In telecom, profitability depends on tightly managing costs while complying with FCC regulations. One hidden drain on revenue comes from relying on safe harbor allocations when reporting traffic for the Universal Service Fund (USF) and related programs.
With their vast network of real estate, extensive fiber connections, and established power infrastructure, telecommunications companies (telcos) are uniquely positioned to repurpose their underutilized central offices (COs) into hubs for artificial intelligence (AI). This strategic move can create new revenue streams, optimize network performance, and position telcos as key players in the growing AI economy.
The Broadband Equity, Access, and Deployment (BEAD) program has already seen major policy shifts moving away from fiber-only mandates toward a more technology-neutral, cost-per-location model. While BEAD is the latest government sponsored broadband deployment fund, it’s not the only game in town. Providers funded through Connect America Fund (CAF) and the Rural Digital Opportunity Fund (RDOF) also face evolving compliance expectations.
Across all three programs, one thing is certain: providers must continually test and validate their speed and latency performance. Here’s why it matters.
You have undoubtedly heard about the 911 outage in Pennsylvania in July. This is precisely the kind of event that motivated the FCC to issue new directives on 911 monitoring and reporting, effective in April.
What does the FCC order require of carriers?
Telecom operations run on procedures, documentation, and standards. Network design, provisioning, testing, and circuit cutovers all happen thanks to experienced personnel. What happens when a new person joins the team? How do new employees get up to speed on the correct methods, procedures, and workflows when procedures often live in disconnected manuals, PDFs, binders, and legacy systems?
You have undoubtedly heard about the 911 outage in Pennsylvania in July. This is precisely the kind of event that motivated the FCC to issue new directives on 911 monitoring and reporting effective in April.
Sometime last quarter, a controller at a mid-size VoIP provider finished his Form 499 and wondered why the universal service line on every invoice kept inching upward. He had followed the rulebook: apply the FCC’s safe-harbor ratio of 64.9% to VoIP revenue and 37.1% to wireless sales, multiply those totals by the quarterly contribution factor, and remit the money. What he didn’t realize until a traffic study told the real story is that his network sends barely one-third of its traffic across state lines. The other two-thirds never should have been taxed at the interstate rate.
The telecommunications industry is undergoing a massive transformation, with Artificial Intelligence (AI) leading the charge. For many telecom companies, however, the path to modernization is paved with legacy systems—infrastructure often built decades ago that struggles to keep pace with today's demands.
On May 29, 2025, the Denver metro area experienced a critical outage. Both 911 and non-emergency lines went dark for hours, leaving residents and authorities in limbo and prompting Douglas County Sheriff Darren Weekly to demand answers. While official investigations are underway, a deeper question looms: how would a modernized, resilient 911 infrastructure perform under similar stress?
