Carol Mattey

The Federal Communications Commission’s (FCC) Universal Service Fund (USF or Fund) has been one of the nation’s most important tools for connecting our nation, including rural communities, low-income families, schools, libraries, and rural health care facilities. However, the funding mechanism that supports the Fund is under significant duress. The “contribution base” – the revenues used to calculate USF contributions – has declined 63% in the last two decades, from $79.9 billion in 2001 to $29.6 billion in 2021.

On March 12, 2019, I was honored to appear before the Senate Communications Subcommittee to testify on “The Impact of Broadband Investments in Rural America.” I provided my personal views, bringing the perspective of a former government official with 22 years of experience at the Federal Communications Commission and National Telecommunications and Information Administration, with the last decade focused on the FCC’s Connect America Fund. My five-minute opening statement follows:

[Commentary] How can we improve the biggest tool to closing the digital divide in the Federal Communications Commission’s toolbox: the Connect America Fund. Back in 2011, the FCC adopted a performance goal for the Connect America Fund of ensuring universal access to fixed broadband and concluded it would measure progress towards this outcome based on the number of newly served locations — but it did not articulate any concrete vision for when this universal service goal might be achieved.

The National Telecommunications and Information Administration has now given 48 states the green light to start their required Broadband Equity, Access, and Deployment (BEAD) Program challenge process to refine the list of locations that will be eligible for BEAD funding. The starting point for the states is the Federal Communications Commission’s National Broadband Map, based on its Broadband Data Collection (BDC), with the state-run challenge process providing stakeholders the opportunity to make updates and corrections.

Over the last 18 months, there’s been a lot of discussion about whether National Telecommunications and Information Administration (NTIA) struck the right balance in urging states to extend fiber as far as possible when implementing the $40+ billion Broadband Equity Access and Deployment (BEAD) Program. With all due respect to those who are passionate about their respective point of view—it’s time to step back and take a deep breath.

States are racing to finish their Initial Proposals for the National Telecommunications and Information Administration's $40+ billion Broadband Equity Access and Deployment (BEAD) program. One of the things they need to be thinking about is how to design their programs so that they have viable applicants for all their eligible locations, not just most of them. This requires a radical shift in mindset from past grantmaking activities, when the state’s task was to award grants to improve service in discrete areas.

In a one-two punch, the Federal Communications Commission (FCC) rejected LTD’s appeal of the earlier decision declaring it to be in default for its Rural Digital Opportunity Fund (RDOF) winning bids and proposed to fine LTD over $21 million for its defaults.

In the bi-partisan 2021 Infrastructure Investment and Jobs Act, Congress decided to provide a larger Affordable Connectivity Program (ACP) benefit in high-cost areas—up to $75/month, compared to the standard $30/month benefit. Last week, the Federal Communications Commission (FCC) quietly announced that service providers could start filing applications on January 17, 2024, to become eligible to receive this larger benefit.

The goal of the National Telecommunications and Information Administration's (NTIA) $40+ billion Broadband Equity Access and Deployment (BEAD) Program is to ensure that everyone in the United States has access to reliable, high-speed, and affordable broadband. Part of the challenge is how to treat areas where funding already has been awarded for broadband deployment. Will all awardees perform as expected?

Today, many months after passage of the landmark Infrastructure Investment and Jobs Act, the states are finally on the cusp of implementing National Telecommunications and Information Administration’s $40+ billion Broadband Equity Access and Deployment program. Some states are confidently moving ahead quickly, while others are in the early days of developing concrete plans for how they will manage this historic federal investment.