Could billing Big Tech help make internet bills more affordable? One trade group says yes

Now that the Affordable Connectivity Program has officially run out of money, lawmakers and advocates continue to debate the best way to subsidize low-income Americans’ internet bills in the future. One trade group says the solution is “staring us in the face”: Make Big Tech pay for it.

In a Monday blog post, USTelecom suggested that Congress could create “a new, financially responsible, and self-sustaining version of the ACP” if it overhauls the Federal Communications Commission’s Universal Service Fund (USF)—and forces new companies to pay into it.

“To secure the future of universal, affordable connectivity, Big Tech must take its seat at the USF table,” according to the trade group, which represents internet providers including AT&T and Verizon. “For too long, these trillion-dollar behemoths have worked hard to avoid any requirement to contribute to universal service and affordable connectivity—despite the fact they are among the most powerful companies on the planet precisely because so many of us are connected.”

The USF is a pool of internet access and affordability subsidies formed in 1996. It pays for connectivity in schools and libraries, communications infrastructure in rural areas, and low-income phone service through mandatory carrier contributions. However, the system is widely recognized as being outdated and overburdened as it supports a growing number of modern communications services.

USTelecom’s proposal would represent a break with the current system, as it would include internet platforms—not just service providers—in the regulatory framework. That’s not necessarily a bad thing, the group wrote, as broadband providers typically pass along their USF costs in consumer bill line items.

“Opponents have long dismissed this proposal as a ‘tax on the net’ and claim USF reform would raise consumer bills,” according to the post. “In fact, every American with a cellphone or landline will see the USF fee on their bill drop by roughly 90%.”

While the proposal clearly won’t win a lot of fans in Big Tech, it does parallel some congressional efforts: Last year, a bipartisan Senate group filed a bill to explore collecting internet platform revenue from digital advertising and user fees, and putting it toward internet access programs.

All of this will be null, however, if the Supreme Court upends the USF as unconstitutional. A conservative nonprofit has asked the high court to consider whether the contributions amount to an unlawful tax; a decision on whether the justices will take up the case is pending.