Millions of US households could benefit from cheaper broadband soon: Here's what you need to know

Date:
Wed, 14 May 2025 17:30:00 +0000

Description:
A new bipartisan bill could end Big Techs free ride on broadband networks and reduce phone bills for millions by reforming the Universal Service Fund model.

FULL STORY

A new wave of broadband reform is gaining traction in the United States, and its poised to reshape how internet access is funded, particularly for underserved rural communities.

At the heart of this effort is the reintroduction of the Lowering Broadband Costs for Consumers Act of 2025 by the U.S. Congress. Its a bipartisan
proposal aimed at fixing a long-standing funding imbalance.

Currently, many tech giants that heavily rely on broadband infrastructure do not contribute to its funding. The Act would ensure that they do, helping to expand the Universal Service Fund (USF).

A bipartisan push to fix broadband funding

Originally designed to ensure universal access to telephone services, the USF has since evolved to support broadband in rural and tribal areas.

However, its funding still comes primarily from voice service subscribers,
who now pay far more than they did two decades ago.

For example, a user might purchase a mobile router and pay for broadband
access simply to use social media. The user may also pay these platforms directly through subscriptions or in-app purchases. Yet, despite relying entirely on broadband infrastructure, the platforms themselves contribute nothing to its cost.

This imbalance is at the center of a legal challenge currently pending before the U.S. Supreme Court.

The new proposal aims to shift the cost burden from everyday consumers to
large tech firms, such as Google, Amazon, Apple, Microsoft, Netflix, Meta,
and TikTok, whose services drive most broadband traffic, including that
through WiFi routers .

This isnt an entirely new idea. It mirrors the model tech companies already
use to sell cloud services: payment based on usage and features. Since contributions would come from enterprise services like cloud computing,
digital advertising, and AI infrastructure, there would be no added cost to consumers.

If implemented, the policy would remove the USF fee from phone bills,
offering direct relief to users. It could pave the way for the best broadband deal in years by lowering surcharges.

Via StrandConsult

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Link to news story: https://www.techradar.com/pro/millions-of-us-households-could-benefit-from-che aper-broadband-soon-heres-what-you-need-to-know

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