8x8 Calls on Congress to Act as Universal Service Fund Nears Breaking Point

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10/30/2025 - 09:00 AM

38% broadband surcharge raises concerns about continued access to affordable internet for rural communities and low-income households

SAN JOSE, Calif.--(BUSINESS WIRE)-- 8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, today urged Congress to accelerate reform of the Universal Service Fund (USF) as its contribution factor climbs to a record 38.1% for the fourth quarter of 2025. The company has submitted comments to the bipartisan working group led by Senator Ben Ray Luján (D-NM) and Senator Deb Fischer (R-NE), calling for comprehensive modernization of the decades-old program.

The USF, an $8 billion program that supports rural broadband, telehealth, and internet access for schools, libraries, and low-income households, was originally built on a foundation of interstate and international voice revenues. That base has shrunk by nearly 50% since 2015, while the demand for broadband has only grown. Without action, the fund’s future — and the communities it sustains — are at risk, unless responsibility is shared more fairly across the broader digital economy.

“Broadband isn’t optional. It’s how students learn, patients connect to care, and families stay in the game,” said Samuel Wilson, Chief Executive Officer at 8x8, Inc. “But the system that’s supposed to fund all this? It’s buckling. A 38% surcharge? That’s not sustainable. Not for providers. Not for people. We need Congress to stop patching and start fixing. The USF has to be rebuilt or we’re going to lose the very thing that keeps America connected.”

8x8 emphasized that reform must both stabilize the fund and reflect the realities of today’s digital economy. The company also encouraged other technology and communications leaders to engage with policymakers in shaping a fair, forward-looking model.

“Broadband, cloud, comms. We’re all in this together,” Wilson continued. “If the goal is to connect every American, then everyone who powers those connections needs a voice. Otherwise, we’re just patching potholes instead of rebuilding the road.”

8x8 executives recently met with lawmakers and industry peers in Washington, D.C. to share perspectives on strengthening the USF and to encourage a broad coalition committed to preserving affordable broadband access.

“When the rules don’t reflect reality, the burden falls on the people who can least afford it,” said Larry Denny, Chief Legal Officer at 8x8. “This isn’t just a funding problem — it’s a fairness problem. We’re in D.C. because we believe reform must include the voices of those delivering modern communications, not just those who built yesterday’s networks. The time to act is now – not next year.”

Additional details are outlined in the company’s white paper, “Reforming USF Contributions by Including Broadband Services in the Contribution Base,” which presents a clear framework for modernizing the fund and ensuring its long-term sustainability.

About 8x8 Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on the industry's most integrated platform for Customer Experience—combining Contact Center, Unified Communication, and CPaaS solutions. The 8x8® Platform for CX integrates AI at every level to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. We help customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.