FCC eyes USF fee on Internet service

The Federal Communications Commission is eyeing a proposal to tax broadband Internet service. The move would funnel money to the Connect America Fund, a subsidy the agency created last year to expand Internet access. Last year, the FCC overhauled a $4.5 billion portion of the Universal Service Fund and converted it into a broadband Internet subsidy, called the Connect America Fund. The new fund aims to subsidize the construction of high-speed Internet networks to the estimated 19 million Americans who currently lack access. FCC has long argued that Universal Service is a fee that the providers choose to pass on to consumers and not a tax.