Universal Service Fund

The Federal Communications Commission's Wireline Competition Bureau (Bureau) released illustrative results for the Enhanced Alternative Connect America Cost Model (Enhanced A-CAM) (v2.6.0) program recently adopted by the FCC. These results utilize three different combinations of per-location funding caps for unserved locations and funding percentages for locations already deployed by the incumbent local exchange carrier (ILEC).

A group of Internet service providers that won government grants are asking the Federal Communication Commission for more money or an "amnesty window" in which they could give up grants without penalty. The ISPs were awarded grants to build broadband networks from the FCC's Rural Digital Opportunity Fund (RDOF), which selected funding recipients in December 2020.

E-Rate is the forgotten child of the universal service family. While commentators and Congress have spilled significant ink examining the government’s broadband build-out and affordability initiatives, E-Rate has been quietly subsidizing broadband service to schools and libraries for a quarter century. Promoting community connectivity and education is a worthwhile policy goal.

WTA—Advocates for Rural Broadband filed a letter in opposition to a proposal by the Coalition of RDOF Winners which seeks substantial post-auction supplemental additions to the support amounts, as well as significant changes to the distribution schedules and other terms and conditions, for which the Coalition’s members made winning low bids and agreed to accept during the Federal Communications Commission’s Rural Digital Opportunity Fund (RDOF) reverse auction.

Charter has now won $700 million in broadband funding since its big win in the 2018 Rural Digital Opportunity Fund (RDOF) auction, said Jessica Fischer, the company’s chief financial officer. The funding will go toward buildouts to 300,000 locations, Fischer said. The gross cost of the buildouts for which Charter has won funding will be $1.7 billion, which suggests that Charter will contribute matching funds of about $1 billion for the builds. The buildout cost per passing to Charter will be $3,200, Fischer said. The company completed 68,000 subsidized rural passings this quarter, she noted

The Universal Service Fund Working Group seeks public comment on the future of the Universal Service Fund (USF). The goal of this working group is to create a bipartisan forum to guide education, awareness, and policy-making on the USF. The working group invited comments on ten questions related to money collected from telecommunications companies that is dedicated to fulfilling the goals of universal service.

The Federal Communications Commission released a Report and Order creating the Enhanced Alternative Connect America Cost Model program which extends subsidies for rural broadband providers for 10 additional years (beyond the remaining 5 years) at a cost of $1.27 to $1.33 billion annually to the FCC’s Universal Service Fund. In exchange, any ISP that elects this subsidy would be required to deploy 100/20 broadband to everyone in its service area.

The Federal Communications Commission adopted the Enhanced Alternative Connect America Cost Model (A-CAM) program as a voluntary path for supporting the widespread deployment of 100/20 Mbps broadband service throughout the rural areas served by carriers currently receiving A-CAM support and in areas served by legacy rate-of-return support recipients. In adopting this program, the FCC promotes the universal availability of voice and broadband networks, while also taking measures to minimize the burden on the nation’s ratepayers.

The Federal Communication Commission updated minimum service standards for Lifeline-supported services. This standard will continue until December 1, 2024. Additionally, the FCC announced that the budget for federal universal service support for the Lifeline program for calendar year 2024 will be $2,778,691,284. 

The Federal Communications Commission adopted an order providing Tribal libraries and other E-Rate participants enhanced access to funding so they can obtain affordable, high-speed broadband services and equipment to connect students and library patrons with online learning opportunities.