Earlier quoted context omitted.
The 1996 telecom act had an unfunded statement of policy to that end. But the universal service fund wasn’t used for broadband until 2013: https://connectednation.org/wp-content/uploads/2018/01/caf_p... . Larger carriers weren’t covered until 2015. And it has not been a lot of money: https://www.telecompetitor.com/ahead-of-rdof-caf-lives-on-as... > AT&T and CenturyLink accepted all funding for all states for which th…
Your numbers are misleading. “On October 27, 2011, the FCC approved a six-year transfer process that would transition the money from the Universal Service Fund High-Cost Program into the new $4.5 billion a year Connect America Fund, effectively putting an end to the USF High-Cost Fund by 2018.“ “In March 2014, the FCC approved "Phase II" of the transition to the Connect America Fund, adding $1.8 billion a year in fun…
For the most part the money never materialized. The Phase II support, for example, ended up being just $1.49 billion over 10 years, not $1.8 billion per year as in your quote: https://www.fcc.gov/consumers/guides/connect-america-fund-ph...
It doesn't matter if the subsidies cover 100% of the costs or not--the point is that the funding is a tiny fraction of what the industry already spends, and isn't enough to move the needle outside a small number of very high-cost rural places. The replacement for the connect America Fund, the Rural Broadband Opportunity Fund, plans to distribute $20 billion over a decade: https://thecounter.org/fcc-20-billion-dollar-rural-broadband.... (Again, plans.) Wireline providers invest about $40 billion annually--or around $400 billion over the next decade.
The notion that subsidies are more than a drop in the bucket (and should be expected to significantly move the needle on broadband deployment) is just false.