FCC Chairman Pushes Changes to Expand Broadband Access

Federal Communications Commission Chairman Julius Genachowski said he wants to overhaul the Universal Service Fund, $7 billion/year federal phone-subsidy program, and reallocate more airwaves to wireless carriers as part of a strategy to improve US broadband Internet availability and affordability. The Universal Service Fund is a federal subsidy program funded by consumers through a charge on their phone bills. The fund subsidizes phone service in rural areas and for low-income households. FCC officials want to change the plan so it funds new broadband Internet lines in rural areas. Proposals to revamp the fund have in the past provoked resistance from rural phone companies and their congressional allies. Smaller rural phone companies depend on the fund for operating revenues. "USF is a multi-billion dollar annual fund that continues to support yesterday's communications infrastructure," Chairman Genachowski said. "We need to reorient the fund to support broadband communications." The agency is also trying to identify airwaves that might be taken away from current holders and auctioned off for more wireless broadband service. A proposal floated recently by FCC officials to take airwaves from TV broadcasters has been met with sharp resistance by station owners. Broadcasters don't use all of their airwaves but they are reluctant to give any up. Some broadcasters have begun offering more free digital channels and others are considering using airwaves for mobile TV service, designed to allow consumers to watch TV on their cellphones and other wireless devices. Broadcasters' airwaves are highly coveted because signals travel easily across them and they carry through walls and around trees. Most of the airwaves used by wireless carriers aren't that strong, which means that companies need more towers to provide strong signals for subscribers.