8x8 Inc. Urges Congressional Action as Universal Service Fund Faces Crisis

On October 30, 2025, 8x8 Inc. (NASDAQ: EGHT), a prominent global provider of business communications platforms, issued a press release urging Congress to expedite reforms of the Universal Service Fund (USF) as the contribution factor reached an alarming 38.1% for the fourth quarter of 2025. This unprecedented rise has raised concerns about the viability of the fund, which plays a crucial role in ensuring broadband access for various underserved communities across the United States.

The Universal Service Fund is an $8 billion program designed to facilitate access to telecommunications services in rural areas, support telehealth initiatives, and provide internet access to schools, libraries, and low-income households. However, the foundation of this program, which was originally based on interstate and international voice revenues, has dwindled by nearly 50% since 2015. In stark contrast, the demand for broadband services continues to surge.

CEO Samuel Wilson emphasized the critical nature of broadband in modern society, stating, “Broadband isn’t optional. It’s how students learn, patients connect to care, and families stay in the game.” He highlighted the unsustainability of a 38% surcharge, calling for immediate Congressional action to overhaul the USF system.

8x8 is advocating for a comprehensive modernization of the USF to ensure its long-term sustainability. The company contends that the current funding model does not adequately reflect the realities of today's digital economy. Wilson urged other leaders in technology and communications to collaborate with policymakers to create a fair, forward-looking model that better serves the needs of all Americans.

“Broadband, cloud, comms. We’re all in this together,” Wilson continued, emphasizing that a collaborative approach is necessary to effectively connect every American. He warned that without the inclusion of all stakeholders in the funding conversation, the system will continue to falter.

In a proactive move, 8x8 executives recently met with lawmakers and industry peers in Washington, D.C., to discuss strategies for strengthening the USF. These discussions aimed to foster a broad coalition dedicated to preserving affordable broadband access for all citizens.

Larry Denny, Chief Legal Officer at 8x8, highlighted the fairness aspect of the funding issue, stating, “When the rules don’t reflect reality, the burden falls on the people who can least afford it.” He underscored the importance of including the voices of modern communication providers in reform discussions, rather than solely relying on those who established the previous frameworks.

8x8's press release also mentioned the release of a white paper titled *“Reforming USF Contributions by Including Broadband Services in the Contribution Base,”* which outlines a clear framework for modernizing the fund. This document aims to ensure the long-term sustainability of the USF and to present viable solutions for the challenges it currently faces.

As the Universal Service Fund approaches a breaking point, 8x8 Inc. is taking a stand to advocate for the necessary reforms that will safeguard the future of broadband access in the United States. The call for action is clear: without a comprehensive and collaborative approach, the communities that rely on the USF risk losing essential services that keep them connected in an increasingly digital world. The time for action is now, and the implications of inaction could be dire for millions of Americans.

For more information about 8x8, Inc. and its initiatives, visit their official website or follow them on social media platforms.