Affordable Broadband Campaign and WTA Petition FCC on USF Forbearance

The Affordable Broadband Campaign and WTA asked the FCC to reconsider its decision granting ISPs forbearance from Communications Act Section 254(d), which governs USF contributions. The contribution mechanism isn't "stable or equitable" and the declining revenue base is "hindering the ability of the commission to ensure that universal service is properly evolving," the groups said in a petition filed Monday in docket 23-320. The FCC granted ISPs forbearance in its May order restoring its net neutrality framework and reclassification of broadband as a Title II telecom service (see 2404190043).

The issue "should have been referred to the universal service contribution methodology docket" or a Further NPRM "where a full and complete record on this issue could have been developed," the petition said. The groups argued this still would have "deferred a contribution obligation" until any final determination was made.

WTA joined the petition "because we believe the commission should reconsider its position on forbearing from assessing ISPs for contribution purposes," Derrick Owens, senior vice president-government and industry affairs, told us. "We recognize this will not happen immediately because the commission would need to go through a rulemaking," he added, "but it moves the ball forward in bringing the contribution methodology into the broadband era." WTA urged Congress to give the FCC authority to "bring edge-providers and others who should be contributing into the fold as well so that we bring the contribution factor down to a reasonable level," Owens said.

The decision that grants ISPs forbearance also affects states' ability to promote universal service, the groups said in the petition. States are "hindered from addressing the challenges that their universal service programs face to their declining revenue base," the groups said, because "statutory restrictions bar states from applying a provision that the commission has determined it will forbear from applying."

"We're not saying you have to assess this service immediately," Affordable Broadband Campaign Counsel and Chair Greg Guice told us. "It would almost be reckless to do that," Guice said, and the FCC should start a proceeding that considers potential contributions. "By forbearing, you really cut off the opportunity to build that full record."

With the end of the affordable connectivity program, the groups argued that the Lifeline program's current support levels aren't sustainable to meet the commission's universal service goals. Increasing the support amount for ACP households eligible for Lifeline "would have provided those households with a safety net and access to affordable broadband," the groups said. "That, however, is impractical at this time because the revenue base for the current contribution base cannot support a low-income program that provides $30 per month in support."

"The commission’s decision to forbear hinders its ability to help inform the ongoing deliberations concerning USF contribution reform," the groups said. The decision to reinstate the forbearance position on USF contributions "fails to acknowledge the significant changes since 2015 in the communications marketplace," the groups said.