October 2008

EBay Exec: New Congress Must Tackle Antitrust Issues

eBay deputy general counsel Tod Cohen believes the 111th Congress should reverse a 2007 Supreme Court decision that overturned nearly 100 years of antitrust precedent. The 5-4 ruling allows manufacturers to set a minimum price below which a retailer cannot sell a manufacturer's product, which some believe threatens the existence of discounting and discount stores and could lead to higher prices for consumers.

bgC3: Bill Gates' mysterious new company

Bill Gates is creating a new company -- called bgC3 -- described as a think tank that may serve as a vehicle to coordinate the software mogul's work on his business and philanthropic endeavors. However, bgC3 will also oversee Gates' personal pursuit of breakthrough ideas in science and technology.


Douglas Holtz-Eakin and Reed Hundt Debate the Candidates' Tech Agendas

12:30-1:45pm
10/30/08
New America Foundation
1630 Connecticut Ave, NW 7th Floor
Washington, 20009

The next president is going to face a host of pressing questions involving technology:

  • Why is the United States falling behind the rest of the world in broadband access, and how can we reverse that?
  • What should our immigration policy be for skilled tech workers?
  • How can our technology policies strengthen the broader economy?
  • Does net neutrality matter?
  • Join us as two top presidential campaign advisers debate these specific issues and describe the candidates' respective visions for maximizing technological innovation and access.

Representing Sen. McCain will be the campaign's chief economic policy adviser, Douglas Holtz-Eakin. Representing Sen. Obama will be former FCC Chairman Reed Hundt.

Lunch will be provided. For those unable to attend in person, this event will also be webcast live.



Oct 24, 2008 (Japan, Korea lead in fiber-optic broadband)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY OCTOBER 24, 2008

The Benton calendar highlights upcoming events -- Congressional hearings, conferences, etc -- that impact the world of communications policy. See http://benton.org/calendar


BROADBAND/TELECOM
   Presidential candidates vow more attention to tech issues
   Japan, Korea lead in fiber-optic broadband: OECD
   AT&T backs FCC proposal on broad phone fee reform
   The FCC is disconnected from reality
   VoIP leaders launch voice activated freedom2speak.org
   ICANN To Unveil Plan For Domain Name Expansion
   Forecast: Legal P2P uses growing 10x faster than illegal ones
   UK Broadband users reach their limit
   AT&T to raise monthly fee for basic service 23%

GOVERNMENT & COMMUNICATIONS
   iPhones are a must-have for Congress
   FCC's Martin Named October Porker of the Month

BROADCASTING/CABLE
   The NAB vs. Reality
   Lawmakers urge FCC to allow comment on white spaces report
   Local TV more threatened than newspapers
   FCC Sets ALJ Conference on WealthTV Complaint

QUICKLY-- FCC's Consumer Advisory Committee to Meet Nov 14; EBay Founder's Philanthropic Firm to Donate More; Tech helps teach about the 2008 election

