October 7, 2011

FCC plan to revamp broken USF shifts focus to rural broadband

A good summary of what the FCC has up its sleeve to revamp the outdated inter-carrier compensation scheme of the 1980's and 90's. I'll bet a dollar that consumers will not pay less. I agree with the unidentified FCC source who leaked it.

"The last 15 years have seen three major changes that rendered this scheme anachronistic. First, long-distance rates have plummeted, which has made ICC fees a disproportionate share of the costs of some long-distance calls. Google, for example, has refused to allow Google Voice calls to some numbers due to what it regards as unreasonable ICC rates. Second, the rise of cable and wireless telephone service has meant that some previously underserved areas now have multiple options for phone service. And finally, the USF's focus on telephone service has started to seem anachronistic given the growing importance of the Internet as a communications medium."

'via Blog this'

Post a Comment