FCC plans for rural broadband face opposition from broadcasters, rural telephone companies

Federal Communications Commission Chairman Julius Genachowski unveiled Monday the National Broadband Plan, an "ambitious, decade-long project to make super high-speed connections available in every corner of the country," reports the Los Angeles Times.  The goal of the plan is to create "the fastest and most extensive wireless networks of any nation." Genachowski said, "Broadband is indispensible infrastructure for the twenty-first century, the foundation for our new economy, the foundation for our democracy in the digital age."

A key component of the plan is to use wireless broadband access for rural areas. The agency is using wireless technology for unserved areas because it is a cheaper and quicker alternative to running wires or fiber-optic cables. The FCC wants to reallocate a huge chunk of radio-frequency spectrum to use for high-speed Internet service, but that spectrum is assigned to TV and radio broadcasters, who are already lobbying against the idea.  (Read more)

The FCC wants to fund its proposals by tapping an existing $8 billion annual fund that was created to ensure universal telephone service to rural areas. In the past, rural carriers that rely on the fund have successfully opposed attempts by lawmakers and the agency to redirect its resources. For a story from The Washington Post, click here. The National Telecommunications Cooperative Association said in a release that it supports using the Universal Service Fund for broadband, but said the plan would not let telecom companies recover all the costs involved in extending service to the most far-flung customers.

Al Tompkins of The Poynter Institute reminds us why all this is important.