universal service programs to close the digital divide.

The FCC should make a good faith effort to correct the outdated aspects of the USF contribution mechanisms by broadening the base of support for the universal service programs. Increasing the USF’s contribution base will buttress the sustainability of the program, alleviate burdens on current ratepayers, and ensure universal service programs have the funding they need to achieve their missions.