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BROADBAND/TELECOM


PRESIDENTIAL CANDIDATES VOW MORE ATTENTION TO TECH ISSUES
[SOURCE: San Jose Mercury News, AUTHOR: Brandon Bailey]
[Commentary] No matter who wins the White House, Silicon Valley is looking forward to a president who understands the value of technology and innovation — far better, some would say, than at any time in recent years. In a series of interviews, industry representatives said Sen Barack Obama (D-IL) has shown more fluency in the uses of technology and the power of the Internet, while Sen John McCain (R-AZ) seems more "business-friendly" on traditional concerns such as taxes and trade. Privately, several said they're convinced either candidate would give Silicon Valley a higher profile — through policy initiatives and prominent appointments — than the Bush White House, which they say has been focused on other concerns.
http://benton.org/node/18145
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JAPAN, KOREA LEAD IN FIBER-OPTIC BROADBAND: OECD
[SOURCE: Reuters, AUTHOR: Niclas Mika]
Fiber-optic cable has become the biggest single broadband technology in Korea and Japan, which lead the world in the proportion of households connected to the Internet with super-fast links, OECD data showed on Thursday. The OECD's latest broadband statistics showed that Korea had 12.2 fiber-optic connections per 100 inhabitants in June, compared with 10.5 connections via cable TV networks and 8.4 connections using DSL technology over copper telephone wires. The fiber penetration rate jumped from 10.4 percent in the previous OECD survey in December 2007. Korea's fibre penetration alone is higher than the overall broadband penetration in five OECD countries: Greece, Poland, the Slovak Republic, Turkey and Mexico. Japan has a fibre penetration of 10.2 percent, followed by DSL with 9.6 percent and cable with 3.1 percent. The only country to come close to Korea and Japan is Sweden with six fibre-optic broadband connections per 100 inhabitants. The most wired country in the world according to the OECD is Denmark, with a total of 36.7 broadband connections per 100 inhabitants, but most of those are DSL connections.
http://benton.org/node/18142
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AT&T BACKS FCC PROPOSAL ON BROAD PHONE FEE REFORM
[SOURCE: Reuters, AUTHOR: Kim Dixon]
Telephone companies generally agree the intercarrier compensation system and Universal Service Fund need reform as more phone traffic is routed over the Internet through Voice Over Internet Protocol (VoIP). Federal Communications Commission Chairman Kevin Martin has proposed overhauling the payments incumbents such as AT&T and Verizon, mid-sized and rural operators pay each other to route phone traffic. The FCC will vote on the proposal on election day, November 4. On Thursday, AT&T, the country's largest phone company, said it backs Chairman Martin's plan which attempts to shift the universal service fund to push companies to build out broadband networks, especially in rural areas. Consumer groups widely agree that residential phone rates will likely go up under any revamp in the payment system, especially for rural customers.
http://benton.org/node/18141
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THE FCC IS DISCONNECTED FROM REALITY
[SOURCE: Rutland Herald, AUTHOR: Jeff Allen]
[Commentary] Apparently, the Federal Communications Commission thinks a "relief package" is needed for the nation's two largest telecommunications providers. That's why the FCC is just days away from voting on a proposed order that could end up costing millions of consumers millions of dollars on their monthly phone bills. Right now, when companies like AT&T and Verizon and others use smaller carriers' telephone networks to complete calls, they have to pay an access charge to those carriers. This is a major revenue source for the telecommunications companies that serve mostly rural, high-cost areas, like FairPoint Communications. The proposal by FCC Chairman Kevin J. Martin would all but take away that revenue, instead shifting the burden to residential and business telephone customers by forcing smaller carriers to raise their rates $2 to $15 per month. As an inevitable consequence of this proposal, monthly service rates will shoot up, forcing many low-income and senior citizens to choose between basic necessities and essential telecommunications services, including reliable 911 and broadband access.
http://benton.org/node/18140
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VOIP LEADERS LAUNCH VOICE ACTIVATED FREEDOM2SPEAK.ORG
[SOURCE: Voice on the Net Coalition, AUTHOR: ]
With the FCC poised to vote November 4th on a key decision that will impact the future of Internet communication, today VoIP leaders are launching a new voice activated web site and online campaign to educate consumers and policymakers about the power and potential of VoIP. The web site: 1) Highlights the amazing things that are happening when voice is integrated with the Internet. 2) Demonstrates the extraordinary benefits that VoIP enabled tools can deliver. 3) Enables users to take specific actions to protect their freedom to speak on the net. 4) Using the medium as the message.
http://benton.org/node/18139
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ICANN TO UNVEIL PLAN FOR DOMAIN NAME EXPANSION
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
On Friday the Internet Corporation for Assigned Names and Numbers will unveil a blueprint for making sweeping changes to the way top-level domains, such as .biz, .info, and .us, are assigned. Apparently, the plan would allow any entity to apply for any domain as long as they could pay a registration fee of about $190,000. The application process is expected to start in 2009, with the first sites potentially coming online in the last quarter of the year. The scheme, which ICANN says embodies its longtime goal of introducing competition into the domain name space, could spur fierce a lobbying battle. Intellectual property owners are already on the defensive because they fear potential trademark infringement and brand dilution. ICANN will offer a 45-day public comment period on the draft plan.
http://benton.org/node/18138
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FORECAST: LEGAL P2P USES GROWING 10X FASTER THAN ILLEGAL ONES
[SOURCE: ars technica, AUTHOR: Nate Anderson]
Peer-to-peer networking (P2P) is "starting to see a lot more legitimate uses," says Frank Dickson of MultiMedia Intelligence. He's talking about his company's new report on P2P growth that projects a 400 percent increase in such Internet traffic over the next five years. But more surprising than the growth rate, which has been in decline now for some time, is the fact that it's P2P's lawful uses that are seeing the biggest growth. For small content providers, especially companies involved in video, paying for a content delivery network can eat up a significant chunk of revenue. Done right, P2P distribution can save valuable cash for these providers, which is why Dickson sees P2P's lawful uses growing 10 times faster than its illicit uses.
http://benton.org/node/18134
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UK BROADBAND USERS REACH THEIR LIMIT
[SOURCE: BBC News, AUTHOR: ]
One million UK consumers have exceeded or come close to exceeding their broadband usage limit, research from consumer group uSwitch has found. So-called usage caps, where Internet service providers limit the amount of bandwidth users can have in any given month, are standard practice. But the majority of users are still confused by the bandwidth curbs imposed on them, the research found. For some who go over their limit the penalty is disconnection.
http://benton.org/node/18137
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AT&T TO RAISE MONTHLY FEE FOR BASIC SERVICE 23%
[SOURCE: Los Angeles Times, AUTHOR: Marc Lifsher]
In California, AT&T will raise its monthly fee for basic land-line residential telephone service 23%, effective Jan 1. The basic charge will jump to $13.50 a month from $10.94. Monthly bills for customers with about half of AT&T's 6.5 million residential land lines in California will be affected by the change. The new rate represents the first change in AT&T's basic service bill in 14 years and was authorized by the California Public Utilities Commission on Sept. 18 as one of the last steps in a deregulation process. The PUC authorized land-line carriers to raise basic monthly fees by as much as 30% in 2009 and up to an additional 23% in 2010. Companies would be free to set their own rates beginning in 2011. Consumer advocates denounced the AT&T rate increase as unfair to low-income people, including senior citizens, who depend on the basic service and already are suffering disproportionately from the financial crisis. The cost of operating AT&T's fixed-line network has been declining for years and construction of the basic system was paid for decades ago, said Michael Shames, executive director of the Utility Consumer Action Network in San Diego. "Prices should be lower, but they're not because AT&T is not competitive," he said.
http://benton.org/node/18143
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GOVERNMENT & COMMUNICATIONS


