Telecommunication industry finds funding revenues unsustainable

On Behalf of | Apr 21, 2022 | Telecommunications Law

In February 2022, 332 public interest groups in the telecommunication and trade association industries wrote a statement letter to the FCC urging them to expand services that pay into the Universal Service Fund. The letter wants the FCC to add broadband internet access services revenue to the contribution base. The current funding revenues aren’t sustainable for places such as Dallas, Texas. The current funding revenues have declined over 60% during the last two decades.

The new FCC report

The FCC’s three new telecommunication rules promote competition by increasing broadband service options in multiple tenant environments. The first bans service providers from having exclusive revenue-sharing agreements with building owners. The second requires service providers to tell tenants about exclusive marketing arrangements with building owners. The third clarifies that the existing rules ban sale-and-leaseback arrangements. The laws change the way telecommunication rules work in a multiple tenant environment.

The FCC’s enforcement of telecommunication law

Two telecommunication companies received a Notice of Apparent Liability from the FCC’s Enforcement Bureau. The companies were allegedly failing to file their annual telecommunications reporting worksheet repeatedly. According to the FCC’s notice, the companies failed to file six worksheets between April 1, 2016, and April 1, 2021. The telecommunications companies didn’t respond to the FCC’s notice. The FCC is threatening a $100,000 penalty for the companies for the violations.

The FCC announced a new initiative alongside the National Telecommunications and Information Administration. The new initiative is to improve U.S. government coordination on spectrum management and fill the gaps between the two agencies. The initiative improves governmental coordination for new decision-making processes and information sharing. The FCC and NTIA are reinstating high-level meetings between agency leadership and developing a national spectrum strategy.