ConnectME Authority

The ConnectME Authority has released the Universal Service Fund (USF) Assessment: A Study on the Impacts and Opportunities of USF Reforms in Maine.

Commissioned by ConnectME in November 2013, this study was conducted by James W. Sewall Company to evaluate the existing and potential impacts of the Federal Communications Commission’s reforms on the USF in Maine; assess the strength of Maine’s positioning for USF support, identifying the potential gap in Maine’s future funding resources; and provide recommendations for ConnectME and other stakeholder agencies to consider in developing Maine strategy, policy and programs that align with future USF funding opportunities.

The study finds that:

• Maine’s eligibility and status as an USF recipient is high among New England states, with only Massachusetts receiving a higher annual average.
• FCC reforms to legacy programs are reducing the amount of annual support to Maine for telecommunications services, in some cases, without compensatory support for broadband.
• Uncertainty of funding has led some carriers in Maine to reduce broadband network investments and to focus new services in lower cost areas that promise higher return.
• Maine is benefiting from new programs for USF funding that support broadband, particularly from pilot and phase I programs.
• Funding from several USF programs, including the Low Income and Rural Health Care programs, remains a largely untapped resource for Maine. Maine can realize more benefit from the Schools and Libraries program by increasing the local contribution match.
• The development of cost-efficient, ubiquitous broadband in Maine is impacted by several factors, including the predominance of broadband DSL over copper, the limited amount of fiber network buildout, low standard broadband speed definitions in the state, and the lack of integrated, policy-based investment support.
• The ConnectME Authority is positioned to support and drive initiatives to fill funding gaps and to lead the development of broadband policies and programs that maximize USF funding opportunities.