The Federal Communications Commission has just unveiled a new plan that’ll overhaul an $8 billion fund that’s currently used to “subsidize phone service in rural areas and for the poor,” pointing that money towards buildouts in the ambitious rural broadband initiative. Most critics suggest that the existing fee model is severely outdated, and in fact, encourages “perverse schemes by carriers to stimulate certain kinds of phone traffic.” Not surprisingly, FCC Chairman Julius Genachowski has said that he “doesn’t expect” phone rates to increase for most consumers, and the agency’s currently estimating a $2.2 billion savings from fees that are currently paid out to phone companies. Politics aside, the goal here is to provide broadband access (however that’s defined) to every American by the end of the decade, with Genachowski quipping: “We are taking a system designed for the Alexander Graham Bell era of rotary telephones and modernizing it for the era of Steve Jobs and the internet future he imagined.” Pretty sure more than just Jobs had visions of a connected future, but we’re following the logic, Jules.

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FCC’s ‘Connect America Fund’ redirects phone fees to provide rural broadband originally appeared on Engadget on Thu, 27 Oct 2011 18:57:00 EDT. Please see our terms for use of feeds.

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