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Debating the USF
Proposed hikes stir up dissent
(old news - 03:08PM Tuesday Jun 10 2003)
tags: fcc · business
Yesterday's news that the FCC may impose new fees on cable carriers and expand the USF has consumers worried about higher rates, while others debate the validity of the Universal Service Fund itself. Declan McCallagh chimed in yesterday on the potential 9.1% FCC tax hike that could be handed out to cable providers to expand the Universal Service Fund. Mirroring the debate taking place in our forums yesterday, lawyer participants have been debating the issue on McCallagh's mailing list. Consumers don't want higher rates, Telcos don't feel its fair they should be such primary contributors to the fund, and critics charge the fund doesn't even function as it should.

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Forums » Debating the USF
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ronpin
Imagine Reality

join:2002-12-06
Nirvana
·AT&T Southwest
·Charter Pipeline

Fat pipes -- not Fat Taxes

The Universal Service Fund might actually be an impediment to getting Fiber To The Home (FTTH). How? Most Schools have T-1 or better lines now. That bandwidth is mostly wasted outside of school hours.
The schools could could actually make money reselling that bandwidth to local FTTH overbuilders and ISP's -- unless they got their bandwidth with USF funds. It's illegal to resell bandwidth purchased with USF money (in Texas at least).
Why can't we taxpayers stipulate that private broadband providers be able to buy bandwidth from city ISD's to replace any USF funds -- where demand exists?
Tom Zachman

join:2002-12-01
Dodge City, KS

Re: Fat pipes -- not Fat Taxes

Good idea...I always read your posts /wipes brown stain off nose\ (just kidding)
Too bad the legislators don't have a clue what their connectivity is and where it comes from...

Who wants to setup a website. www.telecommunications.splained.2.congressional.dummies.gov

major marco
Res Firma Mitescere Nescit
Premium
join:2003-02-13
Mission Viejo, CA
clubs:

Just Another Way to Milk the Cows

Everyone knows the USF is a joke. An extra fee tacked on for -effectively- a slush fund whose purposes are unknown and overseers unaccountable. We've discussed previously the extra little fees telcos tack on in this forum several months prior. This was the web site of the guy debunking the pork. »www.teletruth.org/
--
A good scapegoat is almost as good as a solution.»www.digitalconsumer.org

Karl Bode
News Guy
join:2000-03-02

Re: Just Another Way to Milk the Cows

Just an FYI: We should have an interview with Bruce Kushnick (teletruth founder) up sometime this week.....
systems2000
What? You Say It's Fixed. Hah

join:2001-11-29
Cyberspace

Is anyone else having trouble reaching this site?

major marco
Res Firma Mitescere Nescit
Premium
join:2003-02-13
Mission Viejo, CA
clubs:

Re: Just Another Way to Milk the Cows

said by systems2000 See Profile:

Is anyone else having trouble reaching this site?
If you are referring to the Teletruth site, then no. Maybe you're just experiencing regular net traffic or some kind of screw up on the ISPs side of the network. I encounter that kind of nuisance often with DSLextreme crap.
--
A good scapegoat is almost as good as a solution.»www.digitalconsumer.org

zoom314
Superman
Premium
join:2001-04-30
Yermo, CA
Moooo, Moooo, Moooo, etc.

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:

End the USF?!?

I do not enjoy paying taxes, and do not know anyone who dose. I feel that the usf is out of date and has never worked like the fund was set up to do. This was a fund that was set up to help bring the services of high tech industries to the rural communities that often fail to get the access to the services that large cities enjoy. I do support the ideal that all people should have the ability to access high tech systems, and that some of my tax dollars go to this effort. I don’t agree with the notion that the monies got to Telco. I believe that the Telco’s have a bad record of not providing the service that this money is meant for. I live in a suburban community that was a rural area. Much of the services here were started as a co-op, a group of locals who were just trying to make there life better by providing electric power, phone, water, ect. If my tax dollars were going to fund these org.'s I would be happy, but when I find that my taxes go to companies like Qwest, MCI (formally WorldCom), and even Enron, who then proceed to steel more money from the public, that I will not stand for. If I knew that all $3.63 in new taxes, that this proposed tax would cost me, went to putting in new and advanced telecom's I would pay it. Until it dose I will fight it till I turn blue!
--
If there is any realistic deterrent to marriage, it's the fact that you can't afford divorce. -- Jack Nicholson

aztecnology
The Autumn wind is a Raider

join:2003-02-12
Murrieta, CA

Re: End the USF?!?

