FCC Should Improve the Accountability and Transparency of High-Cost Program Funding

The Federal Communications Commission has implemented four industry- wide reforms and the initial phases of two carrier-specific reforms for the Universal Service Fund’s (USF) high-cost program.

However, the FCC has encountered delays implementing the subsequent phases and more complex carrier-specific funding reforms that require extensive cost modeling and stakeholder input.

This report examines 1) the extent to which the FCC implemented funding reforms, 2) the extent to which the FCC is collecting data to determine the effectiveness of the reforms, and 3) what changes, if any, states have made in USF funding. The Government Accountability Office recommends that the FCC demonstrate how high-cost funds were used to improve broadband availability, service quality, and capacity.