FCC Creates Multi-Billion Dollar Broadband Fund to Expand Service to Rural America

The FCC is set to expand broadband service to millions of rural Americans. They recently created a $4.5 Billion fund that will subsidize high speed Internet service to many parts of the country that are currently underserved.

It’s a mammoth document--759 pages that contain 84 pages just on rules and regulations. There are more than 2500 footnotes throughout the pages.

Known as the “Connect America” fund, the order will establish broadband service for more than 7 million rural customers. In addition to high speed service, the Order will try to reform the convoluted system of intercarrier charges that appear on your phone bill.

What does this mean for businesses in rural areas, and how will the rules affect wireless customers and others still using landlines over the PSTN (public switched telephone network)? Bill Pautler of Blue Ocean says, “The importance of this action by the FCC lies in the increased expansion of broadband and the increasing obsolescence of the PSTN lines. Businesses in urban and rural areas that use outdated phone systems over copper phone lines need to start thinking about making the transition to IP telephony.”

The Connect America Fund will put America on the path to universal broadband and advanced mobile coverage without increasing costs.

The rules adopted as part of these reforms should take effect by January 1, 2012.