Broadband will benefit rural communities. But it has downsides, too. Rural communities should plan now to make this new technology serve their interests.
The Universal Service Fund, set up 75 years ago to get phone service to rural communities, may extend funding to rural broadband and other new communications media.
The Nebraska Rural Poll reports that one in seven rural Nebraska households continue to receive their TV signal over the air, using the good old rabbit ears. Many Nebraskans living in rural communities took steps to prepare for the digital conversion, which happened earlier this year, the Poll found. About a fifth (21%) bought the digital converter box gizmos; 18% purchased digital-ready televisions; 15% went whole hog and converted to cable, satellite or wireless television.
Most everybody that needed to make a change to continue receiving a television signal did so. Almost everyone who needed one bought a digital converter box. But, interestingly, 46% of those who continue to receive their television over the air report they are very or somewhat dissatisfied.
The Obama Administration promised that it would work more quickly to issue money under the $7.2 billion broadband deployment grant program. Washington has been criticized by applicants for being slow in distributing broadband money, which was included in the stimulus bill from earlier this year.
Folks at the Commerce and Agriculture departments (the agencies that share the responsibility for administering the grants) say they intend to consolidate two rounds of applications (the original plan) into a single round. The first round of grants is scheduled to be made in December. "This will get the funds out the door faster to stimulate the economy and create jobs," said Jonathan Adelstein, the Agriculture Department official overseeing the program in a statement. Amy Schatz of the Wall Street Journal also reports, "Administration officials said they're looking at whether they should devote more of the roughly $3 billion that will be handed out in the second round to high-volume Internet lines in rural areas that could be shared by private companies, libraries and others instead of 'last-mile' projects that would be used by a single company to offer broadband service to the home."
"The things they're asking about capture the most common things that people have complained about," Craig Settles, founder of Successful.com, a broadband business consulting firm and a Daily Yonder contributor, told the Wall Street Journal. "There appears to be logic and some attempt to get to consistency and making life easier for the applicant."
The Hill reports that the tussle over Google Voice continues. Google Voice gives people the chance to claim one number (from Google); Google then directs phone calls coming to that number to land lines or mobile phones. With Google Voice, you can have one phone number (the one from Google) that will be forwarded to any kind of phone you might have. Trouble is, Google doesn't serve all phones. In particular, Google has cut out numbers in rural areas served by companies Google believes charge exorbitant access fees.
This has caused a stir in Washington, D.C., and The Hill reports that "(p)ressure is growing on the Federal Communications Commission (FCC) to come down on tech giant Google for blocking access to certain telephone numbers with its Google Voice service....Google admits that it is blocking some numbers to rural areas with high connection fees, including adult chat lines and some free conference calls."
The system for assigning rates is complicated. Google says it's not subject to FCC regulation since it is an Internet-based phone system. The FCC is studying that one. Phone conferencing companies direct calls to rural areas where they can share in the higher fees. (The Hill tells us that the Obama campaign used these conferencing services extensively during the '08 campaign.) But blanket blocks of regions affect the local rural user along with the conference call providers. We thought this was getting clear up, but it remains a royal mess.
When the federal government brought electricity to rural America, it worried more about cost to farm families than construction. There's a lesson here for broadband.
Okay, Rural America, Google Voice is yours. Recall that earlier rural lawmakers and telephone providers complained that Google was blacklisting rural phone numbers for use with Google Voice. Google said these services charged too much for access.
At the time, Google clearly named small phone providers as ones that overcharge — and, in fact, Google blocked the number for the campaign office of U.S. Rep. Collin Peterson, the Minnesota Democrat and chair of the House Ag Committee. Google told the Federal Communications Commission Wednesday that it was now blocking calls to fewer than 100 numbers, most used for phone sex services. "We have found that calls to a relatively small number of telephone numbers generate vastly disproportionate costs," Google's FCC letter said.
Google Voice gives people a single number. Calls to that number can be forwarded to other numbers or to voice mail. A call to the Google number, for example, could ring a home, office and cell number at the same time. Information here on this service.
The big telecommunications companies and Sen. John McCain on one side,
technology pioneers and Sen. Al Franken on the other, the Federal
Communications Commission voted to establish rules enforcing equal
access to the Internet.
The rural telephone carrier FairPoint Communications says it will enter Chapter 11 bankruptcy protection. The company has been bogged down by it's 2008 purchase of Verizon's landlines in New England. The acquisition quintupled FairPoint's size to 1.8 million lines. But taking on $2.8 billion in debt in the process proved unmanageable for the company that began as a small rural operator. Meanwhile, the landline business has continued to lose customers nationally.
FairPoint until recently had been a member of the Yonder 40 stock index, the 40 stocks picked by the Daily Yonder to represent the rural economy. Several weeks ago, when it became clear that FairPoint was headed to bankruptcy, the Yonder dropped the company from the listing. FairPoint was replaced by the GreenHaven Continuous Commodity Index Fund (GCC), a commodities fund.
The bankruptcy filing was pre-arranged. The plan will cut FairPoint's debt by $1.7 billion and return nearly full equity ownership to lenders.