Nice cut and paste of a previous post in the other usf thread...
--
.:|:. Starband 360 ~ W2KAS ~ DLINK DI-714P+ ~ XPro ~ XPro

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:

Re: End the USF?!?

LOL I did it 4 a reference!

aztecnology
The Autumn wind is a Raider

join:2003-02-12
Murrieta, CA

Re: End the USF?!?

I understand, try it like this next time => "hey, read what I already said" »End the USF?!?
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.:|:. Starband 360 ~ W2KAS ~ DLINK DI-714P+ ~ XPro ~ XPro

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:

Re: End the USF?!?

tx, still a newbie at this

LegoPower77
Abecedarian
Premium
join:2002-08-03
Arlington, VA

I say

Since it is more costly to wire rural areas, and we all pay for them because of that. . . Then they should have a Universal Housing Fund because real-estate is more costly in metropolitan areas. Let the bumkins help pay for my housing.
--
»www.gmu.edu/departments/economic···any.html

Smokey
I'm so much cooler offline
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join:2003-05-20
Va Beach
clubs:

Re: I say

good luck trying to get this to pass!

calvoiper

join:2003-03-31
Belvedere Tiburon, CA
·Comcast Formerly ..

Re: I say

The problem is, it's already passed. The enabling legislation is in place, and all it takes is 3 of the 5 people at the FCC to agree to impose it.

Now look at it this way: If you were a bureaucratic functionary in the government, at a likely high-water mark for your career, and your staff told you that if you vote "yes" on this proposal, you'll have several extra billion dollars to play with and make some of your (ersatz) friends happy, what are you going to do?

Yes--this is the sad state of affairs our government has been reduced to.

Calvoiper
--
VoIP--the death knell of remaining voice monopolies!
Tom Zachman

join:2002-12-01
Dodge City, KS

Re: I say

It's corporate welfare....
The benefits are very visible in areas served by Rural Telcos. The benefits are invisible to none in rural areas underserved by the RBOCs.

Note to eddy whitacre: Your company sucks wind in the rural markets in Kansas.

i5050MbSoon
Formerly TwoKDialup
Premium
join:2002-06-07
Coloma, MI


edited
From the FCC Website at »www.fcc.gov/wcb/universal_service/

The goals of Universal Service, as mandated by the 1996 Act, are to promote the availability of quality services at just, reasonable, and affordable rates; increase access to advanced telecommunications services throughout the Nation; advance the availability of such services to all consumers, including those in low income, rural, insular, and high cost areas at rates that are reasonably comparable to those charged in urban areas. In addition, the 1996 Act states that all providers of telecommunications services should contribute to Federal universal service in some equitable and nondiscriminatory manner; there should be specific, predictable, and sufficient Federal and State mechanisms to preserve and advance universal service; all schools, classrooms, health care providers, and libraries should, generally, have access to advanced telecommunications services; and finally, that the Federal-State Joint Board and the Commission should determine those other principles that, consistent with the 1996 Act, are necessary to protect the public interest.

That paragraph sure sounds nice but last time I checked on ISDN prices it would cost approx $300 to install and $180/mo in recurring fees, ISP not included. Hardly what I call "just, reasonable, or affordable". I don't know where all that USF money is going but its not helping this "bumkin".
--
The whole truth and nothing but the truth at »www.teletruth.org

[text was edited by author 2003-06-10 16:07:35]

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:


edited

Re: I say

As I have said in the other forum, I have no problem with the usf, As the law intended it to work. But it dose not work in that way! The monies do not fund making the service in rural areas better, it goes to making the Telco’s richer. Just the thought of B. Ebbers getting his hoofs on this money pisses me off

»End the USF?!?
also this is a good line of comments!
»FCC's power to tax
--
If there is any realistic deterrent to marriage, it's the fact that you can't afford divorce.
-- Jack Nicholson


[text was edited by author 2003-06-10 16:11:50]

[text was edited by author 2003-06-10 16:13:54]

calvoiper

join:2003-03-31
Belvedere Tiburon, CA

Re: I say

I don't think WorldCom was ever a recipient of USF monies while Ebbers was there. They didn't go into the areas USF supports.

