Universal Service Fund

Telehealth can't succeed without expanding access to affordable broadband internet, witnesses told the Senate Commerce Committee on Oct 7. But extending the regulatory flexibilities around this access granted under the public health emergency, which are slated to expire when the COVID-19 pandemic subsides, is also critical, they said, stressing that the benefits of telemedicine can't be understated.

On October 4, 2021, the National Lifeline Association (NaLA) met with the Office of Acting Federal Communications Commission Chairwoman Rosenworcel to discuss the Lifeline Program and the Emergency Broadband Benefit (EBB) Program. The discussion focused on the Lifeline minimum service standards (MSS), getting the Lifeline program ready for the end of the EBB and certain Lifeline and EBB process improvements that should be made by the Universal Service Administrative Company (USAC).

The Federal Communications Commission announced that it is ready to authorize $163,895,636 to 42 providers in the second round of funding for new broadband deployments through the Rural Digital Opportunity Fund. The FCC is also continuing its work to refocus the program to ensure that funding goes to unserved areas that need broadband.

Included in the bipartisan infrastructure bill is $65 billion for broadband deployment. Most of that, $42 billion, is slotted for subsidies to rural communications networks, promising to conquer the digital divide. This is doubtful. The government has already expended at least $200 billion (in 2021 dollars) on the Universal Service Fund established by the 1996 Telecommunications Act. Most of the money was meant to extend networks that serve rural areas, but some was also allocated to schools and libraries, healthcare facilities and low-income mobile phone users.

Rep Elise Stefanik (R-NY) joined her colleagues in sending a letter to Acting Federal Communications Commission Chairwoman Jessica Rosenworcel pushing for an end to the delay of the Rural Digital Opportunity Fund (RDOF) distribution. In December 2020, the FCC announced Phase 1 awards under the RDOF, which would deploy broadband to 5.2 million unserved locations.

Reps Jahana Hayes (D-CT), and Marc Veasey (D-TX) introduced the Preventing Disruptions to Universal Services Funds Act (H.R.5400) to extend access to federal funds for telecommunications programs for three years, eliminating the need for a yearly fund recertification. The bill was created to ensure internet access for millions across the country is not disrupted by federal funding costs allowing for continuous access to available resources.

There is currently a policy debate circulating asking who should pay to fund the Federal Communications Commission’s Universal Service Fund. For decades the USF has collected fees from telephone carriers providing landline and cellular phones – and these fees have been passed on to consumers. As landline telephone usage has continued to fall, the fees charged to customers have increased. To fix this, there have been calls to spread fees more widely.

As you might imagine, we thought there would be exciting news to share today about broadband. Not so much. As we wait for a vote on the Infrastructure Investment and Jobs Act (could it come today?

While the share of households with a broadband connection has been increasing, according to the Federal Communications Commission, millions of households across America — disproportionately in communities of color, rural areas and low-income households — lack reliable and affordable connectivity. Large swaths of rural and urban America are “digital deserts” where high-speed internet access is unavailable at any price.

With broadband now as important as electricity was in the last century, affordable connectivity is more critical than ever. Through the Emergency Broadband Benefit (EBB) program, which provides free or discounted internet service of up to $50 a month ($75 on tribal lands) toward the cost of a consumer’s internet bill for people who qualify, Congress has made it clear that affordable connectivity is a top priority with bipartisan support.