Depending on what a proposed federal study would determine, internet edge providers like Google, Amazon, Netflix and Facebook could be responsible for contributing to the Universal Service Fund (USF), through which the federal government disburses roughly $10 billion per year to fund broadband deployment to high-cost rural areas, schools and libraries, rural healthcare facilities, telehealth services, and broadband subsidies for low-income Americans.
Currently, the USF collects money from telecommunications carriers set at a percentage of their interstate and international revenues that is then usually passed on to consumers in their monthly bills.
U.S. Sens. Roger Wicker (R-MS) and Todd Young (R-IN) on March 16 introduced the bipartisan Funding Affordable Internet with Reliable (FAIR) Contributions Act, S. 856, with cosponsor U.S. Sen. Ben Ray Luján (D-NM) to direct the Federal Communications Commission (FCC) to conduct the study into the feasibility of collecting USF contributions from the internet edge providers.
“The Universal Service Fund helps support broadband access in communities across the country, but as internet-based services become more dominant, we need to make a plan for the future of this program,” said Sen. Wicker, who sponsored the bill.
If enacted, S. 856 “would help Congress assess the feasibility of making Big Tech companies contribute to the USF,” Sen. Wicker added. “It is important to ensure the costs of expanding broadband are distributed equitably and that all companies are held accountable for their role in shaping our digital future.”
Among several provisions, the bill would direct the FCC to issue a Notice of Inquiry seeking public comment on the feasibility of collecting USF contributions from internet edge providers, and issue a final report on the matter within 180 days, according to a bill summary provided by the lawmakers.
“It is vital that we close the digital divide and deploy broadband across all of Indiana, including our most rural counties, schools, and healthcare facilities,” said Sen. Young. “As internet edge providers continue to expand their reach and the Universal Service Fund’s revenue streams become less sustainable, we must look at all options to ensure every Hoosier has access to broadband, both now and in the future.”
Additionally, S. 856 would require the FCC to consider possible sources of Big Tech revenue, such as digital advertising and user fees; the fairness of the current system and a system under which contributions could be assessed on Big Tech firms; and the feasibility of assessing contributions on such a broad category of firms that do not currently register with the FCC, the summary says.