FCC Task Force: Universal Service Fund should support Broadband

The FCC task force charged with developing the National Broadband plan released an interim report stating that there are “critical gaps” that must be filled before American individuals and businesses can fully benefit from broadband technology.

The report identifies significant gaps in the federal Universal Service Fund, which doesn’t support broadband adoption and deployment despite over $7 billion spent to subsidize telecommunications annually. Rep. Doris Matsui (CA-5) recently introduced the Broadband Affordability Act – endorsed by CWA – which would address many of these problems. Another bill introduced by Reps. Boucher and Terry would also reform the USF.

Currently, the USF spends $7 billion annually to subsidize telecommunications, but none of that money goes to broadband.

The report addressed several other factors inhibiting broadband adoption:

• The Adoption gap: Low-income, rural, African-American, and Hispanic households have disproportionately lower levels of broadband adoption.
• The Deployment gap: The cost of “middle mile” broadband transit and the lack of coordination of laying fiber drive up end-user cost.
• The Spectrum gap: Smart phones are quickly overtaking available spectrum, the lack of which frustrates mobile broadband deployment. In addition, reallocating spectrum is a long, multi-year process.
• The TV set-box gap: The convergence of TV, video, and Internet could create a new broadband medium, but the lack of devices hinders innovation.

The task force developed the report using data gathered in a series of nearly 40 workshops and field hearings, over 10,000 comments on the National Broadband Plan Notice of Inquiry and 15 public notices, as well as existing studies and data.

FCC Interim Report (FCC)

Broadband Affordability Act Provides Opportunity (Speed Matters)