Universal Service Fund

In June, the Biden administration allocated $42.45 billion in Broadband Equity, Access, and Deployment (BEAD) funding among states—the largest single pot of federal broadband spending in our country’s history. Biden officials at the National Telecommunications and Information Administration (NTIA) made these allocations despite repeated requests from lawmakers and communities across the country to first improve the data underlying NTIA’s funding decisions.

Spectrum launched the Internet, Mobile, TV, and Voice services to more than 200 homes and small businesses in Craven County, North Carolina. Spectrum’s newly constructed fiber-optic network buildout in Craven County is part of the company’s approximately $5 billion Rural Digital Opportunity Fund (RDOF)-related investment in unserved rural communities, which includes $1 billion won in the Federal Communications Commission’s RDOF auction. 

The  Universal Service Administrative Company (USAC) submitted projections of demand and administrative expenses for federal universal service support mechanisms for the fourth quarter of 2023. The Federal Communications Commission's Wireline Competition Bureau, in consultation with the FCC's Office of Managing Director, previously directed USAC to carry forward up to $211.50 million in unused funds from prior funding years to the extent necessary to satisfy funding year 2023 Rural Health Care program demand.

Charter Communications has frequently talked up the pace of its rural deployments, reaching 68,000 subsidized rural passings in the second quarter (Q2) of 2023. CFO Jessica Fischer said the Charter has a “tremendous opportunity” to expand its footprint to rural areas. Charter was one of the largest winners in the Rural Digital Opportunity Fund (RDOF) auction, and Fischer noted progress in those builds “has been going quite well” in terms of pace and penetration.

The Institute for Local Self-Reliance estimates that the Affordable Connectivity Program (ACP) will run out of money in 2024.

In rural areas, many large internet service providers (ISP) offer voice-over-IP. Nathan Smith, Director of Economics and Policy at Connected Nation said, “It’s likely that a lot of [Broadband Equity, Access, and Deployment (BEAD)] sub-grantees will add voice for an additional revenue stream." However, the BEAD Notice of Funding Opportunity does not require grant applicants to offer voice service, though the actual grants will be made by state governments who set their own rules. Ciena’s Solutions Marketing Senior Adviser Vinicius Santos expects some state broadband offices to ask applicants

The National Digital Inclusion Alliance (NDIA) sees reshaping USF as a key potential strategy for achieving digital equity. Five key recommendations for Congress as it considers the future of USF are:

The Federal Communications Commission released the funding structure for its Enhanced Alternative Connect America Model (A-CAM) program. With the new offer, existing A-CAM program carriers and carriers that are still receiving legacy support will be funded for the deployment of voice and broadband-capable networks in their operating regions. NTCA – The Rural Broadband Association's Executive Vice President, Mike Romano, said that as a result of the FCC’s new offers, NTCA members have more options to deliver on a mission of universal connectivity. Meanwhile, NCTA – The Internet & Televis