American Cable Association Supports Creation of Connect America Fund

National Broadband Plan, Universal Service July 15th, 2010


WASHINGTON July 15, 2010 – The American Cable Association has publicly endorsed the Federal Communications Commission’s plan for the creation of the Connect America Fund.

“Like the FCC, ACA is convinced that the time has come for the USF to focus on the infrastructure technology of the future: Broadband,” ACA President and CEO Matthew M. Polka said.

Matthew M. Polka

The National Broadband Plan calls for the creation of the Connect America Fund, and proceedings for the repurposing of the High Cost Fund began in March.

The current High Cost Universal Service Fund has $4.4 billion that the FCC wants to use for broadband.

The ACA did stipulate that small phone providers should be allowed to rely on the fund so that their phone rates to remote areas do not increase.

“Allowing smaller phone providers to choose when they move from their traditional method of support to the CAF helps assure that the move to broadband will not threaten universal accessibility to wireline voice services at comparable rates. Once the smaller telephone company accesses the CAF, the company’s traditional High Cost support should be eliminated in that area,” Polka said.

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