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