The Universal Service Fund (USF) has recently doubled its contribution factor to 38.1%, placing an increased tax burden on businesses still relying on legacy voice services. This tax system is skewed, as broadband funding is financed by the dying revenues from voice services, leading to a disconnect that adversely affects businesses. Over the years, while the USF revenue base has decreased by 69%, the tax rate has soared by over 400%. This situation severely hinders investments necessary for modern technologies such as cloud and AI solutions.
Most IT leaders overlook the tangible impact of the USF as it directly affects operational budgets. Companies that engage in traditional voice services bear the brunt of these costs, while competitors focusing on data retrieval are largely exempt. To enhance fairness and foster innovation, economists suggest updating the USF contributions to include broadband in its revenue base, which is fundamentally crucial today. This adjustment would distribute costs more evenly and substantially reduce levy rates for enterprise communication services, incentivizing a shift towards modern connectivity solutions.
👉 Pročitaj original: CIO Magazine
