Broadband's Impact
FCC Paves Way For Comprehensive USF Reform At Open Meeting
WASHINGTON, February 9, 2011 – The FCC adopted a measure during Tuesday’s open meeting that lays the groundwork for revisions to the nation’s telephone subsidy systems in the near-term and an eventual overhaul to transition those systems into building and supporting broadband infrastructure.
The Notice of Proposed Rulemaking, which was adopted unanimously by the Commission, draws a roadmap to reforming the Universal Service Fund (USF) and the closely related intercarrier compensation (ICC) system.
WASHINGTON, February 9, 2011 – The FCC adopted a measure during Tuesday’s open meeting that lays the groundwork for revisions to the nation’s telephone subsidy systems in the near-term and an eventual overhaul to transition those systems into building and supporting broadband infrastructure.
The Notice of Proposed Rulemaking, which was adopted unanimously by the Commission, draws a roadmap to reforming the Universal Service Fund (USF) and the closely related intercarrier compensation (ICC) system.
The USF subsidized the build out of the telephone system in the last century to areas where it was not cost-effective for private industry to do so. Subsequently, it subsidized service to those so-called “high cost” lines and phone service to low-income families. The ICC is a system by which carriers make payments to each other for connecting calls.
As part of the National Broadband Plan unveiled last March, the administration laid forth the goal of updating the nation’s aging and increasingly anachronistic telephone infrastructure with broadband internet, which is capable of carrying both data and voice telephone transmissions.
“USF and ICC helped connect virtually every American to our 20th century communications grid,” noted Chairman Julius Genachowski during his remarks Tuesday, recognizing the positive legacy of the programs. “But the communications landscape has fundamentally changed since then… [broadband] is the indispensible infrastructure of the 21st century.”
In addition to widespread consensus that the USF and ICC support antiquated infrastructure, the programs also generously serve up instances of excessive wastefulness and gaming the system. One such example Genachowski brought up during a speech earlier in the week cited a single residence that drew more than $20,000 per year in USF funds to maintain service. In another, carriers artificially inflated telephone traffic across their lines to increase ICC revenue while disguising the origin of their own traffic to avoid paying fees.
The USF in particular has drawn the ire not only of the telecommunications industry but also from both sides of the aisle in Congress.
The guiding principles the FCC has laid forth for reform closely mirror the major criticisms of the programs, which have come from both lawmakers and the telecommunications industry alike. The current measure proposes to guide reform of both the USF and ICC by seeking paths to not only modernize the programs to apply to broadband technologies, but also ensure that the programs are accountable, fiscally responsible, and encourage efficient deployment of private-sector resources to build out and maintain networks.
“As a 21st century program,” said Commissioner Robert McDowell during his remarks, “the Universal Service Fund should evolve away from subsidizing inefficient, 20th century systems and support the efficiencies of current technologies as brought about by competitive pressures.”
The Commission also laid out loose mechanisms by which it would accomplish reform, both in the near- and long-terms. Immediate remedies include cutting waste, rewarding efficiency and closing loopholes. Long-term solutions call for transitioning the several programs that exist under the USF into a single Connect America Fund (CAF) and eliminating ICC altogether.
Though the plan amounted to little more than a set of guiding principles and high-level mechanisms by which the Commission hopes to conduct the reform, the action drew widespread support from Congress and the telecommunications industry alike.
“This fund needs to be reformed,” said Rep. Lee Terry (R-NE), who is Vice Chair of the subcommittee on Communications, Technology and the Internet, and now-famously joined former Chair of the subcommittee, Rick Boucher, in calling the USF simply “broken.”
“I’m looking forward to working with my colleagues and the FCC to ensure rural areas are able to enjoy the same communication access as urban areas.”
Rep. Henry Waxman (D-CA), ranking member of the House Energy and Commerce Committee, echoed Lee’s sentiments, saying that “the [USF] must be modernized to support broadband networks, reformed to use public dollars wisely, and strengthened to ensure full transparency and accountability.”
Meanwhile, even before the Commission’s meeting had adjourned, representatives from the telecommunications industry began firing off press releases simultaneously airing their grievances with the fund and adding their support to the vote.
“We applaud the FCC for moving forward on the important task of reforming the Universal Service Fund, especially the bloated high-cost fund that sometimes provides government subsidies in communities that already enjoy robust competition,” said National Cable and Telecommunications Association CEO, Kyle McSlarrow. “Restructuring the Universal Service Fund so it promotes broadband deployment in truly unserved communities is critical to accomplishing the national priority of connecting all Americans.”
Though statements of support flooded in from seemingly all corners of the industry, the current measure is only a first step on what promises to be a long road. Chairman Genachowski, as he did during his remarks at the Information Technology and Innovation Foundation Monday, implored those in the industry to engage the process to drive fact-based solutions. The rest of the commissioners, for their parts, were careful to acknowledge that though progress had begun.
