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Rural Broadband to Replace POTS As Beneficiary of US Gov't Subsidies

IDG reports that "The U.S. Federal Communications Commission has voted to overhaul a decades-old system of telephone subsidies in rural areas, with the funding refocused on broadband deployment. The FCC's vote Thursday would transition the Universal Service Fund's (USF's) high-cost program, now subsidizing voice service, to a new Connect America Fund focused on broadband deployment to areas that don't yet have service. The FCC will cap the broadband fund at $4.5 billion a year, the current budget of the USF high-cost program, funded by a tax on telephone bills." That cap, says Reuters, is "the first budget constraint ever imposed on the program."

30 of 208 comments (clear)

  1. Make broadband a tariffed, regulated utility by MetricT · · Score: 5, Interesting

    I have been trying to get broadband for my parents for years. They live a mile off the main road in a deep valley. Thus far...

    * No ISDN. A year or two ago Tennessee decided it no longer had to be a tariffed service, and AT&T burned their ships behind them as rapidly as possible, because I was told our CO no longer has ISDN hardware (it did back in 2001-2002).

    * No DSL. AT&T has a cluster of SAI cabinets 1 mile from their driveway, but no free ports on their DSLAM, and no intention of adding new ones. I've voluntered to *BUY* them a frickin' VDSL2 DSLAM and give it to them, but I've never heard back from them on that or any of several other offers. AT&T is a bigger information sink than /dev/null

    * No Fiber. I have asked Charter if they could provision single-mode fiber if I pulled it to the road. I was agnostic about whether that's a pure FTTH setup, or just a cabinet by the road with a cable modem and a fiber converter. Nope. They cannot provision my fiber under either scenario, but they *can* provision fiber they lay themselves, which strangely costs roughly "one new car" more than doing it myself. Which is kind of hard on retired fixed-income folks.

    * No cable. Their house doesn't have cable coax. See Charter's idea of fair price above.

    * No cell. The valley effectively blocks all signals. I have maps of every cell tower in a 10 mile radius, and never found a useful signal on any of them.

    * No satellite. They don't have line-of-sight with geosynchronous orbit, and even if they did, the satellite providers in our area aren't accepting new customers right now.

    I mean, what can you do at this point? My next step is getting two 2 watt Wi-Fi routers and a couple of high-gain antennas, setting up a couple of passive repeaters between them and my house (very NoLOS), and hoping I can set up a wireless bridge. My next step past that is contacting CERN to see if they can beam internet over neutrinos.

    The last time this issue came up on Slashdot, the (L)ibertarians came out of the woodwork, blaming my parents for building a house somewhere where there's no broadband, despite the fact that they built the house in 1985. Which is about as rational as blaming settlers in the 1700's for not building cities where the interstates were going to be.

    They also pounced on me for wanting something subsidized. Except you're not subsidizing me one thin dime. The phone cable is already in the ground. All I need is a DSLAM in the local SAI cabinet, *which I volunteered to purchase myself*. No go. A free market only exists when the buyer actually has a choice (see "healthcare" for another example of your economic ideologies colliding with reality).

    Freshman economics tells you that some business don't behave well under the usual free-market rules, and thus need to be heavily regulated. Those business are called "natural monopolies", which is why gas, electricity, sewage, roads, phone (hah!) are provided by either public utilities, or publicly-regulated private utilities. A utility only needs one set of physical plant, one set of staff, one set of senior management. Multiple companies waste megabucks on multiple plant/staff/management. They waste further megabucks on advertising, trying to steal profitable customers from each other in a zero-sum game. All that needless spending increases your costs, increases the necessary rate of return before they will provide internet, and ends up marooning a lot of marginal households on the wrong side of the digital divide.

    In the middle 2000's several underserved TN cities and utilities got tired of being ignored by the AT&T and Comcast's of the world and were looking at getting into the game themselves. And then in 2008 our state politicians decided to actively hinder the formation of municipal internet and the entrance of local electric utilities (existing ones got grandfathered in), in the name of "encouraging compet

    1. Re:Make broadband a tariffed, regulated utility by MetricT · · Score: 2

      I would be tempted. But given the cost of doing so, and the likelihood that they wouldn't support that either, it doesn't make a lot of sense.

