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PCCA Journal|2

nd

Quarter 2010

7

News Briefs

FCC Survey Finds That 93 Million Americans Are

Disconnected from Broadband Opportunities

A

t the Brookings Institution

on February 23, the Feder-

al Communications Com-

mission (FCC) released its

National Broadband Plan

Consumer Survey, Broad-

band Adoption and Use in America

,

which found that affordability and

lack of digital skills are the main

reasons why 93 million Americans—

one-third of the country—are not

connected to high-speed internet at

home.

“We need to tackle the challenge

of connecting 93 million Americans

to our broadband future,” said FCC

Chairman Julius Genachowski. “In

the 21

st

century, a digital divide is

an opportunity divide. To bolster

American competitiveness abroad

and create the jobs of the future

here at home, we need to make sure

that all Americans have the skills

and means to fully participate in the

digital economy.”

On March 17, the FCC deliv-

ered a National Broadband Plan to

Congress that details a strategy for

connecting the country to affordable,

world-class broadband. “This will be

a strategy for U.S. global leadership

in high-speed internet to create jobs

and spur economic growth; to un-

leash new waves of innovation and

investment; and to improve educa-

tion, health care, energy efficiency,

public safety, and the vibrancy of

our democracy,” the FCC said.

As part of the plan, the FCC con-

ducted a national random digit-dial

survey of adults in October and

November 2009 to assess America’s

attitudes toward broadband. The

survey found that 35 percent of adult

Americans do not have high-speed

internet connections at home.

The survey identified three main

barriers to adoption: affordability,

digital literacy, and relevance.

NTCA Says National Broadband Plan

May Not Incent Broadband Deployment

T

he National Telecommunications Coopera-

tive Association (NTCA) in March hailed the

FCC and the Broadband Task Force for their

significant work on the National Broadband

Plan, particularly on portions of the plan

that focus on reforming the federal Universal

Service Fund (USF). However, the group said other

aspects of the plan may not incent broadband deploy-

ment in rural America and must be addressed. NTCA

represents locally owned and controlled telecommu-

nications cooperatives and commercial companies in

rural America.

NTCA supports targeting future USF support through

the proposed Connect America Fund (CAF) to areas

of the nation that cannot support broadband deploy-

ment by a single provider without USF support, a move

that appears conceptually consistent with NTCA’s own

broadband plan.

“The plan takes a critical first step toward making

universal broadband a reality for every American by

recognizing the integral role of USF reform in ensuring

a viable broadband infrastructure for the future,” said

NTCA CEO Michael E. Brunner. “But to truly achieve

the goal of universal broadband, the plan must ac-

curately account for all of the costs associated with

providing high-quality, affordable broadband to rural

and remote areas throughout the country. Put simply,

the plan fails to do this right now.”

Of particular concern to NTCA are the plan’s current

failure to allow rural broadband providers to adequate-

ly recover lawful costs related to universal service and

intercarrier compensation, failure to account for vital

costs associated with carrier of last resort obligations,

and the recommendation to eliminate rate-of-return

regulation for all carriers regardless of economies of

scope and size.

“Collectively, these aspects of the plan would dis-

courage rural investment and would make it unlikely

that affordable broadband services could be further de-

ployed and maintained in many high-cost rural areas,”

Brunner said.

News Briefs continued on page 8