Calvoiper
--
VoIP--the death knell of remaining voice monopolies!

aztecnology
The Autumn wind is a Raider

join:2003-02-12
Murrieta, CA

said by i5050MbSoon See Profile:

at rates that are reasonably comparable to those charged in urban areas.
There's the loophole - Charge the same for it everywhere...
--
.:|:. Starband 360 ~ W2KAS ~ DLINK DI-714P+ ~ XPro ~ XPro

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:

Re: I say

ya, Whats Reasonable??? The gov has a hard time filling in that blank!

oliphant5
Got Identity?
Premium
join:2003-05-24
Corona, CA


edited

Re: I say

Not only that but as Californians pay $2.30-$2.60/gal during the summer for gasoline, how about a USF so we pay the same at the South East? How about a USF for electricity and water rates? No reason why one person should pay $40/mo and another pay $10 for monthly sewer rates. How about a USF that makes freight rates with UPS, Fedex and Airborne flat versus distance based...seeing as in telecom the actual cost of delivery is to be ignored and absorbed by everyone else. How about a USF that builds airports everywhere since everyone should be entitled to fair and just air fares.

Hell, let's just have a 100% tax and have daddy government hand out what we get like Smurfberries.

People who move into the middle of nowhere know what they're getting into. If you want or need certain services then you should think about that when you choose a place to reside.

Don't move to the moon then bitch that you aren't getting cable internet.
[text was edited by author 2003-06-10 18:29:59]

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:

Re: I say

not sure, but u do pay it. In az its called HURF highway user fund. so again ur paying oliphant!! Nad why cant i get my net on the moon???
--
If there is any realistic deterrent to marriage, it's the fact that you can't afford divorce. -- Jack Nicholson

major marco
Res Firma Mitescere Nescit
Premium
join:2003-02-13
Mission Viejo, CA
clubs:

said by oliphant5 See Profile:
Not only that but as Californians pay $2.30-$2.60/gal during the summer for gasoline,

You're only paying $2.60/gallon tops??? I have to travel between Monterey County and San Diego and I've seen 87 Octane jacked up to $2.99 down there starting Memorial Day thru Labor Day.
--
A good scapegoat is almost as good as a solution.»www.digitalconsumer.org
jsouth
Jsouth

join:2000-12-12
Wichita, KS

Re: I say

You should live where I live. Not to stray to far off topic but I have only paid $174 tops for gas. Also the USF is just another attempt at socialism, kind of like the new tax cuts. Why don't the poor get the advantage of the cuts you ask? Because you can't get a tax cut for a tax you didn't pay.

LegoPower77
Abecedarian
Premium
join:2002-08-03
Arlington, VA

My point is that there are trade-offs as to where you live. In the city, you get close access to work, a night life, and of course, less-expensive broadband. But you also get smog, noise, and a high cost of living. In the country, you get nature, scenery, and a quiet life. But you also have to drive ten miles to the store and pay higher prices for broadband. How about we start a fund to help subsidize country people's gasoline bill since they have to drive further to the store?
--
»www.gmu.edu/departments/economic···any.html

calvoiper

join:2003-03-31
Belvedere Tiburon, CA

Re: I say

Uh, actually, you'll find that urban, not rural, folks have longer average commutes....

Calvoiper
--
VoIP--the death knell of remaining voice monopolies!

LegoPower77
Abecedarian
Premium
join:2002-08-03
Arlington, VA

Re: I say

Perhaps, but the point is the same.
dirtcyclr

join:2003-06-13
Montana

Re: I say --> Another perspective!

said by calvoiper See Profile:
Uh, actually, you'll find that urban, not rural, folks have longer average commutes....

Calvoiper

Urban commutes may be longer timewise, but not even close in mileage! I've lived under both circumstances (CA Bay Area vs. Eastern Montana). Once again, this is a decision that you have to make based on what you want out of life... I agree that the government should not play a role in evening out what you see as being unfair cost of living (i.e. gas prices and housing costs), economics should control that.

The USF is not about controlling prices, but rather providing a financial avenue for equal opportunity. I think "Americans" should have an opportunity to have access to basic utilities such as telephone, electricity, etc. Technologies such as fiber optics can make it all possible, but "big business" wouldn't even think of doing such a thing because the returns are not in their favor!

It costs over 10 times the national average per local loop to provide POTS where I live, so without USF it would be completely impossible for my co-op to even provide telephone service, let alone any "advanced telecommunications" services such as DSL (which i do have by the way).

I would also like to add that there are now rural areas such as mine that actually have better broadband services than some urban areas. This is not because Universal Service Funds have been misplaced, it is because my services are provided by a smaller company/co-op that believes in offering quality services with a personal touch. The whole USF issue centers around combatting greed and the hunger for power/control, it makes everyone on both sides of the fence unhappy at times.

BrooklynZoo
For Everthing Else, There's Mastercard

join:2001-04-01
Atlanta, GA

Re: I say --> Another perspective!

