FCC's payouts to telecom need adjusting

May 05 2008

The Universal Service Fund is that extra tax you see at the end of your phone bill. It was originally established to fund the expansion of infrastructure into poor and rural areas. The FCC is in charge of the fund, but because of some weird rules in how the money gets dispursed, the FCC estimated payouts to telecom companies are now out control, doubling over the last 7 years.

So the FCC recently voted on a temporary measure to cap the payments until the rules can be fixed. According to Ars Technica, analysts are calling for the revision on the rules to focus the payouts on building out broadband throughout the country rather that continuing to pay telecoms for the old fashion phone lines.

Great idea. It should be obvious though right? Paying the telecoms to build out the modern Internet infrastructure instead of copper phone lines?

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