News
An appeals court decision that created uncertainty around the legality of the USF is facing new scrutiny.
By: Brad Randall, Broadband Communities
A group of telecom organizations, along with the federal government, have petitioned the U.S. Supreme Court to review an appeals court decision that ruled a funding mechanism for the Universal Service Fund as unconstitutional.
The new petition, filed by several telecom advocacy groups, is in response to a previous decision from the Fifth Circuit Court of Appeals. That decision, in July, sent shockwaves through the telecommunications industry.
The Universal Service Fund (USF), which was expanded by the Telecommunications Act of 1996, funds E-Rate and allows rural health care providers to pay rates for telecommunications services similar to those in urban areas. It also assists low-income customers with telecommunications affordability and provides support to certain qualifying telephone companies that serve high-cost areas.
As previously reported, the USF subsidizes programs like the High-Cost Program and the Connect America Fund.
The programs are through fees paid by telecommunications carriers.
The Lifeline Program, the Rural Health Care Program, and the Schools and Libraries Program are also supported by the USF.
Appeals court decision was heavily criticized
July’s decision by Fifth Circuit Court of Appeals, which covers Texas, Louisiana, and also Mississippi, was heavily criticized by advocates.
Voices like Noelle Ellerson, the associate executive director advocacy and governance at The School Superintendents Association, spoke out. At the time, Ellerson wrote the decision has the potential to be disruptive to education.
Additionally, Raza Panjwani, a senior policy counsel at Open Technology Institute, said the decision, if left standing, “will destroy critical programs that keep schools, libraries, rural health care clinics, rural communities, and low-income households connected to the internet.”
The telecom petitioners
NTCA–The Rural Broadband Association, Competitive Carriers Association (CCA), and USTelecom–The Broadband Association are the telecom petitioners behind a recent brief calling for a review of the matter. Likewise, the federal government and several other parties have also petitioned the U.S. Supreme Court, according to the NTCA.
A copy of the brief, provided to Broadband Communities, takes aim at the USF’s detractors.
The original challenger to the USF is a conservative group called Consumers’ Research.
“Across four circuits, respondents have spent pages upon pages criticizing universal service,” the brief reads.
The brief furthermore argues respondents have presented a “repeated one-sided story” that “ignores the many benefits the USF provides.”
Moreover, wording in the brief also argues that Congress and the FCC “both remain accountable for the USF contribution.”
“There is historical precedent for multitiered implementation of congressional mandates dating back to the earliest days of our Constitution,” the brief continues.
Click here to read a full copy of the brief submitted to the U.S. Supreme Court.
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