Wednesday, November 18th, 2009
By Andrew Feinberg, Deputy Editor, BroadbandCensus.com
WASHINGTON, November 18, 2009 - The Universal Service Fund is in need of an overhaul to equalize costs among stakeholders and modernize programs to include broadband services, a group of industry representatives and regulators told the House Energy and Commerce subcommittee on Communications, Technology and the Internet during a Tuesday hearing.
The hearing examined a discussion draft of the Universal Service Reform Act of 2009, authored by subcommittee Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb.
The Universal Service program, which existed for decades before being codified in the 1996 Telecommunications Act, is under "tremendous pressure" and requires a comprehensive effort to reform its operations, Boucher said during opening remarks.
Reform is needed because new technologies for long distance voice communications have reduced the available revenue that can be tapped to fund current programs, leading to soaring costs for consumers – a projected 14 percent of revenues in January of 2010, he said.
Such an increase and a maintenance of the status quo is simply "not sustainable," Boucher said. The Boucher-Terry bill would cap the high cost portion of the fund while requiring wireless carriers who participate to do so through a competitive bidding process. Such legislative...
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Saturday, April 4th, 2009
By Andrew Feinberg, Deputy Editor, BroadbandCensus.com
WASHINGTON, April 4, 2009 - Making broadband applications more relevant in underserved and unserved communities could be a better use of stimulus funds than building infrastructure, a group of state and local regulatory officials Friday at a cable industry show here.
The lack of relevance to users is definitely the "largest barrier to broadband adoption," said John Horrigan, associate research director at the Pew Internet & American Life Project.
Dealing with the issue properly will require infrastructure programs to be combined with "training and support" initiatives to improve overall digital literacy, said Horrigan.
In addition to focusing on rural areas, California Public Utility Commissioner Rachelle Chong said that "urban disadvantaged" communities is an area in which her state is actively involved through the California Emerging Technology Fund. The fund paid for computer refurbishing programs and technology training in low-income communities.
But California has bigger plans, she said, including a "digital literacy" policy for the state's entire education system.
One "big think" project that could come next year is the distribution of laptop computers to all students in the lowest performing middle schools, along with appropriate technology training for teachers, students, and their parents. Chong later said California could possibly submit...
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Wednesday, March 18th, 2009
News
By Andrew Feinberg, Deputy Editor, BroadbandCensus.com
WASHINGTON, March 18, 2009 - A White Paper released Tuesday by the National Cable and Telecommunications Association recommends broadband stimulus grants prioritize built-out to remote, unserved areas. Remaining monies should be used to fund programs to promote and encourage use of broadband services.
"Broadband is a crucial driver of economic recovery and global competitiveness," said
the report, "Moving the Needle on Broadband: Stimulus Strategies to Spur Adoption and Extend Access Across America."
The paper acknowledges that the grant programs established by the American Reinvestment and Recovery Act can help bring broadband to the "small percentage of the nation's homes" that have no physical line connecting them to broadband networks, "to ensure that broadband fulfills its full promise as an engine of job creation... educational and healthcare opportunities."
But the grant program must follow the Hippocratic principle of "first, do no harm" to existing industry efforts, some of which dwarf the $7.2 billion allocated in the stimulus, said the report.
This can be accomplished by making competitively and technologically neutral grants to reach the approximately 10 million households without broadband, said the report. Once it is determined where most of these homes are - a task made more...
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Thursday, March 12th, 2009
News
By Andrew Feinberg, Deputy Editor, BroadbandCensus.com
News
By Andrew Feinberg, Reporter, BroadbandCensus.com
WASHINGTON, February 19, 2009 - State utility commissioners approved a resolution endorsing a Federal Communications Commission proposal to expand Lifeline and Link Up telephone subsidization programs to offer broadband service for low income consumers.
Originally championed by former FCC Chairman Kevin Martin, the proposal will allow telecommunications companies, even those that do not currently receive USF dollars, to receive Universal Service Fund monies to help low income families connect to the Internet. Companies that do not currently receive USF funding for voice service would have to pay into the fund in order to be eligible.
