Over the summer, Oregon took a second swing at revising its state Universal Service Fund program by passing SB 1603, a bill which will create a larger rural broadband development fund by including retail wireless and VoIP service (in addition to traditional telephone service) in the fees it collects to bring basic connectivity services to unconnected parts of the state. The new law lowers the current tax rate on telecommunications service provider's gross revenue (from 8.5% to 6%) but dramatically broadens the collection base, which will bring in needed dollars to expand broadband access to state residents without it in coming years. The move comes on the heels of the state’s move to establish a Broadband Office in 2018 to “to promote access to broadband services for all Oregonians in order to improve the economy and quality of life.”

Nuts and Bolts

SB 1603, which passed the state legislature on June 26 and was signed into law on July 7, directs the Oregon Business Development Department  (OBDD) to transfer up to $5 million of the funds collected each year to a broadband fund for rural development projects, administered by the OBDD. While the amount that will be collected remains unknown at the moment, it will no doubt represent a significant boost: the current mechanism for funding rural information infrastructure projects — the Rural Broadband Capacity Pilot Program — received 25 applications for almost $5 million in requested funding, but was only able to grant $500,000, or 10%. SB 1603 caps the money to be collected by the Oregon Universal Service Fund at $28 million annually.

As a result of SB1603, Oregonians can expect the average cell phone bill would go up by about $4 a year, and those with landline telephone service will see an annual decrease of $12 a year. Some VoIP providers had contributed willingly prior to the bill — that voluntary opt-in is removed.

Over the summer, Oregon took a second swing at revising its state Universal Service Fund program by passing SB 1603, a bill which will create a larger rural broadband development fund by including retail wireless and VoIP service (in addition to traditional telephone service) in the fees it collects to bring basic connectivity services to unconnected parts of the state. The new law lowers the current tax rate on telecommunications service provider's gross revenue (from 8.5% to 6%) but dramatically broadens the collection base, which will bring in needed dollars to expand broadband access to state residents without it in coming years. The move comes on the heels of the state’s move to establish a Broadband Office in 2018 to “to promote access to broadband services for all Oregonians in order to improve the economy and quality of life.”

Nuts and Bolts

SB 1603, which passed the state legislature on June 26 and was signed into law on July 7, directs the Oregon Business Development Department  (OBDD) to transfer up to $5 million of the funds collected each year to a broadband fund for rural development projects, administered by the OBDD. While the amount that will be collected remains unknown at the moment, it will no doubt represent a significant boost: the current mechanism for funding rural information infrastructure projects — the Rural Broadband Capacity Pilot Program — received 25 applications for almost $5 million in requested funding, but was only able to grant $500,000, or 10%. SB 1603 caps the money to be collected by the Oregon Universal Service Fund at $28 million annually.

As a result of SB1603, Oregonians can expect the average cell phone bill would go up by about $4 a year, and those with landline telephone service will see an annual decrease of $12 a year. Some VoIP providers had contributed willingly prior to the bill — that voluntary opt-in is removed.

Over the summer, Oregon took a second swing at revising its state Universal Service Fund program by passing SB 1603, a bill which will create a larger rural broadband development fund by including retail wireless and VoIP service (in addition to traditional telephone service) in the fees it collects to bring basic connectivity services to unconnected parts of the state. The new law lowers the current tax rate on telecommunications service provider's gross revenue (from 8.5% to 6%) but dramatically broadens the collection base, which will bring in needed dollars to expand broadband access to state residents without it in coming years. The move comes on the heels of the state’s move to establish a Broadband Office in 2018 to “to promote access to broadband services for all Oregonians in order to improve the economy and quality of life.”

