In a unanimous vote, the FCC has amended its rules to give carriers more flexibility in planning broadband deployment projects that are funded by the high-cost universal service support program. Previously, high-cost carriers lost all universal support for capital expenses on a construction project if the average cost per location exceeded a company-specific cap. Though this restriction was intended to save universal service funds for more efficient projects, it also incentivized carriers to exclude certain high-cost homes from a project entirely, even if including those homes would be more efficient. Accordingly, these high-cost locations risk never receiving broadband. Under the Commission’s new rules, carriers will be permitted to cover the excess capital expenditure with their own funds while retaining universal support for the project, rather than sacrificing support for the project altogether.
