Bill Overview
Title: FAIR Contributions Act
Description: This bill requires the Federal Communications Commission (FCC) to study and report on the feasibility of funding the Universal Service Fund through contributions from edge providers (i.e., providers of online content or services, such as search engines). The fund provides support to high-cost areas, schools and libraries, rural health care facilities, and the Lifeline program (an FCC program that provides a discount on phone service for low-income consumers). The report must consider (1) the type and size of firms and services on which contributions could be assessed, (2) equity issues related to current versus alternative systems for contributing to the fund, (3) the effect of any change to the contribution system on the telecommunications bills of consumers, and (4) the sustainability of the fund and how to ensure that fund disbursements are consistent and predictable over time.
Sponsors: Rep. Mullin, Markwayne [R-OK-2]
Target Audience
Population: people who use telecommunications services globally
Estimated Size: 280000000
- The Universal Service Fund supports high-cost areas, schools and libraries, rural health care facilities, and the Lifeline program. This means it impacts residents and consumers in these areas.
- Any changes to how the Universal Service Fund is funded could affect the cost of telecommunications for all consumers if edge providers pass on new costs to users.
- The Lifeline program specifically impacts low-income consumers who rely on discounts for phone services.
- The study mandated by the bill could affect large online content providers, potentially impacting their business costs and operations.
- With global online content providers involved, the implications of such funding mechanisms could have an international impact.
Reasoning
- The target population includes individuals across various demographics, given the widespread use of internet and telecommunications services in the US.
- The budget is constrained, which limits the potential scale and reach of any direct financial assistance or funding redistribution through the policy.
- The FAIR Contributions Act aims to assess and potentially restructure funding contributions, notably from edge providers which might include major corporations.
- The impacts will vary; low-income and rural communities may see more direct changes due to their reliance on services supported by the Universal Service Fund.
- For larger content providers, changes in contribution structures might indirectly affect consumers if costs are passed down.
Simulated Interviews
Elementary School Teacher (Rural Texas)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I'm hopeful that the policy could bring more stable internet connections to our school, but concerned about potential costs being passed to me as a consumer.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Software Engineer (New York City, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- I'm concerned about potential increased costs to our business, but it might be balanced if it leads to improved service infrastructure.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Retired (Las Vegas, NV)
Age: 60 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I rely heavily on the Lifeline program, so any changes to funding could severely impact my ability to afford telecommunications.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 3 |
| Year 5 | 4 | 2 |
| Year 10 | 3 | 2 |
| Year 20 | 3 | 2 |
Freelance Graphic Designer (Portland, OR)
Age: 25 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- Stable internet is crucial for my work. If this policy improves infrastructure and access, it would be beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Small Business Owner (Chicago, IL)
Age: 52 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- If the policy leads to increased operational costs, that could squeeze my business margins. But if it improves overall infrastructure, the long-term benefits might offset those.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Nursing Assistant (Phoenix, AZ)
Age: 29 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I'm worried about potential cuts to the Lifeline program, but hopeful for any improvements that might help.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 4 | 3 |
| Year 10 | 4 | 3 |
| Year 20 | 3 | 3 |
College Student (Seattle, WA)
Age: 18 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 10/20
Statement of Opinion:
- Improving internet services at educational institutions is crucial. If the policy benefits schools, that would help my studies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Librarian (Atlanta, GA)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Our library's services could improve or face challenges depending on funding changes. We need predictable support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Customer Service Representative (Houston, TX)
Age: 37 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- If this policy can make rural internet more reliable, it could really help my work from home situation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Doctor in rural clinic (Miami, FL)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Reliable internet is vital for our telehealth services. Ensuring funding for these services is crucial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Cost Estimates
Year 1: $5000000 (Low: $4000000, High: $6000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The study must clearly define the criteria for edge providers to contribute, ensuring broad and equitable participation.
- Cost benefits should be weighed against potential increases in consumer expenses if edge providers pass on costs.
- The sustainability and predictability of the Universal Service Fund are critical to supporting underserved areas.