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Rural Areas to Benefit From Rate-of-Return Flexibility Changes

04.20.2017

Background: The Federal Communications Commission today approved an order that will give more flexibility to Rate-of-Return carriers and allow them to receive funding for high-cost projects that might exceed their cap. The change will allow carriers to extend broadband service to hard-to-reach homes with the help of universal service funds.

This statement is attributable to USTelecom CEO Jonathan Spalter:

“USTelecom welcomes the Order on Reconsideration adopted today that removes the construction project limitation. It will allow carriers to receive USF support for capital expenses, even if the costs of expanding service to an individual project exceeds the company’s average funding limit. Fixing this quirk in the rule will help spread deployment to the highest cost portion of rural America in dire need of access to broadband.”