Universal Service Fund

For years, the Federal Communications Commission has administered the Universal Service Fund (USF), overseeing four programs designed to bring connectivity to rural areas, to target institutions like schools, libraries and healthcare facilities and to low-income consumers. Temporary COVID-19 connectivity programs appear to have presaged a shift from the FCC defining universal service programs to Congress appropriating funding and directing the future of universal service, all the while shifting the primary administrator of the funding.

254 organizations are calling on broadband policymakers to repair the Universal Service Fund (USF) contribution mechanism. The USF is one of our nation’s most important tools for addressing the digital divide, but its outdated funding mechanism puts the program in danger of collapse and inequitably burdens the consumers who most often end up contributing.

Co-chair of the bipartisan Senate Broadband Caucus Amy Klobuchar (D-MN) and Sen John Thune (R-SD) introduced bipartisan legislation to strengthen the funding mechanisms for the Universal Service Fund (USF), which promotes universal access to broadband and other telecommunications services. The USF -- which includes programs to support broadband access in rural communities, facilitate rural health care, and expand access to affordable broadband service for low-income families, schools, and libraries -- is largely funded by fees imposed on landlines.

Verizon Communications closed its $6.25 billion purchase of prepaid cellular-service provider TracFone Wireless, cementing its lead in a market split among three major mobile-phone networks. Verizon previously agreed to buy the company from América Móvil SAB of Mexico for a combination of cash and stock.

Federal Communications Commission Chairwoman Jessica Rosenworcel announced that the items below are tentatively on the agenda for the December Open Commission Meeting scheduled for Tuesday, December 14, 2021:

November 5, 2021 may be remembered as the day the U.S. House of Representatives passed the infrastructure bill. But it was also a big day for the Federal Communications Commission's Lifeline program—because of actions both the FCC and Congress took that day.

The Senate Commerce Committee held a hearing to consider the nominations of Jessica Rosenworcel, to continue as a commissioner of the Federal Communications Commission (Rosenworcel also serves as chair of the FCC), and Alvaro Bedoya, to be a commissioner of the Federal Trade Commission. 

ViaSat sent a letter to the Federal Communications Commission urging the Commission not to approve any Rural Digital Opportunity Fund (RDOF) funding for ViaSat’s satellite broadband competitor SpaceX. SpaceX is in the process of deploying thousands of low earth orbit (LEO) satellites to provide broadband service with lower latency in comparison with the geostationary satellite broadband service that ViaSat offers. SpaceX was one of the biggest winners in the RDOF auction and was tentatively awarded $885 million to cover some of the costs of providing broadband to unserved rural areas.

Having waited patiently for the Infrastructure Investment and Jobs Act, now people want to know what happens next—when will we all get our broadband? For now, the action shifts from Congress to key federal agencies that will implement the broadband provisions of the new law.

The Federal Communications Commission said it is ready to authorize $709,060,159 in its fourth round of funding for new broadband deployments through the Rural Digital Opportunity Fund. Together with three prior funding wave announcements, the FCC has now announced over $1.7 billion in funding to winning bidders for new deployments.