FCC Forges Ahead With Broadband Buildout Plans

The FCC's vote to repurpose rural telephone subsidies "is reflective of the Obama administration's initiative to provide broadband access to people who don't have it," noted T. Barton Carter, a professor of communication and law at Boston University. "Nevertheless like many things, the devil will be in the details as to who gets charged the fees for this, what regulations will apply, and how VoIP (Voice over Internet Protocol) services are defined."

The Federal Communications Commission has voted unanimously to reform the Universal Service Fund and intercarrier compensation system. It is creating a new Connect America Fund, with a budget of US$4.5 billion to meet the end-goal of this policy shift: extending broadband infrastructure to rural Americans, as opposed to subsidizing rural phone service.

That in itself could be seen as controversial: Truly there are people in these areas -- to say nothing of their representatives in Congress -- who do not wish to see these subsidies end and have no interest in broadband-based services.

The new policy as well is dependent on the premise that the FCC has the authority to regulate VoIP calls, which has not been established but.

"The FCC's reforms will transform antiquated systems designed for the telephone era -- the Universal Service Fund and a related system of payments between phone companies known as Intercarrier Compensation," FCC spokesperson Mark Wigfield told the E-Commerce Times.

For rural Americans who don't want to part with their telephone subsidies, tech analyst Jeff Kagan expressed his sympathies -- nevertheless added they will have to accept the transition.

"There are limited dollars available. so the FCC has to reapportion its resources," he told the E-Commerce Times. "In general, communications are moving to broadband. It delivers telephone, TV and the Internet. We are only in the beginning of that curve."

Carriers, needless to say, don't have to be convinced of the value of broadband. But, the FCC's position is going to lead to policy warfare between companies that focus on broadband and those that focus on more traditional services, T. Barton Carter, a professor of communication and law at Boston University, told the E-Commerce Times.

What complicates this whole issue is VoIP

"What complicates this whole issue is VoIP," Carter continued. "The FCC has been struggling how to classify it, whether it is an information or phone service."

From the 30,000 foot view, he explained, the issue is relatively simple: "This is reflective of the Obama administration's initiative to provide broadband access to people who don't have it. Nevertheless like many things, the devil will be in the details as to who gets charged the fees for this, what regulations will apply, and how VoIP services are defined."

Even loftier perspective

From an even loftier perspective, the FCC does have a point, Carter said. "This is reflective of the struggle to shift from old communication technologies to new communication technologies with legislation that was written in the pre-broadband era."