Rural Health Care

The percentage of end-user phone bills that go toward the Universal Service Fund (USF) has been climbing and there are serious questions about the sustainability of that funding mechanism, despite a relatively stable USF budget. The money for USF comes from companies that offer interstate and international long-distance telecom services (i.e., voice services). At one time most of the money went toward voice services but over the years, more and more of it has gone towards broadband.

Congress is on the verge of passing legislation to improve broadband maps. Unfortunately, tucked inside the “Broadband DATA Act” is a provision that could unintentionally jeopardize broadband funding for schools, libraries, and healthcare providers.

The Federal Communications Commission’s Enforcement Bureau announced a $31 million settlement with TeleQuality Communications for violating competitive bidding and rate rules and overbilling the FCC’s Rural Health Care Program. The settlement requires TeleQuality to provide the Universal Service Fund with $31 million worth of repayments and forfeitures of payment claims as a sanction. Over a four-year period, from 2015-2018, the company admits to using fabricated sales quotes as urban rates and failing to use FCC-required methods for determining rural rates.

The Schools, Health & Libraries Broadband (SHLB) Coalition released its 2020 Policy Roadmap, outlining the path forward for community anchor institution (CAI) broadband. Schools, libraries, healthcare providers, and other CAIs rely on high-quality broadband to provide essential services to their communities. It is imperative that policymakers, industry, and anchor institutions collaborate to connect all CAIs to affordable, gigabit broadband – a key step in closing the digital divide. The SHLB Coalition will pursue the following policy priorities in 2020: