Rural Broadband to Replace POTS As Beneficiary of US Gov't Subsidies 208
IDG reports that "The U.S. Federal Communications Commission has voted to overhaul a decades-old system of telephone subsidies in rural areas, with the funding refocused on broadband deployment. The FCC's vote Thursday would transition the Universal Service Fund's (USF's) high-cost program, now subsidizing voice service, to a new Connect America Fund focused on broadband deployment to areas that don't yet have service. The FCC will cap the broadband fund at $4.5 billion a year, the current budget of the USF high-cost program, funded by a tax on telephone bills." That cap, says Reuters, is "the first budget constraint ever imposed on the program."
Re:Natural monopoly is a myth (Score:5, Informative)
Other economists claim that natural monopoly is a myth, and effects attributed to natural monopoly are in fact caused by 1. local government ownership of roads and 2. local government's failure to efficiently value permits to tear up those roads to install pipes, conduits, etc.
Back when I was pricing out my broadband options, I checked out Comcast's (heavily advertised) three for one package. TV, broadband and telephone. But when I called them, they told me that, based on my address, Verizon was my telephone provider and they wouldn't compete with them. On the other hand, Verizon wouldn't install DSL because 'Comcast provides broadband in your neighborhood'. Covad checked out my line and was more than happy to take over the loop and install voice/DSL. But Verizon told them that they couldn't have the pair (they'd take it and reassign it to a second residential service if ever I dropped my Verizon line before leasing it to a CLEC).
This has nothing to do with permits and installing facilities. It has everything to do with not throwing telecom execs in prison for Sherman Antitrust Act violations. If you want to keep your NSA fiber taps running in the switching facilities, you're going to have to grant these bastards immunity from the law.
Re:Make broadband a tariffed, regulated utility (Score:5, Informative)
No, he's complaining that the current sorta-kinda half monopoly, half unregulated market thing isn't working. He would prefer the government do it right and own the lines.
Comment removed (Score:5, Informative)