Levin, Settles Square Off On Broadband Funding Debate

Blair Levin, head of the team that authored the National Broadband Plan, and Craig Settles, a leading industry analyst, debated the best way to deploy broadband to unserved and underserved areas.

Both Levin and Settles agreed that federal funding is necessary to support deployment due to high costs that many communities cannot meet. They disagreed, however, on how the funding should be distributed. Levin described universal service fund subsidies as “paying Maserati prices for Chevy level service” to communities. Levin believes that updating the current universal service system to include a few minor provisions will be enough, but that deployment must focus on what is achievable with the limited amount of funding available. He reiterated the point numerous times that it is highly unlikely for the commission to approve the increasing of USF fees.

Settles asserted that a wholly new approach is necessary to effectively expand broadband. Settles’ approach would center on community-based projects rather than direct subsidies to individuals or telecom companies. “Direct subsidies to individuals do not solve the long-term problem,” he said, “but the creation of sustainable community based networks will.” Under Settles’ plan, communities would present plans to the government for funding. These plans, he maintained, would have to show the intended goals and recipients along with how the network is sustainable and reaches its stated goals. By banding together low-income households into a single entity, the group would be able to gain savings from scale