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FCC Chairman: Americans Shouldn't Subsidize Internet Service Under 10Mbps
An anonymous reader writes On Wednesday at a hearing in front of the US House Committee on Small Business, FCC Chairman Tom Wheeler stated that for ISPs to be eligible for government broadband subsidies, they would have to deliver speeds of at least 10 Mbps. Said Wheeler: "What we are saying is we can't make the mistake of spending the people's money, which is what Universal Service is, to continue to subsidize something that's subpar." He further indicated that he would remedy the situation by the end of 2014. The broadband subsidies are collected through bill surcharges paid for by phone customers.
Yes, but at the same time, paying for an internet line to be run to your house can actually cost more than your house in rural areas... Note: The price of the work, and for the final service, is often determined by the monopoly carrier for your area.
My grandfather was quoted $4000 to run a coax cable 500 feet to the street (which was up and running) to his home. His only other option was 36k dial up (too far north, and too many trees, for satellite). He's retired now (has been for decades), and while he lives comfortably in his home on his retirement, he can't afford an extra "luxury" expense like this.
Recently, my co-worker was quoted $60,000 to get internet brought to his rural community... per home... and required 2 dozen people within a 3-mile radius to sign a 3-year contract and agree to also pay that 'set up fee'. Their other option? Satellite (which has a 25GB download limit). The area is sanctioned monopoly.
Now, if you are ALSO living in a rural area where the average ~5 yr experience IT/programming/database job is $45-55,000, spending $60,000 for internet is a bit ridiculous... and not offset by your 'city wages in a rural area'
I have multi-Mbits broadband in my cottage house in Finland, which is on an island, and the closed town is 40 min. drive. Also multi-Mbits broadband in Swiss mountains. I used to envy US broadband services 10-15 years ago when it was better than here, now it's the opposite. I pity you.