IPHONES ARE A MUST-HAVE FOR CONGRESS
[SOURCE: The Hill, AUTHOR: Jordy Yager]
House members in the next Congress could get Apple's iPhone as their newest communication gadget. The Chief Administrative Office (CAO), which oversees the communications systems for the House, has begun testing a small number of iPhones within its ranks to see if they are compatible with the working needs of lawmakers and staff.The cell phone of choice in the House is currently the BlackBerry, with nearly 8,200 in active use. If the CAO decides to offer members the option of using the iPhone, BlackBerrys are likely to remain the primary tool of communication on the Hill. If lawmakers opt for the iPhone over the BlackBerry, they will be required to pay for it out of the Member's Representational Allowance. But switching to the iPhone will be a costly investment. The House's e-mail is set up in a way that all the messages are delivered via a BlackBerry Enterprise server. That server is not compatible with the iPhone, so the only way people could get their e-mail would be to plug the iPhone into their computer. Because the iPhones would require a new server, the CAO is testing it before making the investment, according to the CAO officials.
http://benton.org/node/18136
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FCC'S MARTIN NAMED OCTOBER PORKER OF THE MONTH
[SOURCE: Citizens Against Government Waste, AUTHOR: ]
Citizens Against Government Waste named Federal Communications Commission (FCC) Chairman Kevin Martin its October Porker of the Month for using FCC funds to sponsor a NASCAR driver from his home state. The FCC will pay $355,000 to sponsor a car, owned by Yates Racing, for three races, in order to raise awareness about the upcoming switch to digital television (DTV) in February. Chairman Martin not only chose to misuse government funds, but did so without consulting all of the FCC commissioners. Not only does this expenditure show poor judgment, the underlying motivation for the contract has also raised eyebrows. Martin is generally expected to be replaced as FCC Chairman by the next president, after which he may attempt to launch a political career in his home state of North Carolina. Indeed, some have suggested that Martin's decision to move forward with this sponsorship is linked to his political future in the state. Gilliland is based in North Carolina, while NASCAR maintains offices in four North Carolina cities. Additionally, Martin chose Wilmington, North Carolina as the test site for the switch to DTV. Considering Martin's ability to sequester taxpayer money for his prospective constituents, he is well on his way to becoming a successful legislative porker.
http://benton.org/node/18135
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BROADCASTING/CABLE


