Rich Fiscus
7 Oct 2011 16:53
Yesterday FCC Chairmain Julius Genachowski outlined a plan he says will increase broadband Internet penetration in rural parts of the US, delivering service to 18 million people.
The plan he is proposing would involve major changes to rules for the Universal Service Fund (USF) and Intercarrier Compensation (ICC) system, both of which were created to subsidize rural phone service.
Explaining his position on the current USF rules, he said:
USF is outdated. It still focuses on the telephone, while high-speed Internet is rapidly becoming our essential communications platform not only for voice, but for text and video, and is an indispensable platform for innovation and job creation.
Like USF, the current ICC system is unfair to American consumers: It forces hundreds of millions of consumers across the country to pay higher bills to subsidize monthly local telephone bills as low as $8 for other consumers. The current ICC system is also creating substantial uncertainty and widespread disputes, which are being fought in courthouses and state commissions throughout the country, about the proper treatment of Voice over IP traffic for ICC purposes. And ICC hasn't adapted to technology and marketplace changes, creating competitive distortions and loopholes that companies have exploited in devious ways to game the system.