Washington, D.C. | April 25, 2024 — Today, the Federal Communications Commission voted to approve its Open Internet Order, which, among other things, reclassifies broadband Internet access service (BIAS) as a “telecommunications service” under Title II of the Communications Act of 1934. This restores the agency’s oversight over the broadband market.

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As part of its decision to reclassify BIAS, the FCC “forbore” from applying certain sections of TitleII to BIAS. “Forbearance” allows the Commission not to apply sections of the CommunicationsAct if they deem that doing so would be in the public interest. The FCC chose to forbear from applying Section 254 (d) to BIAS services; that section requires telecommunications services to contribute to the FCC’s Universal Service Fund (USF). Among other things, the USF funds connectivity to schools and libraries and to rural health care facilities. It also funds the deployment and operation of networks in rural America and provides a small ($9.25) subsidy called “Lifeline” that is largely used for mobile phone service.

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Affordable Broadband Campaign Board Members Gigi Sohn and Greg Guice authored this op-ed arguing that in the absence of Congressional action to extend the Affordable Connectivity Program, the FCC should expand the number of companies that contribute to the USF and use the new proceeds to replace the $30 and $75 monthly subsidies. The FCC’s decision to forbear from Section 254(d) will make such a solution extremely difficult.

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Below is a statement that can be attributed to Gigi Sohn, Spokesperson for the Affordable Broadband Campaign:

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The Affordable Broadband Campaign welcomes the FCC reinstating its power to oversee broadband Internet access service (BIAS). At the same time, we find it mind-boggling that the agency that successfully managed a broadband program that has benefitted over 23 million U.S.households is now effectively shutting the door to a permanent subsidy. The decision to forbear from applying Section 254 (d) to BIAS is even more puzzling because there were several ways the FCC could have delayed the imposition of USF fees on broadband providers without taking the harsh step of forbearing. But the agency chose to make it needlessly difficult for a futureFCC to reverse course, no matter how much the contribution factor might rise. “Unforbearing” has no precedent at the agency, and would cause a political and legal firestorm. This action not only puts the future of the low-income broadband subsidy at risk, but also that of every other universal service program, including the E-Rate and Rural Health Care programs.

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The FCC’s rationale for forbearing is paper thin. Mere “estimates” of possible price increases do not constitute a legally defensible record, nor does the fear of increased criticism from some ISPs that are already vehemently opposed to the FCC’s welcome decision to reclassify broadband as a telecommunications service under Title II of the Communications Act. Nor is adherence to the 2015 Open Internet Order a sound rationale—today’s order does not mimic the 2015 order in all respects. In any event, much has changed in the past nine years, including the impact of a global pandemic and a near 40% contribution factor. And tens of millions of households are about to lose broadband Internet access, which is essential for full participation in our society, because Congress has so far failed to provide new Affordable Connectivity Program funding.

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The Affordable Broadband Campaign would like to thank the ISPs, public interest and civil society groups, and its allies in government that have joined our fight to ensure that low-income families have access to affordable broadband. ABC will continue to seek solutions to ensure that everyone, no matter who they are or where they live, can access and use affordable and robust broadband.

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Media Contacts

Anne Keeney

akeeney@glenechogroup.com

202.369.5994

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Aaron Alberico

aalberico@raynoravenue.com

202.744.0786