Capito, Colleagues Introduce Bill to Explore Collecting USF Contributions from Big Tech – Shelley Moore Capito

WASHINGTON, D.C. U.S. Senators Shelley Moore Capito (R-W.Va.), Roger Wicker (R-Miss.), and Todd Young (R-Ind.) this week introduced the Funding Affordable Internet with Reliable (FAIR) Contributions Act.

The legislation would direct the Federal Communications Commission (FCC) to conduct a study into the feasibility of collecting Universal Service Fund (USF) contributions from internet edge providers such as YouTube, Netflix, and Google.

Theres no question the COVID-19 pandemic has underscored the need to close the digital dividewhether youre working from home, finishing school assignments, or in need of a telehealth appointment, Senator Capito said. And, while weve made progress, we still have a long way to go. As we all know, building out our internet infrastructure is expensive, and we have utilized various sources to pay for it. For too long, Big Tech has been able to profit off of the critical infrastructure used for common day-to-day activities while not helping at a sufficient level to improve those capabilities with broadband investment in states like West Virginia. With communications platforms moving away from telephone networks toward internet heavy platforms, its important now more than ever that we start looking at ways that Big Tech can step up and help close the digital divide and secure true universal service for West Virginians. Our legislation is a solid first step in working toward this goal and making this a reality.

I applaud Senators Wicker, Capito, and Young for introducing the FAIR Contributions Act, FCC Commissioner Brendan Carr said. For too long, Big Tech has been enjoying a free ride on our Internet infrastructure. The current funding mechanism for the Universal Service Funda regressive tax on the monthly bills for traditional telephone service, both wireless and wirelineis unfair and unsustainable. Indeed, its like taxing horseshoes to pay for highways. Requiring Big Tech to contribute is more than fair. It is consistent with the network compact that has prevailed since the earliest days of Americas communications networks. Historically, the businesses that derived the greatest benefit from a communications network paid the lions share of the costs. I am pleased that the FAIR Contributions Act would call on the FCC to open a proceeding to look at ending the charge on consumers monthly telephone bills and shifting a fair amount over to Big Tech.

The FAIR Contributions Act would:

Through the USF, the FCC disburses approximately $10 billion per year to fund broadband deployment to high-cost rural areas, schools and libraries, rural health care facilities, telehealth services, and broadband subsidies for low-income Americans. The USF collects money from telecommunications carriers, set at a percentage of their interstate and international revenues, which carriers usually pass onto consumers in their monthly bills.

Click here for the full text of the bill.

# # #

Link:

Capito, Colleagues Introduce Bill to Explore Collecting USF Contributions from Big Tech - Shelley Moore Capito