Crapo, Colleagues Author Bill to Lower Broadband Costs, Boost Connectivity for Rural and Tribal Areas

Washington, D.C.--U.S. Senator Mike Crapo (R-Idaho) joined Senators Markwayne Mullin (R-Oklahoma) and Mark Kelly (D-Arizona) to introduce the Lowering Broadband Costs for Consumers Act of 2023 to direct the Federal Communications Commission (FCC) to require proper contributions to the Universal Service Fund (USF) from edge providers and broadband providers.  Requiring edge providers to cover associated costs for rural fiber networks will reduce the financial burden on consumers and rural providers while strengthening broadband connectivity throughout rural America.

"Idahoans rely heavily upon broadband technology for business, government and personal activities," said Crapo.  "This legislation expands on efforts to address the 'digital divide' in broadband deployment between rural and urban or suburban areas to ensure communities, regardless of size, can access the necessary connectivity for modern life."

“Fair contributions to the USF from edge providers are long overdue,” said Mullin.  “Video streaming services account for 75 percent of all traffic on rural broadband networks.  However, unrecovered costs from streaming companies are often shifted and borne by small rural broadband providers.  Available, affordable internet will close the digital divide and increase telehealth, educational, and employment opportunities for those who previously went without.  Rural Oklahomans deserve the same connectivity as those living in urban areas.”

“The Universal Service Fund helps Arizonans in rural and low-income communities get access to affordable and reliable high-speed internet, but right now, large internet companies that profit from that expanded internet access don’t contribute their fair share,” said Kelly.  “Our legislation will lower the cost of high-speed internet for consumers and rural providers and expand broadband connectivity throughout Arizona.”

The Lowering Broadband Costs for Consumers Act would:

• Direct the FCC to reform the USF by expanding the base so that edge providers and broadband providers contribute on an equitable and nondiscriminatory basis to preserve and advance universal service.
• Limit assessments of edge providers to only those with more than 3% of the estimated quantity of broadband data transmitted in the United States and more than $5 billion in annual revenue. 
• Direct the FCC to adopt a new mechanism under the current USF high-cost program to provide specific, predictable, and sufficient support for expenses incurred by broadband providers that are not otherwise recovered.
• Limit the FCC’s authority over edge providers and broadband providers only to requiring contributions to the USF.

Read the bill text here.