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.