The resolution was approved by the National Association of Regulatory Utility Commissioners telecommunications committee on Tuesday at its winter meeting here in Washington, and later adopted by the organization's board of directors. NARUC represents state regulatory boards from all 50 states.
Monday, February 16th, 2009
News
By Andrew Feinberg, Reporter, BroadbandCensus.com
WASHINGTON, February 16, 2009 – With $7.2 billion in fiscal stimulus grants and loans marked to expand broadband infrastructure, industry groups, consumer advocates and some state regulators are supporting a proposal to fund broadband for low income households by tapping into the Universal Service Fund.
Thus far, the USF established by the Federal Communications Commission principally funds universal telephone service (and internet connections for schools and libraries), although there are numerous concerted efforts to extend USF monies to broadband.
The USF is funded by assessments on voice telephone service and administered by a Federal-State board of regulatory commissioners.
Last November, the FCC sought comment on a proposal supported by then-Chairman Kevin Martin for a pilot program that would subsidize broadband internet to low-income households.
Martin's proposal would make broadband Internet providers meet eligibility criteria for the USF’s Lifeline and Link Up funds. The programs are used to offset the cost of both monthly telephone service and connection charges for households that fall under a certain income threshold.
The Martin plan was put forward after TracFone, a reseller of prepaid wireless service, became the first wireless company eligible to receive Lifeline subsidies. Rick Brecker, a Greenberg Traurig attorney who represents TracFone before...
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Sunday, February 15th, 2009
News
By Andrew Feinberg, Reporter, BroadbandCensus.com
WASHINGTON, February 15, 2009 – State regulatory commissioners are split on how strongly to express longstanding grievances with Federal Communications Commission processes. A resolution on reform of FCC management and practices dominated the agenda as the National Association of Regulatory Utility Commissioners continued its winter meeting Sunday.
The resolution, sponsored by Washington State Commissioner Phillip Jones, has been amended multiple times NARUC's staff subcommittee on telecommunications since it was introducted late Friday.
The original draft resolution was a straightforward, one-page document which welcomed changes at the commission by the new Obama administration, while calling attention to often-cited criticisms of the lack of transparency in operations, the slow pace of action on dockets and delay in open opening new ones, as well as barriers to intra-agency cooperation.
The tenure of former FCC Chairman Kevin Martin was notorious among industry observers for a lack of communication across the FCC’s bureaus and offices. A common criticism of Martin's chairmanship was that bureaus were effectively forbidden from sharing information among themselves, or even with the other four commissioners or their staffs. Acting Chairman Michael Copps said reversing Martin-era restrictions is a high priority for his reform agenda.
The staff subcommittee met Sunday afternoon to...
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Saturday, February 14th, 2009
News
By Andrew Feinberg, Reporter, BroadbandCensus.com
WASHINGTON, February 14, 2009 – State utility commissioners are considering a resolution to "strongly encourage" Federal Communications Commission implementation of a pilot program to make broadband internet access service eligible for subsidies drawn from the Universal Service Fund.
The measure is entitled "Resolution on Lifeline and Link-Up Program Support for Broadband Internet Access Services and Devices." Sponsored by District of Columbia Public Service Commissioner Betty Ann Kane, it was introduced at the winter meeting of the National Association of Regulatory Utility Commissioners here on Friday afternoon.
The Lifeline Assistance program has provided discounted rates on local phone service to low income consumers since 1985. The Link-Up America program began in 1987, and covers the cost of initial connection charges for phone service.
Both programs are administered jointly by federal and state regulators and funded by assessments on all telecommunications services, as part of the Universal Service Fund.
The USF is designed to provide universal telephone service. With the exception of the eRate, which funds internet connections to schools and libraries, FCC rules limit USF subsidies to voice communications.
The Telecommunications Act of 1996 requires the FCC to make "advanced telecommunications and information services" available to all at "just, reasonable and affordable...
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