A Gift to the Nation

Charles Benton

We have just a few days left in 2008, but there's still time for the Federal Communications Commission to give us a gift and correct a great error made on Election Day. There's overwhelming consensus that we should be moving to universal, affordable broadband. Here's how the FCC could set us on that course.

Back in November, the FCC basically punted on an opportunity to comprehensively reform the web of subsidies, called the Universal Service Fund, that are used, primarily, to keep telephone service available and affordable in rural areas. In particular, the FCC rejected action on recommendations offered by a majority of FCC commissioners and their fellow state-level regulators that the USF be used to support broadband Internet service. These recommendations were based on the laws that govern the USF and the FCC made a major error in rejecting them.

I think it is hard to argue that broadband is not the essential communications medium of the 21st century. With broadband, we can access e-mail, connect with friends, start a business, get news, watch a video, and even make a phone call. But, more importantly, broadband is now becoming increasingly essential for achieving fundamental, national policy goals - from improving education, extending health care, creating jobs and boosting our economy, conserving energy and the environment, improving public safety and national security, and reconnecting Americans with their democracy.

The FCC could wait -- for the Inauguration and the naming of a new FCC Chairman. Or the FCC could act immediately and tee up an important proceeding right now. That would be the right kind of leadership -- and a wonderful holiday gift to the nation.

With all the current and potential benefits of broadband, however, the FCC is still spending billions -- annually -- supporting the telephone infrastructure of the last century. With our economy spiraling down, markets crashing, and confidence low, it is time for reform.

Our good friends at Free Press have offered the FCC a two-step plan. First, add broadband to the list of services supported by the USF and, at the same time, announce that that the USF will transition to a broadband-only fund. Then, start a public proceeding to get input on how to get from here to there. That proceeding could be completed by the end of 2009, if not sooner.

This is just the kind of reform we need. Earlier this month, President-elect Barack Obama called for universal broadband saying, "It is unacceptable that the United States ranks 15th in the world in broadband adoption. Here, in the country that invented the Internet, every child should have the chance to get online, and they'll get that chance when I'm President - because that's how we'll strengthen America's competitiveness in the world." In response, a New York Times editorial declared, "Upgrading the Internet is a particularly smart kind of stimulus, one that would spread knowledge, promote entrepreneurship and make this country more competitive globally."

The FCC could wait -- for the Inauguration and the naming of a new FCC Chairman. Or the FCC could act immediately and tee up an important proceeding right now. That would be the right kind of leadership -- and a wonderful holiday gift to the nation.