S. 1651: Lowering Broadband Costs for Consumers Act of 2025

This bill, known as the Lowering Broadband Costs for Consumers Act of 2025, aims to reduce broadband costs for consumers by modifying how contributions are made to the Universal Service Fund (USF), which helps ensure widespread access to telecommunications services. The bill includes the following key provisions:

Definitions

• Broadband Internet Access Service: Refers to services providing internet access as defined by existing regulations.
• Broadband Provider: Any entity that offers broadband internet access services.
• Edge Provider: This includes various online content or service providers such as digital advertising services, search engines, social media platforms, streaming services, app stores, cloud computing services, messaging services, video conferencing services, video gaming services, and e-commerce platforms.
• Eligible Telecommunications Carrier: A common carrier designated under existing telecommunications law.

Amendments to the Universal Service Fund Contributions

The bill suggests an amendment to Section 254(d) of the Communications Act of 1934, focusing on contributions to the USF:

• The Federal Communications Commission (FCC) is mandated to rule on equitable and non-discriminatory contributions from both broadband and edge providers.
• The FCC must complete a rulemaking process within 18 months of the bill's enactment to expand the contribution bases of broadband and edge providers.
• Revisions can be made to the rules over time to ensure ongoing compliance and equity in contributions.
• Some providers may be exempt from these contributions based on specific criteria, including low transmission volume or revenue thresholds.

Support for Broadband Providers

The bill also measures to support broadband providers:

• The FCC is to create a mechanism under existing high-cost USF programs to aid eligible telecommunications carriers in covering expenses associated with providing services in high-cost areas.
• Only one eligible telecommunications carrier may receive support per area to streamline assistance.

Enforcement

The FCC is given the authority to enforce compliance with this Act just as it would enforce existing telecommunications laws. Violators may face penalties outlined in the Communications Act of 1934.

Purpose

The overarching purpose of this legislation is to ensure that both broadband and edge providers contribute to the fund that supports universal service, aiming to enhance the affordability and availability of broadband services across different regions.

Relevant Companies

• GOOGL (Alphabet Inc.): As a major edge provider, Alphabet may be impacted by new contribution requirements to the Universal Service Fund.
• AMZN (Amazon.com, Inc.): Amazon may be subject to contributions as an edge provider due to its range of online services and streaming platforms.
• META (Meta Platforms, Inc.): As a social media and online advertising service provider, Meta could experience increased financial obligations related to the new legislation.
• ATVI (Activision Blizzard, Inc.): Involved in online gaming services, Activision may also see impacts from potential contribution requirements.