Nuts and Bolts

SB 1603, which passed the state legislature on June 26 and was signed into law on July 7, directs the Oregon Business Development Department  (OBDD) to transfer up to $5 million of the funds collected each year to a broadband fund for rural development projects, administered by the OBDD. While the amount that will be collected remains unknown at the moment, it will no doubt represent a significant boost: the current mechanism for funding rural information infrastructure projects — the Rural Broadband Capacity Pilot Program — received 25 applications for almost $5 million in requested funding, but was only able to grant $500,000, or 10%. SB 1603 caps the money to be collected by the Oregon Universal Service Fund at $28 million annually.

As a result of SB1603, Oregonians can expect the average cell phone bill would go up by about $4 a year, and those with landline telephone service will see an annual decrease of $12 a year. Some VoIP providers had contributed willingly prior to the bill — that voluntary opt-in is removed.

Over the summer, Oregon took a second swing at revising its state Universal Service Fund program by passing SB 1603, a bill which will create a larger rural broadband development fund by including retail wireless and VoIP service (in addition to traditional telephone service) in the fees it collects to bring basic connectivity services to unconnected parts of the state. The new law lowers the current tax rate on telecommunications service provider's gross revenue (from 8.5% to 6%) but dramatically broadens the collection base, which will bring in needed dollars to expand broadband access to state residents without it in coming years. The move comes on the heels of the state’s move to establish a Broadband Office in 2018 to “to promote access to broadband services for all Oregonians in order to improve the economy and quality of life.”

Nuts and Bolts

SB 1603, which passed the state legislature on June 26 and was signed into law on July 7, directs the Oregon Business Development Department  (OBDD) to transfer up to $5 million of the funds collected each year to a broadband fund for rural development projects, administered by the OBDD. While the amount that will be collected remains unknown at the moment, it will no doubt represent a significant boost: the current mechanism for funding rural information infrastructure projects — the Rural Broadband Capacity Pilot Program — received 25 applications for almost $5 million in requested funding, but was only able to grant $500,000, or 10%. SB 1603 caps the money to be collected by the Oregon Universal Service Fund at $28 million annually.

As a result of SB1603, Oregonians can expect the average cell phone bill would go up by about $4 a year, and those with landline telephone service will see an annual decrease of $12 a year. Some VoIP providers had contributed willingly prior to the bill — that voluntary opt-in is removed.

Over the summer, Oregon took a second swing at revising its state Universal Service Fund program by passing SB 1603, a bill which will create a larger rural broadband development fund by including retail wireless and VoIP service (in addition to traditional telephone service) in the fees it collects to bring basic connectivity services to unconnected parts of the state. The new law lowers the current tax rate on telecommunications service provider's gross revenue (from 8.5% to 6%) but dramatically broadens the collection base, which will bring in needed dollars to expand broadband access to state residents without it in coming years. The move comes on the heels of the state’s move to establish a Broadband Office in 2018 to “to promote access to broadband services for all Oregonians in order to improve the economy and quality of life.”

Nuts and Bolts

SB 1603, which passed the state legislature on June 26 and was signed into law on July 7, directs the Oregon Business Development Department  (OBDD) to transfer up to $5 million of the funds collected each year to a broadband fund for rural development projects, administered by the OBDD. While the amount that will be collected remains unknown at the moment, it will no doubt represent a significant boost: the current mechanism for funding rural information infrastructure projects — the Rural Broadband Capacity Pilot Program — received 25 applications for almost $5 million in requested funding, but was only able to grant $500,000, or 10%. SB 1603 caps the money to be collected by the Oregon Universal Service Fund at $28 million annually.

As a result of SB1603, Oregonians can expect the average cell phone bill would go up by about $4 a year, and those with landline telephone service will see an annual decrease of $12 a year. Some VoIP providers had contributed willingly prior to the bill — that voluntary opt-in is removed.

Over the summer, Oregon took a second swing at revising its state Universal Service Fund program by passing SB 1603, a bill which will create a larger rural broadband development fund by including retail wireless and VoIP service (in addition to traditional telephone service) in the fees it collects to bring basic connectivity services to unconnected parts of the state. The new law lowers the current tax rate on telecommunications service provider's gross revenue (from 8.5% to 6%) but dramatically broadens the collection base, which will bring in needed dollars to expand broadband access to state residents without it in coming years. The move comes on the heels of the state’s move to establish a Broadband Office in 2018 to “to promote access to broadband services for all Oregonians in order to improve the economy and quality of life.”