Interesting perspective.

LegoPower77
Abecedarian
Premium
join:2002-08-03
Arlington, VA

Fair enough (even with the leftist code words, e.g., "big business," "greed", etc. ). But I ax, is there some point where we can acknowledge that wiring is done and discontinue the tax? I hear that we are still paying some charge that was levied on phone bills in the 1900s to help pay for the Spanish-American War (I can find documentation but too lazy right now). The trouble with these programs and taxes is that they never end (while we put sunset provisions on tax relief). Al Gore's tax to wire schools is case in point —they are almost all wired now, will the tax end?
--
»www.gmu.edu/departments/economic···any.html

oliphant5
Got Identity?
Premium
join:2003-05-24
Corona, CA

Re: I say --> Another perspective!

The Spanish-American war tax is also known as the excise tax. The tax will never end because in this talk about greed, there is no more greedy entity than the Federal government.

zoom314
Superman
Premium
join:2001-04-30
Yermo, CA

Besides what in the heck does the 1996 Telecommunications Act have to do with Cable? Last time I looked the Cable TV/ISP providers aren't or haven't ever been a Telco at all. So, FCC (Michael Powell) Keep Your Hands off of Cable, It's not Telephone related service without voice capability and ethernet isn't a phone technology at all and neither is Cable TV service for that matter.
--
Charter Pipeline rules in Hesperia, CA, Verizon sucks.....

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:

Re: I say

the telecom act has the power to regulate all forms of communicatins, it was that large of a bill! Its also what allowed the cable services that we have today
--
If there is any realistic deterrent to marriage, it's the fact that you can't afford divorce. -- Jack Nicholson
mrs213

join:2002-05-25
Pittsburgh, PA

That was terribly lucid.

The FCC needs jurisdiction over cable services, if they're going to compete in the same space/serve the same functions as Our Friends the Phone Comp'nies. The FCC is not just about phone: it's about communications (see the acronym for more information). If they can regulate broadcast radio and TV, cable is a simple leap.

Don't let blind anger screw up your logic. I'm not sure I like Powell very much either, but hey.
Tom Zachman

join:2002-12-01
Dodge City, KS

From your link to a 5 year old Walter E. Williams comment:
quote:
benefits should at least equal costs.
Should you ever need to communicate to us bumkins, write us a letter. Should you ever want us to come visit you, we'll gladly move into your subsidized house for our stay.

calvoiper

join:2003-03-31
Belvedere Tiburon, CA
·Comcast Formerly ..

Re: I say

Actually, if I need to communicate with you, I'll just pick up the phone. After all, I am already paying for it.

Now, about that housing subsidy you think you're paying but I'm not getting, please send the money NOW.

Calvoiper
--
VoIP--the death knell of remaining voice monopolies!

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:
·Charter Pipeline
·AT&T Southwest

said by LegoPower77 See Profile:
Since it is more costly to wire rural areas, and we all pay for them because of that. . . Then they should have a Universal Housing Fund because real-estate is more costly in metropolitan areas. Let the bumkins help pay for my housing.

sure! and those 'bumkins' that grow and raise the food that you eat should start charging 10x what they get now. i'm positive next week you'll be posting a whine about how a big mac value meal that used to cost $5 now costs > $30.
--
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See 25 replies to this post

Googled
Yay, I have FIOS

join:2001-08-13
Orchard Park, NY
·VoicePulse
·Verizon FIOS
·WildBlue

said by LegoPower77 See Profile:
Since it is more costly to wire rural areas, and we all pay for them because of that. . . Then they should have a Universal Housing Fund because real-estate is more costly in metropolitan areas. Let the bumkins help pay for my housing.
Umm, doesn't that already exist? I believe it is called HUD (Housing & Urban Development). You don't need to run wires in rural areas. Wireless would suit us just fine, thanks for asking

calvoiper

join:2003-03-31
Belvedere Tiburon, CA
·Comcast Formerly ..

Re: I say

Although they do a terrible job, HUD is focused on the poor. USF, by comparison, supports the rural rich as well as the rural poor. Consider Jackson Hole, etc.

Calvoiper
--
VoIP--the death knell of remaining voice monopolies!

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:

PS

As a post note: I sent a link of this and the discussion here yesterday to Sen. McCain. I got a response, most like from a staffer, saying that the senator was very concerned about this and many other issues that are in front of the FCC. I recommend that all of you use the link below to email him your concerns and lets help keep the FCC in its place!!!

