US to begin broadband policy overhaul
Published: 07 Apr 2009 12:15 BST
The US Federal Communications Commission is to start holding hearings on how to spend taxpayer money on building and upgrading broadband access in the US.
The $787bn (£538bn) stimulus package passed by Congress earlier this year calls on the FCC to come up with a road map for how billions of dollars in government money should be spent to improve broadband in the US. The FCC has until next February to come up with a plan, and it is starting to hold hearings on Wednesday to discuss what will hopefully become a national broadband strategy.
As part of the process, the agency will look at ways to improve broadband coverage so people living in rural areas have access to high-speed internet. And it will also be looking at ways to improve the speeds of existing broadband infrastructure. The FCC will also consider updating outdated communications policies to make them more relevant as more Americans get communications and TV service from non-traditional companies.
Many telecommunications experts say the new broadband framework being laid out will be the biggest task the FCC has handled since implementing the Telecom Act of 1996.
However, getting the road map in place is likely to spur heated debate among consumer groups and cable and phone companies, especially when it comes to issues such as net neutrality. Several consumer groups have already suggested that the government impose requirements on any money given as part of the stimulus package to ensure that internet service providers keep their networks open. These groups do not want cable or phone companies blocking new services offered by competitors.
Phone and cable companies argue that imposing new regulations or laws could preclude them from managing their networks and therefore would stifle investment in this area. They are lobbying Congress and the FCC to ensure stricter rules are not put in place.
Congress has allocated $7.2bn for broadband as part of the overall stimulus package, but the issues being hammered out by the FCC are likely to entail billions more dollars' worth of investment from the government in the future. Future funding is likely to come from revisions to the Universal Service Fund.
This fund was originally created to help provide telephone access to rural Americans. But now it looks like the fund will be expanded to provide funds for broadband services. However, this is also likely to cause debate, as rural phone and wireless companies would probably receive less money from the fund if it was expanded to cover broadband.
Credit: FCC to begin broadband policy overhaul from CNET News
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