[1st-mile-nm] FCC's Martin wants to subsidize rural broadband

[Richard Lowenberg]

Martin Wants To Subsidize Rural Broadband
By Gene J. Koprowski, for Technology Daily

www.njtelecomupdate.com/2007/06/martin_wants_to_subsidize_rura.html#more

(Tuesday, June 19) CHICAGO -- FCC Chairman Kevin Martin said on Tuesday
that the concept of universal service needs to be substantially upgraded
to encompass financial support for high-speed Internet services in rural
areas.

In a live video presentation at the NEXTComm industry show here, Martin
said broadband policies should be updated so rural consumers could receive
the same services as their urban counterparts. "But there's a limited
amount of funding to do this," said Martin, who responded to questions
from industry leaders. "We need ... a policy that is technologically
neutral."

Martin said the FCC should move away from "subsidizing multiple voice
carriers in rural areas" to subsidizing broadband. He added, "It's
critical that the concept of universal service stays in place -- and that
everyone stays connected."

Last year, the FCC sought to foster investment in broadband, providing
incentives to carriers to invest in the technology. The move has worked,
according to the Telecommunications Industry Association, noting that $70
billion was spent last year on broadband infrastructure.

Access to broadband for many previously underserved demographic groups,
including the poor, has increased as a result, TIA said. But industry
leaders here cautioned that 45 percent of Americans still do not own
computers.

The universal service fund, which subsidizes telecom service, has been a
point of controversy of late. On May 1, the FCC's Joint Federal-State
Board on Universal Service recommended a temporary cap on USF subsidies to
competitive telecom carriers, mostly wireless firms. Last week, Senate
lawmakers from both parties sharply criticized that proposal and urged the
agency to take the lead on a comprehensive overhaul.

In terms of other policy priorities for his agency, Martin said his vision
is to "remove regulations that inhibit innovation."

Speaking at the conference, Chris Rice, the chief technology officer of
AT&T, commented that in coming years, industry leaders no longer will
think of themselves in terms of "wireless" or "wireline" providers but
will present themselves as "multimedia" service providers.

But Martin said it is also a priority for the FCC to ensure that access to
content on the Internet is equal for all Americans, even if telecom
companies continue with the trend of providing different levels of service
at distinct prices.

Another area where strong regulation will remain in place is in
guaranteeing access to emergency services for consumers, Martin said.

Posted by Michael Martinez on June 20, 2007


------------------------------------------------
Richard Lowenberg
P.O.Box 8001, Santa Fe, NM 87504
505-989-9110,  505-603-5200 cell

New Mexico Broadband Initiative
www.1st-mile.com/newmexico
------------------------------------------------