Regulators lower rates

RBEC Oklahoma Universal Service Fund Presentation 9-16-2020

 

The Oklahoma Corporation Commission (OCC) has approved a reduction to the Oklahoma Universal Service Fund (OUSF) assessment of nearly 17 percent. This is in conjunction with the Commission’s continuing oversight of the OUSF and consideration of assessment levels.

The reduction in the fee was lowered from $1.63 to $1.35 per connection, a decrease of $0.28 or approximately 17 percent. The updated assessment will take effect May 1, 2026, with implementation aligned to provider reporting cycles beginning July 15, 2026, allowing contributing providers time to adjust billing systems.

The OUSF, established under the Oklahoma Telecommunications Act of 1997, supports access to essential telecommunications services across the state. The program also provides funding to eligible beneficiaries, including schools, libraries, and certain healthcare entities, to ensure access to broadband services.

The fund is supported through an assessment on connections to the public switched telephone network in Oklahoma, paid by telecommunications providers, including wireless and Voice over Internet Protocol providers. The Commission has the statutory authority to establish the assessment at a level sufficient to support universal service programs and ensure access to reliable and affordable telecommunications services statewide.

The approved reduction follows a detailed review of financial data, program demand, and testimony presented on behalf of the OUSF Administrator. The OUSF currently holds a higher-than-targeted balance, driven in part by reduced demand for support in recent years.

The reduction is intended to responsibly draw down that surplus while maintaining sufficient funding to meet current and future obligations.

“This action reflects a balanced and data-driven approach by the Commission,” said Mark Argenbright, OCC Public Utility Division Director and OUSF Administrator. “We are maintaining the integrity of the fund while reducing contributions where appropriate and ensuring continued support for critical telecommunications services and broadband for eligible schools, libraries and healthcare providers across Oklahoma.

In addition to the assessment adjustment, the Commission also approved the continued use of quarterly reporting to monitor fund performance and ensure transparency moving forward.

The OUSF assessment factor will remain at the new level until further order of the Commission.