FCC urged to reconsider USF stance in net neutrality order

With the FCC's vote on net neutrality coming up Thursday, April 25, some industry groups are making a final push for a change to the language in order to leave open the possibility of meaningful Universal Service Fund (USF) reform at the agency level. Specifically, representatives at industry trade groups NTCA–The Rural Broadband Association, Incompas, and the Computer & Communications Industry Association (CCIA) met with members of the FCC in the last week to urge the Commission not to forbear applying USF to broadband Internet access providers (BIAS). In essence, various USF reform advocates view assessing broadband revenue as one key way to address the fund's ballooning contribution factor, or the percentage of revenue needed to support the USF's programs. However, the FCC in its draft order chose to forbear applying USF contribution requirements to broadband providers, noting that the "record does not convincingly show that imposing universal service contribution requirements on BIAS is necessary at this time." While the draft order also notes the FCC could revisit the USF/BIAS decision in the future, representatives from NTCA and Incompas stress that forbearing here could close the door on the issue indefinitely. And while the draft order also points to a group in Congress working toward addressing the USF issue through legislation, NTCA and Incompas contend that it's unwise for the FCC to abdicate its own authority here, given the unlikelihood that Congress will move on this issue soon.