Universal Service Fund

The Federal Communications Commission's Rural Digital Opportunity Fund (RDOF) auction results are a puzzle. The auction resulted in far more gigabit networks -- 85% of locations -- than anyone expected, at far lower subsidy than expected. However, there is a lot of frustration and confusion because it is not clear that some of the top bidders can deliver.

The Pai Federal Communications Commission took a victory lap when it announced the results of a $9.2-billion reverse auction that is supposed to bring broadband to over 5.2 million unserved homes and businesses.

Millions of rural Americans in 49 states and the Commonwealth of the Northern Mariana Islands will gain access to high-speed Internet service through the Rural Digital Opportunity Fund (RDOF) Phase I auction. Auction results show that bidders won funding to deploy high-speed broadband to over 5.2 million unserved homes and businesses, almost 99% of the locations available in the auction. Moreover, 99.7% of these locations will be receiving broadband with speeds of at least 100/20 Mbps, with an overwhelming majority (over 85%) getting gigabit-speed broadband.

As the pandemic forces students out of school, broadband deployment programs aren't going to move fast enough to help families in immediate need of better internet access. But Democrats at the Federal Communications Commission say the incoming Biden administration could put a dent in that digital divide with one fast policy change.

Jeff McElfresh, CEO of AT&T Communications, described AT&T's broadband policy goals. He said Congress should act to directly fund the Universal Service Fund, changing the funding mechanism since the contribution factor — the percentage of voice revenues that goes toward USF — is on track to exceed 30% for the first time. Other AT&T broadband policy recommendations outlined:

The Federal Communications Commission will hold an Open Meeting on the subjects listed below on Thursday, December 10, 2020:

The 5G Fund Supporters -- which includes the Multicultural Media, Telecom and Internet Council, Rainbow-PUSH and the NAACP -- asked the Federal Communications Commission to clarify how it plans to ensure that 1) the upcoming 5G mobile broadband subsidy program will accommodate needy areas other than rural, and better ensure 2) that diverse contractors have a chance at the money.

In meetings with Federal Communications Commission staff, NTCA discussed an issue identified recently related to the phasedown of Lifeline support for voice-only customers and its interplay with cost recovery under the High-Cost universal service program. Specifically, for many eligible telecommunications carriers (“ETCs”), the reduction of the Lifeline subsidy for such customers to $5.25 per month effective December 1, 2020, precludes recovery of the full amount of the Subscriber Line Charge (“SLC”), and it appears that these shortfalls may be unrecoverable through the High-Cost program.

Federal Communications Commission Chairman Ajit Pai has been extremely popular with the telecom companies he’s regulated for the last four years, but one corner of the industry will not be sad to see the chairman step down. The carriers that provide mobile service to the nation’s neediest citizens say Pai is trampling them on his way out the door while pulling critical service away from those hit hardest by this year’s economic downturn. Lifeline providers say an FCC order that took effect December 1 will force them to stop offering free data service to qualified low-income customers.