June 12, 2020
CASE strongly supports the Expanding Opportunities for Broadband Deployment Act. This needed legislative reform would eliminate the requirement that broadband providers must receive an Eligible Telecommunications Carrier (ETC) designation in order to access federal Universal Service Funding (USF) grants that help provide broadband service to America’s unserved communities.
As many know, the ETC designation was created 24 years ago when voice served as the primary telecommunication service in America, and state utility commissions played a significant role in the regulation of Title II telephone operators. This is no longer the case today, with consumers now enjoying countless options to be connected via broadband, wireless and fiber. The ETC requirement makes no sense in the modern telecom age. It is not only obsolete, but actively discourages internet service providers (ISPs) from participating in federal funding programs that help connect Americans in difficult geographic areas to vital information impacting their health, their employment, and their education.
Forcing ISPs to subject themselves to up to 40 state regulatory regimes is not only costly and time consuming, but further exposes providers to an unforeseen array of burdensome and unpredictable state regulatory requirements. Outside of the ETC designation, state utility commissions have little oversight over broadband providers making the ETC designation entirely unnecessary and redundant to FCC oversight. The heavy costs and complexity of ETC status with no palpable benefits make it obvious why some of the most qualified providersare choosing not to participate in federal broadband grant programs, resulting in fewer choices and a less robust broadband market for millions of U.S. consumers.
The ETC further directly subjects consumers to frustrating obstacles by demanding that low-income broadband customers switch services to a recognized ETC carrier to be eligible for federal support programs. This serves no purpose other than to disrupt the lives of broadband customers with no resulting benefit, again demonstrating how antiquated regulations are hurting and inconveniencing average Americans.
The FCC is well-positioned to safeguard the use of federal funds by grant recipients and auction winners and ensure those same providers are equipped to meet service requirements and operational milestones. The ETC designation adds no benefits and protections beyond current FCC enforcement, a reality highlighted by the fact that many states operate their own broadband funding programs without the ETC designation requirement.
America’s consumers seeking better and more secure ways to stay connected over the internet appreciate the efforts of Rep. Butterfield in this critical effort for common sense regulatory reform. ETC designation is not only failing to help strengthen our nation’s online connections, it is actually doing the opposite of its stated goal and driving providers away and reducing consumer choice. For a better connection for the Americans who need it most, this legislation deserves the support of every lawmaker in Washington.
