The Universal Service Fund is funded by assessments on long-distance voice revenue from landline and wireless telecommunications providers. The providers pass these assessments along to consumers on their bills. Due to declining long-distance revenue and increased needs of the program, the contributions factor (the percentage used to assess revenue) has increased steadily from less than 10% fifteen years ago to around 30% today.
All four USF programs support broadband networks and services, yet the contributions are still based on long-distance revenue. The system needs to be modernized so that broadband is assessed for contributions to the Fund.
USF Contributions Resources
WTA’s summary of the need for USF contributions modernization for policymakers.
Watch a short video produced by CoBank explaining the need for USF contributions modernization.
USForward: FCC Must Reform USF Contributions – A Report by Mattey Consulting, LLC
