FCC Initiates First Step To Reform USF

FCC is planning to revise the Universal Service Fund, or USF. The concept of traditional ‎Telephone service has completely changed and therefore it was time that USF was ‎revised to be in tune with the 21st century developments.‎

Although well-intentioned policies were put in place, the continuance of traditional ‎approach had weighed down the program. USF had to be revamped to make it more ‎efficient and rural communities could no longer be neglected. Inter-carrier compensation ‎also was due for a revision. ‎
‎
The USF, set up to collect service charges for traditional phone services in rural ‎communities and Internet access to schools and libraries, had seen a growth from a $2.3 ‎billion fund in 1998 to almost $8 billion in 2010. ‎The plan relates to phasing out the regular phone lines and introducing broadband ‎services in rural areas and under-served communities. ‎The Congress, telephone companies, and consumer groups had long been supporting the ‎revision of the program. But companies likely to lose funding support when the program ‎is revised oppose it. ‎

Proposals for revising the USF program were discussed in the National Broadband Plan, ‎a year ago. The way forward has to be arrived through a consensus of public opinion on ‎ways to reform the program, and changes in the funding pattern. The agency is not likely ‎to take specific action to change the USF until later this year.‎