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A critical element of the National Broadband Plan issued in March 2010 is a plan to transition today’s voice-focused, high-cost Universal Service Fund into a broadband-focused fund called Connect America Fund (CAF).
The CAF will help make broadband available to homes, businesses, and community anchor institutions in areas that do not, or would not otherwise, have broadband, including mobile voice and broadband networks in areas that do not, or would not otherwise, have mobile service, and broadband in the most remote areas of the nation. The CAF will also help facilitate our ICC reforms. The CAF will rely on incentive-based, market-driven policies, including competitive bidding, to distribute universal service funds as efficiently and effectively as possible.