The Universal Service Fund, the divide and the 2006 telecomm rewrite

Kushnick has many complaints, but he’s especially unhappy about the “national franchise” provision present in the Senate and House bills. Kushnick believes that such agreements will reduce the “build-out” requirements that most cities impose on cable and telecoms service. Without such rules, companies would have less incentive to run lines into high-cost areas, or poorer parts of town that might not see such a good return on investment. To the carriers, local franchise agreements are a sinkhole of time and money, and they would rather see a national standard in place.

Read this article from Ars Technica

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Filed under Digital Divide, Regulation, U.S.

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