THE NAB VS REALITY
[SOURCE: savetheinternet.com, AUTHOR: Tim Karr]
[Commentary] One of Washington's most powerful corporate lobbies is at it again. Raising a dust cloud of lies in a last-ditch effort to stop new technology that could better the lives of millions. For more than five years, now, the television broadcast lobby has tried to deny the American public access to white spaces — unused airwaves that sit vacant between TV channels. The National Association of Broadcasters (NAB) is clinging to horse-and-buggy notions about technology to protect their government-granted broadcast domains from advances that would let us share the air. "Opposing innovation is a well-worn page in the broadcasters' playbook," writes Jake Ward of the Wireless Innovation Alliance. "They opposed satellite radio, cable TV, and even the VCR, but the newest claims are outlandish even for NAB." The NAB believes that a mix of lies and lobbyists will win out over the facts in Washington. The sad truth is that they may be right: Many DC decision-makers simply lack the bandwidth to look into what's already known about white spaces technology. Instead, they rely upon industry lackeys who come knocking with tales of interference and disruption. The NAB is now trying to stop the FCC from following good science with good policies. Unless our leaders cut through the NAB static, we could be kept from using the airwaves to fill one of the biggest holes in our national infrastructure.
http://benton.org/node/18133
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LAWMAKERS URGE FCC TO ALLOW COMMENT ON WHITE SPACES REPORT
[SOURCE: Associated Press, AUTHOR: Joelle Tessler]
Reps Carolyn Maloney (D-NY), Shelley Berkley (D-NV), Mark Kirk (R-IL), Jon Porter (R-NV), Jerrold Nadler (D-NY), William "Lacy" Clay (D-MO), Jim Cooper (D-TN), and Robert Brady (D-PA) have written the Federal Communications Commission asking the FCC to delay a planned Nov. 4 vote on a proposal to open up unused portions of the television airwaves known as "white spaces" in order to deliver wireless broadband services. "Priority must be given to making the final decision a transparent and fair process," the letter said. "To justify a major spectrum policy decision on a 400-page technical report without a formal open comment period appears to violate this very basic premise of good government." Rep Bobby Rush (D-IL), a member of the House Energy and Commerce Subcommittee on Telecommunications and the Internet, also expressed concerns about "a hasty approach to the thorny white spaces issue" in a letter sent to the FCC on Wednesday.
http://benton.org/node/18144
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LOCAL TV MORE THREATENED THAN NEWSPAPER
[SOURCE: Cronkite News Service, AUTHOR: Maria Konopken]
As financially troubled as many newspapers are these days, local television news could face a tougher future as newspapers and their larger staffs provide more video via the Web, said Len Downie Jr, the former executive editor of The Washington Post. "I think there's just as good a chance of local television news disappearing as newspapers disappearing - and probably more of a chance actually." Downie called it ironic that the mainstream media are struggling financially because he said they are practicing better journalism and reaching more people than ever via the Internet. He said newspapers are becoming more entrepreneurial as they explore ways to make money with their content. The Post, for example, is delivering more news to handheld devices, including an experiment to send updated scores from certain high school football games to people's cell phones.
http://benton.org/node/18132
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FCC SETS ALJ CONFERENCE ON WEALTHTV COMPLAINT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission has set Oct. 27 for a pre-hearing conference on the program carriage complaint by Wealth TV against Time Warner. Wealth TV filed complaints against various cable operators, and the FCC recently concluded it had made a prima facie case that Time Warner, Comcast, Cox, and Brighthouse had violated the FCC's rules against discriminating against outside vendors in favor of an affiliated network.
http://benton.org/node/18130
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QUICKLY


