WASHINGTON D.C. (January 21, 2026) — The FCC’s IP interconnection transition creates unavoidable costs for about 1,000 rural carriers that depend on legacy revenues. The predictable response is permanent new USF subsidies, which would worsen the contribution factor crisis.
In comments filed today, TPI President Scott Wallsten and Stanford economist Gregory Rosston propose a Voluntary IP Service Transition Auction (VISTA) that converts those costs into time-limited transition payments. Small carriers could voluntarily bid to exit federal obligations, while efficient providers bid to serve consolidated territories. The auction closes only where exit payments plus limited support cost less than perpetual subsidies.
Modeled on the broadcast incentive auction, VISTA uses market competition—including fiber, cable, terrestrial fixed wireless, and LEO satellites—to reveal actual costs and enable consolidation where it’s efficient, completing the IP transition without expanding the Universal Service Fund’s long-run obligations.
Full comments available here.
