USF Reform Could Leave Rural Customers Out In The Cold
As the FCC gets ready to vote on what to do with the universal service fund (USF), former Senator Byron Dorgan is concerned that the FCC's proposed USF reform will leave rural customers out in the cold. "My concern is as we get closer to the end date, it appears to me that the answer to the question 'will rural areas be left behind' is going to be 'yes'."
According to Dorgan, "if you build out the system to the rural reaches, you have to have a cost recovery system that justifies that." He's referring to the fact that the FCC has stated that they plan to cap the size of the fund and the amount that telecom providers can recoup at some future date. But they have not disclosed when or by how much. This uncertainty leaves many telecom firms leery of building out broadband Internet capability in rural areas where there are few customers, and puts many small, rural phone companies at risk.
As Dorgan points out: "The promise of universal service is very, very important. It's been around for decades. Everyone benefits from universal service, from everyone being able to have affordable service at comparable prices." The FCC needs to remember this as they vote on what to do with the USF. They'll have to make sure that the decisions they make today will guarantee that rural customers are not left behind in our broadband Internet future.
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