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Modernizing and Streamlining the Universal Service Fund

by: Haley Van Dÿck, FCC New Media

February 7, 2011

[[wysiwyg_imageupload:153:height=104,width=70]]This morning, Chairman Genachowski laid out a proposal to get broadband to rural America while cutting waste and inefficiency in two of the Commission’s largest programs.

Universal service has been core to the FCC’s mission since the Communications Act of 1934 created the agency and committed our nation to making vital communications services accessible to all.  The Universal Service Fund helped connect virtually every American to our 20th century communications grid.  But this program, along with Commission’s closely related Intercarrier Compensation rules, have become riddled with waste and inefficiency and are not up to our nation’s broadband challenge. Today, up to 24 million Americans have no access to broadband—fixed or mobile.

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At tomorrow’s meeting, the Commission will vote on the proposal to transform the Universal Service Fund and Intercarrier Compensation rules from programs designed to support 20th Century voice networks to a force for expansion of 21st century fixed and mobile broadband and voice networks, while eliminating waste and inefficiency.

Read the full text of Chairman Genachowski’s speech here.

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