Who Should Pay for Universal Broadband Connectivity?

The Universal Service Fund (USF) is currently on an unsustainable financial path, funded by a regressive surcharge on a shrinking base of telephone customers. If it isn’t fixed, and fixed quickly, the fund won’t be able to meet its mandate and fulfill its connectivity promise – not just to the next generation, but to the current one. So how do we fix USF? 

First, Congress should provide more direct and sustainable funding. The Federal Communications Commission just raised more than $80 billion in a blockbuster auction of airwave rights that will carry 5G and other next generation connectivity. Congress should direct a significant portion of that money to universal broadband service or make direct appropriations to shore-up the fund. Another option – one that should be explored even if Congress appropriates additional funds: broaden the base of USF contributors beyond the shrinking pool of telephone customers to include other players in the internet ecosystem. Congress should also consider whether some of the largest of our nation’s technology, streaming and internet platforms, which don’t currently support our shared networks (but couldn’t have reached trillion dollar market caps without them), should contribute to the costs of ensuring universal connectivity.

[Jonathan Spalter is President and CEO of USTelecom - The Broadband Association]