While the ink is still drying on the truly historic signing of the Infrastructure, Investment and Jobs law, it’s going to be very important to stay in front of policymakers and federal agencies on the importance not just of building networks but certainly sustaining those valuable investments as well. To that end, NTCA has been working with many partners in a wonderful array of fields to remind policymakers that the job of building broadband is not done when plant is put into the ground or strung on poles. This will certainly be a priority in the year ahead as we also devote a great deal of energy toward the formulation of the new NTIA and state funding programs.
The Universal Service Fund (USF) is an essential program for promoting and sustaining connectivity in rural areas, but an outdated funding model has put the program at significant risk.
In a letter to broadband policymakers, NTCA and 253 other associations, anchor institutions, public interest groups, and broadband service providers – including more than 180 NTCA members – asked for the immediate reform and stabilization of the USF funding mechanism by requiring contributions to USF from providers of broadband internet access services. The recent USForward report written by USF expert Carol Mattey estimated that including broadband revenues in the contribution base would drop the USF fee from almost 30% to less than 4%.
In addition, NTCA is also eager to work with Congress and policymakers to ensure that new broadband grants and funding will supplement, rather than supplant, universal service programs. The battle to promote and sustain universal service will not go away simply because Congress has appropriated an historic sum of funding for broadband grants.
Bottom line: While there are many steps that can and should be taken to shore up the USF, the stability of the program is too important to wait for the perfect reform when substantial improvements can be adopted now to make contributions more sustainable and equitable. NTCA looks forward to policymakers taking actionable steps on USF reform and will work with fellow signatories to see it through.