Nuts and Bolts

SB 1603, which passed the state legislature on June 26 and was signed into law on July 7, directs the Oregon Business Development Department  (OBDD) to transfer up to $5 million of the funds collected each year to a broadband fund for rural development projects, administered by the OBDD. While the amount that will be collected remains unknown at the moment, it will no doubt represent a significant boost: the current mechanism for funding rural information infrastructure projects — the Rural Broadband Capacity Pilot Program — received 25 applications for almost $5 million in requested funding, but was only able to grant $500,000, or 10%. SB 1603 caps the money to be collected by the Oregon Universal Service Fund at $28 million annually.

As a result of SB1603, Oregonians can expect the average cell phone bill would go up by about $4 a year, and those with landline telephone service will see an annual decrease of $12 a year. Some VoIP providers had contributed willingly prior to the bill — that voluntary opt-in is removed.

HB 13, a law moving through the Ohio state legislature, creates the state’s first-ever residential broadband expansion program in order to address an access gap faced by hundreds of thousands of households across the state. Unfortunately, it bars municipally owned networks and electric cooperatives from participating in the $20 million pot of funds aimed at extending Internet access to areas with significant connectivity challenges. 

How It Would Work

The bill — titled “Establish Residential Broadband Expansion Program” — passed the Ohio House of Representatives on June 11 of this year, and takes aim at addressing last-mile connections and bringing more Ohioans online. If passed, it would create a $20 million fund and effect regulatory changes to provide subsidies for private entities in the state to extend their networks and connect more people. 

HB 13 establishes a number of conditions that have to be cleared for projects to be eligible. First, areas included can’t already include projects that have gotten money from the federal programs like Connect America Fund or the FCC's upcoming Rural Digital Opportunity Fund taking place this fall. 

Second, the bill establishes a score mechanism that privileges areas that are unserved and underserved. Projects addressing unserved areas top the list: it defines the latter as lacking access to download speeds of 10 Megabits per second (Mbps) and upload speeds of 1 Mbps. The bill then favors “Tier 2” projects (which provide a minimum of 25/3 Mbps service) to either unserved areas or to “Tier 1” areas (those where download speeds come in between 10 Mbps and 25 Mbps and upload speeds are between 1 Mbps and 3 Mbps). 

Finally, HB 13 provides extra consideration for projects aimed at “distressed areas,” projects that can demonstrate in-kind or other financial contributions that have already been approved, those that utilized public Rights-of-Way, and those that demonstrate advantages in terms of the speed of the buildout or future scalability.

Problem Provisions and Vague Definitions

HB 13, a law moving through the Ohio state legislature, creates the state’s first-ever residential broadband expansion program in order to address an access gap faced by hundreds of thousands of households across the state. Unfortunately, it bars municipally owned networks and electric cooperatives from participating in the $20 million pot of funds aimed at extending Internet access to areas with significant connectivity challenges. 

How It Would Work

The bill — titled “Establish Residential Broadband Expansion Program” — passed the Ohio House of Representatives on June 11 of this year, and takes aim at addressing last-mile connections and bringing more Ohioans online. If passed, it would create a $20 million fund and effect regulatory changes to provide subsidies for private entities in the state to extend their networks and connect more people. 

HB 13 establishes a number of conditions that have to be cleared for projects to be eligible. First, areas included can’t already include projects that have gotten money from the federal programs like Connect America Fund or the FCC's upcoming Rural Digital Opportunity Fund taking place this fall. 

