Universal Service critical to network sustainability: Report

"A 40% reduction in USF support would mean that broadband operators couldn't continue operations on existing networks, threatening the long-term viability of broadband access in rural areas. About half of the cost of network operating expenses are due to labor costs, which rise faster than inflation in rural areas."

"As network demands increase and operating costs rise, the Universal Service Fund continues to serve a vital role in sustaining rural networks and ensuring affordable access to broadband and voice services. This report highlights just how delicate the balance is for robust, reliable, and affordable rural connectivity and how important it is for policymakers to take into account market dynamics and sustainability when making decisions."

"Universal Service sustains rural connectivity and ensures affordable broadband and voice service in rural communities that otherwise may lack a business case for investment. Without these funds, telecom operators would be forced to cut back or discontinue service in underserved areas."

The Universal Service Fund plays a vital role in maintaining rural connectivity and ensuring affordable broadband and voice services in communities lacking sufficient business cases for private investment. A 40% reduction in USF support would force broadband operators to cease operations on existing networks, jeopardizing long-term rural broadband access. Labor costs comprise approximately half of network operating expenses and rise faster than inflation in rural areas, compounding sustainability challenges. Without USF funding, telecom operators would be forced to cut back or discontinue service in underserved areas. The delicate balance of robust, reliable, and affordable rural connectivity depends on policymakers considering market dynamics and sustainability when making decisions about Universal Service support.

Read at Telecompetitor