by David Gonzalez*
The Telecommunications Act of 1996 outlines a program of universal service to provide modern communications infrastructure for all Americans, subsidizing the extension of telephone and internet networks to underserved regions. Due to changes in the telecommunications market, the traditional funding mechanism for universal service is rapidly failing, putting the program in jeopardy. At the same time, recent judicial decisions have eroded the power of the Federal Communications Commission, taking away its most powerful regulatory tools and bringing the law out of line with reality. While a recent Sixth Circuit decision spells doom for one FCC initiative, it inadvertently offers a road to salvation for universal service. By breathing new life into the 2005 Brand X decision, the Sixth Circuit has unwittingly thrown a lifeline to the FCC. Applying this dated decision to modern technology offers the Universal Service Fund a way to escape its “death spiral,” secure its future, and restore fairness to America’s technological landscape.