The US Federal Communications Commission has approved plans to reform the universal service fund and include broadband services in its funding. The proposal includes four elements: modernizing the USF and associated intercarrier compensation to take account of the switch to IP services, combating waste and inefficiency in the USF to free up funds for broadband, increase accountability from companies receiving support from the fund and government bodies managing the fund, and creating better incentives for participants to achieve the fund's goals. The long-term aim is to create a new Connect America Fund, which meets both the voice access goals in the original USF and the broadband services envisaged in the National Broadband Plan. The FCC approval starts a consultation process to gather feedback from industry players before the proposals are implemented. Industry groups and operators largely welcomed the move, saying the system is long in need of reform and broadband access will benefit from the extra support.
