Several U.S. senators introduced legislation that if passed, would direct the Federal Communications Commission (FCC) to assess contributions from broadband and edge providers to the Universal Service Fund (USF).
The USF is allocated to broadband builds in rural and Tribal areas, connections for schools, hospitals and libraries, as well as a low-income affordability program.
Until now, broadband and edge providers haven’t been required to contribute to the USF. Since its launch in 1997, USF funding has been the burden of traditional telecommunications companies, including wireline and wireless companies, as well as cable companies that provide voice services. Amid fears over that revenue base “trending toward $0,” the proposed allocated budget for the USF in the fourth quarter of 2023 was still $6.03 billion.