Some companies with the largest dependence on the USF are...
Some companies with the largest dependence on the USF are likely to see revenue decline as a result of the FCC’s USF Order, said a Standard & Poor’s report released Thursday. However, the order might not have an immediate impact…
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on the credit profile of any of the rated companies, it said. In the long run, smaller companies might not be able to make the financial commitment to expand broadband, it said. As a result, some state regulatory commissions might opt to expand their state USF programs and/or reallocate existing funds to help smaller, capital-constrained companies, it said. The FCC’s order may also prompt the adoption of state USFs where none currently exists, it said. The adoption of the cost model needed for the development of long-term broadband support is likely to be delayed, it said. It noted the FCC acknowledged that the process of implementing the model could take a year or more. The agency said the model is expected to be adopted by the end of the year.