By Jennifer Prather, CEO of Totelcom Communications, LLC (De Leon, Texas), and Catherine Moyer, CEO of Pioneer Communications (Ulysses, Kan.)
The idea that all Americans should have reliable access to communications services at a reasonable cost has been a national objective for more than a century. And small hometown providers have led the charge for decades in making sure that rural America is connected to the rest of the country and the world. Today, they support critical connections for schools, libraries, healthcare facilities and so many more locations necessary for day-to-day life in rural communities.
But in areas where the average density may be only a handful of people per mile, this takes more than just community commitment and entrepreneurial spirit. A sustainable and predictable Universal Service Fund (USF) is essential to provide rural America with connectivity that is comparable in price and quality to those in urban areas. Although record-setting grants may help to get networks built initially in unserved areas, financial support from the USF programs overseen by the Federal Communications Commission (FCC) have helped to make sure that many rural areas already are connected with the best possible networks and to keep all rural consumers connected at more affordable rates.
Broadband grants are all the rage right now of course and they can be very helpful in getting networks built, but they won’t ensure by themselves that networks everywhere are sustainable or that rates remain affordable. This is where the FCC’s USF programs make a unique difference – and the numbers back this up. According to an October 2023 survey of 60 NTCA members across 27 states, the loss of USF support would be catastrophic for rural consumers. On average, rural consumers could be forced to pay an additional $100 or more per month for 100 Mbps broadband beyond what they already pay today if support from the USF programs went away. Additionally, small companies like these – the ones who have been most devoted to and most successful in the deployment of broadband in rural America for two decades – would have to cut back on planned investments in broadband expansion by over 80% in the next few years.
Put simply: the goal of ensuring all Americans have reliable access to broadband at an affordable cost won’t be achieved if those who have been most dedicated to that goal are forced to charge higher rates and stop deployment in its tracks.
Despite these impacts, and even though it has helped to deliver for rural America for decades, the USF is under attack both in the courts and from some who think a one-time grant program is all that is needed. Connecting rural America is not a one-time act. It’s an ongoing mission, and the FCC’s USF programs are essential to that mission.
We cannot lose sight of the importance of the USF to rural broadband, and we should not roll the dice on what rural broadband looks like without USF.
Jennifer Prather is the CEO of Totelcom Communications, LLC. (De Leon, Texas). Catherine Moyer is the CEO of Pioneer Communications (Ulysses, Kan.).