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FCC's National Broadband Plan Aims To Create Competition
Alert
03.16.2010
Hurts Rural Telephone Carriers and TV Broadcasters
On Tuesday, March 16, the Federal Communications Commission delivered to Congress a National Broadband Plan, recommending at least $12 billion in funding for super-fast broadband expansion. However the plan does this by:
- creating federally subsidized competition for existing carriers
- forcing TV broadcasters to give up existing radio-frequency spectrum
- taking existing funds used for rural telephone service and using it for the broadband expansion
The FCC recommends that Congress authorize $12 billion to $16 billion to create a network that would provide 100 megabit per second broadband speeds to 100 million American homes and businesses, and provide 1 gigabit per second service to every health care, public safety and educational facility in the country. A large amount of radio-frequency spectrum currently used by the broadcast industry would be reallocated to wireless broadband service. Such wireless service would introduce substantial new competition for existing cable and telephone providers.
The Plan also calls for funds currently used to ensure the availability of affordable telephone service in rural areas to be redirected for use in funding the broadband expansion. FCC Chairman Julius Genachowski said: "It's an action plan, and action is necessary to meet the challenges of global competitiveness, and harness the power of broadband to help address so many vital national issues." Congress is expected to take up the Plan and develop legislation providing both policy direction and funding.
The National Broadband Plan presents tremendous opportunities and risks for existing and potential communications providers. Preti Flaherty has substantial experience advocating for fair and equitable broadband and telecommunications policies in legislative and regulatory forums, as well as assisting clients in navigating the complex regulatory requirements associated with requests for federal funding of broadband infrastructure projects.
We welcome your questions on the implications of the National Broadband Plan and other broadband and telecommunications related issues. Attorneys Andrew Landry (alandry@preti.com) and Steven Hudson (shudson@preti.com) are available by email or by phone at 207.623.5300.
The full text of the Plan is available here: http://download.broadband.gov/plan/national-broadband-plan.pdf.