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FSF: USF Regime Is 'Clearly Unsustainable'

Citing a report that the FCC's USF contribution factor will likely increase to 36.2% during Q4 (see 2309050040), Free State Foundation President Randolph May blogged last week that those numbers show the system must be fixed. “The current Universal Service…

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Fund subsidy regime is unsustainable, and it must be meaningfully reformed,” May said: “This is not to say that there should not be subsidies to support universal service goals, including support for low-income persons and for high-cost areas that otherwise would not be served. It is to say the legacy universal service regime is broken -- and clearly unsustainable.”