FCC to propose 62 percent increase in money to wire schools; would help connect rural schools

Federal Communications Commission chairman Tom Wheeler is expected to propose a 62 percent increase in the amount of money the agency spends annually to wire schools and libraries with high-speed Internet connections, Edward Wyatt reports for The New York Times. The move would increase the FCC's annual cap on spending for school Internet from $1.5 billion to $3.9 billion. (NYT photo by Mark Holm: FCC chairman Tom Wheeler)

The move would most benefit rural areas, where "seven in 10 rural districts say none of their schools can meet high-speed Internet connectivity targets today," Wyatt writes. "Schools in affluent areas are three times more likely to meet speed targets as those in low-income areas, the FCC says."

"Libraries need upgrades too, and in low-income and rural areas, they are important because they often provide the only available Internet connection for many people," Wyatt writes. "Yet half of all public libraries report connection speeds of less than 10 megabits per second. Mr. Wheeler has said 25 megabits per second should be considered “table stakes” in 21st-century communications."

"The new spending would lead to an increase of roughly 16 percent in the monthly fee on consumers’ phone bills," Wyatt writes. "The fee is used to finance the Universal Service Fund, an $8.7 billion effort that provides phone and broadband connections for low-income populations, rural areas, and schools and libraries."

"FCC officials say consumers would pay less than $2 a year in additional fees per phone line, or less than $6 extra per household, on average; currently the average household pays about $36 a year," Wyatt writes. "But the amount an individual household pays can vary widely, with fees assessed on both home and mobile service. Businesses pay into the program as well." (Read more)