      It also doesn't make a lot of sense to invest several thousand laying coax when it's going to be obsoleted by fiber in a few years any. Last time I checked, the successor to HDTV (Utra-HDTV) required 250 Mbs for streaming, and is supposed to be out around 2018. I rather doubt coax would scale that high. So it doesn't make sense to spend money that's going to be obsoleted within the decade.

    2. Re:Make broadband a tariffed, regulated utility by RealTime · · Score: 2

      Bury conduit instead?

      Just choose a diameter that will accommodate anything you might expect to pull in the future and be sure to have some intermediate weather-tight boxes every few hundred feet.

      --

      Yesterday it worked; today it is not working; Windows is like that...

    3. Re:Make broadband a tariffed, regulated utility by fred911 · · Score: 2

      Build or buy a yagi and point it at one of the cell towers you have mapped. You should easily be able find signal in a valley with a 35db gain antenna. It might not be the most pretty solution, but it shouldn 't be too costly either. Kinda down and dirty, have by torrow solution.

      --
      09 F9 11 02 9D 74 E3 5B - D8 41 56 C5 63 56 88 C0 45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
    4. Re:Make broadband a tariffed, regulated utility by Anonymous Coward · · Score: 2, Insightful

      I'm not going to scroll through ALL the responses and see if someone else already suggested this, but...

      Have you considered trying to acquire some land closer to, or even adjacent to, the road? If you could just get 100sq ft or so, you could perhaps convince the companies to provision to THAT location and then run the rest of the cabling yourself. This has the advantage of solving the "we have to run it all the way to the property ourselves" problem, you've brought the mountain to Mohammed!

    5. Re:Make broadband a tariffed, regulated utility by MetricT · · Score: 2

      Actually I have considered it. It's a ludicrous idea, but it's also a ludicrous situation too.

    6. Re:Make broadband a tariffed, regulated utility by khallow · · Score: 3, Funny

      I live in the countryside well outside a small city (population about 100,000 including surrounding countryside), and have 100/10 internet. This internet service costs me 43euro per month from the regulated local monopoly.

      So the solution is to get the Europeans to subsidize US broadband? Sounds good to me!

    7. Re:Make broadband a tariffed, regulated utility by Anonymous Coward · · Score: 2, Insightful

      Bury a damn conduit. Pull whatever you need later.

    8. Re:Make broadband a tariffed, regulated utility by Wyatt+Earp · · Score: 2

      Why not, the US is subsiding the European bank bailouts and has been subsidizing the defense of western Europe since 1945, and central Europe since 1992.

    9. Re:Make broadband a tariffed, regulated utility by MetricT · · Score: 2

      A Zhone 24 port VDSL2 DSLAM goes for about $100 a port nowadays. The fiber run and node was north of $20k just for the hardware. Labor was estimated at $5-7k on top of that.

      I'd be willing to run twister pair to a neighbor's house, pay their internet if they'd share, and pipe it back on VDSL2 modem. ZyXEL sells 'em for $300. But the neighbors are in much the same situation.

    10. Re:Make broadband a tariffed, regulated utility by sjames · · Score: 4, Informative

      No, he's complaining that the current sorta-kinda half monopoly, half unregulated market thing isn't working. He would prefer the government do it right and own the lines.

    11. Re:Make broadband a tariffed, regulated utility by MetricT · · Score: 2

      I've considered 900 Mhz radios too RadioLabs sells a pair with dish antennas for $500. I wanted to test with 2.4 GHz WiFi first just to see, because if I spend $500 on 900 MHz and it doesn't work, then I've poured money in a hole. Whereas if I spend $500 on 2.4 GHz Wifi and antennas and it doesn't work, I can at least use them somewhere else.

    12. Re:Make broadband a tariffed, regulated utility by hairyfeet · · Score: 5, Informative

      I don't know about his sitch but I actually tried that with my mom. She is exactly TWO BLOCKS from the end of their connections on both DSL and cable and NEITHER would run it. So I contacted a friend that was a lineman at the time, had him come out and figure up the cost of the line (about $2300 including the time for him and the bucket truck) and ran the line in my mom's place to the road and contacted the cableco. I was told they would need $35,000 PLUS at least a dozen homes PLUS a guarantee that each home would take the max package PLUS another 35% surcharge on TOP of all that!