FCC'S CONSUMER ADVISORY COMMITTEE TO MEET NOV 14
[SOURCE: Federal Communications Commission]
The Federal Communications Commission's Consumer Advisory Committee will meet on Friday, November 14, 2008, 9:00 a.m. to 4:00 p.m., at the Commission's Headquarters Building. The CAC will continue its consideration of digital television (DTV) transition issues. The Committee may also consider recommendations regarding broadband/universal service, closed captioning and relay services, the provision of auditory access to televised programming containing emergency information, as well as other consumer issues within the jurisdiction of the Commission. A limited amount of time on the agenda will be available for oral comments from the public.
http://benton.org/node/18129
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EBAY FOUNDER'S PHILANTHROPIC FIRM TO DONATE MORE
[SOURCE: Wall Street Journal, AUTHOR: Robert Guth]
The billionaire founder of eBay, Pierre Omidyar, is expanding his philanthropic investment firm, as some of the biggest private foundations continue to weather the growing economic turmoil. Omidyar Network, during the next year will increase its total investments and donations. The group also will add two new areas of investment. Under its plans for the next year, the Omidyar organization plans to boost outlays and retool around two broad areas: one providing "access to capital" that includes investments into financial services for the poor, and another it calls "media, markets and transparency," which will invest in technologies that can help improve transparency in government, the media and other areas.
http://benton.org/node/18131
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TECH HELPS TEACH ABOUT THE 2008 ELECTION
[SOURCE: eSchool News, AUTHOR: Meris Stansbury]
Thanks to the creativity of some ed-tech vendors, the development of Web 2.0 technologies, and the dedication of educators from coast to coast, students are experiencing the 2008 presidential election as never before, using interactive tools and strategies that teach important 21st-century skills, promote civic engagement, and engage students in the democratic process. From interactive online activities to webcasts and mock elections, technology is helping students learn how the election directly affects their lives and that every vote does, indeed, count.
http://benton.org/node/18128
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Presidential candidates vow more attention to tech issues

[Commentary] No matter who wins the White House, Silicon Valley is looking forward to a president who understands the value of technology and innovation — far better, some would say, than at any time in recent years. In a series of interviews, industry representatives said Sen Barack Obama (D-IL) has shown more fluency in the uses of technology and the power of the Internet, while Sen John McCain (R-AZ) seems more "business-friendly" on traditional concerns such as taxes and trade. Privately, several said they're convinced either candidate would give Silicon Valley a higher profile — through policy initiatives and prominent appointments — than the Bush White House, which they say has been focused on other concerns.

Lawmakers urge FCC to allow comment on white spaces report

Reps Carolyn Maloney (D-NY), Shelley Berkley (D-NV), Mark Kirk (R-IL), Jon Porter (R-NV), Jerrold Nadler (D-NY), William "Lacy" Clay (D-MO), Jim Cooper (D-TN), and Robert Brady (D-PA) have written the Federal Communications Commission asking the FCC to delay a planned Nov. 4 vote on a proposal to open up unused portions of the television airwaves known as "white spaces" in order to deliver wireless broadband services. "Priority must be given to making the final decision a transparent and fair process," the letter said. "To justify a major spectrum policy decision on a 400-page technical report without a formal open comment period appears to violate this very basic premise of good government." Rep Bobby Rush (D-IL), a member of the House Energy and Commerce Subcommittee on Telecommunications and the Internet, also expressed concerns about "a hasty approach to the thorny white spaces issue" in a letter sent to the FCC on Wednesday.

