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FCC chairman proposes changes to subsidy program

The Federal Communications Commission is planning to overhaul the $8 billion phone subsidy program to include funding for broadband in underserved communities.

The FCC is expected to vote on an order tomorrow that will open comments for revising the Universal Service Fund, or USF. In a speech today at the Information Technology & Innovation Foundation in Washington, D.C., FCC Chairman Julius Genachowski outlined his proposal for revising the fund. And he talked about the importance of taking action to reform USF now.

"While the world has changed around it, USF--in too many ways--has stood still, and even moved … Read more

FCC's plans take from Peter to pay Paul

The Federal Communications Commission is shaking up the communications market with bold initiatives to overhaul the $7 billion Universal Service Fund to help pay for universal broadband and reallocate wireless spectrum for new wireless broadband services.

FCC Chairman Julius Genachowski presented plans for revising the USF program and reallocating spectrum during a speech on Tuesday in Washington, D.C., at The Innovation Economy Conference.

The Universal Service Fund is a $7 billion federal subsidy program that is funded by fees added to consumer phone bills. The USF was originally designed to provide subsidies to pay for phone service in rural … Read more

Feds cap rural cell phone subsidies

The Federal Communications Commission capped a subsidy program that helps fund cell phone coverage in rural areas.

In a 3-2 vote on Thursday, the FCC said it would limit payments to wireless carriers seeking funds from the Universal Service Fund to help subsidize the cost of providing cell phone service in rural areas. The USF, which is supported by a tax on long-distance and regular subscriber line charges paid by wireless, Internet, and traditional phone customers, has been temporarily capped after the program paid nearly $1.12 billion last year to phone companies operating in rural areas. In 2001, the … Read more