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Thursday, March 19, 2015

ISP USF

As I'm filling out 471s, it suddenly occurs to me: most of my clients could be looking at a jump in Internet access costs of about 15% next year.  The FCC's recent Net Neutrality Order made ISP charges subject to USF contribution requirements.  The Order put in place a temporary forbearance on those charges, but footnote 1471 says, "...the Commission has referred the question of how the Commission should modify the universal service contribution methodology to the Federal-State Joint Board on Universal Service (Joint Board) and requested a recommended decision by April 7, 2015.... We recognize that a short extension of that deadline for the Joint Board to make its recommendation to the Commission may be necessary in light of the action we take today."  Commissioner Pai says that means the USF is coming to ISPs soon.

I think those recommendations then have to go into an NPRM, so I'd be surprised if we see contributions before July, but it seems likely that contributions will start before June 2016.

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