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:
He was even more critical of the ICC system:
He didn't elaborate on details of the plan, which will be voted on at a meeting of FCC commissioners on October 27. He did, however say it would take 5 years to complete.
He also promises his proposed changes to the ICC system would close loopholes currently used by some rural telephone providers to use government funding to subsidize services for customers far outside their coverage areas.
If the plan is approved later this month, there will be a 60 day delay to allow for legal challenges. If challenged, it could be significantly longer, depending on how long it takes the courts to sort things out.
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USF is outdated.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.
He was even more critical of the ICC system:
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.
He didn't elaborate on details of the plan, which will be voted on at a meeting of FCC commissioners on October 27. He did, however say it would take 5 years to complete.
He also promises his proposed changes to the ICC system would close loopholes currently used by some rural telephone providers to use government funding to subsidize services for customers far outside their coverage areas.
If the plan is approved later this month, there will be a 60 day delay to allow for legal challenges. If challenged, it could be significantly longer, depending on how long it takes the courts to sort things out.
