Texas Universal Service Fund Reduces Payments Amid Funding Uncertainty

As wireless providers move towards using data instead of voice calls, the Texas Universal Service Fund (TUSF), which is responsible for offsetting the high cost of connecting Texans across the state, has reduced payments received by rural telephone providers by 66 percent.  In response to this decrease, rural telephone providers, which are now facing financial uncertainty, filed a suit in Travis County District Court against the Public Utility Commission of Texas (PUC), which oversees the fund.  The lawsuit requests that the PUC fully provide previously approved funds to rural telephone customers. If no relief is awarded, the shortfall is expected to cost rural providers over $80 million this year and over $140 million in 2022, according to the suit.