Management of USF by USAC / NG911

  • Post category:Blog

In this edition of the ICORE Blog we address recent events at the FCC of importance to the ILEC industry.

 

As reported in July 24, 2026 edition of the ICORE Blog, at its August 6, 2026 Open Meeting the Commission adopted a Notice of Proposed Rulemaking (NPRM) aimed at strengthening the management and administration of the Universal Service Fund (USF) and the Commission’s oversight of the Universal Service Administrative Company (USAC). This proceeding builds on a prior inquiry (see ICORE Blogs dated 4/30/26 and 5/29/26) into improving USAC’s administration of the USF and launches a comprehensive review of USAC’s practices and procedures related to its administration of the USF. The NPRM seeks comments in four areas: 1) current USAC processes used today to administer the USF and the Commission’s oversight of those processes; 2) USAC’s roles and responsibilities related to USF administration; 3) operating costs associated with USF administration; and 4) the impact of USAC’s Board of Directors (Board) on USF administration.

 

The NPRM seeks comment on ways to streamline USAC processes or otherwise improve transparency, accountability, and cost effectiveness and further proposes to require USAC to report publicly on its speed of operation. In addition, the NPRM seeks comment on ways to improve the efficiency and timeliness of USAC audits and proposes FCC rule changes to allow for USAC’s ability to audit non-service provider beneficiaries of USF funds. Further, the NPRM seeks comment on ways to reduce the costs of USF administration and on the structure of USF administration and whether changes should be made to the structure of USAC or its current responsibilities related to USF administration. Finally, comment is sought on updating the Commission’s rules regarding the USAC Board, including: 1) enhancing measures to ensure that Board members avoid conflicts of interest; 2) reducing the size of the Board; and 3) modifying the composition of the Board as well as Board committees.

 

As of this writing the dates for the filing of Comments and Reply Comments in the above proceeding have not been determined.

 

In the July 24, 2026 edition of the ICORE Blog, we also addressed an issue related to NG911. At its June 25, 2026 Open Meeting, the Commission adopted a Report and Order (Order) and Second Further Notice of Proposed Rulemaking (FNPRM) on NG911. The Order updated the definition of “covered 911 service provider” to include service providers that control or operate critical pathways or components in NG911 networks. In addition, the Order modernized and streamlined the 911 reliability standards applicable to covered providers to reflect widely recognized best practices appropriate to IP-based 911 networks. The Order promotes interstate interoperability by requiring certain covered providers to report on their ability to support seamless transfers of 911 traffic between NG911 networks. Further the Order empowers state and local 911 Authorities to obtain key information from covered service providers so that 911 Authorities can address NG911 reliability, interoperability, and accessibility.

 

The NG911 FNPRM proposed requiring NG911 service providers to conduct multi-party interstate interoperability testing of 911 traffic and sought comment regarding the integration of advanced video calling into NG911 networks to improve accessibility. Comments in the FNPRM have now been filed by interested Parties. Joint Comments were filed by the Industry Council for Emergency Response Technologies (iCERT) and the National Association of State 9-1-1 Administrators (NASNA). The Joint Commenters stated that it was premature, at this time, for the Commission to adopt a regulatory framework for direct video calling or three-way video calling. Further, they urged the Commission to create an enforceable path to operational interstate and intrastate interoperability by adopting a request-based interoperability implementation framework rather than a stand-alone testing mandate. This approach, they opine, would promote meaningful, sustainable interoperability while preserving 911 Authority control and responsibility over network design, readiness, testing, and operational activation.  INDIGITAL, in its comments, states that cross-jurisdictional and cross-vendor call transfer already operates today for some important use cases including voice and associated location information. INDIGITAL urges the Commission to build upon that foundation by establishing a framework that enables broader, repeatable exchange of text, video, media metadata, and other NG911 capabilities as participating 911 Authorities and systems become operationally and administratively ready. Reply Comments are due by 9/8/26.

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