dslreports logo
site
spacer

spacer
 
   
spc
story category
FCC Takes Heat For New Broadband Subsidy Plans
As Agency Tries to Give Away $185 Million
by Karl Bode 08:43AM Friday Jan 18 2013
The FCC still has around $185 million out of the $300 broadband funds available from phase one of their Connect America Fund. As we've been noting, Frontier signed up quickly for the funds, agreeing to take $71.9 million to wire some 92,000 homes. However, some companies (like Windstream) have balked at taking full funding, saying that getting $775 per install wasn't enough for their liking.

AT&T and Verizon have refused funding entirely, as both companies have made every indication they have no interest in retaining millions of their DSL users, or expanding fixed line broadband in any meaningful fashion. Phase two plans to dole out the $185 million are still being crafted by the FCC, but the agency is already taking heat for giving incumbents first dibs and for lowering their definition of broadband:
quote:
Under the new guidelines, providers could be able to apply for funding if the areas they propose to serve are not already getting at least 4/1Mbps service. But in a surprising footnote, the FCC announced they will “use 3Mbps downstream and 768kbps upstream as a proxy for 4/1Mbps service.” In other words, the FCC is ignoring its own standard definition of broadband and settling for something less. That will leave customers waiting for something better than 3Mbps service up the creek, excluded from Connect America funding.
There also continues to be significant debate over the FCC's data used to determine whether regions are served or not. After spending hundreds of millions to determine broadband connectivity, the agency's broadband maps continue to be horribly inaccurate, raising more than a few questions of whether any of this money will actually get where it needs to go. As we've seen in West Virginia, good intentions when it comes to broadband stimulus often aren't enough when dealing with major league incompetence and corruption.

It's not that broadband subsidies are bad per se, but it remains unclear if we have a competent enough government to actually get the money where it needs to go. The telecom sector has a long and painful history of subsidies being doled out to companies with nobody bothering to even see where the money went, which is why it's 2013 and we're still clumsily trying to fill in the broadband gaps in the first place.

view:
topics flat nest 
JackBauer

join:2006-08-24
Schenectady, NY

And the bankrupting of our country continues...

Taxpayers footing the bill - $775 per installation.

Really amazing what has happened to our country, and that so many people do not see the impending problem of continued massive spending with no end in sight.

norbert26
Premium
join:2010-08-10
Warwick, RI

Re: And the bankrupting of our country continues...

yeah this is government WASTE that needs to be eliminated.
silbaco
Premium
join:2009-08-03
USA

Re: And the bankrupting of our country continues...

I wouldn't call eliminating the digital divide a waste of money. Having access to the internet is crucial. Whether it is for online classes, work, or even entertainment. It helps the economy regardless.

DataRiker
Premium
join:2002-05-19
00000

1 edit
I don't mind wasting money on ourselves so much, its the Trillions we throw down the toilet overseas that bothers me.

This is nothing.

We spent almost a BILLION dollars on an embassy in IRAQ.
Crusty

join:2008-11-11
Sanger, TX
Reviews:
·Embarq Now Centu..
·CenturyLink
·Speed of Light B..

Re: And the bankrupting of our country continues...

said by DataRiker:

I don't mind wasting money on ourselves so much, its the Trillions we throw down the toilet overseas that bothers me.

This is nothing.

We spent almost a BILLION dollars on an embassy in IRAQ.

Agreed. Spending money on this country is OK with me. It's the billions upon billions upon billions we shovel to other countries that irk me.
elray

join:2000-12-16
Santa Monica, CA
Waste is wrong, either way. Our military games may constitute the greatest waste, but that doesn't justify waste at home.

elios

join:2005-11-15
Springfield, MO

Re: And the bankrupting of our country continues...

so lets defund the fed road system too?
because funding basic infrastructure is waste
openbox9
Premium
join:2004-01-26
japan
kudos:2
said by DataRiker:

We spent almost a BILLION dollars on an embassy in IRAQ.

Perhaps we should spend $4B+ on an embassy in Iraq by hiring all US personnel for labor and importing all construction materials from the US?

I do agree that nation building often times does not have the ROI that we hope/expect. We should tighten the purse strings significantly in many areas, to include throwing money at foreign governments/nations.

DataRiker
Premium
join:2002-05-19
00000

Re: And the bankrupting of our country continues...

said by openbox9:

I do agree that nation building often times does not have the ROI that we hope/expect.

You mean killing people, making new enemies, taking money from the poor here to give to the rich over there, doesn't have a ROI?

Something tells me that if we had a law that people who vote for war are the first to go on the front lines, we probably wouldn't have any more wars.

As Ron Paul so perfectly put it, "chicken hawks"
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: And the bankrupting of our country continues...

Be cynical if you must, but nation building is more than just waging war. I'm fairly confident that you're intelligent enough to know that. Military action has its place. Have we overstepped the line at times and should we restrain our political and military actions more? Most definitely.

The real point of this thread is that we can't afford to waste money, regardless of where it is or what it's for.

DataRiker
Premium
join:2002-05-19
00000

4 edits

Re: And the bankrupting of our country continues...

How about going to the front lines in Afghanistan and getting us a little more ROI?

And if you dodge enough bullets and road side bombs, maybe you will get enough of that ROI so another defense lobbyist can stuff his fat pig face with another steak dinner.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: And the bankrupting of our country continues...

How about you? I've taken my turn.

DataRiker
Premium
join:2002-05-19
00000

4 edits

Re: And the bankrupting of our country continues...

Not advocating nation building is a vastly greater patriotic duty than "taking my turn", whatever that may be.

MrMaster
jetsetter
Premium
join:2000-12-16
St Thomas, VI

there will always be waste

Without this money I don't know how long I would have to wait for cable internet to get to my locale. In fact, right this very minute my neighborhood is being wired. I currently have 1/1 dsl and when the neighborhood is done I can get 3/3.

Anything is better than 1 meg dsl.
--
My signature is on strike.
WhatNow
Premium
join:2009-05-06
Charlotte, NC

Re: there will always be waste

You will until the next Hugo wipes out the lines.

MrMaster
jetsetter
Premium
join:2000-12-16
St Thomas, VI

Re: there will always be waste

I can't use my DSL when its windy outside the way it is.

If you lived in the main town they are getting all their wires buried underground. electrical and communications. If think it's FEMA requesting that to be done.

Besides, Hugo didn't hit here so I am confused at your comment?
--
My signature is on strike.
countscabula

join:2010-03-09

govt

I think we need to have another govt study for (insert whatever you want here).
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

ka ching profiteers

what is widely under-reported is incumbents have PLENTY of cash to spend on wireless.. but act all piss-poor when it comes to wireline upgrades.

find reasonable places to spend the money-- such as creating a goal of 15 - 20% of the marketplace served by non-incumbents who actually have the customer's best interest and their survival as synergistic goals not parasitic ones..
silbaco
Premium
join:2009-08-03
USA

Re: ka ching profiteers

Wireless makes far better money than wired. The margins on incumbents without wireless are pretty sad.

gooter

@bellsouth.net

Pure Welfare for Korporations

Fascism rules.