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Ajit Pai Loses in Court -- Judges Overturn Gutting of Tribal Broadband Program (arstechnica.com)
A federal appeals court has overturned Ajit Pai's attempt to take broadband subsidies away from tribal residents. From a report: The Pai-led Federal Communications Commission voted 3-2 in November 2017 to make it much harder for tribal residents to obtain a $25-per-month Lifeline subsidy that reduces the cost of Internet or phone service. The change didn't take effect because in August 2018, the US Court of Appeals for the District of Columbia Circuit stayed the FCC decision pending appeal. The same court followed that up on Friday last week with a ruling that reversed the FCC decision and remanded the matter back to the commission for a new rule-making proceeding. [...] The Pai FCC's 2017 decision would have limited the $25 subsidy to "facilities-based" carriers -- those that build their own networks -- making it impossible for tribal residents to use the $25 subsidy to buy telecom service from resellers. The move would have dramatically limited tribal residents' options for purchasing subsidized service, but the FCC claimed it was necessary in order to encourage carriers to build their own networks.
The Pai FCC's 2017 decision would have limited the $25 subsidy to "facilities-based" carriers -- those that build their own networks -- making it impossible for tribal residents to use the $25 subsidy to buy telecom service from resellers.
It would have limited âoetribal residentsâ to buying services from the telco/isp that invested in the infrastructure, rather than through third-parties that only resell otherâ(TM)s network services... Resellers donâ(TM)t invest in infrastructure, they resell it - if you want to increase âoeaccessâ and drive investments in infrastructure then the FCC change was appropriate.
Itâ(TM)s like a fruit stand where the store owner sells apples for 50 cents each, but lawmakers say they must sell those apples to resellers for 40 cents each, and those resellers turn around and offer the apples for 45 cents. Keep in mind the apples cost the market 46 cents each. These resellers donâ(TM)t bring in more apples to the market, they simply sell the marketâ(TM)s apples at a discount. Eventually the grocer may decide to stock fewer apples or even drop apples from the store.
Being able to buy the exact same service provided on exactly the same network at a govâ(TM)t mandated discount isnâ(TM)t competition - it makes the service non-profitable and discourages investment in infrastructure.
Ken
The Pai FCC's 2017 decision would have limited the $25 subsidy to "facilities-based" carriers -- those that build their own networks -- making it impossible for tribal residents to use the $25 subsidy to buy telecom service from resellers....The move would have dramatically limited tribal residents' options for purchasing subsidized service, but the FCC claimed it was necessary in order to encourage carriers to build their own networks.
I don't understand this reasoning -- the resellers must be ultimately buying from the "facilities-based" carriers, and if these carriers are charging the resellers less than it costs to provide service, that's their own fault.