Reforming the Universal Service Fund

The Universal Service Fund, created by the FCC to meet the communication needs of Americans, will turn 14 years old this year. In 2011, the fund needs to adopt modernizing reforms that will bring it up to date with the goals of the National Broadband Plan.

The USF has had a transformative effect on the telecommunications experience of average Americans. The fund subsidizes connectivity costs for rural Americans, provides discounts for low income users, promotes tele-health options, and funds the E-Rate program to promote connected schools and libraries.

Yet in many ways, the USF is still unequipped to deal with the growing broadband needs of Americans, a key connectivity issue that leaves many on the other side of the digital divide.

A group of public interest representatives — among them several civil rights, media reform, and public interest organizations, including the Leadership Conference on Civil and Human Rights of which CWA is a member — assembled at the Federal Communications Commission during the first week of January to discuss four general areas for USF reform.

1. Broadband as a Universal Service. Broadband is the essential telecommunications platform of the 21st Century, and thus should be considered a universal service. This means that broadband-capable facilities and broadband services should be not only permitted, but required of providers receiving support from the Connect America Fund, or from any other subsequent iteration of or successor to the current high-cost mechanisms; and also that adoption support should be available for broadband service provided to low-income individuals.
2. Lifeline/Linkup Expansion and Modernization. The Commission generally should proceed along the lines suggested in the Joint Board's most recent recommended decision on Lifeline and Link Up, and should do so expeditiously. The Commission should also move ahead with pilot programs to facilitate broadband adoption by low-income individuals, and cautioned against potential pitfalls in creation of any national database — noting that, if not carefully designed and safeguarded, such a database could dampen enrollment by verifiable and fully eligible beneficiaries.
3. Creation of the Connect America Fund and High-Cost Fund Reform. There are several paths the Commission could take to reform current mechanisms, in order to improve the accountability, efficiency, and usefulness of the fund. Yet, changes to distribution and contribution methodologies must neither discourage broadband adoption by unduly increasing the contribution burden on consumers, nor improperly limit the choice and quality of service available to residents of unserved and underserved areas.
4. Mobility Fund Issues. During these meetings, PRI members expressed some reservations about reverse auction mechanisms that might encourage a "race to the bottom" approach or provide no support for ongoing mobile wireless service operations.

The CWA supports these reforms and promotes policies, which ensure that every individual, family, business, and community has access to and can use high speed Internet at a price they can afford — regardless of their income or geographic location.

Summary of Public Interest Representative Meeting, Jan 5-6, 2011 (Media Access Project)