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Craig Settles: USF Reform Needs to Come from Within Communities

The Universal Service Fund demands reform. While the subsidy model for low-income households works for telephone service, a recent article by Craig Settles of GigaOm proposes an interesting new model for broadband using a community-based approach.

Today's USF Lifeline and Link-Up programs use subsidies to make telephone service more affordable to low-income households. The model succeeds because of the low rate of telephone costs, which the roughly $10-per-household subsidy is able to sustain. Yet with broadband, Settles argues, we have to think outside of the box — costs are greater, the learning curve steeper, and the medium itself demands a deeper engagement.

Rather than promoting a household-based solution, Settles' model encourages communities to pool their collective support to incentivize broadband providers to provide lower broadband subscription fees. Paired with grant programs for broadband education and the expansion of E-Rate funding for schools and libraries, low-income communities would then have the resources to address the multiple barriers (cost, digital illiteracy, and value) to broadband adoption.

CWA is a strong proponent of USF reform and encourages the FCC to consider innovative approaches to the challenge of universal, affordable broadband.

Offering a Lifeline Reform for a Broadband Age (NY Times)

CWA Supports Universal Service Fund Reform (Speed Matters)