FCC Wants To Shift Phone Subsidy Funds To Broadband 211
An anonymous reader writes "FCC chairman Julius Genachowski revealed plans yesterday to overhaul the U.S. phone subsidy program and shift its focus to providing broadband access. He said, 'Broadband has gone from being a luxury to a necessity for full participation in our economy and society. If we want the United States to be the world's leading market, we need to embrace the essential goal of universal broadband, and reform outdated programs.' According to BusinessWeek, the program currently 'supports phone service to schools, libraries, the poor and high-cost areas.' Last year it spent $4.3 billion to provide support to over 1,700 carriers in high-cost areas. Genachowski hopes the change will put the U.S. 'on the path to universal broadband service by the end of the decade.'"
How the FCC defines broadband (Score:5, Informative)
Re:Open up the books (Score:4, Informative)
If you already have broadband it won't lower your fees. The program is to subsidize service in areas where it is currently too expensive for companies to wire (rural areas).
Re:Open up the books (Score:5, Informative)
Actually, much of the "taxes" on the bills are "regulatory recovery fees." It's a dodge by the phone and elec companies to make their services look cheaper and to blame to government for making them do the right thing.
Imagine if the local Walmart started charging you a fee for the merchandise, then a 3% "regulartory recovery fee" for having to install stormwater management so the neighboring property didn't flood, plus a 4% "federal corporate tax" fee, and a 6% "Local Property Tax recovery fee". It's a cost of doing business and gets built into the price of the goods.
Some of the taxes are real, like the 911 fee which (surprise) pays for a 911 operator to be standing by waiting to get your emergency call and route it to the appropriate emergency service provider (police, fire, rescue, etc.)
Everyone seems to be down on taxes, but nobody wants reduced services.
Re:Open up the books (Score:2, Informative)
I'm an auditor for the organization that this article is talking about; I specialize in auditing the telecom carriers. This would be a huge change, but it's definitely needed. There has been a shift away from traditional land line service to internet-based and mobile-based communications. The support that the schools and libraries, hospitals, and telecom carriers in high cost areas is used to fund broadband services already. Unfortunately, this change would mean higher costs for end-users but keep in mind that the telecom companies aren't (or shouldn't be at least) keeping your money. It all goes to a good cause- underprivileged kids, outdated hospital systems, and people who live literally in the middle of nowhere.
Re:Open up the books (Score:4, Informative)
Well, taxes on the wealthy are at pre-Depression era lows and ...
And with the same truthfulness you could say we have the highest corporate in the world (according to http://en.wikipedia.org/wiki/Tax_rates_around_the_world it's 38% federal with an additional 12% state and doesn't count local taxes). It's not until you take part in all the nice tax loopholes that you get an equivilent tax rate that's at the record lows. Unfortunately since many businesses are small, they can't afford the tax lawyers to take advantage of all the nifty loopholes.
If you actually listen to Tea Party whole stance and what many speak about at the rallies, it's to lower the tax rate overall (lowering the 38% to something reasonable) AND to get rid of the loopholes. Allow the local computer store up the street to pay the same tax rate as Best Buy down the street.
I know it's hard to actually hear words through the shrieking, but I'm sure that even you equate someone stealing from you, with your liberty. It's a question of do you equate getting charged left and right for something as stealing. I pay my sewer bill every month, I expect that that money to go to the upkeep of the sewer system. To have the sewer company turn around and tell me that they are going to charge me an extra fee depending on how much non-grass area I have in my yard (thus assuming rain run off into storm system), after I'm already paying for my use of the sewer system. Me... I find thing close to stealing from me.