At its April 12, 2019 Open Meeting, the Federal Communications Commission (FCC or Commission) adopted a report and order eliminating the high cost universal service fund (USF) program’s local service “rate floor” rule, which, absent Commission action, would have imposed a nearly 50 percent increase in monthly local telephone rates for many rural consumers beginning July 1, 2019.
Adopted in 2011, the “rate floor” rule was aimed at limiting USF support received by rural carriers whose rates were below a set minimum rate. According to the Commission, however, “the practical effect of the rate floor has been to artificially raise telephone rates for many rural Americans,” and, without Commission action, the floor would have increased from $18.00 to $26.98 per month beginning July 1, 2019.
