USF ruling hands Congress ‘enormously important opportunity’ – USTelecom CEO

With last week’s court ruling declaring the Universal Service Fund (USF) unconstitutional, some in the industry are ramping up pressure on Congress to take action on USF reform.

In an open letter published on Friday, Jonathan Spalter, CEO of USTelecom, called the fifth circuit court’s decision “fundamentally flawed,” and said it “hands Congress an enormously important opportunity to seize the initiative and ensure our nation’s abiding commitment to universal service.”

Spalter further used the letter to call attention to the specific kind of reform he and his organization have been lobbying for – which is to include Big Tech companies in the USF’s contribution base.

“The broadband connectivity that the USF enables in turn drives the entire U.S. technology and internet ecosystem,” said Spalter, adding that Big Tech platforms “have long dominated the global internet but don’t contribute to our shared national commitment to universal connectivity.”

“Congress must move forward now with this modern and equitable funding approach, and remove any potential doubts regarding the future of these critical programs,” he said.

Calling on Big Tech and edge providers to contribute to the USF is not a new idea. Rather, it’s one that lobbying groups like USTelecom have long been floating as a solution to USF’s dwindling contribution base. The USF, which funds the FCC’s high-cost and low-income broadband programs to the tune of roughly $8 billion per year, is funded through a fee on voice services. The FCC recently proposed a USF contribution factor of 34.4% for Q3 2024, up from 29.2% for Q3 2023.

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