The Supreme Court recently ruled that the FCC has the authority to operate and fund the Universal Service Fund, overturning rulings by the U.S. Court of Appeals for the Fifth Circuit, which agreed with Consumers’ Research and said that the USF is unconstitutional.
This puts the issue back on the table of somehow fixing the USF, which universally is regarded as broken. The current funding mechanism of taxing interstate telephone services is becoming untenable, with the current USF fee set at 36% of the applicable revenue source.
It seems likely that only Congress can fix USF, and a bipartisan group of Senators and Representatives has created the Universal Service Working Group to take a fresh look at both the funding and the uses of the USF.
Senator Deb Fischer (R-NE), one of the members of the working group, has created a comment portal on her website to get feedback from the public on Universal Service Fund reform. This is similar to the public comments that are routinely solicited by the FCC for issues it is considering. The portal says that comments will be sent to all members of the USF working group. Comments made to the FCC are more formal and are made available to the public – these comments may remain within the working group.
The portal includes nine questions, and respondents can respond to any or all of the questions. Comments can be typed into a text box associated with each question or emailed to the working group. Comments are due by midnight, September 15. Following are the specific questions being asked by the Universal Service Working Group:
Effectiveness of the Program
- How should Congress evaluate the effectiveness of each USF program in achieving their respective missions to uphold universal service?
- How well has each USF program fulfilled Section 254 of the Communications Act of 1996?
- Has the FCC adequately assessed each USF program against consistent metrics for performance and advancement of universal service?
Considerations of Reform
- What reforms within the four existing USF programs would most improve their: Transparency, Accountability, Cost-effectiveness, Administration, and Role supporting universal service?
- What reforms would ensure that the USF contribution factor is sufficient to preserve universal service?
- What reforms would reduce waste, fraud, and abuse in each of the four USF programs?
- What actions would improve coordination and efficiency among USF programs and other FCC programs, as well as broadband programs housed at other federal agencies?
- For any recommendations on reforms, does the Commission currently have the feasibility and authority to make such changes?
- Is the USF administrator, the Universal Service Administrative Company (USAC), sufficiently accountable and transparent? Is USAC’s role in need of reform?
Respondents are not required to answer every question, only those for which they have feedback. As can be seen, these are serious policy questions. Undoubtedly, the big industry lobbying groups will weigh in. But this is also a chance for ISPs, local governments, and school systems to weigh in. I’m going to respond to a few of the questions. I’m available to help anybody who wants to be heard on these important questions.