FCC to Change Program That Connects Schools to High-Speed Internet Service

The Federal Communications Commission will complete changes this spring in the federal program to connect schools and libraries to high-speed Internet service, including possibly increasing the [fee] paid by consumers or phone companies to finance the effort, said FCC Chairman Tom Wheeler. Any increase in the [fee] would be preceded by a restructuring of how the current $2.4 billion annual program spends its money. Only about half of the program, known as E-rate, currently pays for broadband connections; some of it pays for outdated technologies like pagers and dial-up connections. “We have identified opportunities for greater productivity within the program, including significant improvements to the way funds are deployed,” Chairman Wheeler said. But, he added, “Should it be necessary to increase the permanent funding levels for the E-rate program, we will do what is appropriate.” “The current E-rate program is burdensome, slow and not always focused on the right goals,” Chairman Wheeler said. “As managers of the program, the FCC must improve the speed and effectiveness with which E-rate is run.”