USF: Uncle Sam's Blank check

said by rradina:

From the article (who knows if it's true but...):

Border to Border got a $23 million loan (about $150,000 per line!) from the Rural Utilities Service in 2003 to install a fiber optic network. This is paid back by USF to the tune of $164 thousand per month. That’s over a thousand dollars per line per month.

said by »edocket.access.gpo.gov/cfr_2007/···.101.htm :

[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR54.101]

[Page 102-103]

TITLE 47--TELECOMMUNICATION

CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)

PART 54_UNIVERSAL SERVICE--Table of Contents

Subpart B_Services Designated for Support

Sec. 54.101 Supported services for rural, insular and high cost areas.

(a) Services designated for support. The following services or
functionalities shall be supported by federal universal service support
mechanisms:
(1) Voice grade access to the public switched network. ``Voice grade
access'' is defined as a functionality that enables a user of
telecommunications services to transmit voice communications, including
signalling the network that the caller wishes to place a call, and to
receive voice communications, including receiving a signal indicating
there is an incoming call. For the purposes of this part, bandwidth for
voice grade access should be, at a minimum, 300 to 3,000 Hertz;
(2) Local usage. ``Local usage'' means an amount of minutes of use
of exchange service, prescribed by the Commission, provided free of
charge to end users;
(3) Dual tone multi-frequency signaling or its functional
equivalent. ``Dual tone multi-frequency'' (DTMF) is a method of
signaling that facilitates the transportation of signaling through the
network, shortening call set-up time;
(4) Single-party service or its functional equivalent. ``Single-
party service'' is telecommunications service that permits users to have
exclusive use of a wireline subscriber loop or access line for each call
placed, or, in the case of wireless telecommunications carriers, which
use spectrum shared among users to provide service, a dedicated message
path for the length of a user's particular transmission;
(5) Access to emergency services. ``Access to emergency services''
includes access to services, such as 911 and enhanced 911, provided by
local governments or other public safety organizations. 911 is defined
as a service that permits a telecommunications user, by dialing the
three-digit code ``911,'' to call emergency services through a Public
Service Access Point (PSAP) operated by the local government. ``Enhanced
911'' is defined as 911 service that includes the ability to provide
automatic numbering information (ANI), which enables the PSAP to call
back if the call is disconnected, and automatic location information
(ALI), which permits emergency service providers to identify the
geographic location of the calling party. ``Access to emergency
services'' includes access to 911 and enhanced 911 services to the
extent the local government in an eligible carrier's service area has
implemented 911 or enhanced 911 systems;
(6) Access to operator services. ``Access to operator services'' is
defined as access to any automatic or live assistance to a consumer to
arrange for billing or completion, or both, of a telephone call;
(7) Access to interexchange service. ``Access to interexchange
service'' is defined as the use of the loop, as well as that portion of
the switch that is paid for by the end user, or the functional
equivalent of these network elements in the case of a wireless carrier,
necessary to access an interexchange carrier's network;
(8) Access to directory assistance. ``Access to directory
assistance'' is defined as access to a service that includes, but is not
limited to, making available to customers, upon request, information
contained in directory listings; and
(9) Toll limitation for qualifying low-income consumers. Toll
limitation for qualifying low-income consumers is described in subpart E
of this part.
(b) Requirement to offer all designated services. An eligible
telecommunications carrier must offer each of the services set forth in
paragraph (a) of this section in order to receive federal universal
service support.

said by »edocket.access.gpo.gov/cfr_2007/···54.7.htm :

[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR54.7]

[Page 102]

TITLE 47--TELECOMMUNICATION

CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)

PART 54_UNIVERSAL SERVICE--Table of Contents

Subpart A_General Information

Sec. 54.7 Intended use of federal universal service support.

A carrier that receives federal universal service support shall use
that support only for the provision, maintenance, and upgrading of
facilities and services for which the support is intended.

said by rradina:

In all of that, where does it say that these services cannot be provided by a fiber optic network?

A carrier that receives federal universal service support shall use
that support only for the provision, maintenance, and upgrading of
facilities and services for which the support is intended.

Sec. 54.202 Additional requirements for Commission designation of

eligible telecommunications carriers.

* * * * *

(e) All eligible telecommunications carriers shall retain all
records required to demonstrate to auditors that the support received
was consistent with the universal service high-cost program rules. These
records should include the following: data supporting line count
filings; historical customer records; fixed asset property accounting
records; general ledgers; invoice copies for the purchase and
maintenance of equipment; maintenance contracts for the upgrade or
equipment; and any other relevant documentation. This documentation must
be maintained for at least five years from the receipt of funding.

said by rradina:

Amazing what USF is funding. Fiber to rural homes! Who would have guessed. I'm sure these are exceptions but if it smells like Illinois politics, it probably is.

And watch out when they apply it to high speed Internet!

said by Romney2012:

As the article points out - these ultra rural areas used to have wireless telephone access at much cheaper costs. But since the USF doesn't subsidize wireless access, companies sprang up to suck down USF fees to wire these areas best served by wireless solutions.

said by keyboard5684:

Rural is where there are, yes middle class, that live in locations which barely have basic services. There is definitely no cable, pots is sloppy, and cell is a lower grade if any signal at all. People raise there children in those areas just like anyone else would except there may be more room.

said by pnh102:

In addition to this BS and welfare for farmers who don't grow things, the USDA is now financing home loans in rural areas.

said by ArnoldZiffle :

So buy a farm and you too could be living the easy life. Just fill out some USDA paperwork and start collecting your checks.

said by pnh102:

The USDA, outside of the FDA, has far outlived its usefulness.