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Wireless Providers to Pay Universal Service Fees?

andyo writes "Mailing lists are abuzz with the news that wireless Internet providers may have to pay fees to support plain old telephone service. My own perspective is at the O'Reilly Network." The Universal Service Fees are taxes set up long ago to assure that telephone service was provided to everyone, even people who it would normally be uneconomical to serve. The theory is a good one, the execution maybe not. (Maybe if the fees went towards Universal Broadband?)

8 of 172 comments (clear)

  1. Wrong Decade, Wrong Law by blankmange · · Score: 3, Interesting

    Unfortunately, this seems to be an old regulation that did its job and then was never updated for how the telco's work now. Nothing new -- we have seen these examples for years now. Update the regulations and make them work for what goes on today and possible tomorrow....

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    ...we are from the government - we are here to help...
  2. NO NO NO by Peridriga · · Score: 2, Interesting

    My gosh... These things are just simply insane to me..

    This is simple economics....

    There is a market for DSL, wireless, and Cable. The government does not need to stick their foot into this market to make it work. As Adam Smith said, the 'invisible hand' will give these people their last mile connectivity.

    By forcing them to move into market that is not profitable you are simply going to increase the price so that the people that you are trying to help aren't going to be able to afford it. (Not to mention the fact that everyone is at a net loss because of the added tax)

    It IS NOT, repeat IS NOT governments job to force the economy into any position what so ever. If a company can figure out how to make these connections profitable they will, thanks to the 'invisible hand', and the company wins, the consumer wins, the economy wins, and it was all done without a negative effect. So how simple that works.

    Welcome to the world of common sense and Austrian/Mises Economics

  3. Universal broadband better? by NanoGator · · Score: 5, Interesting

    I was reading the other day that during disasters email tends to work a lot better than the phone. In Bellevue Washington, they're talking about deploying wireless devices to disaster workers. Here's the article:

    http://www.komotv.com/news/story_m.asp?ID=17879

    I can't help but think that this would be a better service to keep running than POTS with the money. Text messages are so much easier to get through than voice.

    --
    "Derp de derp."
  4. Gotta disagree by wiredog · · Score: 3, Interesting
    'invisible hand' will give these people their last mile connectivity

    Depends on where they are. Some towns are so small that simply running the wire, or even setting up high speed wireless access points, would be uneconomical unless you charged thousands of dollars for the hookup, and a hundred a month for maintenance. And satellite has latency issues.

    1. Re:Gotta disagree by Arandir · · Score: 3, Interesting

      A buddy of mine lives in rural California. By rural, I don't mean Hollywood, I mean a town of 10,000, a predominantly agricultural economy, long distance to the AOL POP, and forty miles to a anything that can truly be called a city. Granted, it's not southern North Dakota, but other than the weather, it's pretty damn close.

      But he's getting better internet connections than I am, and I'm in the middle of Mountain View, home of Netscape, Google and the rest of high-tech culture. You see, he's getting long range wireless, which I don't even have the option for. And he's getting it through a small one-man ISP. The price for his equipment was $500 (including mast router), and $50 a month for the service. That's not bad at all.

      The free market seems to be finding it's way past the last mile to his house.

      --
      A Government Is a Body of People, Usually Notably Ungoverned
  5. Re:Federal Government by tps12 · · Score: 3, Interesting

    The 10th Amendment was effectively nonexistant by the 19th century, IIRC. Jefferson proposed threatening chairmen of the U.S. bank with hanging (as they were committing treason against their states by aiding a "foreign government": the U.S.!). Of course, no one took him seriously, and by the time he took office we were already done for, and he sure didn't help.

    --

    Karma: Good (despite my invention of the Karma: sig)
  6. This if Fed's method of gaining control.... by Dr_Marvin_Monroe · · Score: 4, Interesting

    I don't think it's too much about the money that would be raised, since most small wireless operators are not making very much (if anything, some are free).....I see this really as a way of bringing groups like "Seattle Wireless" and others under governmental control.

    By making every group subject to audits, federal fees and filings, every group can be identified and investigated as needed. That's their hook into you. Kinda like the IRS, where even if you don't make any money, you have to provide them with all of your information and "allow" them to verify it. There's no "opting-out" of the information game.

    I've thought that it was just a matter of time before the government stepped in to regulate this....John Ashcroft can't have people communicating OUTSIDE the system!....How can he get Carnivore around this "wireless thing" if he can't force everyone to fill out forms and obey our regulations?

    The RIAA & MPAA also can't have people communicating outside of ATT and AOL either, who would they sue in a distributed wireless city-net? They couldn't force anyone off the air through their DCMA takedown suits! Although, if you had to have a liscense.....they could take that!...and then force you off the air.....

    The very idea that they would try to do this on an "unregulated" band shows what their intent is. I'd look for further attempts to limit power of WAP's, force a band change (making current units illegal by "out of band") and forcing some type of identification of base-stations. I could imagine some type of system where people would have to "activate" their base-stations by logging into the manufacturer site and giving some personal information or something like that.

    The government's intent is to limit annonymous speech and communication between individuals....they can't do that if we keep jumping out of the cattle chutes that they've errected at all of the big ISP's....

  7. Re:Phone TAX = Money for School Equipment (ERATE) by Britano · · Score: 2, Interesting

    Ok, good arguement, but how much longer until all the schools are wired? A report just 2 or 3 years ago stated that 95% of all schools were online, so how much longer do we keep paying for the last 5%?

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    Avoid The Rush, Hate OU Early!!!