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Dear Reader:

We wanted to let you know that, after nearly three years of operation on the World Wide Web, National Journal's Insider Update: The Telecom Act ceased publication as of January 1, 2008.

We took this step at a time when the National Journal Group is moving to increase technology coverage -- including reporting on telecommunications and broadcasting issues -- in several of its other publications. In particular, National Journal's CongressDaily -- our twice daily publication for Capitol Hill insiders -- will be adding staff in the coming weeks for this purpose.

CongressDaily will feature the kind of detailed coverage of telecom issues, both on Capitol Hill and at the Federal Communications Commission, that you are accustomed to seeing in Insider Update -- plus a lot more.

If you are interested in a trial subscription to CongressDaily, please call 800-424-2921 or e-mail us at memberships@nationaljournal.com. Thank you for your readership and support of Insider Update, and please don't hesitate to write to me at lpeck@nationaljournal.com if you have any questions or concerns.

With best regards,
Lou Peck Editor In Chief

« Senators Probe Spectrum Auction Bidders | Main | DTV Views Of Martin, Lawmakers Clash »

Martin Wants To Subsidize Rural Broadband

By Gene J. Koprowski, for Technology Daily

(Tuesday, June 19) CHICAGO -- FCC Chairman Kevin Martin said on Tuesday that the concept of universal service needs to be substantially upgraded to encompass financial support for high-speed Internet services in rural areas.

In a live video presentation at the NEXTComm industry show here, Martin said broadband policies should be updated so rural consumers could receive the same services as their urban counterparts. "But there's a limited amount of funding to do this," said Martin, who responded to questions from industry leaders. "We need ... a policy that is technologically neutral."

Martin said the FCC should move away from "subsidizing multiple voice carriers in rural areas" to subsidizing broadband. He added, "It's critical that the concept of universal service stays in place -- and that everyone stays connected."

Last year, the FCC sought to foster investment in broadband, providing incentives to carriers to invest in the technology. The move has worked, according to the Telecommunications Industry Association, noting that $70 billion was spent last year on broadband infrastructure.

Access to broadband for many previously underserved demographic groups, including the poor, has increased as a result, TIA said. But industry leaders here cautioned that 45 percent of Americans still do not own computers.

The universal service fund, which subsidizes telecom service, has been a point of controversy of late. On May 1, the FCC's Joint Federal-State Board on Universal Service recommended a temporary cap on USF subsidies to competitive telecom carriers, mostly wireless firms. Last week, Senate lawmakers from both parties sharply criticized that proposal and urged the agency to take the lead on a comprehensive overhaul.

In terms of other policy priorities for his agency, Martin said his vision is to "remove regulations that inhibit innovation."

Speaking at the conference, Chris Rice, the chief technology officer of AT&T, commented that in coming years, industry leaders no longer will think of themselves in terms of "wireless" or "wireline" providers but will present themselves as "multimedia" service providers.

But Martin said it is also a priority for the FCC to ensure that access to content on the Internet is equal for all Americans, even if telecom companies continue with the trend of providing different levels of service at distinct prices.

Another area where strong regulation will remain in place is in guaranteeing access to emergency services for consumers, Martin said.


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