AT&T to raise monthly fee for basic service 23%

In California, AT&T will raise its monthly fee for basic land-line residential telephone service 23%, effective Jan 1. The basic charge will jump to $13.50 a month from $10.94. Monthly bills for customers with about half of AT&T's 6.5 million residential land lines in California will be affected by the change. The new rate represents the first change in AT&T's basic service bill in 14 years and was authorized by the California Public Utilities Commission on Sept. 18 as one of the last steps in a deregulation process. The PUC authorized land-line carriers to raise basic monthly fees by as much as 30% in 2009 and up to an additional 23% in 2010. Companies would be free to set their own rates beginning in 2011. Consumer advocates denounced the AT&T rate increase as unfair to low-income people, including senior citizens, who depend on the basic service and already are suffering disproportionately from the financial crisis. The cost of operating AT&T's fixed-line network has been declining for years and construction of the basic system was paid for decades ago, said Michael Shames, executive director of the Utility Consumer Action Network in San Diego. "Prices should be lower, but they're not because AT&T is not competitive," he said.

Japan, Korea lead in fiber-optic broadband: OECD

Fiber-optic cable has become the biggest single broadband technology in Korea and Japan, which lead the world in the proportion of households connected to the Internet with super-fast links, OECD data showed on Thursday. The OECD's latest broadband statistics showed that Korea had 12.2 fiber-optic connections per 100 inhabitants in June, compared with 10.5 connections via cable TV networks and 8.4 connections using DSL technology over copper telephone wires. The fiber penetration rate jumped from 10.4 percent in the previous OECD survey in December 2007. "It's a big shift. There's a shift in the industry towards fibre and we're seeing it first in Korea and Japan," said OECD economist Taylor Reynolds. Korea's fibre penetration alone is higher than the overall broadband penetration in five OECD countries: Greece, Poland, the Slovak Republic, Turkey and Mexico. Japan has a fibre penetration of 10.2 percent, followed by DSL with 9.6 percent and cable with 3.1 percent. The only country to come close to Korea and Japan is Sweden with six fibre-optic broadband connections per 100 inhabitants. Extending fibre into homes substantially boosts the speed of Internet connections, which can then also be used for high-definition television, video on demand and other services requiring large bandwidth. The most wired country in the world according to the OECD is Denmark, with a total of 36.7 broadband connections per 100 inhabitants, but most of those are DSL connections.

AT&T backs FCC proposal on broad phone fee reform

Telephone companies generally agree the intercarrier compensation system and Universal Service Fund need reform as more phone traffic is routed over the Internet through Voice Over Internet Protocol (VoIP). Federal Communications Commission Chairman Kevin Martin has proposed overhauling the payments incumbents such as AT&T and Verizon, mid-sized and rural operators pay each other to route phone traffic. The FCC will vote on the proposal on election day, November 4. On Thursday, AT&T, the country's largest phone company, said it backs Chairman Martin's plan which attempts to shift the universal service fund to push companies to build out broadband networks, especially in rural areas. Consumer groups widely agree that residential phone rates will likely go up under any revamp in the payment system, especially for rural customers.

The FCC is disconnected from reality

[Commentary] Apparently, the Federal Communications Commission thinks a "relief package" is needed for the nation's two largest telecommunications providers. That's why the FCC is just days away from voting on a proposed order that could end up costing millions of consumers millions of dollars on their monthly phone bills. Right now, when companies like AT&T and Verizon and others use smaller carriers' telephone networks to complete calls, they have to pay an access charge to those carriers. This is a major revenue source for the telecommunications companies that serve mostly rural, high-cost areas, like FairPoint Communications. The proposal by FCC Chairman Kevin J. Martin would all but take away that revenue, instead shifting the burden to residential and business telephone customers by forcing smaller carriers to raise their rates $2 to $15 per month. As an inevitable consequence of this proposal, monthly service rates will shoot up, forcing many low-income and senior citizens to choose between basic necessities and essential telecommunications services, including reliable 911 and broadband access.