5 thoughts on “The Truth About Universal Service Fund”

  1. Om, so the cable co.s and service providers like Vonage currently don’t pay into the USF for their deployment of VoIP? And the Telcos want them to?

  2. There’s a whole other side to the Universal Service Fund Debate — It’s a massive slush fund that is out of control on every level.

    We’ve written extensively about this.

    A small example, very weathly companies are receiving these funds, known as the
    high cost fund” — this make believe fund is larger than the schools and libraries fund.

    Fraud has proven to be a major isuses, but most
    importantly, the service there has been no audits of the costs of service, so, if the company says’ it needs high cost funds… well, no on examines these costs —

    Also, beware of fake consumer groups, such as Keep USF Fair coaltion, that are essentially being used to add tax to VOIP and new services — funded by the Bell companies.

    Bruce Kushnick, Teletruth
    Executive Director, New Networks Institute

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  4. For what it is worth: the cablecos face the same build-out dilemma, even if their problem is less pressing than the baby bell’s.Telephones go almost everywhere. Cable is not nearly as ubiquitous…still the value of shedding the most rural systems when contemplating a fiber build out has to be considered.

    Witness Cox which is in the process of shedding its most rural cable systems right now. They’ve got a number of other reasons (IMHO) but the one they advertise is the expense of upgrading their systems.

    It isn’t just the teleco’s that are prepared to abandon rural America. (I just hope some of those folks remember how their grandparents got together to form electrical coops.)

  5. Verizon wanting to sell their rural lines certainly explains why they’re fighting us tooth and nail on a short three mile line extension to the Skyko 2 Community near Index, WA.

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