Rural broadband for all means satellite for some under big telcos' plan

"Our proposal will ensure that four million rural homes and businesses in high-cost areas served by price cap carriers will have access to broadband, two million of which will enjoy the benefits of broadband for the first time," they promise. Some rural residents would still be consigned to satellite broadband purgatory under the telcos' plan, however, as the telcos would be allowed to opt out of servicing high-cost areas under the guise of "efficient network design."

The business case

The USF tithes your phone bill to provide affordable phone service for low-income and rural America. But it was created "for a world with separate local and long-distance telephone companies," FCC Chair Julius Genachowski observed in February, "a world of traditional, landline telephones before cell phones or Skype; a world without the Internet." So the idea is to phase out the money for landline phones, and phase in billions for broadband.

The telecom plan for accomplishing this centers on something already proposed by the FCC: a Connect America Fund. The CAF would replace the USF's very expensive High Cost Fund , which subsidizes rural carriers to provide phone service at regulated (in some instances price capped) rates.

The telcos and FCC appear to agree on the basic framework of the fund—at least sort of. The CAF "should only provide funding in geographic areas where there is no private sector business case to provide broadband and high-quality voice-grade service," the FCC's National Broadband Plan explained .

The telcos put that "private sector business case" language in their version, then add this: "As a result, under our proposal, the system would no longer support services in areas in which another provider offers the defined service without a subsidy."

This is not an entirely new idea. The cable industry has proposed something like it in the past. Here's how the proposal defines an "unsupported broadband competitor":

a facilities-based competitor that has invested to provide broadband in the census block without using federal or state high-cost universal service support and without any state or federal service obligations. The availability of broadband service from an unsupported broadband competitor demonstrates that there is a private sector business case to offer broadband and that high-cost universal service support is not required.

Providers that elect to receive support from the proposed Connect America Fund must offer broadband service that provides customers with a minimum actual bandwidth of 4 megabits per second downstream and 768 kilobits per second upstream. This service would also provide robust capacity that is sufficient for households to use [for] education and health care applications. The broadband service obligation is technology neutral: providers could use any wireline or wireless technology that meets the Commission's bandwidth and capacity requirements.

Universal Service Fund Definition - News


Rural broadband for all means satellite for some under big telcos' plan

One of the biggest of those dilemmas is transitioning the Commission's $8.7 billion Universal Service Fund support system from old-school landline phone service to broadband. AT&T, Verizon, Century Link, Fair Point, Frontier, and Windstream have



Leap Reports Second Quarter Results

Continued to expand the Cricket Lifeline Service to customers who are eligible to receive a Universal Service Fund subsidy of up to $13.50 per month. Cricket Lifeline Service is now available in five states and approximately 40000 customers receive



Cogent Communications Reports Second Quarter 2011 Results

The Company believes EBITDA, as adjusted, is a useful measure of its ability to service debt, fund capital expenditures and expand its business. EBITDA, as adjusted, is an integral part of the internal reporting and planning system used by management



SureWest Reports Second Quarter 2011 Results

The quarter was positively impacted by an expense reduction in universal service fund fees of $1.4 million and $300 thousand in ongoing quarterly savings. Excluding the reduction in universal service fees, consolidated Adjusted EBITDA margin and



10-Q: SUREWEST COMMUNICATIONS

During the quarter ended June 30, 2011, SureWest Telephone filed an amended remittance form to recover certain regulatory fees paid to the Universal Service Administrative Company ("USAC"), the administrator of the Federal universal service fund




E-Rate – What Is It And What It's For | Your Blog

A lot of people do not have any clue as to what the definition of E-rate means. This information will certainly define it for you. The term that is applied to characterize the Universal Service Fund that is for schools, both the public and private is . There is additional than $2 billion erate money every year for public and private schools. Actually, a sensible choice is to apply for an E-rate program as soon as possible just about any school you currently have.

Background of E-Rate

In 1996, the The legislature ruled that the Federal Communications Commission or the FCC must utilize Universal Service Fund or E-rate money to give help to firms that offer bargains to qualified schools and libraries. The qualified schools for the highest discounts are those which are found in the low-end urban communities and rural areas. They make it a mission that all American person in just their scope, whatever cultural position, is given accessibility to Internet.

E-rate provides the following:

1. Reimbursements

What you may have taken care of your online expenses for internet access, internal connections, and maintenance of the internal connections, is assigned to compensate it. Complimentary internet access, moreso for educative purposes, is that top objects of the money. The money also lets the schools and libraries have the option to have affordable telecommunications.

2. Special discounts

The E-rate offers a discount for as low as 20% and as high as 90% for the phone and internet expenses. In other words, you almost do not have any expenses for your phone and internet when you’ve got used for an E-rate plan! With having this sort of a substantial volume of discount, you may transfer the budget that weren’t used into other places of your establishment this sort of as fixes, renovations, upgrades and many more. Being paid directly on the discounts that they offer is exactly what the businesses get for using the services.

These Promotions Were Proposed On The Year 2011

1.Developed Much easier For Internet Candidates

The certification of technology programs before being approved is a very common barrier for schools and libraries which may have used. Priority one funding doesn’t require a licensed techonology policy anymore for candidates which makes the method easier. The Priority one funding includes access to the telephone and internet. You will still have to have the certified technology plans for the Priority 2 funding and also this contains the internal connections.


Universal Service Fund Definition - Bookshelf

Making universal service policy, enhancing the process through multidisciplinary evaluation

Making universal service policy, enhancing the process through multidisciplinary evaluation

The definition of universal service varies with the end-user group being ... universal service support fund in November 1996 (Recommended Decision, 1996). ...

Competition law and regulation in European telecommunications

Competition law and regulation in European telecommunications

Assuming for the sake of discussion that costs are shared through a universal service fund,149 the formula for calculating the contributions of contributor ...

Making Universal Service Policy

Making Universal Service Policy

The definition of universal service varies with the end-user group being ... universal service support fund in November 1996 (Recommended Decision, 1996). ...

Budget and Economic Outlook, Fiscal Years 2008 To 2018

Budget and Economic Outlook, Fiscal Years 2008 To 2018

Universal Service Fund The business activity of the Universal Service Fund, ... Although the Universal Service Fund's revenues and outlays appear in the ...

Communications regulation

Communications regulation

DEFINITION OF UNIVERSAL SERVICE: WHAT SERVICES TO SUPPORT A. Overview 56. Section 254(c)(1) requires the Joint Board to recommend, and the Commission to ...

Day-by-day Guide Directory


Universal Service Fund - Wikipedia, the free encyclopedia
The Universal Service Fund (USF) was created by the United States ... [edit] Definition of universal service. The Communications Act of 1934 first established ...

FCC - OIG Universal Service Fund
FCC OIG Program Audits - Universal Service Fund ... the traditional definition of universal service - affordable, nationwide telephone service – to include among ...

Universal Service Fund | FCC.gov
Home / The FCC / FCC Encyclopedia / Universal Service Fund ... traditional definition of universal service - affordable, nationwide telephone service to ...

Telephone Federal Universal Service Fee Tax Law & Legal ...
Since May of 1997, the Federal Communications Commission (FCC) requires telecommunications carriers to pay into the Universal Service Fund. This helps provide ...

Universal Service Brief Part II
V. DEFINITION OF UNIVERSAL SERVICE. The Joint Board has recommended that supportable ... to all customers and services that are eligible for universal service fund support. ...