Rural Telecom Operators Take on Risks for Their Communities, But for How Long?

Rural telecommunication operators are taking on business and financial risks to ensure their communities remain connected during the COVID-19 pandemic. Many are providing free service and setting up free Wi-Fi hot spots, exposing them to cash flow risks. Setting up hot spots for school children to use while in the parking lot of a fairground is admirable, but this is not a sustainable model for rural operators or the community – and neither is the Universal Service Fund (USF) funding mechanism that only levies fees against telecommunication bills. Contribution reform that includes applying fees to broadband bills could stabilize the USF program and ensure that more money is available to help bridge the digital divide.