On October 27, the Federal Communications Commission (FCC) unanimously approved a comprehensive plan to reform the federal Universal Service Fund (USF). The order will cap the $4.5 million USF high-cost program, transition the program to support broadband services through a new Connect America Fund, and will utilize a competitive bidding process to support broadband deployment. The order will also create a new Mobility Fund to expand wireless broadband services to unserved areas and would establish new standards for carriers to meet the FCC's new public service obligations for unserved areas. In addition, the order reforms the intercarrier compensation (ICC) regime to reduce subsidies between carriers for connections through a transitional recover mechanism to mitigate the effect of reduced funds.

Link: FCC Plan