FCC launches ‘Connect America Fund’
May 11, 2012
The National Grange commended the Federal Communications Commission’s (FCC) decision to launch the “Connect America Fund” (CAF), a $300 million reserve that will be used to expand broadband Internet to more than 400,000 unserved homes and businesses in rural areas.
“This is a landmark victory for rural America,” said National Grange President Edward Luttrell. Finally, rural residents will enjoy the same advantages and opportunities as their urban counterparts and be able to compete in today’s global economy.”
The CAF comes as a result of the FCC’s recent decision to restructure the outdated Universal Service Fund and use its funds for the benefit of broadband expansion, rather than landline telephone service. This is only the first phase of funding from the CAF, and carriers have 90 days to accept the funding and begin work on these extensive build-out requirements.
Private carriers, such as AT&T and Verizon, are anticipated to supplement the CAF funding with their own private capital. The Universal Service Fund’s High Cost Loop Support (HCLS), will assist smaller rural carriers to expand broadband in their areas. HCLS provides nearly $800 million a year to small providers in an effort to offset high operating costs associated with broadband build-out. Thanks to the new reforms, approximately 500 carriers serving 2 million homes and businesses will receive more funding for broadband expansion.
– The National Grange