NTCA Expresses Concern over Certain Aspects of FCC's National Broadband Plan

The National Telecommunications Cooperative Association has expressed concern with some aspects of the FCC’s (News - Alert) National Boardband Plan for rural America.

 

That said, the association also hailed FCC for its significant work on the National Broadband Plan, particularly on portions of the plan that focus on reforming the federal Universal Service Fund.

 

NTCA (News - Alert) is an association representing more than 560 locally owned and controlled telecommunications cooperatives and commercial companies throughout rural and small-town America.

 

FCC recently released the National Broadband Plan. It states that everyone in the United States should have access to broadband services supporting a basic set of applications, including sending and receiving e-mail, downloading Web pages, photos and video, and using simple video conferencing

 

The goal of federal USF reform is to provide everyone with affordable voice and broadband, according to the Plan. “The FCC should target areas that are currently unserved, while taking care to ensure that consumers continue to enjoy broadband and voice services that are available today.”

 

“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 Michael E. Brunner, chief executive officer at NTCA.

 

However, Brunner added that to truly achieve the goal of universal broadband, the plan must accurately account for all of the costs associated with providing high-quality, affordable broadband to rural and remote areas throughout the country. He believes that the plan fails to do this right now.

 

One of the major concerns for NTCA is that the plan’s current failure to allow rural broadband providers to adequately recover lawful costs related to universal service and inter-carrier compensation.

 

Additional concerns include 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 discourage rural investment and would make it unlikely that affordable broadband services could be further deployed and maintained in many high-cost rural areas,” Brunner said.