NTCA Files on Universal Service Budget Concerns, Issues Statement on Universal Service Support Cuts Taking Effect July 1

FOR IMMEDIATE RELEASE

For Immediate Release
Contact: Kelly Wismer, 703-351-2015, [email protected]

Arlington, Va. (June 25, 2018)—NTCA–The Rural Broadband Association today filed  reply comments with respect to universal service fund (USF) budget concerns in advance of new USF support cuts that will take effect on July 1, 2018, which are projected to reduce support for small rural operators and the consumers they serve by nearly $230 million over the next 12 months.

NTCA’s reply comments highlight the significant USF budget shortfalls that are undermining achievement of statutory universal service goals and recommend specific steps the FCC should take to “right-size” the budget for the tasks assigned and the challenges faced in deploying and operating broadband networks in rural America.

“The new round of USF support cuts equaling 15.5 percent of support on average for smaller, rural operators will translate to reduced future investment in rural broadband infrastructure and higher broadband rates for rural Americans, while also putting at risk the viability of investments already made in furtherance of the national mission of universal service,” said NTCA CEO Shirley Bloomfield. “The only thing predictable about these cuts is that they keep getting worse, but no one can guess from year-to-year where they will land next. At a time when so much of the national conversation on technology policy is focused on how best to promote rural broadband, it is sadly ironic that a proven program that has worked better than any other is deprived of the resources needed to sustain and build upon those efforts.

“There is widespread recognition among policymakers that these kinds of cuts are harming rural America, and NTCA thanks Congress and the FCC for their focus on this issue. NTCA is particularly grateful to the FCC for having acted a few months ago to mitigate the effects of the budget cuts over the last 12 months.

“We are eager now to see the FCC complete the rulemaking underway to address such concerns on a longer-term basis consistent with the common-sense roadmap articulated in NTCA’s filings, and we hope that the FCC will act soon to provide sufficient resources that respond to the needs and demands of rural consumers, sustain existing broadband networks, and promote new infrastructure investment,” said Bloomfield.

NTCA’s initial comments in this proceeding, filed May 25, 2018, are also available online.

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NTCA–The Rural Broadband Association is the premier association representing nearly 850 independent, community-based telecommunications companies that are leading innovation in rural and small-town America. NTCA advocates on behalf of its members in the legislative and regulatory arenas, and it provides training and development; publications and industry events; and an array of employee benefit programs. In an era of transformative technological advancements, regulatory challenges and marketplace competition, NTCA members are leading the technological evolution for rural consumers, delivering robust and high-quality services over future-proof networks that make rural communities vibrant places in which to live and do business. Because of their efforts, rural America is fertile ground for innovation in economic development, e-commerce, health care, agriculture and education, and it contributes billions of dollars to the U.S. economy each year.