5G Fund for Rural America
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A Discussion About the State of Universal Service
All people in the United States shall have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges.
How to Fix the Universal Service Fund
The Universal Service Fund (USF) is inefficient, ineffective, and funded by a regressive tax mechanism. Several reforms could improve the program:
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House Commerce Committee Continues Oversight of Federal Broadband Programs
The House Commerce Committee's Subcommittee on Oversight and Investigation held a hearing on May 10 discussing federal funding for broadband deployment as part of ongoing efforts to
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Rural Cellular Coverage
The cellular coverage in rural areas is drastically different than the national coverage maps that cellular carriers have been advertising for years. The Federal Communications Commission announced a process to address this issue in October 2020 when it announced the creation of a 5G Fund for Rural America. This will be a $9 billion fund that comes from the Universal Service Fund and that will provide subsidies for wireless carriers to build and equip new rural cell towers.
A dangerous side of America’s digital divide: Who receives emergency alerts
While America’s digital divide has been improving, large chunks of the country, especially rural and tribal lands, are still lagging behind in connection, according to research and experts, and that significantly hampers their access to vital, potentially lifesaving information. Without cell towers, urgent emergency alerts can’t get to phones and it is more difficult for residents to warn one another of danger or contact authorities. It’s a tough sell to get private companies to spend the time and money to build towers in rural areas, according to reports and experts.
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The Future of Universal Service is Still in the Future
When it comes to broadband, the Infrastructure Investment and Jobs Act is about more than money. For example, Congress also directed the Federal Communications Commission to consider the impact of the law's $65 billion broadband investment on the FCC's existing broadband support programs under the umbrella of the Universal Service Fund (known to wonks as the USF).
RWA Seeks Reform of the Universal Service Fund
The Rural Wireless Association noted that the Universal Service Fund is unsustainable as currently constructed. When the 1996 Telecommunications Act was signed into law, voice telecommunications ruled the day and was the primary service supported by the USF. Circumstances have since changed. An explosion of innovation pushed consumers to use more data and demand higher speeds and lower latency.
Lawmakers Introduce the Preventing Disruptions to Universal Services Funds Act
Reps Jahana Hayes (D-CT), and Marc Veasey (D-TX) introduced the Preventing Disruptions to Universal Services Funds Act (H.R.5400) to extend access to federal funds for telecommunications programs for three years, eliminating the need for a yearly fund recertification. The bill was created to ensure internet access for millions across the country is not disrupted by federal funding costs allowing for continuous access to available resources.
Do We Still Need the Universal Service Fund?
There is currently a policy debate circulating asking who should pay to fund the Federal Communications Commission’s Universal Service Fund. For decades the USF has collected fees from telephone carriers providing landline and cellular phones – and these fees have been passed on to consumers. As landline telephone usage has continued to fall, the fees charged to customers have increased. To fix this, there have been calls to spread fees more widely.
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How Do We Pay For Universal Service?
As the Infrastructure Investment and Jobs Act awaits a vote in the House of Representatives later this month, a debate over the future of the Federal Communications Commission's Universal Service Fund (USF) is already starting. Provisions in the infrastructure bill call for the FCC to quickly complete an evaluation of how the legislation will impact how the FCC's achieves the goal of deploying broadband to all Americans. Congress wants to know how the FCC can be more effective in achieving this goal. One brewing USF issue is how we pay for it.