FCC Releases NOI on the Future of USF
The Federal Communications Commission (FCC or Commission) yesterday issued a notice of inquiry (NOI) on the Universal Service Fund (USF) in light of the COVID legislation. Comments are due January 18, 2022 and reply comments are due January 31, 2022. The Commission has established WC Docket No. 21-476 for this proceeding.
This proceeding was initiated to seek comment on issues related to the future of the USF in light of the broadband investments in the Infrastructure Investment and Jobs Act (Infrastructure Act or Act). The Act directs the FCC to submit a report to Congress within 270 days of enactment on the options for improving the Commission’s “effectiveness in achieving the universal service goals for broadband.” Congress also instructed the Commission not to “in any way reduce the congressional mandate to achieve the universal service goals for broadband.”The NOI contains very brief discussions about E-rate and RHC. It also has two paragraphs asking about contributions reform, including asking for comment on comments filed in the contributions docket by parties that claim USF fees are unconstitutional taxes,
The Commission seeks comment on the following:
- Impact of the Infrastructure Act on Effectively Achieving Universal Service Goals
- How to best evaluate the effectiveness of the existing USF programs in achieving the FCC’s universal service goals for broadband.
- How to analyze the Act’s potential impacts on the FCC’s proposed broadband goals of universal deployment, affordability, adoption, availability, and equitable access to broadband throughout the United States.
- What impact will the Act have on other federal broadband programs administered by the USDA, Treasury Department, and NTIA and how that will affect the Commission’s ability to achieve its universal service goals.
- Potential Recommendations for Future Commission Action – High Cost Program and Lifeline and the Affordable Connectivity Program
- Potential Recommendations for Future Commission Action – E-rate Program and Emergency Connectivity Fund (ECF)
- What changes, if any, should the Commission consider in light of the Act and other recent developments?
- How can the FCC best coordinate E-rate with the programs created by the Act to achieve the FCC’s universal service goals, including ensuring high-speed broadband in schools and libraries?
- What role will the E-Rate program have in the future given the evolving level of universal service?
- What data should be collected from recipients of the program, and how should this data collection take place?
- How can the Commission protect against waste, fraud, and abuse in the E-Rate program, particularly in light of the Infrastructure Act?
- Potential Recommendations for Future Commission Action – Rural Health Care (RHC) Program
- What changes, if any, should the Commission consider to the RHC program in light of the Infrastructure Act and other recent developments, including the COVID-19 Telehealth Program?
- Are there changes that should be made in light of the additional funding provided by the Act?
- How can the Commission best coordinate the RHC program with the programs created by the Infrastructure Act to achieve our universal service goals?
- What role will the RHC program have in the future given the evolving level of universal service?
- What data should be collected from recipients of the program, and how should this data collection take place?
- How can the Commission protect against waste, fraud, and abuse in the RHC program, particularly in light of the Infrastructure Act?
- Sustaining the USF Program
- The NOI seeks comment on adjustments to its universal service priorities in light of the Infrastructure Act.
- What “further actions” could be taken “to improve the ability of the Commission to achieve the universal service goals for broadband” that are applicable to each of the USF programs or some other aspect of the USF?
- The NOI seeks comment on the comments submitted with respect to the proposed universal service contribution factors for the fourth quarter of 2021 and the first quarter of 2022. In those comments, a collection of parties argues that USF fees are unconstitutional taxes.
- Potential Recommendations for Future Congressional Action
- What changes are advisable in light of the Infrastructure Act for the E-rate program?
- Should the Commission recommend that Congress amend section 254(h)(1)(A) of the Telecommunications Act of 1996 (which established the HCF program) in a manner that would improve the ability of the Commission to achieve its universal service goals for broadband in light of the Infrastructure Act?
- What potential RHC-related recommendations to Congress should the Commission consider including in the Report?
- Should the FCC provide whether changes in law are necessary or appropriate to update the system of universal service contributions?
- How can Commission proposals promote or inhibit advances in diversity, equity, inclusion, and accessibility, and what is the scope of the Commission’s relevant legal authority?
