As promised, Rep. G.K. Butterfield (D-N.C.) has introduced a bill, the Expanding Opportunities for Broadband Deployment Act, that would eliminate the ETC (eligible telecommunications carrier) requirement for accessing Lifeline broadband subsidies.

Butterfield represents a rural North Carolina that desperately needs broadband, he has said, but that qualified providers are being discouraged from participating in FCC subsidy programs due to the "outdated" state-by-state ETC reporting requirements.

Cable operators have long pushed to scrap the ETC requirement to open up subidies for more cable ops.

Also Read: FCC Sets Deadline for Non-ETCs

"The bill will enable more broadband service providers to participate in the FCC’s Universal Service Fund (USF) programs by eliminating an outdated requirement that only internet service providers designated as eligible telecommunications carriers (ETCs) may receive USF dollars," said Butterfield, adding: "Eliminating the ETC requirement will benefit low-income families in North Carolina and across the country by providing more choices for broadband service through the Lifeline Program while promoting competitive prices and high-quality service."

NCTA-The Internet & Television Association, was applauding.

“Getting broadband to unserved communities that need it most is an important priority for our industry. The Expanding Opportunities for Broadband Deployment Act introduced today by Rep. G. K. Butterfield (D-NC) is legislation that takes important steps forward to achieving that goal and accelerating broadband deployment for more Americans," NCTA said in a statement. By retiring the eligible telecommunications carrier (ETC) designation, more ISPs with a proven track record of operating broadband networks would compete for government support. Now is the time for Congress to remove barriers that deter ISPs from delivering broadband service so that every American can have access to this important resource.”

Rep. G.K. Butterfield (D-N.C.) said Monday (March 22) that he will soon reintroduce a bill that would eliminate the ETC (eligible telecommunications carrier) requirement for accessing Lifeline broadband subsidies.

Butterfield's pledge came during a hearing on the LIFT America Act infrastructure bill in the House Energy & Commerce Committee and will almost certainly be celebrated by NCTA-the Internet & Television Association. 

Also Read: It's Time to Dial Back on ETC Requirements

Butterfield represents a rural North Carolina that desperately needs broadband, but that qualified providers are being discouraged from participating in FCC subsidy programs due to the "outdated" state-by-state ETC reporting requirements.

Butterfield had support from hearing witnesses on both sides of the (former) FCC aisle. Former Democratic FCC chairman Tom Wheeler said the ETC designation no longer made sense and that it was trying to graft phone-era policy on broadband. "It makes no sense to continue ETC as one of the tests."

Former Republican commissioner Michael O'Rielly said he supported his last bill, and would do so this time around. He said the burden of ETC is not worth the cost of compliance for many, so they don't participate. O'Rielly pointed out that Congress' Emergency Broadband Benefit subsidy money--over $3 billion--does not have an ETC requirement, and while O'Rielly is no fan of the LIFT bill, pointed out that it had no ETC requirement for its $80 billion in broadband buildout subsidies, either. 

O'Rielly said Congress would run into some problems with state regulators, but that it "absolutely" had to eliminated the ETC designation.

Butterfield introduced the Expanding Opportunities for Broadband Deployment Act in 2020. It would give more broadband providers access to the FCC's Universal Service Fund subsidy money to build out high-cost and low-income areas, which are ones where it is sufficiently expensive to provide service that there is no business case for it without those subsidies. 

The Expanding Opportunities for Broadband Deployment Act would eliminate the requirement that only ISPs designated eligible telecommunications carriers (ETCs) can get USF high-cost dollars, something cable operators have been pushing for years. 

"By retiring the eligible telecommunications carrier (ETC) designation, more ISPs with a proven track record of operating broadband networks would compete for government support," NCTA said when Butterfield introduced the bill last year.

Rep. G.K. Butterfield (D-N.C.) has introduced a bill that would give more broadband providers access to the FCC's Universal Service Fund subsidy money. 

High-cost areas are ones where it is sufficiently expensive to provide service that there is not a business case for it without subsidies. 

The Expanding Opportunities for Broadband Deployment Act would eliminate the requirement that only ISPs designated eligible telecommunications carriers (ETCs) can get USF high-cost dollars, something cable operators have been pushing for years. 

WISPA VP of government affairs Christina Mason, praised the bill's broadening of the definition of USF-supported services to include broadband-only providers and "streamline showings of financial viability and fitness in order to receive USF support." 

"As billed, these key changes will greatly expand opportunities for small rural and urban broadband providers, making it easier for them to apply for USF subsidies when the opportunity arises," said Mason. "Not only will this expand participation in the USF program to smaller, nimbler and able providers, it will mean more and faster deployment of broadband to areas most in need, shrinking the digital divide.   

"Many unserved areas lack broadband access in part because experienced and highly qualified broadband providers who are not designated as ETCs are not permitted to participate in the USF High Cost program," said Butterfield in introducing the bill.  

"Eliminating the ETC requirement would benefit low-income families in North Carolina and across the country by providing more choices for broadband service through the USF Lifeline Program while promoting competitive prices and high-quality service," he said. 

NCTA president Michael Powell had high praise for the move.  

“As America continues to wrestle with the devastating impact of the COVID pandemic, it has become clear that connecting all of our citizens to reliable broadband internet service is an urgent national priority," he said after the bill's introduction. "The Expanding Opportunities for Broadband Deployment Act introduced today by Rep. G. K. Butterfield (D-N.C.) is pro-consumer legislation that will expedite and expand broadband deployment to unserved communities that need it the most.  

"The bill would repeal an outdated and unnecessary eligibility requirement that unfairly prevents qualified internet service providers from participating in federal universal support programs designed to close broadband access gaps and encourage adoption. By retiring the eligible telecommunications carrier (ETC) designation, more ISPs with a proven track record of operating broadband networks would compete for government support. With Congress considering new strategies to advance access and adoption of broadband across America, now is the time to remove antiquated and unnecessary barriers that deter ISPs from delivering broadband service to every citizen.” 

"Charter applauds Congressman G. K. Butterfield for introducing the “Expanding Opportunities for Broadband Deployment Act,” the company said in a statement. "High-speed connectivity has never been more important and this legislation would have a near-immediate impact on the digital divide, expanding access to broadband and opening doors to limitless opportunity for those who need it most. Far too many Americans remain shut out from the life-changing benefits of high-speed internet, and Congressman Butterfield’s legislation would ensure critical government funding programs are aligned with today’s connectivity needs."