A ruling last week by the Federal Appeals Court for the D.C. Circuit upholds the change proposed by the FCC to the Universal Service Fund (USF) to refocus it on providing univeral broadband access in rural areas. The USF was established in 1997 to subsidize voice telephone service in rural areas. The funds for the program come from a surcharge on telephone service.
Last October the FCC unanimously voted to overhaul the Universal Service Fund (USF). While the source of USF funding will remain the same, the FCC's decision altered the focus of the program, with the subsidy now going to expanding broadband internet access in rural areas not currently served by internet service providers.
The FCC expects several benefits from the change in the USF program. First, by 2020 18 million Americans who currently do not have broadband internet access will get access, either wired and wireless. Secondly, it also means improved access to government services, improved access to distance education, the potential for economic growth, and better health care for senior citizens.
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