»mccain.senate.gov/index.cfm?fuse···act.Home
--
If there is any realistic deterrent to marriage, it's the fact that you can't afford divorce. -- Jack Nicholson

DrTCP
Yours truly
Premium,ExMod 1999-04
join:1999-11-09
Round Rock, TX

USF is not a tax

AFAIK, a federal tax can only be instituted by the Congress only!

USF is a "fund" that is mandated by FCC to provide local phone service to the poor and also to fund the public library Internet systems. It was never intended to be collected from the end user but the general practice is that telco pass it down to the consumer.

Contrary to the belief, FCC does not collect these funds. The funds collected stay with the company (telco) and telco was supposed to take money from this fund in exchange for the service it is providing to the poor and the libraries etc. Who knows what else the telco is doing with the money (perhaps feeding a number of lobbiests, politicians etc.)

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:

Re: USF is not a tax

well it's basically a tax. And it was passed by congress in the Telco act of 1996! This gave the FCC the power to asses and regulate the "fund" as they see fit, with congress's oversight!
--
If there is any realistic deterrent to marriage, it's the fact that you can't afford divorce. -- Jack Nicholson

DrTCP
Yours truly
Premium,ExMod 1999-04
join:1999-11-09
Round Rock, TX

Re: USF is not a tax

A Tax is collected by the US Treasury. USF is not a tax (technically) and is collected by the Telco and money stays with the Telco. There is little oversight by the FCC on the collected money and much less by the Congress. The USF is the dream fund for the Telcos and telcos represent it as "tax" because it is convenient to do so on their end because otherwise people would object. Telecom act of 1996 required setting aside funds from Telcos. Telecom act of 1996 did not mandate the collection of these funds from the end user. Passing is as tax is actually illegal. It would be taxation without representation.

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:

Re: USF is not a tax

Ya I get what ur saying dr, know that the say its a tax so u don’t call them about it. My point was that when the farmers called there congress men to get the concession, congress passed it. So in my mind its a Proxy tax, everyone knew that it'd be passed on to us. The oversight I meant is that congress can an overturn any ruling the FCC makes. After all the FCC is part of the EXE. branch and congress sets the laws that they use to make there rules1
--
If there is any realistic deterrent to marriage, it's the fact that you can't afford divorce. -- Jack Nicholson

LegoPower77
Abecedarian
Premium
join:2002-08-03
Arlington, VA

Yeah, like the employers pay 7.65% (somewhere around there) of the social security tax and we pay the other 7.65% (ditto). The effect of it is as if we pay the whole amount because the eeevil business just shifts the burden to us by reducing benefits in some way. Now I don't know the specifics of this fund, but I would guess there is some accountability as to how it is spent. So when the eeevil phone company keeps the money, but doesn't have the choice as to how it is spent, it is just like a tax which is why it shows up on our phone bills.
--
»www.gmu.edu/departments/economic···any.html

aztecnology
The Autumn wind is a Raider

join:2003-02-12
Murrieta, CA

Re: USF is not a tax

Call it what you want, they still take your money...

Smokey
I'm so much cooler offline
Premium
join:2003-05-20
Va Beach
clubs:

Nirvana?? Is it here yet?

The USF is a bad attempt to make the internet a nirvana! This has never worked in the past because some backdoor bureaucrat in D.C. finds that he can help him/her self more by screwing the rest of us over!
--
If there is any realistic deterrent to marriage, it's the fact that you can't afford divorce. -- Jack Nicholson
Zoder

join:2002-04-16
Miami, FL

It's not just cable their after

According to this post on politechbot, the telcos are pushing to have ISP's pay directly in to the fund too. Since the ISP's already pay the USF as customers of the telcos, if this push is successful they will be paying into the fund twice and many will end up passing along this additional cost to their customers. »www.politechbot.com/p-04817.html
systems2000
What? You Say It's Fixed. Hah

join:2001-11-29
Cyberspace
·Embarq


edited

The FCC Has Been Lying for Years!


Here is a TechLawJournal article about the FCC claiming USF abilities it was never given. It's from 1998.

»www.techlawjournal.com/telecom/80411fcc.htm

Here is what Wired Magazine has to say about the USF.

»www.wired.com/wired/archive/2.09···_pr.html

What the Independence Institute had to say in May of 2000.

»i2i.org/publications/Op-Eds/Taxf···dies.htm

And finally, from the "The Information Society" released mid-2000.

»www.slis.indiana.edu/TIS/tables_···tml#16-2

[text was edited by author 2003-06-10 22:23:34]
Forums » Debating the USF


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