The FCC has been tasked with assessing the feasibility of the plan as a wider debate takes place on the balance of investments between telcos and big tech
Senate backs consideration of an alternative USF financing model: In the US, the Universal Service Fund (USF) provides support to high-cost deployment areas, schools, libraries and rural healthcare facilities, as well as subsidising fixed voice services for low-income consumers. Currently funded by telecoms operators, there have been calls for others to contribute to the building and upkeep of the country’s telecoms networks. In July 2021, a new bill was introduced in the Senate by three Republicans that could kick start the process of USF modernisation. The bill has since received bipartisan support and, on 11 May 2022, saw the Senate Commerce Committee vote in favour of taking things forward.
The vote leaves the FCC with work to do: The bill – known as the Funding Affordable Internet with Reliable (FAIR) Contributions Act – now requires the Federal Communications Commission (FCC) to conduct a study and submit to Congress a report on the feasibility of funding the USF through contributions from so-called edge providers (i.e. providers of online content or services, such as Google and Netflix). The report must consider: i) the type and size of firms and services on which contributions could be assessed; ii) equity issues related to current versus alternative systems for contributing to the fund; iii) the effect of any change to the contribution system on the cost of telecoms services for consumers; and iv) the sustainability of the fund and how to ensure that fund disbursements are consistent and predictable over time. Given declining voice revenues and increased adoption of internet-based communications, it is clear that reforms are needed to funding arrangements; however, it could be six months before the findings of the regulator’s study are brought to light.
This isn’t the only attempt to get big tech to pay its way: Proponents of the FAIR Contributions argue that a revision to USF financing is necessary as the programme has shifted from a voice-focused scheme to one centred around broadband deployment, and to rebalance of costs of the fund from end users to those companies that profit from (and free ride on), US internet infrastructure. Other countries are also considering how they might better share responsibility for deploying and maintaining telecoms networks. In Europe, the EC’s Executive Vice President Vestager has given operators some encouragement, stating that the bloc’s lawmakers are looking into the matter. Many telcos may also be looking to South Korea, where Netflix has been embroiled in a court battle over network usage fees. Depending on the outcome of a legal challenge, some of the largest online content providers could soon have to pay local operators for traffic generated, potentially setting a global precedent.
Source: https://www.congress.gov/bill/117th-congress/senate-bill/2427
