Federal Broadband Reform: How Will Rural Providers Survive?

Categorized Under: Community Development

ICF International experts Michael Spead and Keith Montgomery authored this paper on U.S. federal broadband reform, focusing on the impacts of the National Broadband Plan (NBP) on rural service providers. The NBP calls for significant reform of telecommunication regulation and policy, which includes:

Reallocation of wireless spectrum for broadband use
Reform of the Universal Service Fund (USF) transitioning from telephone subsidies to broadband subsidies under the Connect America Fund (CAF)
Reform of Intercarrier Compensation (ICC) rates for the use of other providers' networks

The goal of this paper is to provide a high-level discussion of the proposed reforms and some of the challenges rural carriers will be facing with these regulatory changes. This paper is tailored for incumbent and competitive providers who will need to assess the inherent risks and opportunities these changes bring, streamline operations and reduce costs, prepare for the requirements of a reverse auction, and consider diversification strategies for the new market.

Related Market + Service Offerings

Broadband + Telecommunications

Authored By

Michael Spead
Senior Technical SpecialistICF International

Michael Spead, former senior program manager at the Universal Service Administrative Company (USAC), has more than 10 years of experience in broadband/telecommunications program and project management, policy analysis and regulatory compliance, business process engineering, and financial analysis. Mr. Spead leverages his understanding of the broadband/telecommunications ecosystem to develop successful programs and projects to support state, local, and commercial entities, and he monitors changes in broadband/telecommunications policy to provide technical advisory services for clients. At USAC, Mr. Spead also served as an ambassador for a nationwide outreach initiative with telecommunications firms to build relationships, train industry leaders, and address issues relating to the Universal Service Fund (USF).
Keith Montgomery
Senior Program DirectorICF International

Mr. Montgomery is the Senior Program Director for ICF's Broadband team and offers a deep understanding of the economic challenges faced by rural America, as well as the trade-offs between technology options available for deployment. He managed the finance and engineering team's design and implementation of the Rural Utility Service feasibility review program and is the task leader for post-award activities. Mr. Montgomery has developed broadband fiber, wireless, and satellite feasibility studies and business plans; directed city, regional, and national broadband network design and construction projects; and managed finance and back-office operations. He is also an expert consultant at completing technology and market assessments for broadband networks and services.