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story category AP on the USF
'Well of cash'
(old news - 09:16AM Tuesday Jul 24 2007)
tags: prices · business
The Associated Press calls the Universal Service Fund (into which Americans have paid $44 billion over a decade) "a bottomless and politically protected well of cash for cell phone companies that do big business in rural America."
Regulators and lawmakers have long viewed the fund as inherently flawed. Even a member of the federal-state board that runs the program calls it "bizarre." But efforts to change it have been derailed repeatedly by companies that benefit from the largesse and by supporters in Congress who represent sparsely populated states.
Every so often, legislation pops up that would expand the fund to help aid broadband deployment, despite the fact it drastically needs reform first (or disintegration, according to some).

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Forums » AP on the USF
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Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

1 edit

USF = Corporate welfare

While I don't like the term this is a glaring example of it. They should change the name of it to Universal Slush Fund.
--
Remember safe sex does not prevent crabs.
chemaupr

join:2005-06-06
Alexandria, VA

How much fiber ....

Wow $44B!!! How much fiber could have been layout for that money?

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
clubs:

Re: How much fiber ....

Fiber was layout in the CEO pockets and stock options.

ib50MbSoon
Formerly TwoKDialup
Premium
join:2002-06-07
Coloma, MI


2 edits

Yup!

$44 Billion in corporate welfare!

Funny how our resident telco shills would have us believe that the telcos built "their" network with private investor funds.

Just a thought but maybe the VoIP companies wouldn't be going out of business if they got some free government cheese too!
viperlmw
Premium
join:2005-01-25
·Qwest.net

Re: Yup!

said by ib50MbSoon See Profile :

$44 Billion in corporate welfare!

Funny how our resident telco shills would have us believe that the telcos built "their" network with private investor funds.

Just a thought but maybe the VoIP companies wouldn't be going out of business if they got some free government cheese too!
Just a note to point out that most of the high cost fund is going to cell phone companies, not the telcos (with the exception of independent telcos). Not a lot of voip over cell phone.

plk
bo may sleep in loft
Premium
join:2002-04-20
Ogden, IA

tie broadband to it

As a condition of receiving this cash....make it tied to rural broadband deployment now. Since they seem so dependent on it.

Karl Bode
News Guy
join:2000-03-02

Re: tie broadband to it

The problem is nobody is willing to hold anyone accountable in this industry should subsidies be handed out and the receiver fails to deliver...

In that case you've either got to eliminate corruption and reform the system or kill it entirely.

n2jtx

join:2001-01-13
Glen Head, NY
·Optimum Online

Preferred Term

I prefer that it be called "Universal Slush Fund" not "Universal Service Fund" since that former is a more correct description.

The last thing it needs is to be expanded. Especially with all of the waste. There are a few good ideas floating around congress that would do a good job at addressing the shortcomings but I do not expect to see them implemented in my lifetime. Probably one of the best is requiring the different vendors to bid on providing service to a rural area with the low bidder getting the funding.
--
I support the right to keep and arm bears.

kyler13
Is your fiber grounded?

join:2006-12-12
Arnold, MD

Bye, bye USF

Fortunately, the advancement of VoIP telephone service has given me the option NOT to pay into a fund that serves me no purpose.

gaforces
United We Stand, Divided We Fall

join:2002-04-07
Santa Cruz, CA
·Cruzio Internet

44 billion

Isnt 44 billion enough to wire the whole country with fiber?
All of that money should be accounted for, and the money paid back for fiber deployment to the HOME, or returned to the customers.
--
The will of the people is the best law. -Ulysses S Grant
Ahrenl

join:2004-10-26
North Andover, MA
·Verizon FIOS

Re: 44 billion

No, it's not. Verizon spent $10.6B last year wiring part of about a dozen different states. A small part. They plan on spending another ~$11B this year. I'm pretty sure they spent a like amount in 2005. So there's $30B already, and they haven't even finished half of any one state. (by population or land mass). And they haven't even started 2/3rds of the states.
PastTense5

join:2007-05-15

Good Idea to Support Both Rural Landlines and Rural Cellular

While the funding can probably be tuned better, I support the idea of supporting both landlines and cellular in rural America: landlines because it is a more reliable system and cellular because it supports mobility (suppose your car breaks down in the middle of nowhere...)
Forums » AP on the USF


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