H.R. 4032: Lowering Broadband Costs for Consumers Act of 2025

This bill, known as the Lowering Broadband Costs for Consumers Act of 2025, aims to address broadband access and costs for consumers in several key ways:

Purpose

The primary purpose of this bill is to instruct the Federal Communications Commission (FCC) to require that both broadband providers and edge providers contribute to the Universal Service Fund. The aim is to support the provision of affordable broadband services and ensure that these services are accessible to all consumers. Additionally, it seeks to reduce the financial burden on consumers by promoting lower costs for broadband services.

Definitions

The bill provides clear definitions for relevant terms:

• Broadband Internet Access Service: This refers to any service that meets the criteria set by federal regulations to provide high-speed internet access.
• Broadband Provider: Any company that provides broadband internet access service.
• Edge Provider: This includes various service providers such as digital advertising services, search engines, social media platforms, streaming services, app stores, cloud computing services, messaging services, and video conferencing services.
• Eligible Telecommunications Carrier: A telecom provider designated according to specific federal guidelines.

Lowering Broadband Costs

The bill proposes specific amendments to the existing laws regarding contributions to the Universal Service Fund:

• The FCC will be required to complete rulemaking within 18 months of the bill's enactment to reform the Universal Service Fund. This will include expanding the contribution base to include broadband and edge providers, ensuring they contribute fairly and without discrimination.
• Continuous revisions may be made to the rules to ensure equitable contributions from all categories of providers.
• Some edge providers and broadband providers may be exempt from contributions based on their data transmission volume and annual revenue limits.

Supporting Broadband Providers

The bill emphasizes the need for support mechanisms for broadband providers, particularly in high-cost areas:

• The FCC is tasked with establishing a new support mechanism within 18 months to provide predictable financial support to eligible telecommunications carriers for the expenses they incur in providing broadband services.
• The mechanism is designed to ensure that only one eligible telecommunications carrier receives this support in any given area.

Enforcement

The FCC will have the authority to enforce the provisions of this Act as it does with existing laws under the Communications Act of 1934. Violations of this act could lead to penalties as outlined in the existing regulations.

Conclusion of Authority

While the bill allows the FCC to impose new requirements, it clearly states that it does not grant new powers over broadband providers or additional authority over edge providers beyond what is described in the law.

Relevant Companies

• GOOGL: As a major edge provider, Google may be impacted due to potential contributions to the Universal Service Fund based on its internet traffic and revenues.
• AMZN: Amazon operates various online services and may face new financial obligations under the bill regarding its contributions to broadband enhancements.
• CMCSA: Comcast, as a broadband provider, will be directly affected by the new contributions requirements and mechanisms for support.
• VZ: Verizon, another major broadband provider, will need to adapt to the new contributions structure detailed in the bill.
• TCOM: T-Mobile and similar telecommunications companies may have to reassess their contribution strategies to comply with the new mandates.