FCC Forges Ahead With Broadband Buildout Plans
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: Certainly 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.
However, that issue only scratches the surface of the potential conflicts triggered by this reform.
Winners and Losers
The policy change is pitting carriers such as AT&T (NYSE: T) against providers poised to benefit from the change, such as Comcast (Nasdaq: CMCSK).
The new policy also is dependent on the premise that the FCC has the authority to regulate VoIP calls, which has not been established yet.
The FCC, for its part, prefers to focus on the end-game.
"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.
By contrast, the Connect America Fund will extend 21st century broadband and mobility to rural America, he said.
Just Part of the Transition
For rural Americans who don't want to part with their telephone subsidies, tech analyst Jeff Kagan expressed his sympathies -- but 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 at the beginning of that curve."
Transitions "are always noisy, awkward and messy," he said. "Eventually, we will get there. We may see pushback, stalling and other tactics, but we will get there."
The Question of VoIP
Carriers, needless to say, don't have to be convinced of the value of broadband. However, 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.
AT&T has been reported as saying it will not collect the necessary fees, he noted.
"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. But 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."
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."
The last major piece of legislation was the Communications Act of 1996.
"That is the legal basis on which these regulations are being crafted," said Carter. "To say we are in a different world now is a vast understatement."
Protests Are Coming
Given the various viewpoints, Carter anticipates any number of actions to stymie this move. Carriers can challenge any FCC action, either directly or indirectly, by not collecting fees, as AT&T has suggested.
It would be up to the FCC to enforce the fees, which would invite another round of regulatory hearings and comment-making.
Finally, the carriers can fall on their last resort, Carter said -- appealing to Congress. "It has been tried before and it will be tried again."
Popular Posts
-
Because you’re a “gadgeteer” looking for a way to connect all your gadgets when you’re on the go, Smart Bro Pocket WiFi is best for you: C...
-
GLOBE Telecom Inc. wants the Aquino administration to stop market leader Philippine Long Distance Telephone Co.'s (PLDT) acquisition of ...
-
In a matter of one week, SkyCable Corp. introduced two new offerings that elevate its Internet package to the 5Mbps /15GB grade and its cab...
-
Mercantile Office System — the authorised distributor of the Taiwan based D-Link (High Speed ADSL Broadband) Company in Nepal — has brought ...
-
Globe Telecom is cracking down on abusive Internet users who hog all the available bandwidth, in the process deteriorating the services for ...
-
Dominant carrier Smart Communications will begin public tests of its long-term evolution (LTE) Internet in Metro Manila ahead of the commerc...
-
The Huawei E5832 wireless modem sends out a Wi-Fi signal to give you internet connection whenever you need it. With your own mobile Wi-Fi co...
-
Tech Mahindra ranked #1 Telecom Software Service Provider Mumbai, July 27, 2011- Tech Mahindra, a global systems integrator and business t...
-
List of Broadband Service Providers 1. sky bradband 2. sun broadband 3. smart broadband 4. destiny broadband 5. globe broadband 6. pl...
-
Stay Connected. Globally. Stay connected to the Internet while traveling in Philippines with XCom Global. Our international broadband wire...