- U.S. Supreme Court Addresses Universal Service Fund
- States Awarded Federal Funding
- Vermont Broadband Buildout Gets More Funding
- Michigan Fund Connects 10,000 Homes, Businesses
- Colo. City Partnership to Deliver Community Broadband
U.S. SUPREME COURT ADDRESSES UNIVERSAL SERVICE FUND
The U.S. Supreme Court has agreed to review the Fifth Circuit’s decision holding the Universal Service Fund’s (USF) contribution mechanism unconstitutional. In response, Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel issued a statement arguing the USF has had broad, bipartisan support for decades.
“I am pleased that the Supreme Court will review the Fifth Circuit’s misguided decision,” she said. “I am hopeful that the Supreme Court will overturn the decision that put this vital system at risk.”
The USF is paid for by contributions from telecommunications providers — including telecommunications carriers, wireline and wireless companies, and interconnected voice over Internet protocol providers — based on their end-user revenues.
Rosenworcel previously issued a statement in July about the Fifth Circuit’s ruling that the USF is unconstitutional. In that statement, she called the decision “misguided and wrong,” arguing that it goes against decades of bipartisan support for the FCC programs that fall under the USF. She said the decision reflects a “lack of understanding” about USF.
USF programs provide affordable access to critical connectivity for individuals that need it through programs like the E-rate program, the Rural Health Care program, the Lifeline program, and the High-Cost program.
NTCA - The Rural Broadband Association, the Competitive Carriers Association, and USTelecom - The Broadband Association released a joint statement committing to present arguments defending the USF contribution mechanism, in order to reduce uncertainty created by the appeals challenging its constitutionality.
“The Fifth Circuit’s decision is contrary to Supreme Court precedent and the decision of several other circuit courts of appeals, and it threatens to undermine universal service programs that, for many decades, have served to promote the availability and affordability of critical communications services for millions of rural and low-income consumers, rural health care facilities, and schools and libraries across the nation,” the statement reads.
The Supreme Court’s decision will likely not be public until 2025.
STATES AWARDED FEDERAL FUNDING
In other federal news, the Department of Commerce’s National Telecommunications and Information Administration (NTIA) has continued approving and recommending award applications from states, allowing them to request access to funding to implement their digital equity plans. The funding comes from the Digital Equity Capacity Grant Program.
As of Wednesday morning, awards have been made to Delaware, Illinois, Louisiana, Missouri, Nebraska, New Hampshire, Oklahoma, Oregon, Puerto Rico, South Carolina, South Dakota, Tennessee, Texas, Vermont and Wyoming, building on the growing list of states that have been awarded funding.
The initiative is one of three grant programs established through the Digital Equity Act; NTIA will continue announcing awards on a rolling basis.
VERMONT BROADBAND BUILDOUT GETS MORE FUNDING
In state news, the Vermont Community Broadband Board (VCBB) has announced $8 million in additional funds is available for state broadband buildout. This funding is interest earned on the VCBB’s previously awarded American Rescue Plan Act (ARPA) funding. This additional funding comes as the state has finished awarding most of the funding from the ARPA Capital Projects Fund to Vermont Communications Union Districts and Internet service providers.
“The Board and staff will work carefully and extensively with partners to leverage these funds to ensure the sustainability, affordability, and longevity of Vermont’s community broadband expansion efforts enacted underAct 71,” VCBB Board Chair Patty Richards said in a statement.
VCBB is developing proposals on the best use of this funding.
MICHIGAN FUND CONNECTS 10,000 HOMES, BUSINESSES
In other state news, Michigan’s Realizing Opportunity with Broadband Infrastructure Networks (ROBIN) funding has helped connect more than 10,000 homes and businesses to high-speed Internet.
The second — and final — round of ROBIN funding has been awarded, investing more than $71 million in grant funds to support 17 projects. The first round of ROBIN grants delivered more than $166 million in October 2023. Each funding round also included matching funds from applicants.
ROBIN-funded projects will impact 51 of the state’s 83 counties by the end of 2026. ROBIN is only one piece of the Michigan High-Speed Internet Office’s work to expand Internet access in the state.
COLO. CITY PARTNERSHIP TO DELIVER COMMUNITY BROADBAND
In local news, the city of Boulder, Colo., has developed an agreement with ALLO Communications to expand Internet access throughout the community. This collaboration originates from a 2018 City Council decision to construct a citywide fiber backbone.
The agreement includes several key components. ALLO will expand its fiber-optic network with the goal of providing high-speed Internet to 97 percent of the city by 2030. The company will offer Internet service rates at or below those available in other markets in the state with more than 10,000 ALLO customers. It will also build a 288-strand fiber micro duct within a city-owned conduit, to be owned and operated by the city. The company has also guaranteed consumer data protections. To further digital inclusion, ALLO will provide free Internet access to 25 local nonprofit organizations.
Initial installations are expected to begin late next year.
