USF for broadband is scary... The big problems...
1) There will be a push to use funds for fiber networks, (since so many are pushing for higher speeds for consumers, and with USF mentality its not a competition to spend cost effectively.). 2) There will be a push to give money to pre-existing USF recipients. (Government doesn't want to compete with itself. And easier to work with companies already proven to have experience in USF) 3) WISPs may not qualify if they dont reclass themselves as a LEC or Common Carrier. 4) Even though many WISPs consider themselves rural, most WISP's subscriber are still in areas that would be payees into the fund, not recipients of the fund. So most WISPs could get hit with a 6% USF fee, taking away a strategic selling advantage over LECs. 5) USF creates small monopolies, kills fair competition, and kills start-ups. (I believe USF can only go to one entity in an area, I think) 6) One risk is that federal policy will tend to favor those that invest in fiber, and disadvantage those that use old technology to encourage investment in new technology. I could see them, exempting FIOS from paying into the fund, because it is broadband not regulated telecom, but RBOCs being recipients. 7) double edge sword.... Narrowing qualification for USF area, will prevent fewer LEC competitiors to WISP pre-existing operations and expansion markets. However having narrower qualification could prevent more WISPs from being eligible. Many believe USF should be killed. But others believe that even though it should be killed, if one votes for killing it, they will just be throwing away their vote, becaues there will likely be some level of USF reform, and WISPs would be better off influencing the rules, than fighting for something that wont occur. My opinion... We should be suggesting to FCC alternatives.... 1) Allow any and all to qualify for funds that step up to deploy, at the same subsidee rate within an area. Meaning qualification is areas not entities. (Many will argue that subsidized areas cant sustain competition, and better chance of success with less duplication). Sure, no two subsidees to the same house, but first one to the house gets to claim the subsidee for it. Make it a race where all get paid for their progress and diversity. 2) Make sure ALL competitively advantaged companies pay into the fund. WISPs should not have to pay into the funds for two reasons... 1) THeir upstream already pays, and WISP is just an extension of the upstream. Fixed Wireless is a disadvantaged technology for advanced broadband, and targets underserved users in all areas of America. It would be counter productive to start taxing WISPs with USF funds. Thus WISPs should be exempt. Broadband provider below a certain size should be exempt from USF contribution. 3) Pre-existing recipients should NOT have preferencial treatment. Actually, maybe the Dept of Justice should be asked to step in (responsible for anti-trust and such) to prevent the unfair competitive advantage that pre-existing USF recipients would have to gain USF Broadband subsidees. 4) Suggest replace the USF with customer Voucher system, (explained well by MAtt LArson not to long ago). Where recipient choses their provider, and can apply their voucher. With Voucher system it takes away the false positive, because all can qualify regardless of if a provider is already in an area. It levels the playing field. 5) argue that in areas where there really isn;t enough subs for competition to exist, it wont be a problem, because business men will analyze a market and competitive environment and not waste their time deploying in an area where there is already someone else that got a head start in a limited sub market. . 6)Argue, the problem with USF may not be the terms of payee side. The problem is program terms on how many is awarded. 7) Argue there are good enough technologies available to serve rural area cost effectively with less USF subsidations. (AKA wireless). 8) Argue that there is little need for USF for broadband anymore. I believe it is still possible to gain an outcome to kill USF. Ask New Jersey senator what he thinks! 9) Subsidees should have DUAL purpose not single purpose. Meaning, it should not just be to get broadband to rural area. It should also simulataneously subsidize the growth of small yound companies to stronger companies to build and strengthen an industry. The reality.... Truth is.... If Verizon were to charge their non-rural subs 6%, and then be forced to reallocated that 6% revenue to fund Verizon build-out, would that be a Good thing? Forcing one company to deploy a specific percentage of profit to rural America? That is the fundamental arguement that needs to be answered first. (that removes the arguement verison should have to subsidize their competitors). One reason USF has not been easy to kill is that many believe that is an acceptable solution. Penalize the masses, to help the minority, for a stronger total USA. I'd have to agree with the idealology. The question now is... Is it still necessary? Has the work already been done? Is DSL, T1s, and Fixed Wireless good enough for Super Rural America? If we want to stop USF, we must prove that the job is already done, and there is no need for USF anymore. The second ethical question is... Should someone qualify for subsidees that didn;t pay into the fund. I say yes, because its not about who is the beneficiary, its about fortunateate consumers helping other less fortunateate consumers. Its irrelevent who the recipient is, if it creates a stronger broadband solution for the consumers of the area, and most efficiently uses the funds available. ONce again we must strongly argue that wireless is the most efficient use of funds for rural areas, quick to deploy. And above all ONGOING Competitive environments not lcoal monopolies not a specific speed technology, is what benefits consumer's most. LAstly, Our theme song should be... "You cant always have what you want, but if you try you can have what you need" :-) Tom DeReggi RapidDSL & Wireless, Inc IntAirNet- Fixed Wireless Broadband ----- Original Message ----- From: "Bret Clark" <bcl...@spectraaccess.com> To: <wireless@wispa.org> Sent: Monday, February 07, 2011 5:55 PM Subject: [WISPA] FCC Favors Shifting Rural Subsidies To Broadband > Ugh...not good. Last thing I need is to compete with the ILEC who is > getting money from the Universal Slush Fund to provide government > subsidized broadband in rural areas. And I can see every ILEC in America > lobbing to ensure that the distribution of USF continues "as is" if the > shift is made to broadband instead of telephone...basically filling the > ILEC's coffers! The FCC is looking for comments, so we all need to make > it quite clear that the funds should be available for any and all > broadband providers! > > http://news.yahoo.com/s/nf/20110207/tc_nf/77213 > > Bret > > Bret Clark > Spectra Access > 25 Lowell Street > Manchester, NH 03101 > www.spectraaccess.com > > > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ -------------------------------------------------------------------------------- WISPA Wants You! 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