The FCC voted yesterday in favour of proposals to reform the Universal Service Fund (USF), which could lead to a reorientation of funding towards the rollout of broadband services in underserved parts of the country.
The US$8bn-a-year USF programme is…
The FCC voted yesterday in favour of proposals to reform the Universal Service Fund (USF), which could lead to a reorientation of funding towards the rollout of broadband services in underserved parts of the country.
The US$8bn-a-year USF programme is currently focused on providing telephony services, and gives little assistance to the 24 million Americans who can not access broadband, even if they wish to.
The FCC five-member panel voted unanimously to adopt a new framework of proposed rules for USF and intercarrier compensation (ICC) system, a complex system of funding between carriers.
The new framework will focus on modernising the USF and the ICC, refocusing them on the provision of broadband services.
It also includes other aims, including ensuring fiscal responsibility in the fund and enacting market-driven and incentive-based policies that allow companies to maximise the impact of the USF funding.
In his statement yesterday, FCC Chairman Julius Genachowski said that both the USF and the ICC were “plagued with waste and inefficiency”.
He added that the new proposals had the twin goals of modernising and streamlining the two programmes.
They would help in “getting broadband infrastructure to rural America, promoting private investment and innovation, and cutting costs and constraining the fund’s growth”.
The FCC is set to seek comments on the proposals and then make a final vote. The comment period ends 80 days after the proposals are published in the Federal Register. The date for the final vote has not yet been set.
The USF is funded by a charge on the interstate and international long-distance revenues of providers. Companies can pass on this charge to consumers. The current rate is 15.5%.
