Rewiring an Old Fund for Rural Broadband

[Commentary] Reps Rick Boucher (D-VA) and Rep. Lee Terry (R-Neb.) are proposing to overhaul the Universal Service Fund in several ways, and to designate that money from the fund can be spent on broadband. It was originally reported that as much as $2 billion could be available, but the draft makes no mention of a specific dollar amount; however, in 2004, 60% ($3.4 billion) of the USF went into the High Cost Fund. The draft recommends capping the USF at $7 billion, so 60% equals a potentially huge bankroll of $4.2 billion. Though the potential dollars this USF reform could make available for broadband are quite large, the draft as it stands now is a good news-bad news sort of deal. The good news: here is more money for broadband. The bad news: the draft only indicates support for wireless providers. There's a passing mention of satellite telecommunications, though it's murky whether these providers would be eligible for broadband-targeted money. There's no mention at all of fiber optic technology.