FCC boosts rural Internet subsidy, looks at raising minimum speed for broadband, but raises rate floor

Some rural areas could soon see a boost in Internet speeds, but their residents can also expect to see an increase in their monthly phone bill as a result. The Federal Communications Commission voted Wednesday to implement a plan that increases "federal subsidies for Internet and phone companies in rural areas to $1.8 billion next year" and will "explore how to direct federal subsidies to wireless services and whether it should raise the required Internet speeds from 4 megabits per second (Mbps) to 10 Mbps," Kate Tummarello reports for The Hill.

The commission also voted to "allow carriers to raise the so-called rate floor, the minimum amount they can charge for basic phone service and still get the subsidy, from about $14 to $20.46 a month in some rural areas," writes Grant Gross of IT News. "The rate floor increase would be phased in through 2017." Commissioner Ajit Pai said more than 1 million Americans "can expect their phone bill to increase by as much as 46 percent," Tummarello reports. Pai said the move will "harm access to service for some of the most vulnerable consumers," including the elderly. (Read more)