      Finally in a level of sheer POed I cornered the PHB at the cableco and said WTF did he think he was doing and was told it is SOP to not run a single inch where they can't guarantee at LEAST 100% profit above the cost of the run IMMEDIATELY along with a similar profit for at least two years, but that was only for large jobs with big payoffs, for small jobs try ten times or more for their "effort". This is why they haven't run a single inch except to some condos that signed a crazy exclusive agreement in damned near 20 years, nobody will do shit in this country anymore unless insane profits are handed to them the instant they do it.

      Frankly is it any wonder why we get the short bus to the info superhighway folks? Frankly we ought to nationalize the lines since they have ALREADY stolen $200 billion from We, The PEOPLE for nationwide broadband and all we got was the finger and an autographed pic of the CxOs snorting coke off their $1000 hookers with the "free' bonuses we gave them. Well after dealing with them for over 20 damned years trying to get them to run a lousy two fucking blocks I say, to quote Mr garrison "You go to hell! You go to hell and you die!" We need to nationalize and FORCE competition if we are ever to get anywhere. If they want a monopoly? That's fiber to door in return for 15 years. If its a place that currently isn't being served (REALLY served, not the horseshit like that .gov self reporting site which says my mom has 6 choices not counting sat when even in the middle of town i only have two and she has none) we'll give them 25. if they fall down on the job and stop hooking people in the neighborhood up, or trying claiming a single house on the edge of the area means the whole area is served? then bye bye monopoly, the lines are opened and its a free for all.

      Just look at how opening up the POTS gave us all this new tech and new devices. If we could take the lines away from the cartels (who should be banned from having both lines and media as a conflict of interest) we could see a similar explosion of new ideas in broadband. but as it is its just the 1%ers at the top bleeding the country dry and giving back ever shittier service in return.

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      ACs don't waste your time replying, your posts are never seen by me.
    13. Re:Make broadband a tariffed, regulated utility by silas_moeckel · · Score: 2

      Split the different run a pair of single mode fiber to each home/business back to a CO, allow all comers to rent space or bring fiber to these CO's. Sounds like something better to do with 4 billion a year. Since it can all be doen with passive optics it's realy cheap CWDM and that gets 10 gigabits or more to each and every house.

      --
      No sir I dont like it.
    14. Re:Make broadband a tariffed, regulated utility by Pence128 · · Score: 2

      Hate to break it to you but by the standards of the rest of the world US internet sucks. Or is 100Mbits for $60/mo the norm?

      --
      404: sig not found.
  2. Good, Now Make it Bigger by RobinEggs · · Score: 3, Insightful

    The changes will cost U.S. residents paying less than $30 a month for telephone service an additional $0.10 to $0.15 a month

    This sounds great. Good for people without broadband, insignificantly more expensive for people who currently get a POTS subsidy from the program.

    Now how about an urban broadband fund, to replace the worthless service tens of millions of us still have, service so bad it isn't even legally 'broadband' in any other industrialized country, with something usable?

  3. Re:Scam by sumdumgai · · Score: 2

    If nobody lived in the country, what would you eat? Good luck with raising cattle on the roof of your apartment building.

    --
    âoeIn theory, theory and practice are the same. In practice, they are not." â Albert Einstein
  4. Re:Scam by h4rr4r · · Score: 3, Insightful

    Why is that my problem?

    I agree with building out ISP service, but handing the money to private companies is not going to work. They will just steal it and still demand to not be regulated.

  5. Re:Scam by SaroDarksbane · · Score: 2

    I don't see where he said that no one should live in the country. That's a strawman.

    Choices have consequences, and it would be nice if other people weren't forced to subsidize your particular choice of lifestyle.

  6. Re:Scam by h4rr4r · · Score: 4, Insightful

    That is just as much a strawman. Living in a society means one way or another people are always subsidizing one another.

  7. One new car by tepples · · Score: 2

    Why are we're supposed to provide your parents with broadband?

