Universal Service Fund

Today I want to discuss Federal Communications Commission Chairman Pai’s belief that we are on the cusp of a new era of partnership between the FCC and rural electric cooperatives. Specifically: our hope that electric coops will become a bigger part of closing the digital divide and delivering online opportunity to rural Americans who have been bypassed by the broadband revolution. And how the FCC can work with you all to bring about this change. 

While USAC is encouraged that its information technology systems delivered continual reliability and availability improvements for our universal service program participants and contributors in 2017, we agree with your assessment that USAC must redouble its efforts to ensure that we are adequately planning, coordinating, testing and reviewing our systems to ensure that they are functional, reliable, and secure.

With network neutrality in the rearview mirror, is E-Rate next on the Federal Communications Commission’s chopping block?  Experts admit it’s possible, if unlikely, but suggest a more probable series of modest changes in the short term. “I understand there are concerns about [FCC Chairman Ajit] Pai,” says John Harrington, CEO of the E-Rate consultancy Funds For Learning.

The Federal Communications Commission announced it has settled its investigations of five providers that received improper payments from the Lifeline program. Noting that the companies have already repaid the program for improper payments, the FCC found that the public interest would be served by adopting the Consent Decrees, which resolve the Notice of Apparent Liability for Forfeitures issued to the companies. As part of each settlement, the companies have agreed to make additional payments to the U.S.

There's still a lot to be gleaned about the state of the E-rate and school connectivity. Here are six big numbers to know.

Letters from rural carriers have been pouring into the Federal Communications Commission to urge the commission to close the broadband Alternative Connect America Cost Model (A-CAM) funding gap before the end of 2017. It was just about a year ago that more carriers than expected chose to participate in the A-CAM broadband program, which will pay part of a carrier’s costs to bring broadband to unserved areas based on a cost model.

AT&T, CenturyLink, Frontier and other providers that want to further expand rural broadband will soon be able to bid in the Federal Communications Commission’s $2 billion additional Connect America Fund II auction. The FCC has identified nearly 1 million homes and small businesses that will be eligible for broadband deployment support over the next 10 years. A large majority of the rural areas the FCC identified do not have access to broadband internet service. Given the low density of these areas, service providers are unlikely to expand service without federal support. 

Continuing its push to expand access to broadband in rural America, the Federal Communications Commission identified the locations of nearly 1 million homes and small businesses in 48 states that are eligible for up to $2 billion in support for broadband deployment over the next decade. Currently unserved by high speed Internet access, these locations are in largely rural areas, where, absent support, carriers are unlikely to expand service.

On Oct 31, 2017, several members of Congress wrote to Federal Communications Commission Chairman Ajit Pai to urge the FCC to take action to ensure the High-Cost Universal Service Fund (USF) program provides sufficient and predictable support to help deliver affordable, high-quality broadband to rural consumers. 

The Federal Communications Commission launched a review of its Rural Health Care Program to ensure that all communities have access to advanced telehealth services. The FCC is seeking comment on the appropriate level of the RHC Program funding cap. It also explores ways to more efficiently distribute RHC Program funds and combat waste, fraud and abuse. In addition, the FCC waives the RHC Program’s annual cap on a one-time basis for funding year (FY) 2017 to address the impact of the funding cap on RHC Program participants.

The FCC also makes some immediate changes for FY 2017: