You’ve Probably Never Heard of the USF, but You Should

We don’t usually discuss telecom policy, but sometimes Washington makes a decision, or fails to, that impacts our customers squarely in the wallet.

That’s what’s happening right now with the Universal Service Fund (USF). It’s a mess.

What’s the USF and Why Is It Broken?link to this section

The USF was built to help schools, rural communities, and low-income households get access to communication. Still important. Still necessary.

But the way it’s funded? That’s the problem. It’s stuck in 2001.

Right now, the USF is almost entirely funded by surcharges on voice services. Not broadband. Not messaging. Just voice.

Meanwhile, voice revenues have dropped over 60 percent. And broadband has become the backbone of modern business.

The result? Customers are getting hit with a contribution rate that just reached 38.1 percent.

Let me repeat that. Thirty-eight percent. On your bill. Every month. That’s not sustainable. It’s not smart. And it’s not fixing the real problem.

Why Customers Should Carelink to this section

Imagine running a 50-seat contact center and seeing nearly 40% of your telecom bill eaten by fees that don’t even fund the broadband you actually use. That’s reality today.

• IT leaders: You’re paying huge surcharges on services your teams barely use. Meanwhile, the broadband you rely on doesn’t contribute at all.
• CX leaders: Every extra dollar spent on broken policy is a dollar not spent on better tools, smarter workflows, or customer experience upgrades.
• Community orgs: Schools, clinics, and nonprofits rely on USF funding. If the base collapses, so does their access.

This isn’t just outdated. It’s upside down.

And here’s the kicker: if nothing changes, the contribution factor could top 50% before the decade ends. That’s not a scare tactic. That’s math.

What Needs to Changelink to this section

Here’s the fix. Add broadband to the base.

Broadband generates almost ten times the revenue of voice. A small surcharge there could drop the overall contribution rate below four percent.

From thirty-eight percent to four. That’s real relief. For customers, providers, and the Fund itself.

And it’s doable right now.

What About Big Tech?link to this section

Some folks want Big Tech to contribute too. Maybe that makes sense. But it’s complicated. It’ll take years. And customers need help today.

Adding broadband to the base is the cleanest, fastest path forward.

Where 8x8 Standslink to this section

We’ve submitted our comments to Congress. We’re engaging directly with lawmakers. Because this affects our customers, and we’re not waiting for someone else to fix it.

When connectivity fails, customer experience fails. When CX fails, business fails. That’s the chain reaction we’re trying to stop.

The Bottom Linelink to this section

The current system is broken. The costs are going up. The benefits are going down. And no one is being served.

It’s time to stop patching potholes and start rebuilding the road.

At 8x8, we’ll keep pushing for reform. And we invite other business leaders, providers, and technology companies who depend on affordable connectivity to add their voices too. Because this isn’t just about policy — it’s about keeping your business connected and competitive.

Let’s fix it.