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The Internet Communications Government The Almighty Buck United States Your Rights Online

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States to be the world's leading market, we need to embrace the essential goal of universal broadband, and reform outdated programs.'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.'"
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FCC Wants To Shift Phone Subsidy Funds To Broadband

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  • by erroneus ( 253617 ) on Friday October 07, 2011 @10:26AM (#37638502) Homepage

    I guess it's okay for the FCC to give money to telephone but not to broadband? But you know, I guess this will help to end the argument that "the FCC doesn't have jurisdiction" over the internet in the US.

  • Re:So.... (Score:5, Insightful)

    by Penguinisto ( 415985 ) on Friday October 07, 2011 @10:31AM (#37638540) Journal

    Agreed. I'd go for this plan on one condition: That large ISPs (e.g. Comcast sized or so) are forced to do what AT&T was forced to do back in the 1950's or so - string out a reasonable broadband speed to even the most remote rural area, upon request, at a fixed price ceiling. Then I'd demand that independent and random sampling be done (both in-town and out) to insure that speeds and quality are consistent nationwide. Finally, set up a hotline or similar means by which consumers can lodge complaints, and for each valid and provable complaint, the ISP has to pay back a fixed sum of money to the FCC - low enough to not kill the system immediately, but high enough to get their attention.

    No improvements, no money.

  • by MetricT ( 128876 ) on Friday October 07, 2011 @11:08AM (#37639012)

    The FCC needs to compel broadband providers to actually provide service in some instances. My parents live a mile off the road in a deep valley. The "mile off the road" part precludes cable because the cable company wants $15,000 to run line. The "deep valley" part precludes cell service and satellite. Literally, their only option is DSL, but BellSouth's local DSLAM has no free ports and they have refused to add a new one for several years.

    We've raised the issue with the Tennessee Regulatory Commission (the TN service nominally in charge of overseeing utilities) and even they won't/can't do anything due to our braindead legislators handicapping them.

    I can find 24 port VDSL2 DSLAM's on Google for $100 a port. I'm presuming AT&T, with their much larger negotiating power, can do even better. I'd be willing to buy the whole DSLAM for them, but they have no internal way of even handling that.

    When the customer has no other option from whom to buy, there is no "free market". In that particular circumstance, the seller should be compelled to provide service.

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