Senate Commerce Committee ranking member Roger Wicker, R-Miss., and Sens. Shelley Moore Capito, R-W.Va., and Todd Young, R-Ind., filed the Funding Affordable Internet with Reliable (Fair) Contributions Act Wednesday to explore requiring “Big Tech” companies to contribute to USF. It would direct the FCC to study “the feasibility of funding Universal Service Fund through contributions supplied by edge providers” like Google-owned YouTube and Netflix. The study should examine “the class of firms and services on which contributions could be assessed, including an inquiry into the specific sources of revenue potentially subject to contributions, such as digital advertising revenue and user fees” and USF contribution “equity issues.” The bill wants the FCC to examine equity of “alternative contributions systems” like federal appropriations and “whether a flat or progressive rate is most appropriate.” More “consumers are moving to internet-based services,” which “raises concerns about the sustainability of fees collected from consumers’ telephone bills,” Wicker said. “As online platforms continue to dominate the internet landscape, we should consider the feasibility of Big Tech contributing to the USF to ensure rural areas are not left behind as we work to close the digital divide.” Commissioner Brendan Carr, who proposed making edge providers pay into USF (see 2105240037), said “requiring Big Tech to contribute is more than fair.”
Senate Commerce Committee ranking member Roger Wicker, R-Miss., and Sens. Shelley Moore Capito, R-W.Va., and Todd Young, R-Ind., filed the Funding Affordable Internet with Reliable (Fair) Contributions Act Wednesday to explore requiring “Big Tech” companies to contribute to USF. It would direct the FCC to study “the feasibility of funding Universal Service Fund through contributions supplied by edge providers” like Google-owned YouTube and Netflix. The study should examine “the class of firms and services on which contributions could be assessed, including an inquiry into the specific sources of revenue potentially subject to contributions, such as digital advertising revenue and user fees” and USF contribution “equity issues.” The bill wants the FCC to examine equity of “alternative contributions systems” like federal appropriations and “whether a flat or progressive rate is most appropriate.” More “consumers are moving to internet-based services,” which “raises concerns about the sustainability of fees collected from consumers’ telephone bills,” Wicker said. “As online platforms continue to dominate the internet landscape, we should consider the feasibility of Big Tech contributing to the USF to ensure rural areas are not left behind as we work to close the digital divide.” Commissioner Brendan Carr, who proposed making edge providers pay into USF (see 2105240037), said “requiring Big Tech to contribute is more than fair.”
Congressional Democrats are pressing harder for President Joe Biden to name a permanent FCC chair and a fifth commissioner, citing the need for a majority to act on changes to net neutrality rules and other priorities unlikely to garner GOP support. Lawmakers remain publicly hopeful the administration will soon announce its FCC nominees. Privately, Senate Democrats in recent days told the White House their patience on FCC nomination delays has evaporated, aides said.
Congressional Democrats are pressing harder for President Joe Biden to name a permanent FCC chair and a fifth commissioner, citing the need for a majority to act on changes to net neutrality rules and other priorities unlikely to garner GOP support. Lawmakers remain publicly hopeful the administration will soon announce its FCC nominees. Privately, Senate Democrats in recent days told the White House their patience on FCC nomination delays has evaporated, aides said.
FCC acting Chairwoman Jessica Rosenworcel welcomed Commissioner Brendan Carr’s proposal to make Big Tech pay into USF (see 2105240037). The idea is “intriguing,” Rosenworcel said in a statement to us Friday, and the commission “should be open to new ideas.” The funding mechanism is “hopelessly outdated” and the program is “on the verge of collapse,” Carr wrote last week. Under his proposal, Congress would pass legislation that “ensures Big Tech contributes an equitable amount” to USF, he said. Rosenworcel agreed it’s “clear that this would require action from Congress.”
Big Tech should be required to pay into USF, said FCC Commissioner Brendan Carr Monday in Newsweek. It would “secure a funding model that can support the long-term investments needed to close the digital divide,” Carr wrote. “Big Tech has been enjoying a free ride on our internet infrastructure while skipping out on the billions of dollars in costs needed to maintain and build that network.” He said it would take .009% of Amazon, Apple, Facebook, Google and Netflix's 2020 combined revenue to “eliminate entirely the unsustainable 30 percent tax that currently hits consumers on their monthly bills.” USF is “on the verge of collapse,” Carr added, saying he's discussing his proposal with other members of the Federal-State Joint Board on Universal Service. “We hope the FCC will take a common-sense approach and not punish innovative, high-quality streaming services that are fulfilling consumer demand,” said Internet Association CEO Dane Snowden in a statement.
Big Tech should be required to pay into USF, said FCC Commissioner Brendan Carr Monday in Newsweek. It would “secure a funding model that can support the long-term investments needed to close the digital divide,” Carr wrote. “Big Tech has been enjoying a free ride on our internet infrastructure while skipping out on the billions of dollars in costs needed to maintain and build that network.” He said it would take .009% of Amazon, Apple, Facebook, Google and Netflix's 2020 combined revenue to “eliminate entirely the unsustainable 30 percent tax that currently hits consumers on their monthly bills.” USF is “on the verge of collapse,” Carr added, saying he's discussing his proposal with other members of the Federal-State Joint Board on Universal Service. “We hope the FCC will take a common-sense approach and not punish innovative, high-quality streaming services that are fulfilling consumer demand,” said Internet Association CEO Dane Snowden in a statement.
The Senate Commerce Committee appeared on track before its Wednesday meeting to advance FCC nominee Nathan Simington’s confirmation to the full chamber. That's despite continued uncertainty about whether panel member Dan Sullivan of Alaska will join other Republicans in backing the nominee. Opponents of Simington’s confirmation claim President Donald Trump picked him to displace Commissioner Mike O’Rielly because the nominee supports the push for a rulemaking on its Communications Decency Act Section 230 interpretation (see 2011100070).
The Senate Commerce Committee appeared on track before its Wednesday meeting to advance FCC nominee Nathan Simington’s confirmation to the full chamber. That's despite continued uncertainty about whether panel member Dan Sullivan of Alaska will join other Republicans in backing the nominee. Opponents of Simington’s confirmation claim President Donald Trump picked him to displace Commissioner Mike O’Rielly because the nominee supports the push for a rulemaking on its Communications Decency Act Section 230 interpretation (see 2011100070).
FCC members agreed 5-0 to seek comment on revised internet-based telecom relay service rules, expanding the TRS fund contribution base for internet-based TRS of video relay service and IP relay service. Only Chairman Ajit Pai and Commissioner Mike O’Rielly had statements on the NPRM, which they didn’t read at Wednesday's meeting. O’Rielly said the agency doesn’t go far enough. The NPRM hasn’t been controversial, with no filings since it circulated three weeks ago. Democrats, who will control the agenda next year, had no statements.