FCC looking to rules, fees to widen net access

The Federal Communications Commission (FCC) is weighing some proposals to expand broadband access that are likely to spark a good deal of controversy. The Wall Street Journal reported last week that the FCC is weighing options that include requiring Internet providers to share their networks with rivals. It is also pondering whether to raise fees charged on consumer phone bills to pay for the broader Internet access.

As might be expected, the open access proposal has drawn criticism from telecommunications and cable companies. They argue they will have little incentive to invest billions in networks if they are required to offer below-rate access to rivals. Consumer groups maintain that open-access rules will increase competition and lead to more choice and lower Internet prices.

Such a policy would be similar to the rules adopted by the FCC after passage of the 1996 Telecommunications Act which opened the local and long distance phone markets to more competition.

The newspaper said the FCC staff will float possible solutions in December and make formal recommendations in February, when the agency is set to release a blueprint for improving broadband speed and access. The Obama administration estimates that it will cost many billions of dollars to connect all American households to high-speed Internet service.

One possibility to raise money, the newspaper said, is to double a $7 billion federal fund which subsidizes phone service in rural areas for low income Americans, and expand it to subsidize construction and operation of broadband networks in rural areas. This fund is financed by a small charge added to consumer phone bills.

For more on expanding broadband:
- see this Wall Street Journal article [1]