Universal Service Fund

The Federal Communications Commission announced that it is ready to authorize $1,041,074,000 over 10 years in its fifth round of funding for new broadband deployments through the Rural Digital Opportunity Fund. In the largest funding wave to date, 69 broadband providers will bring broadband service to 518,088 locations in 32 states. “This latest round of funding will open up even more opportunities to connect hundreds of thousands of Americans to high-speed, reliable broadband service,” said Chairwoman Jessica Rosenworcel.

In November 2021, President Joe Biden signed into law the largest U.S. investment ever in broadband access, affordability, and adoption. With $65 billion flowing to broadband, Congress also asked the Federal Communications Commission to determine what impact the Infrastructure Investment and Jobs Act will have in achieving universal service goals for broadband. This week, the FCC launched a proceeding seeking public comment on how to best make sure everyone in the U.S. can use broadband.

The Federal Communications Commission has initiated a proceeding seeking comment on issues related to the future of the Universal Service Fund in light of the broadband investments in the Infrastructure Investment and Jobs Act. The Infrastructure Act includes the largest ever federal investment in broadband, totaling approximately $65 billion.

The Federal Communications Commission authorizes Rural Digital Opportunity Fund (Auction 904) support for 2,008 winning bids. For each of the bids, the FCC has reviewed the long-form application information, including the letter(s) of credit and Bankruptcy Code opinion letter(s) from the long-form applicant’s legal counsel.

The Federal Communications Commission approved a proposal seeking comment on improving transparency and efficiency in the competitive bidding process for the E-Rate program. The proposal would require bids for E-Rate services and equipment to be uploaded into a centralized document portal managed by the Universal Service Administrative Company. This would replace a process by which service providers submit bids directly to applicants for E-Rate-supported equipment and services. The order also seeks comment on other ways to improve the competitive bidding process and

Cherokee County (SC) and Charter Communications have announced a public-private partnership that over the next two years is set to expand high-speed internet access countywide. More significantly this could be a model for expanding rural broadband access across the United States. Initial dollars for the ambitious project will come from the Rural Digital Opportunity Fund (RDOF), a $20.4 billion fund established by the Federal Communications Commission to bring high speed fixed broadband service to rural homes and small businesses that lack it.

The federal government launched the Emergency Broadband Benefit in February 2021 to provide low-income households with a $50 monthly discount on their internet bill as part of a multi-pronged approach to reduce the digital divide, which is a function of both access to a wired high-speed internet service provider and the affordability of service. According to the Universal Service Administrative Company, enrollment in the Emergency Broadband Benefit reached 7.1 million households in November 2021 (up from 6.1 million in October).

SpaceX CEO Elon Musk made a stir when he recently said that the US should “get rid of all” federal subsidies.

In making his case that safety net programs should be easier to use, Jimmy Chen, a tech entrepreneur, recalled visiting a welfare office where people on food stamps endured long waits to submit routine paperwork. They passed the time as people in lines do, staring at their phones — which had the potential to do the work online with greater convenience, accuracy and speed.

How will the Infrastructure Investment and Jobs Act impact universal service policy and, specifically, the Lifeline program? The new law sets up a transition from the Emergency Broadband Benefit, a program that is only six months old, to the new, more permanent Affordable Connectivity Program.