Noem, Rounds urge FCC budget action on Universal Service Fund program

U.S. Sens. Mike Rounds (R-SD) and U.S. Rep. Kristi Noem (R-SD) requested that the Federal Communications Commission (FCC) immediately shore up the budget for the Universal Service Fund (USF) High Cost program so that their constituents in rural and urban areas have comparable broadband and voice services.

“The USF High Cost program is critical for millions of rural Americans and foundational for the success of reaching universal service goals in rural America,” wrote Sen. Rounds and Rep. Noem in an Oct. 3 letter sent to FCC Chairman Ajit Pai that also included the signature of their home-state colleague U.S. Sen. John Thune (R-SD).

Despite the importance of the USF High Cost program, however, the lawmakers wrote that its budget has remained static at 2011 levels. Such budget limits, they wrote, are negatively affecting rural broadband deployment and harming consumers.

“In South Dakota, the limit is estimated to cut support that carriers would otherwise have received for broadband deployment by more than $11 million over a twelve-month period,” according to their letter. “These reductions in support will require providers to postpone or even cancel broadband investment, reducing the availability of rural broadband.”

Additionally, such cuts could increase what rural consumers pay for broadband service, in turn threatening the ability of providers to repay loans for their investments, the lawmakers wrote.

The South Dakota contingent also said they strongly supported immediate action by the FCC to restore sufficiency and predictability to the USF High Cost program’s budget.

“Fully funding this program will help ensure rural South Dakotans have access to high-quality broadband and voice services comparable in quality and price to those available in urban areas,” they wrote. “While the federal government has made rural broadband a national priority, the long-term insufficiency and uncertainty of the USF High Cost budget needlessly undermines investment in and planning for deployment in rural areas.”

The lawmakers noted that they were pleased the FCC had committed during its Aug. 16 oversight hearing to take action by the end of the year and said it’s vital that the program continue to evolve at the same speed as technological innovations.

“It is also critical that after the High Cost budget is updated, it keep pace with inflation going forward,” according to their letter.

By establishing a sufficient and predictable program budget, the FCC could help eliminate what the lawmakers called “the rural divide” by ensuring cheaper broadband for rural American consumers.