US telecoms and tech giants clash over universal service fund allocation

Telecom firms and tech giants from the United States of America are at odds over the responsibility of funding the Universal Service Fund (USF). This fund, which supports internet subsidies for low-income households, healthcare providers, schools, and libraries, is currently financed through a tax on voice service providers. However, as more Americans transition from traditional phone lines to broadband services, the fund’s financial stability is uncertain.

In discussions concerning potential reforms to the program within a Senate working group, telecom companies argued that online service providers should bear a portion of the funding burden. On the other hand, tech companies suggested that a better approach would involve allocating more financial responsibility to broadband service providers. The disagreement centres around the evolving landscape of communication technologies and their corresponding financial obligations to sustain the USF.