CWA Files Comments with the FCC on Universal Service Fund Reform

This week, CWA filed formal comments for the FCC's Notice of Inquiry on the question of how to reform the High-Cost programs of the Universal Service Fund (USF). CWA is pleased the Commission is moving forward on the National Broadband Plan's universal service recommendations, and has long supported making universal broadband in the United States reliable, affordable, and accessible to every American. We are also committed to making sure our network is built, maintained and serviced by highly-skilled union-represented career American workers. Just as the USF has helped to bring affordable telephone service to nearly everyone, it is now time to ensure that everyone has access to high-speed Internet at an affordable price — regardless of income or geographic location.

One of the main components of reform will be to transition the old, antiquated High-Cost telephone fund that provides subsidies to low-density rural areas into a new dedicated fund which can be used to bring broadband to the areas of the country that need it the most. In this way, every American can participate in the 21st Century communications revolution, no matter where they live, or what their income is. CWA strongly supports creation of a dedicated broadband fund, while at the same time making certain that current customers are protected against any huge increases to their monthly bills.

CWA offered several recommendations for the reform effort as a whole. First, the new broadband Connect America Fund should subsidize only one broadband provider in areas where there is no private sector business case. Second, broadband the contribution base to include all voice and broadband connections (the current fund is financed solely from voice long distance revenue). Third, ensure that universal service subsidies support investment, not exorbitant shareholder dividends. Fourth, we want to make sure that the networks that are put in can be upgraded, because as we all know, what's "fast" today is annoyingly slow tomorrow. Fifth, carriers that receive universal service subsidies to serve homes and small businesses should also have to build high speed lines to schools, hospitals and libraries. Building high-speed lines to these institutions can make connecting the rest of the community quicker, cheaper and easier. Finally, CWA also recommended that any company already receiving these funds must immediately use these funds to upgrade lines for provide broadband service. This will accelerate funding as well as kick-start the transition.

You can read the entire text of CWA’s comments here.

In the Matter of Connect America Fund - A National Broadband Plan for Our Future