A bipartisan, bicameral legislative effort to expand the contribution base of the Federal Communications Commission’s Universal Service Fund broadband subsidies has been revived.
The Reforming Broadband Connectivity Act, initially introduced in November 2021 by Sen. Amy Klobuchar (D-Minn.), was reintroduced this week in both the Senate and House.
The bill does not tell the FCC how to expand the base, but does direct it to make changes to expand availability and access to telecommunications services after studying: 1) the need to expand the contribution base and 2) how to reform the contribution system via a rulemaking. It is required to assess the impact of any changes on consumers, businesses and senior citizens.
Currently, the USF advanced telecommunications subsidies come from traditional telecoms, but there have been calls to expand those contributions to internet service providers and edge providers, the former because broadband is now the go-to advanced telecom service while the traditional phone base of subsidies is dwindling.
Also: Edge Providers Tell FCC to Add ISPs, Not Edge Providers, to USF Contribution Base
Those who want edge providers such as Google, Amazon or Facebook to contribute eagerly eye their big pockets and point to the importance of broadband buildouts to their business models.
According to bill fan NTCA-The Rural Broadband Association, joining Klobuchar in reintroducing the Senate bill were John Thune (R-S.D.), John Hickenlooper (D-Colo.), and Jerry Moran (R-Kan.). Backing the bill in the House were Reps. Joe Neguse, (D-Colo.), Hal Rogers (R-Ky.), Lizzie Fletcher (D-Tex., Glenn Grothman (R-Wis.), Angie Craig (D-Minn.),and Mike Gallagher (R-Wis.).
“NTCA applauds the leadership in both chambers in seeking to chart a course for steadier long-term support of USF programs and promote achievement of our country’s universal service mission,” NTCA CEO Shirley Bloomfield said. “As we continue to rely on broadband for just about every aspect of daily life, including working and learning remotely, the Universal Service Fund is key to making critical communications services both available and affordable. Efforts to examine and address continuing erosion in the system that funds the USF will be essential to achieve and sustain a shared vision of universal connectivity.
“Sens. Amy Klobuchar (D-Minn.) and John Thune (R-S.D.) recognize that the contribution mechanism must be reformed to preserve connectivity for rural Americans,” USTelecom senior VP Brandon Heiner said. “Directing the FCC to initiate a rulemaking to expand the contributions base will help secure the future of universal service.” ■
