Tate: Change information and communications rules

[Commentary] The government's "universal service" subsidy regime is saddled with antiquated rules that fail to provide incentives for the deployment of new lower-cost technologies, while at the same time supporting the provision of service by multiple providers in the nation's highest cost areas. Here's what the FCC should do without delay:

1) Eliminate its "Identical Support Rule" whereby new entrants receive subsidies based on the assumption their costs are identical to those of the traditional wireline provider.

2) Expand the Lifeline and Linkup programs, which presently provide modest assistance to qualified low-income consumers for ordinary telephone service, to include subsidies for increasing broadband subscription among those who meet a needs-based test.

3) Require any subsidies to additional providers be awarded through a competitive bidding process, such as a "reverse auction."

4) Develop a process for fundamental systemic reform. Some have suggested the already exploding high-cost fund should be expanded even more to include broadband.