The Technology Channel Sales Professionals Association (TCSP), an organization advocating for independent technology advisors in the telecom and technology sales sector, has submitted arguments before the United States Supreme Court in a case with significant implications for the industry and beyond.
The case, known as Federal Communications Commission vs. Consumer’s Research, centers on whether Congress and/or the FCC violated the non-delegation doctrine by giving too much power to the Universal Services Administration Company (USAC) to determine, collect and disburse funds to entities eligible for Universal Service Fund (USF) subsidies. The non-delegation doctrine is a constitutional principle that prevents one branch of government from giving another branch the power to do its job. In this case, the argument centers around Congress improperly empowering FCC and USAC to establish taxes, a power that is Constitutionally reserved for Congress.
In July 2024, the Fifth Circuit Court of Appeals ruled that the USF funding mechanism was unconstitutional. The U.S. Supreme Court agreed to take up the case, with arguments scheduled for March 26, 2025. A final ruling is expected later in the year.
“This is not a mundane or irrelevant legal footnote, and every TCSP member needs to keep a keen eye on this case,” stated Bill Power, president of TCSP. “Its outcome is critical to our financial well-being and our ability to serve customers.”
TCSP maintains that the Universal Service Fund is “broken” and in need of Congressional intervention, Power added.
“There are a number of examples of how badly the USF is administered, and we feel Congress needs to step in to fix those problems,” added Darcee Nelan, IQ Wired’s Board president and chairwoman of TCSP.
One example of the waste centers around the way that urban-located healthcare facilities are able to qualify for subsidies under the Rural Healthcare Program.
“While our issue with RHC and the FCC’s prohibition against our members receiving commissions for sales to rural healthcare facilities is not the focus of this case, we do feel our best strategy is to support efforts to get Congress involved in corrective action,” continued Nelan.
“To our knowledge, this is the first time the technology advisor community has been represented in front of the highest court in the land,” said Power. “We very much appreciate the support of the members of TCSP in this effort. Without the involvement of Technology Solution Distributors and technology advisors, the channel simply would not have a voice in this argument.”
TCSP has collaborated with top legal experts, industry leaders and policymakers to build a strong case underscoring the importance of repairing the Universal Service Fund, said the group. The association’s Amicus Brief is available by contacting TCSP at info@TCSP.org.
