AT&T urges Big Tech to contribute to telecom and broadband subsidy fund
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AT&T CEO Advocates for Big Tech to Fund Telecom Services
In a recent statement, AT&T CEO John Stankey urged Congress to empower the Federal Communications Commission (FCC) with the authority to require major technology companies to contribute to a government fund designed to subsidize telecom and broadband services. Speaking at a telecom industry forum in Utah, Stankey highlighted the disparity in funding obligations under the current legal framework, which imposes fees solely on wireless and landline telephone service subscribers to support the Universal Service Fund.
Current Funding Model Under Scrutiny
The Universal Service Fund, which ensures affordable access to essential telecom services, is presently financed by fees levied on traditional telecommunications service users. Stankey noted that this model does not account for the significant advantages that Big Tech companies gain from the existing internet infrastructure, which is largely supported by these traditional telecom subscribers.
Call for Inclusive Participation
At the forum, Stankey questioned why the seven largest and most profitable companies, which have established their dominance through internet-based services utilizing existing infrastructure, are not mandated to contribute to this essential fund. He argued that these companies should share the responsibility for providing equitable and accessible telecom services, which are now as critical as the telephone services of the past.
Stankey's comments reflect growing sentiment within the telecom industry that the funding model for essential services needs to evolve to include contributions from all major beneficiaries of the internet infrastructure, particularly the tech giants who have profited most from it.
Industry Implications
Should Congress act on Stankey's suggestion, it could lead to a significant shift in how telecom services are funded, potentially easing the financial burden on traditional service users and ensuring a more equitable distribution of costs across all major internet stakeholders.