“There are significant and difficult decisions ahead,” said Commissioner Meredith Baker, concluding her remarks, “and it will be important for all of us to work together to redefine universal service and intercarrier compensation for the broadband age.”
Education
Digital Learning is Here to Stay, Necessitating Multi-Sector Collaboration: Connected America Conference
The pandemic heightened the urgency of closing the digital divide, but several barriers remain.

DALLAS, March 29, 2023 — As technology continues to play a growing role in education, successful efforts at closing the digital divide will require collaboration between schools, government agencies, community organizations and the private sector, according to industry experts at the Connected America conference on Tuesday.
Lack of digital access has short-term impacts on students’ grades and test scores, as well as compounding long-term effects on their ability to succeed in the workforce — and these impacts are particularly significant for students of color, explained Ji Soo Song, digital equity advisor for the U.S. Department of Education.
The pandemic left millions of students struggling to participate in remote classes, heightening the urgency of closing the digital divide.
“In Texas alone, it was 34 percent of students that did not have full internet access,” said Tonjia Grimble, founder and CEO of STEM It Up Sports. “That’s about 1.8 million students.”
Although schools have largely returned to in-person learning, the pandemic “opened a door that can’t be closed again” in terms of technology’s role in education, said Jennifer Berkner, education lead strategist at AT&T’s FirstNet.
This shift enables a new realm of learning opportunities, but it also presents challenges for both students and educators, panelists agreed.
“Affordability is still the main barrier to access,” said Francisco Gallegos, digital inclusion program manager for the Dallas Innovation Alliance.
For some schools, their actual physical infrastructure poses a problem. “You have schools that are built in concrete — you can’t get service through concrete,” Grimble said. “If their structure itself is not sound, then they’re not going to be able to get what you’re trying to get them… More of our states need to start thinking about improving that infrastructure.”
Song pointed to a September 2022 report, stemming from the Department of Education’s Digital Equity Education Roundtables initiative, that detailed existing barriers and potential solutions for increasing digital access. Among other recommendations, the report advised that community leaders should develop public trust by partnering with a broad range of local entities, including educational institutions, internet service providers, nonprofit organizations and more.
“The education sector needs to be in collaboration with the broadband sector as the digital equity plans are developed, because we can’t have siloed solutions,” Song said. Many states have already announced opportunities for community members to contribute to the digital equity planning process, he added.
In addition to the digital equity funding established by the Infrastructure Investment and Jobs Act, Song highlighted a variety of other government funding programs that can be layered to support digital learning. A “Dear Colleague” letter issued by the Office of Educational Technology in January provided guidance for maximizing this range of federal funding.
Private companies can also play a role in narrowing the digital divide, said Garner Duncan, vice president of sales for Ezee Fiber. Noting the longevity of fiber, Duncan advocated for service providers to focus on a longer-term return on investment in order to better support digital education infrastructure.
“We have returns that we have to make, but we need to be less rigid,” he said.
Broadband's Impact
Lindsay Mark Lewis: As Inflation Spiked, Broadband is ‘The Dog That Didn’t Bark’
Why have internet prices remained constant while demand surges? It all boils down to investment.

There are many lessons to be learned from last year’s midterms, but Democrats should not take the results as some broad endorsement of the economic status quo. Midterm voters identified inflation as the most important issue driving their votes. And while the latest Labor Department data shows the producer price index decreasing by 0.1% in February, prices remain 4.6% higher than a year ago, which means lawmakers still have work to do to bring inflation under control.
And as they search for ideas, they may want to examine the dog that didn’t bark – in particular, the one sector of the economy that has been an interesting counternarrative to the otherwise troubling inflation story.
Home internet service is one of the few major living costs that isn’t skyrocketing. In fact, the most popular broadband speed tier one year ago actually costs 15% less today, on average.
This success story – and the bipartisan policies behind it – offers important lessons.
Remarkably, broadband prices are declining even as demand surges. The pandemic made home internet service more essential than ever for education, job opportunities and health care – all driving internet traffic 25% to 50% above pre-pandemic levels.
So why have internet prices remained constant – even declined by some measures – while demand surges? In short, it all boils down to investment.
When the pandemic cratered economic activity in the spring of 2020, executives in many industries – from lumber to oil refineries to computer chips – made the snap decision to pull back on long-term investments in new factories and manufacturing capacity. When the economy roared back, those industries couldn’t meet demand, sending prices soaring.
In the broadband industry, conversely, providers responded by investing $86 billion into their network infrastructure in 2021 – the biggest one-year total in nearly 20 years. These investments are fueling faster speeds – fixed broadband speeds are up 35% nationwide in the past 12 months – while making sure networks have the capacity to handle growing traffic needs.
This teaches us three things.
First, we should observe a Hippocratic oath and “do no harm.” America’s broadband system has thrived under a decades long bipartisan consensus for light-touch, pro-investment policies. Nearly $2 trillion in private capital built the networks that now deliver American consumers higher speeds at lower per-megabit prices than consumers enjoy in Europe, despite having to cover greater distances and more difficult terrain.
