You’ve Probably Never Heard of the USF, But You Should!

8×8 explores why the Universal Service Fund is failing and what needs to change to fix it.

We don’t usually discuss telecom policy, but sometimes Washington makes a decision, or fails to, that impacts our customers squarely in the wallet.

That’s what’s happening right now with the Universal Service Fund (USF). It’s a mess.

What’s the USF and Why Is It Broken?

The USF was built to help schools, rural communities, and low-income households get access to communication. Still important. Still necessary.

But the way it’s funded? That’s the problem. It’s stuck in 2001.

Right now, the USF is almost entirely funded by surcharges on voice services. Not broadband. Not messaging. Just voice.

Meanwhile, voice revenues have dropped over 60 percent. And broadband has become the backbone of modern business.

The result? Customers are getting hit with a contribution rate that just reached 38.1 percent.

Let me repeat that. Thirty-eight percent. On your bill. Every month. That’s not sustainable. It’s not smart. And it’s not fixing the real problem.

Why Customers Should Care

Imagine running a 50-seat contact centre and seeing nearly 40% of your telecom bill eaten by fees that don’t even fund the broadband you actually use. That’s reality today.

• IT leaders: You’re paying huge surcharges on services your teams barely use. Meanwhile, the broadband you rely on doesn’t contribute at all.
• CX leaders: Every extra dollar spent on broken policy is a dollar not spent on better tools, smarter workflows, or customer experience upgrades.
• Community orgs: Schools, clinics, and nonprofits rely on USF funding. If the base collapses, so does their access.

This isn’t just outdated. It’s upside down.

And here’s the kicker: if nothing changes, the contribution factor could top 50% before the decade ends. That’s not a scare tactic. That’s math.

What Needs to Change

Here’s the fix. Add broadband to the base.

Broadband generates almost ten times the revenue of voice. A small surcharge there could drop the overall contribution rate below four percent.

From thirty-eight percent to four. That’s real relief. For customers, providers, and the Fund itself.

And it’s doable right now.

What About Big Tech?

Some folks want Big Tech to contribute too. Maybe that makes sense. But it’s complicated. It’ll take years. And customers need help today.

Adding broadband to the base is the cleanest, fastest path forward.

This blog post has been re-published by kind permission of 8x8 – View the Original Article

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Call Centre Helper is not responsible for the content of these guest blog posts. The opinions expressed in this article are those of the author, and do not necessarily reflect those of Call Centre Helper.

Author: 8x8
Reviewed by: Megan Jones