    Why are hospital emergency rooms supposed to provide everybody with care instead of turning away patients who cannot pay? Public investment in services that have become necessities helps reduce the demand for criminal services. Are you familiar with the plot of the film John Q, about someone who used crime to obtain health care?

    I notice too that you have fiber (and probably DSL), but aren't willing to pay to have them installed yourself.

    Grandparent is willing to pay for parts and labor to have them installed, but the carriers want to add a surcharge of tens of thousands of dollars (search post for "one new car").

    1. Re:One new car by Zan+Lynx · · Score: 2

      Yep. You can probably get better, faster, cheaper medical care from a veterinarian, paying cash without insurance.

      You just have to watch out that they don't forget and do a bonus neutering on the side. Plus, those plastic neck things to keep you from chewing on the scab are super annoying.

    2. Re:One new car by Pence128 · · Score: 3, Funny

      Then the problem is that your grandparents aren't willing to pay for internet service which is more than just "parts and labor".

      Your internet service had a ten thousand dollar sign up fee?

      --
      404: sig not found.
    3. Re:One new car by HornWumpus · · Score: 2

      All /.ers thank you for sharing your experience and sympathies with your recent loss. If Hallmark make a post neutering card I'd get you one.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    4. Re:One new car by khallow · · Score: 2

      Agricultural subsidies just make food more expensive. They get in the way of the food delivery system. And note that the food delivery system is near purely privately owned.

  8. Re:Scam by bws111 · · Score: 2, Insightful

    Why should people with no kids pay school taxes? Why should people with no children in college fund public universities? Why should people who live outside the city pay tax on their cars to subsidize a subway system 90 miles away? Why should I fund state or national parks if I don't use them?

    People in my area (100 miles from NYC) have an extremely heavy burden in the form of draconian land-use restrictions in order not to harm the water supply to the city. Is that fair?

    You do realize that the people who 'choose' to live in the country are the ones providing YOU with your most basic needs, like food and energy, right?

    It is called society. Every one gets to pitch in. Get over yourself.

  9. Re:Natural monopoly is a myth by PPH · · Score: 4, Informative

    Other economists claim that natural monopoly is a myth, and effects attributed to natural monopoly are in fact caused by 1. local government ownership of roads and 2. local government's failure to efficiently value permits to tear up those roads to install pipes, conduits, etc.

    Back when I was pricing out my broadband options, I checked out Comcast's (heavily advertised) three for one package. TV, broadband and telephone. But when I called them, they told me that, based on my address, Verizon was my telephone provider and they wouldn't compete with them. On the other hand, Verizon wouldn't install DSL because 'Comcast provides broadband in your neighborhood'. Covad checked out my line and was more than happy to take over the loop and install voice/DSL. But Verizon told them that they couldn't have the pair (they'd take it and reassign it to a second residential service if ever I dropped my Verizon line before leasing it to a CLEC).

    This has nothing to do with permits and installing facilities. It has everything to do with not throwing telecom execs in prison for Sherman Antitrust Act violations. If you want to keep your NSA fiber taps running in the switching facilities, you're going to have to grant these bastards immunity from the law.

    --
    Have gnu, will travel.
  10. Always make your installation look crappy by Medievalist · · Score: 4, Insightful

    Bury conduit instead?

    Just choose a diameter that will accommodate anything you might expect to pull in the future and be sure to have some intermediate weather-tight boxes every few hundred feet.

    The problem with that is that the provider will know you did it, because it's been done right.

    If you do a half-assed looking job you can just call 'em up and when they say "we don't have a cable into your house" you can reply "yes you do, what are you talking about, I'm looking right at it!" and make them send a truck out to check. The guy on the truck will say "hmmm, looks just like one of ours" if you do the job badly enough, and you'll probably get hooked right in.

  11. Re:Natural monopoly is a myth by Fallingcow · · Score: 3, Funny

    Just read a fair bit of that article.

    Author must be a migrant worker--he's supremely skilled at picking cherries.

  12. Re:Scam by Pence128 · · Score: 3, Insightful

    That's already happened, to the tune of $200 billion dollars. You were supposed to get 45Mbits to 86 million homes for that. Instead they just redefined "broadband" to mean 200kbits.

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    404: sig not found.