Harold Zeitz, CEO of Ziply Fiber, emphasized the urgency to reform the USF, stating, 'I think maybe it's good that this is coming to a head because the funding source is actually unsustainable. We've got to figure out how to have a sustainable, growing, or stable source.' His comments reflect the need for a thorough reconsideration of the funding structure in light of the impending Supreme Court ruling.
The U.S. Court of Appeals for the Fifth Circuit ruled against the USF program, stating that its contribution system amounts to an illegal tax. This controversial stance underscores the legal challenges facing the USF, further complicating its future as stakeholders await the Supreme Court's decision.
The new FCC chairman, Brendan Carr, may have the opportunity to redesign USF to overcome constitutional and financial hurdles. A significant proposition is to have internet providers and tech giants contribute, potentially reshaping the revenue base for USF, a topic that has been contentious for years.
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