A CCIA report warns that Congress's potential decision to impose Universal Service Fund (USF) fees on cloud providers could lead to billions in GDP losses. The assessment of USF fees may drive up cloud service costs, discouraging adoption and consequently stifling innovation and causing job losses. This controversial approach to diversify USF funding has been debated for years without success. The report predicts that even a modest fee increase could have dire economic implications, with significant drops in cloud usage and substantial GDP declines, depending on the fee's percentage.
The report claims that imposing Universal Service Fund fees on cloud providers would lead to significant price increases for cloud services, resulting in reduced adoption rates.
The authors argue that a 7% fee could drive a staggering 33.2% decrease in cloud adoption, threatening the overall innovation landscape and job market.
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