Press Release

Despite Recent FCC Action, PUC Remains Hopeful That Rural Broadband Funding Can Be Preserved; Encourages Continued Discussions

Published on 2/2/2018

Filed under: Telecommunications

HARRISBURG – Despite recent action by the Federal Communications Commission (FCC), the Pennsylvania Public Utility Commission (PUC) remains hopeful that a mechanism can be found to help preserve Pennsylvania’s access to funding for rural broadband projects, and is grateful to the many citizens, organizations, and state and federal officials who have voiced support for these efforts. 

The FCC has denied a joint petition filed by the PUC and Pennsylvania Department of Community and Economic Development – aimed at retaining up to $140 million in federal rural broadband funding – but the collective call to action from across the state has helped elevate awareness of this issue. Additionally, the FCC has noted ongoing discussions about broadband initiatives in Pennsylvania and has indicated a willingness to consider any future proposals.  

“The FCC may have closed a window on one initiative, but the door is still open – at least a crack – for other efforts to preserve significant funding for rural broadband projects,” said Commissioner David W. Sweet, who has been heavily involved in the PUC’s efforts.

As the Commission has emphasized, decisions by the FCC about the federal Connect America Fund Phase II (CAF II) program will impact residents throughout the state – with 63 counties facing the prospect of losing funding to deploy high-speed internet in underserved areas. This has fueled a deep concern about a growing gap between communities and businesses that have access to higher broadband speeds, and those that do not. 

Funding for CAF II is drawn from the federal universal service surcharges paid by state residents and businesses. It is intended to support the deployment of broadband service in high-cost areas, including many rural communities. Most incumbent local telephone companies serving Pennsylvania’s high-cost areas accepted the funding, along with the commitment to meet federal benchmarks for broadband speed (at least 10 Mbps download & 1 Mbps upload), but the Verizon companies did not, jeopardizing the continued availability of millions of dollars in broadband support throughout Pennsylvania.

The FCC plans to conduct an auction to allocate the broadband funding that was not accepted by Verizon, and the PUC has been encouraging all concerned parties to work together to keep these dollars in our state.

A total of 31 counties face the loss of at least $1 million funding for broadband deployment over the next six years, including Indiana, Somerset, Warren, Clearfield, Lycoming, Washington, Huntingdon, Centre, Crawford, Erie, Clinton, Venango, Cambria, Westmoreland, Forest, Jefferson, York, Snyder, Wayne, Blair, Fayette, Mercer, Schuylkill, Columbia, Tioga, Mifflin, Chester, Lebanon, Clarion, Beaver and Allegheny. Additionally, eight counties – Indiana, Somerset, Warren, Clearfield, Lycoming, Washington, Huntingdon and Centre – could lose at least $5 million in funding for high speed Internet enhancements.

The Commission continues to encourage federal, state and local leaders to continue exploring a path forward to support rural broadband projects – which could help influence future FCC decisions about where funds should be directed.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues.

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Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov