Telecommunications Act of 1996

The Congressional directive in the Telecommunications Act of 1996 is for the Federal Communications Commission (FCC) to ensure that there be specific, predictable, and sufficient Federal and State mechanisms to preserve and advance universal service. The dilemma is that the source of Universal Service Fund (USF) programs is end user (i.e. retail) revenues from international and interstate wireline and mobile services, as well as revenue from providers of interconnected Voice over Internet Protocol (VoIP) services.

A tour of the remaining United States Digital Divide from a home in Quincy (CA) to an unserved farm in Newton (NC) to a home in Troy (AL).  These locations (and more) are from a random sample of BEAD-eligible unserved and underserved locations that are not part of the Federal Communications Commission's Rural Digital Opportunity Fund (RDOF) or Alternative Connect America Model (A-CAM) programs. 

The debate over how internet platforms moderate content has reached a fever pitch. To get around First Amendment concerns, some proponents of content moderation regulation argue that internet platforms should be regulated as “common carriers”—that is, internet platforms should be legally obligated to serve all comers without discrimination. As these proponents regularly point to communications law as an analytical template, it appears that the term “common carrier” has become a euphemism for full-blown public utility regulation complete with a dedicated regulator.

Small rural carriers have a big decision to make by September 29, 2023, now that the Federal Communication Commission has released new broadband funding offers. The new offers are contingent on a higher broadband speed, as mandated in the enhanced Alternative Connect America Model (E-ACAM) order. Carriers must advise the FCC by the September 2023 deadline, on a state-by-state basis, whether they want to participate in the E-ACAM program and accept the new offers. The initial program, established several years ago, covers some of the costs of deploying broadband to unserved areas based on a

As what we can do with the internet has expanded, so too has the way we connect, and how we use it—at home and on the go. In the United States today, it has become the norm for a majority of households to have two types of subscriptions to the internet—mobile data for their phone and fixed (and for the most part) wireline service for their residence. Over 75 percent of households whose annual incomes exceed $50,000 have cellular data and wireline broadband subscriptions. For households below that level, 44.7 percent have both types of subscription plans.

On July 23, 2023, the Federal Communications Commission adopted the Enhanced A-CAM Order, establishing the Enhanced Alternative Connect America Cost Model (A-CAM) program as a voluntary path for supporting 100/20 Mbps broadband deployment throughout the rural areas served by carriers currently receiving A-CAM support and in areas served by legacy rate-of-return support recipients.

In comments filed with the Senate Working Group on the future of the Universal Service Fund (USF), many organizations underscored the issue of redundant government expenditure in their submissions, with a notable focus on whether the Affordable Connectivity Program (ACP) should be integrated into the USF framework. The USF includes four programs targeting different vulnerable portions of the broadband market: the Connect America Fund, Lifeline, Schools and Libraries (E-Rate) and Rural Health Care.

The Benton Institute for Broadband & Society is greatly concerned with the preservation and advancement of the Federal Communications Commission’s Lifeline program—a vital Universal Service Fund program that must continue to be improved to achieve its goals, broaden its reach, and expand access to those who can benefit the most. Lifeline was created nearly 40 years ago with the aim of providing low-income households with low-cost landline telephony options. Now, nearly all U.S. households have telephone service and the Lifeline program plays an essential role in ensuring affordability.

There is a huge disparity in regulating two distinct but highly intertwined industries – broadband and voice. Voice regulation includes the cellular business, and, in terms of revenue, the voice market is larger than broadband. JD Powers reported in April 2023 that the average household is spending $144 for cellular per month. I call these industries intertwined because the players at the top of both industries are the same. The big internet service providers (ISP) are Comcast, Charter, AT&T, and Verizon. The biggest voice players are AT&T, Verizon, and T-Mobile.

An important aspect of the Benton Institute for Broadband & Society’s work has focused on schools and libraries. As far back as 1995, Benton published The Learning Connection: Schools in the Information Age, examining how educators were grappling with the difficult interplay of technological change and educational values.