Universal Service Fund

Questions over federal broadband grants roil Minnesota’s rural internet program

When the Federal Communications Commission announced $312 million in grants for one relatively small company to build broadband in Minnesota, it stirred controversy among those who worry the internet provider can’t deliver what it promised. Now that squabble over the company, LTD Broadband, has spilled over into Minnesota’s own grant program for development of high-sp

The FCC’s Program to Discount Educational Internet Connections Needs an Upgrade

One of the first priorities of 2021 should be to enable schools and libraries to use E-Rate to help students and patrons get online from home. To support these extensions is to uphold the program’s founding principles of universal service and access. So what is the hold up? For one, Congress can barely figure out how to pass its annual appropriations bills. Although there is a chance that E-Rate changes could come in the final push for COVID-19 relief legislation, relying on lawmakers typically means waiting, and waiting, and waiting.

Every Child Connected Act

Senators Shelley Moore Capito (R-WV) and Amy Klobuchar (D-MN), both members of the Senate Commerce Committee, introduced the Every Child Connected Act—legislation that aims to reduce the digital divide between students with and without internet access, known as the Homework Gap. Specifically, the legislation accomplishes this goal by targeting available funding sources from Federal Trade Commission data privacy violations to provide vital connectivity to American students at home. The Every Child Connected Act would: 

Emergency Assistance for Education Institutions and Connectivity

A bipartisan group of senators and representatives unveiled highlights of the $748 billion Bipartisan COVID-19 Emergency Relief Act of 2020. Provisions for broadband include:

The Cost Of Broadband Is Too Damned High

How much do consumers pay for internet service in the United States? The question might seem relatively simple, but the answer has stymied the federal government for years—because no agency collects this data. Throughout 2020, my organization, New America’s Open Technology Institute, published the Cost of Connectivity series to crack open the black box of internet pricing.

The RDOF Auction Results and Implications for US Broadband Policy

The preliminary results of the Federal Communications Commission’s Rural Digital Opportunity Fund (RDOF) auction are now public and while it is a long road from auction results to authorization of funding to actual deployment, the results have significant implications for US broadband policy.

Reforming funding of universal access to telecommunications and broadband services: Approaches for the new decade

The Federal Communications Commission universal service support fund's revenue base has been shrinking while the payouts have risen. As a result, the contribution factor, an ad valorem tax on the revenue base, rose from 16.7% in 2017 to 21.2% in 2020. We propose two solutions to the funding problem: A near-term funding reform proposal that widens the revenue base by replacing the current definition of assessable services (interstate and international) with a more inclusive definition of all communication services that have a telecommunications component.

How Not to Close the Digital Divide -- Part 1,421

It is Day 1,421 of the Trump Administration. Federal Communications Commission Chairman Ajit Pai, from Day 1, has insisted that closing the digital divide is the Trump FCC's top priority. This week, the FCC announced the winners of over $9 billion worth of rural broadband subsidies -- the "single largest step ever taken to close the digital divide," according to Chairman Pai. But looking at the results may leave millions of rural residents apprehensive -- and disconnected.

Senator Capito Cautions FCC on RDOF Funding for Frontier

Sen Shelley Moore Capito (R-WV) sent a letter to Federal Communications Commission Chairman Ajit Pai voicing her concerns about the ability of Frontier Communications to meet the obligations required by the Rural Digital Opportunity Fund (RDOF) auction program. This letter follows the recent announcement that nine providers won bids to cover West Virginia through the RDOF program.

Consolidated Fiber Expansion May be an Example of RDOF Halo Effect

Consolidated Communications announced a major fiber network expansion that will add 300,000 new gigabit-capable locations. This expansion is funded in part by the Federal Communications Commission's recently concluded Rural Digital Opportunity Fund (RDOF) auction. Consolidated won close to $59 million to bring broadband to 27,000 locations across 7 states. That funding will help accelerate the Consolidated fiber strategy, which aims to reach an additional 300,000 locations in 2021 alone.