Second, the bill establishes a score mechanism that privileges areas that are unserved and underserved. Projects addressing unserved areas top the list: it defines the latter as lacking access to download speeds of 10 Megabits per second (Mbps) and upload speeds of 1 Mbps. The bill then favors “Tier 2” projects (which provide a minimum of 25/3 Mbps service) to either unserved areas or to “Tier 1” areas (those where download speeds come in between 10 Mbps and 25 Mbps and upload speeds are between 1 Mbps and 3 Mbps). 

Finally, HB 13 provides extra consideration for projects aimed at “distressed areas,” projects that can demonstrate in-kind or other financial contributions that have already been approved, those that utilized public Rights-of-Way, and those that demonstrate advantages in terms of the speed of the buildout or future scalability.

Problem Provisions and Vague Definitions

HB 13, a law moving through the Ohio state legislature, creates the state’s first-ever residential broadband expansion program in order to address an access gap faced by hundreds of thousands of households across the state. Unfortunately, it bars municipally owned networks and electric cooperatives from participating in the $20 million pot of funds aimed at extending Internet access to areas with significant connectivity challenges. 

How It Would Work

The bill — titled “Establish Residential Broadband Expansion Program” — passed the Ohio House of Representatives on June 11 of this year, and takes aim at addressing last-mile connections and bringing more Ohioans online. If passed, it would create a $20 million fund and effect regulatory changes to provide subsidies for private entities in the state to extend their networks and connect more people. 

HB 13 establishes a number of conditions that have to be cleared for projects to be eligible. First, areas included can’t already include projects that have gotten money from the federal programs like Connect America Fund or the FCC's upcoming Rural Digital Opportunity Fund taking place this fall. 

Second, the bill establishes a score mechanism that privileges areas that are unserved and underserved. Projects addressing unserved areas top the list: it defines the latter as lacking access to download speeds of 10 Megabits per second (Mbps) and upload speeds of 1 Mbps. The bill then favors “Tier 2” projects (which provide a minimum of 25/3 Mbps service) to either unserved areas or to “Tier 1” areas (those where download speeds come in between 10 Mbps and 25 Mbps and upload speeds are between 1 Mbps and 3 Mbps). 

Finally, HB 13 provides extra consideration for projects aimed at “distressed areas,” projects that can demonstrate in-kind or other financial contributions that have already been approved, those that utilized public Rights-of-Way, and those that demonstrate advantages in terms of the speed of the buildout or future scalability.

Problem Provisions and Vague Definitions

HB 13, a law moving through the Ohio state legislature, creates the state’s first-ever residential broadband expansion program in order to address an access gap faced by hundreds of thousands of households across the state. Unfortunately, it bars municipally owned networks and electric cooperatives from participating in the $20 million pot of funds aimed at extending Internet access to areas with significant connectivity challenges. 

How It Would Work

The bill — titled “Establish Residential Broadband Expansion Program” — passed the Ohio House of Representatives on June 11 of this year, and takes aim at addressing last-mile connections and bringing more Ohioans online. If passed, it would create a $20 million fund and effect regulatory changes to provide subsidies for private entities in the state to extend their networks and connect more people. 

HB 13 establishes a number of conditions that have to be cleared for projects to be eligible. First, areas included can’t already include projects that have gotten money from the federal programs like Connect America Fund or the FCC's upcoming Rural Digital Opportunity Fund taking place this fall. 

Second, the bill establishes a score mechanism that privileges areas that are unserved and underserved. Projects addressing unserved areas top the list: it defines the latter as lacking access to download speeds of 10 Megabits per second (Mbps) and upload speeds of 1 Mbps. The bill then favors “Tier 2” projects (which provide a minimum of 25/3 Mbps service) to either unserved areas or to “Tier 1” areas (those where download speeds come in between 10 Mbps and 25 Mbps and upload speeds are between 1 Mbps and 3 Mbps). 

Finally, HB 13 provides extra consideration for projects aimed at “distressed areas,” projects that can demonstrate in-kind or other financial contributions that have already been approved, those that utilized public Rights-of-Way, and those that demonstrate advantages in terms of the speed of the buildout or future scalability.

Problem Provisions and Vague Definitions