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FCC Chairman Unveils Plans to Overhaul Rural Phone Service Fund To Provide High-Speed Internet Access

Published Monday, February 7, 2011
by Jim Puzzanghera

Federal Communications Commission Chairman Julius Genachowski on Monday unveiled a plan to overhaul a much-criticized program that helps provide phone service to far-flung rural areas, proposing to focus it on expanding high-speed Internet access to those same locations.

The $8-billion Universal Service Fund is paid for by telecommunications companies, who must contribute a percentage of their long-distance revenue, often passing those fees on to their customers. The decades-old program has successfully spread phone service to residents in hard-to-reach areas that often are unprofitable for companies to serve, Genachowski said in a speech to the Information Technology and Innovation Foundation.

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