more on [ now this is a darn goodquestion djf] FCC Policy-maker Lays Out VOIP Problem

[Dave Farber <dave () farber net>]

Delivered-To: dfarber+ () ux13 sp cs cmu edu
Date: Fri, 02 Apr 2004 09:16:00 -0500
From: Chris Savage <chris.savage () crblaw com>
Subject: RE: [IP] more on [ now this is a darn goodquestion djf] FCC
 Policy-maker Lays Out VOIP Problem
To: "dave () farber net" <dave () farber net>

> -----Original Message-----
> From: Dave Farber [mailto:dave () farber net]
> Sent: Friday, April 02, 2004 8:27 AM
> To: ip () v2 listbox com
> Subject: [IP] more on [ now this is a darn goodquestion djf]
> FCC Policy-maker Lays Out VOIP Problem
> Importance: Low
>
>
>
> From: gjones () ScottStringfellow com
>
>>Thought just occurred to me.  If I am paying for universal service fee
on my land line and on my cellphones as well, the fund should be flush
with funds.  It went from one phone per family, one revenue stream, to 3
or more phones per family with the additional cell phones.  I am now
paying in three times as much than I was 10 years ago.  With all these
additional funds flowing in, they should have broadband everywhere by
now.  Where is all the money going?<<

The causes of rapid growth in the universal service fund are under
consideration by the FCC.  As a strictly factual matter, most of the
growth in payments has gone to relatively small, relatively rural
incumbent carriers.  The amount they take out of the fund is supposedly
based on the "costs" they incur, but the flaws of cost-based regulation
are well-known and seem to be in full flower here.  The small carriers
point their fingers at the fact that the fund allows states to designate
competing firms as fund recipients as well, and (notably) a number of
wireless carriers have received certification to receive universal
service funding.  But, again as a purely factual matter, increases in
payments to newly designated carriers are much, much smaller than
increases in payments to small, rural incumbent landline phone
companies.

Chris S.

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