The Federal Communications Commission has unanimously proposed to shift the purpose of the Universal Service Fund from providing telephone service to underserved areas to helping to build broadband. The FCC's plan is to reclassify broadband as a telecommunications service, which would give the agency the chance to use Universal Service Fund money build out broadband. There's a problem with that strategy. A recent Supreme Court ruling called into question the FCC's legal standing to exert authority over the Internet.
The FCC issued a long notice of inquiry and proposed rulemaking. This begins the process of phasing out the $4.6 billion a year Universal Service Fund, replacing it with a fund that would aid the deployment of broadband. "This item is an important milestone in our deeply important effort to ensure that every American, no matter where they live or what they earn, has access to affordable, high-quality broadband communications service," FCC Chairman Julius Genachowski said. "It will not be easy. But that is what we are committed to do." h
We await a more definitive (and expert) view, but it appears that the court ruling this week finding that federal regulators had limited authority over Internet traffic will also slow deployment of broadband to rural areas. The New York Times wrote that "the national broadband plan released by the administration last month proposed to shift billions of dollars in money from a fund to provide phone service in rural areas to one that helps pay for Internet access in those areas. Legal observers said the court decision suggested that the F.C.C. did not have the authority to make that switch."
The story coming out of the federal appeals court ruling is mostly about net neutrality, and, indeed, the court ruled that cable owner Comcast had the right to slow its customers' access to certain web services. (Net neutrality would force providers to treat all web sites equally.) But the ruling also affects the FCC's plan to roll out broadband services to rural areas.
Washington Post tech writer Cecilia Kang writes that FCC General Counsel Austin Schlick said in a blog post that "key aspects of the plan to bring affordable broadband connections will be hindered. Those include goals of bringing broadband to low-income and rural areas and getting those communities to adopt the technology. Experts say the FCC may not be able to convert a $8 billion phone subsidy to be used also for new broadband networks after the court’s decision."
The big broadband news of the day, of course, is the unveiling of the Federal Communication Commission's national broadband plan. The plan will be released today (right now -- 9:46 Central — in fact) at an open meeting of the commission. See it here. Or get more detail on the plan here. In the next few days, we'll have a more detailed analysis of what the plan could mean for Rural America.
In the meantime, the Washington Post reports that the FCC will tap the universal phone service fund to provide $8 billion a year to extend broadband service. "In the past, rural carriers that rely on the fund successfully opposed attempts by lawmakers and the agency to redirect its resources," reports the Washington Post's Cecilia King.
"The FCC plan proposes more than $20 billion in new government spending, including $12 billion to $16 billion for a new wireless network for police and firefighters and 'a few billion dollars per year over two or three years' for broadband lines in rural areas," writes the Wall Street Journal's Amy Schatz.
Education increases chances for employment. Distance learning increases educational opportunities for rural residents. Rural development these days means broadband and online classes.
Amy Schatz is reporting in the Wall Street journal that the Federal Communications Commission's National Broadband Plan will propose up to $25 billion in new federal spending for broadband and for a wireless network that would be used by police and firefighters. One of FCC Chairman Julius Genachowski's (above) goals is to extend 100 megabit per second service to 100 million homes by 2020.
The plan would spend $9 billion to bring broadband to rural areas faster. That money would be on top of the $7.2 billion already included in the federal stimulus plan.
"The plan will also suggest creating a new broadband account in the federal Universal Service Fund, an $8 billion annual program funded by ratepayers which subsidizes phone service in rural areas and for low-income Americans," according to Schatz. "The new fund would be devoted to funding broadband in areas that don't have high-speed Internet service now."
The push is on to provide broadband connections to rural homes — and not just in the U.S. The Country Land and Business Association is lobbying the British government to help rural homes that are unable to get broadband. According to the BBC, there are up to 1.5 million homes in the United Kingdom that can't get adequate broadband.
This BBC story has some interesting examples of how rural communities are coping with limited broadband access. In the village of Wray in Lancashire, farmers depend on a constricted broadband access for access to markets and government regulations and programs. "There's a rule there - an agreement that we all sign. So the kids know there's no gaming, no YouTube and iPlayer until after 5pm when the businesses have closed for the day and then it's a free for all," said Chris Conder. "Some nights it can go slow... but it's the best we can do at the moment." Conder has laid over a kilometer of fiber optic cable to hook up some neighbors to the network.
And on the Isle of Raasay, Paul Camilli (above) uses satellite. "It isn't by any means perfect, connection occasionally drops out and upload speeds can be pretty grim, but compared with what I was used to it's fantastic really," Mr Camilli said."Communication's always been a problem. For many years I didn't even have a phone."
Hunter
Goosman, ERC’s general manager, told Settles that its request for
federal funding concentrates on improved communications in education
and government. “We proposed in NOFA 1 a six-county middle mile and
last mile network.”
ERC also plans to go after Google’s fiber-network funding,
hoping to capitalize on the creative-rep of Asheville and knowing that,
as Goosman says, “Everything done in Asheville regarding technology
has a snowball effect in the region.”
Goosman imparts some
exciting ideas for how communities can – and should –integrate
scientific goals and know-how in broadband applications. Read Craig’s whole report here.
Google has announced a new competition for super-fast fiber networks. Craig Settles explains what rural communities should consider before going after the megabits.
If you want high-speed Internet access, and you happen to live in certain areas on and around Eastern Kentucky's Pine Mountain, currently there's only one thing to do: Move.