Thursday, February 18, 2010

Can We Afford Web Access for All?

When you pay your phone bill each month, a small percentage goes to a federal fund that subsidizes phone service for people in remote areas and for the poor. Now the FCC is considering expanding this $7 billion Universal Service Fund to give all Americans access to high speed internet.

President Obama recently announced his plan to contribute $2 billion in stimulus funds to the effort, but creating truly universal broadboand access could cost as much as $350 billion. Next month, an FCC task force will recommend ways to pay for the expansion.

FCC Chairman claims that providing universal broadband is an essential national mission that will boost the economy by enhancing communication and commerce, improving the delivery of healthcare, and providing new educational opportunities for millions.

Rather than tack more fees on to phone bills, Consumers Union suggests applying the fee to broadband-internet users as well. With an expanded base, the burden would be on more people so the cost to individual users would be lower.

Progress and Freedom Foundation says the costs shouldn't be borne just by consumers, it would be better to support it through general tax revenues so everyone shares in the costs.

WHO is going to pay for the computers?????

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