This further tells us that it’s precisely the wrong time to abandon this successful model in favor of price controls and utility-style regulation, as some House and Senate progressives have proposed. Even Democratic policy experts acknowledge that approach would be toxic for private investment.
Second, policymakers need to recognize that broadband isn’t immune from the supply chain crunches plaguing so many other sectors of the economy. Broadband buildouts are already getting delayed by shortages in fiber cable, network hardware and skilled labor. And that’s before $42 billion in federal infrastructure funding goes out the door starting next year, which will only intensify demand for these scarce supplies.
That means rural buildout projects funded by federal dollars are likely to see inflationary pressures – and take longer to complete – than Congress expected when it passed the infrastructure bill in 2021. That will put pressure on state broadband offices to be even more diligent about waste, and to emphasize reliable supply chains with experienced network builders. Bidders will also need the flexibility to buy fiber from wherever they can manage to source it, even if that means relaxing the program’s strict “Buy American” rules. This requires a regulator ability to do smart tweaking of rules to expedite buildouts cost-effectively.
Third, we need to help more financially struggling households get connected. Thanks to President Joe Biden’s Affordable Connectivity Program – and an agreement with 20 broadband companies – 48 million households can now get home internet service for free.
But more than a year later, just over a third of eligible households have signed up. Investing in enrollment campaigns and digital literacy training programs is the fastest way we can crank up the dial on enrollment. Relatively small investments here could pay huge dividends in bringing millions more Americans into the digital economy.
Even with these remaining challenges, the overall contours of American broadband policy – encouraging investment, competition and affordability – are working well. And as the saying goes: “If it ain’t broke, don’t fix it.” In an inflation-roiled economy that defies easy answers, we should learn from – not mess with – this all-too-rare success story.
Lindsay Mark Lewis is executive director of the Progressive Policy Institute. Contact him at llewis@ppionline.org. This piece was originally published in the Richmond Times on March 24, 2023, and is reprinted with permission.
Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views reflected in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.
Broadband's Impact
Josephine Bernson: The Customer Experience is About More Than Fiber
‘Listen to the customer’ is a fundamental pillar in gaining a satisfied customer.

Customer experience and the digital customer experience are what makes businesses today stand apart from competitors. In our connected world, it means delivering products and services via high-speed internet, provided by a network that’s reliable and scalable according to rising bandwidth demand.
Yet, we must keep in mind the other component of a first-rate customer experience: customer service excellence.
Customer service excellence, from the beginning
How does a fiber provider successfully work with the customers and the community from the very beginning? And, continue to provide exceptional customer service each day thereafter?
It begins with listening. “Listen to the customer” is a fundamental pillar in gaining a satisfied customer, whether it’s meeting with business executives, community leaders or residents. What are they hoping to achieve with their network, short-term and long-term? Any concerns that should be addressed?
Respond with solutions that meet their needs. Personalization is better than a one-size-fits-all approach. Each customer has different needs and unique bandwidth specifications that should be taken into consideration. For example, the ability to adjust availability to accommodate peak work hours for a financial institution or local government complex or the flexibility needed for a local business that serves an online global market.
Get to know your customers. Focus on getting to know your customers through participating in local events and spending time in the community. Teams that live and work in same community they serve care about providing their neighbors with high-quality products and superior service. Valuable feedback comes from customers who directly interact with local employees immersed in the community.
Timely and convenient customer service options. If there’s a problem, how can customers contact you for a resolution? Does the customer service center or 24/7 operations center always have agents available? Are there easily accessible online resources equipped to handle common questions? Automation is a big trend in CX. While we enjoy our personal relationships with our customers, we also leverage technology for self-service tools. It’s important to enable customers to do business in whichever manner works best for them.
Happy employees for a happy customer experience
Happy employees have long been credited with increased productivity and better service for customers. Great Plains Communications’ culture has always been to attract, train and retain workers from the areas it serves.
Customer service representative Marisa Benham has been with Great Plains Communications for 15 years. “I’ve always been a people person so I really love talking to people! I love helping them figure out what services they want and helping them if they have an issue with their account.”
As for the GPC team itself, she says, “The biggest thing I love about our team is that even though we’re a large company, I feel like we are still trying to get that small company family feel. I really love that about Great Plains as well.”
For any business to survive for a long period it must continually evolve. Great Plains Communications is a 113-year-old company serving nearly 200 Midwestern communities. As a leading digital telecommunications leader, our core focus remains the same: customer service excellence. We believe in our high-performing network and high-performing people.
Customer loyalty depends on the customer experience, but it must be earned. It’s more than state-of-the-art technologies. It’s the people behind the innovation. It’s the teams that deliver and support the technology that make all the difference.
Josephine Bernson is the chief revenue officer at Great Plains Communications. This piece is exclusive to BroadbandBreakfast.
Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views reflected in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.
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