Rural Digital Opportunity Fund

The Federal Communications Commission grants RiverStreet Communications of Virginia, Inc. a limited waiver of the Commission’s Rural Digital Opportunity Fund (RDOF) service milestone and non-compliance rules. We will relieve RiverStreet of RDOF obligations to serve all the eligible census blocks within the census block groups covered by RiverStreet’s authorized winning bids in New Kent County (VA).

It is not controversial to say that the Federal Communications Commission’s (FCC) Universal Service Fund (USF) program is unsustainable. Something must change. Universal Service Fund programs cover the cost of maintaining telephone service in high-cost areas, wiring rural schools, libraries, and healthcare facilities for the internet, and providing devices and services at discounted rates to low-income households.

Earlier this year, a Benton Institute for Broadband & Society survey of low-income households found that 13 percent of Affordable Connectivity Program (ACP) participants (approximately 3 million households) would disconnect their home internet service without the subsidy and 36 percent (or 8.3 million households) would downgrade to a cheaper or slower plan.

A change of administration brings a change to the Federal Communications Commission as the majority swings from Democratic to Republican. I’ve always maintained a regulatory wish list, and the following are my hopes for what we’ll see out of the new FCC. These aren’t predictions—just my own list of hopes. 

A new permanent broadband affordability benefit focused on unconnected households and funded by repurposing the Universal Service Fund's High Cost Programs as they expire can close the digital divide. 

The Federal Communications Commission's Wireline Competition Bureau announced that certain Rural Digital Opportunity Fund (RDOF) census block groups (CBG) are now eligible for other funding programs.

The fate of the $8 billion Universal Service Fund (USF) now lies in the hands of the Supreme Court, which has the power to determine whether the subsidy program is unconstitutional. The legality issue concerns the Federal Communications Commission’s choice to delegate the administration of USF programs (Connect America Fund, Lifeline, E-Rate and Rural Health Care) to a private third party—the Universal Service Administrative Company (USAC). The Sixth and Eleventh Circuits have already ruled to uphold the constitutionality of the USF’s current funding mechanism.

Former Federal Communications Commission Chairman Ajit Pai said Congress should fund the $8.1 billion Universal Service Fund through annual appropriations. “I do think that the time has come for Congress to shift this to a general appropriation,” said Pai, FCC chairman from 2017 to 2021. “[If USF were funded by appropriation] we wouldn’t have this situation now where we’re essentially getting more and more money from a declining base of contributors.”

Chris Mitchell speaks with Andy Schwartzman, Senior Counselor at the Benton Institute for Broadband & Society, about pressing legal issues affecting telecommunications policy in the U.S.

The Universal Service Fund (USF) has been stuck in legislative limbo as the government wrestles with how to improve the subsidy program. Experts think USF reform could see momentum in Trump’s second term, but how that will pan out is a trickier question to answer. The USF, which supports broadband access and affordability in rural and low-income communities, is made up of four [sic] smaller programs: Connect America Fund, Lifeline, E-Rate and Rural Health Care. One glaring problem with the current USF framework is the shrinking contribution base.