Broadening USF Contribution Base Won't Harm Broadband Take Rate, NTCA Reports

Broadening the USF contribution base won't harm broadband adoption, a report commissioned by NTCA said Thursday. The Berkley Research Group paper suggested a 1% USF contribution surcharge for broadband could reduce consumer broadband demand by 0.08%. Reps. Collin Peterson, D-Minn., and Don Young, R-Alaska, led filing Tuesday of the Universal Broadband Act to codify that broadband is within USF's scope (see 2005050064). “Long-term viability of the Universal Service Fund is essential,” said NTCA CEO Shirley Bloomfield. She said the program "could be at risk if we keep ‘kicking the can down the road’ on addressing the shaky foundation of an ever-escalating and volatile contributions mechanism." Bloomfield told us earlier this spring that as new USF programs such as the Rural Digital Opportunity Fund are added, policymakers must address revenue that supports subsidies. "There's only so many coins you can find under the couch cushion," she said of existing contribution methodology that relies on long-distance voice revenue.