Photo by Big Tech Should Pay for Broadband, Say ISPs
The internet service providers (ISPs) are at it again, urging the Federal Communications Commission (FCC) to impose new fees on Big Tech firms to fund broadband network deployment and affordability programs. This request, made by USTelecom, a lobby group for AT&T, Verizon, CenturyLink/Lumen, and smaller telcos, is not new, but it has taken on a new sense of urgency with the recent death of a broadband discount program.
Broadband network deployment is critical for maintaining a competitive marketplace.
The FCC’s Universal Service Fund (USF) spends about $8 billion a year, with phone companies paying a percentage of their revenue into the fund. This money is then distributed back to the telco industry through programs like the Connect America Fund and Rural Digital Opportunity Fund, which subsidize network construction in unserved and underserved areas. The USF also funds Lifeline program discounts for people with low incomes.
“Through focusing on the Big Tech companies who benefit most from broadband connectivity, the Commission will fairly allocate the burden of sustaining USF,” USTelecom wrote in its FCC filing.
Big Tech firms should pay their fair share for broadband connectivity.
FCC Chairwoman Jessica Rosenworcel has not stated any intention to expand USF contributions to Big Tech, and has even rejected calls to impose Universal Service fees on broadband. However, USTelecom argues that the USF is critical for maintaining a competitive marketplace and that an expanded contributions base is necessary to sustain the fund.
A competitive marketplace is essential for innovation and growth.
The Affordable Connectivity Program (ACP), which provided $30 monthly discounts, was allowed to lapse by Congress. USTelecom believes that expanding the contributions base to include Big Tech would not only sustain the current USF programs but also fund affordability efforts like the ACP long-term.
The Affordable Connectivity Program provided critical discounts to low-income households.
In related news, the US Supreme Court today rejected a challenge to the Universal Service Fund’s legality brought by the conservative Consumers’ Research group.
The US Supreme Court has upheld the legality of the Universal Service Fund.
In conclusion, it is essential that Big Tech firms contribute to the Universal Service Fund to ensure that broadband connectivity is available and affordable for all. By expanding the contributions base, we can create a more sustainable and equitable system that benefits everyone.
