Page 7 - PCCA Journal 2nd Quarter 2012

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PCCA Journal|2
nd
Quarter 2012
7
S
hakespeare observed, “What’s past is prologue.”
That phrase truly describes rural broadband: the
past, which saw telephone penetration to ap-
proximately 95 percent of the country, is only the
beginning of our work toward a broadband fu-
ture. But, federal policies that championed telephone deploy-
ment are being reinterpreted, and the industry must ensure
that cracks do not form in historically concrete support for
rural America. Federal policies that support rural telephone
deployment touch nearly every facet of human life, from
education and health care to commerce and public safety.
The technical, legal, and economic issues are as applicable
to today’s rapidly evolving broadband world as they were to
party-line telephone service a
century ago. It is critical that to-
day’s decisions ensure a vibrant
national broadband network
tomorrow and sustain these criti-
cal connections. If broadband
is the great connector, then mil-
lions of Americans could be cut
off from the many benefits that
can be exchanged between rural
and urban areas over broadband
networks. Indeed, the ripple ef-
fects of these changes will touch
not only rural areas, but urban areas as well.
Rural telecommunications is a $14.4 billion in-
dustry, and nearly two-thirds of that economic
activity occurs in urban areas each year. If a
rural telephone company downsizes its staff
and decreases its vehicle fleet, the impact
also will be felt by the assemblyman in urban
Michigan where the truck would have been
built. As federal lawmakers reform regulations
relating to rural broadband deployment, it is
useful to revisit the policies that brought tele-
phone service to the far reaches of the nation
and to ensure that the same success can be
found as America moves toward a broadband
future.
Historic Efforts to Build
and Operate Telephone
Networks in Rural Areas
The most compelling challenge of providing
communications services in rural areas is
the cost of deploying and operating capital-
intensive networks where population densities
are low. Whether telephone or broadband, the
per-user installation cost is generally lower
in a city high-rise than in a rural area where
hundreds of feet, if not miles, might separate
users, requiring more hardware facilities for
Fighting for Rural
America’s Broadband Future
By Joshua Seidemann
Continued on page 8
Joshua Seidemann
NTCA Director of Policy
Why This Matters to PCCA
At PCCA’s recent convention in San Antonio, many members expressed concern
over how the Federal Communications Commission’s efforts to reform the
Universal Service Fund will impact investment in the rural telecom projects that
PCCA members build and supply. PCCA has reached out to rural broadband
providers—the National Telecommunications Cooperative Association (NTCA)
and the Organization for the Promotion and Advancement of Small Telecommu-
nications Companies OPASTCO)—to learn more about the issue and try to effect
change that will not only benefit our members, but will continue the effort to
bring high-quality, affordable broadband to all Americans.
This article, penned by NTCA’s Director of Policy Josh Seidemann, provides
an outstanding introduction to the concept of universal service, its long his-
tory of success, and the dire consequences of the FCC proposals. Among the
many notable points that PCCA members will take from this article, these
three stand out:
• The huge disparity in the National Broadband Plan calling for 100
Mbps service, but in rural areas the requirement would be only 4Mbps
down/1Mbps up;
• Some rural carriers are reacting to proposed changes in funding by curtail-
ing investment plans; and
• FCC actions are discouraging economic growth, limiting broadband invest-
ment, and stalling job creation.
This article is just one step in our efforts to make sure the FCC gets this
right. We urge all PCCA members to visit www.saveruralbroadband.org and
the Foundation for Rural Service website at www.frs.org and to get involved
by writing letters to your legislators and donating money to the cause. You
will be hearing much more from PCCA on this issue in the coming weeks.