An underpinning of the National Broadband Plan is Universal Service Fund reform and greater broadband adoption. The Plan calls for the creation of a Connect America Fund to distribute USF monies to ISPs that cover underserved and low income areas. CAF was finally put into place recently to the amazement of those wonks who’ve been following USF follies over the years. Policy geeks can read the full details of CAF in the Notice of Proposed Rule Making on this subject that was released earlier in the year.
Yesterday, FCC Chairman Genachowski announced an actual program to help the roughly one third of Americans–about 100 million people –who can’t afford broadband. In partnership with the FCC, National Cable and Telecommunications Association member companies– including Charter, Cox, Mediacom, Eagle, Cablevision, and Comcast–will be able to offer a $9.95 1 Mbps broadband cable service. The only requirement to enroll in this plan is that families must have one child in a School Lunch Program.
For perspective: my minimal Internet service plan–no phone or video– from Comcast runs closer to $70.
This initial phase of the CAF is expected to cover 15 – 20 million people, and will be expanded nationwide in September 2012.
Mr. G. also addressed the other piece to the puzzle, inexpensive computers, through another program that will offer a $150 refurbished laptop (or desktop). These computers will be provided by Redemtech.
It’s a good deal all around– for consumers and service providers. In quoting an American President who served during the 1930’s and early 1940’s, Genachowski nicely summarized the policy reasons for the Connect America Fund: “In our seeking for economic and political progress, we all go up – or else we all go down.”