FCC to Propose USF for Broadband
Posted by Jesse Ward on Monday, March 8, 2010 · 
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The FCC spoke with reporters last Friday and revealed another glimpse into its forthcoming National Broadband Plan, set to be presented to Congress on March 16, one day earlier than previously anticipated.
The commission will propose transitioning universal service support, currently used for universal phone service, to enable universal broadband. The transition will take place in three stages, with the end goal to have more than 99% of Americans connected by 2020.
The commission will propose creating two funds: a Connect America fund that the high-cost fund will morph into overtime, and a mobility fund to extend 3G wireless broadband coverage in areas lagging behind the national average.
The Connect America fund will be technology and provider-neutral, focusing on areas “where there is no private-sector business case,” and only one network in each area.
The plan has been structured to migrate the fund to broadband without any additional congressional outlay. However, the commission will suggest to Congress that a one-time, $9 billion infusion to the new Connect America fund over three years would speed up the process.
The FCC will first invest in areas where it will be the cheapest to provide broadband access, i.e. the “low-hanging fruit.” If that attracts more than one potential provider, the commission said they would employ an a TBD “market mechanism,” to pick a winner.
The FCC also is proposing phasing out per-minute charges for intercarrier compensation, such as access charges, in favor of negotiated traffic exchange arrangements. The plan will propose a compensation scheme to make up for the lost intercarrier compensation revenue for those carriers that are dependent on it.
FCC staffer Rebekah Goodheart explains these new recommendations in a blog post.
Read more from Broadcasting & Cable and Connected Planet.
Stay tuned to NTCA’s Washington Report for more news and analysis.
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