Issue Position: Telecommunications & Techonology - Universal Service Fund (USF)

Issue Position

The Universal Service Fund (USF) was created by the Telecommunications Act of 1996 to ensure that all Americans are able to afford access to the telecommunications network. The service bill for all current users of the network includes a small fee, which is then returned to the telecommunication providers to be invested in increased access to service for more Americans. The Federal Communications Commission (FCC) handles the four distinct funds: low-income, high-cost (rural), schools and libraries, and rural healthcare.

The telecommunications landscape has changed dramatically in the last decade, including technological advances and substantial changes in the marketplace. The Internet can provide date, voice, and video service. Moreover, broadband has become the gold standard for Internet access. However, without reform in the past decade, the Internet remains a small portion of USF support, and broadband does not receive any USF support at all. In addition, the wireless portion of USF support has exploded in cost, because although wireless service is the cheapest and most efficient way to connect rural populations to the existing network, the "identical support rule" reimburses those companies in exactly the same was as the incumbent wireline companies.

It is for these reasons that I hope Congress will consider meaningful and comprehensive USF reform in a timely manner. I will look for it to include requirements for broadband support and service, or at least substantial increases in speed for whatever Internet services telecommunications providers bring to a geographical area, and continued support of low-income, school and library, and rural healthcare recipients of USF support. It must also include a fiscally-responsible proposal to ensure USF support goes to those providers who have accrued the costs to install appropriate telecommunication services and upgrades.

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