Wednesday, March 10, 2010

FCC's Clyburn Raises Concern on Broadband Affordability and Competition

FCC Commissioner Mignon Clyburn issued a statement raising her concern over news that a major broadband provider is raising its rates for its lowest tiers of broadband service. This came on the heels of plans unveiled by
other major providers throughout the country to increase prices as well.

"If we are serious as a nation -- both public and private sectors -- about connecting America; about leading the world technologically and economically; about ensuring that all Americans have meaningful access to on-line education, healthcare, and information essential to citizenry, then we should be very concerned about these ominous signs..."

"This is an issue we must examine closely going forward. Thirty-six percent of non-adopters cite a cost-related reason as their main barrier to adoption, with 15 percent pointing to the monthly cost of service, and 9 percent saying they do not want a long-term service contract or find the
installation fee too high. Across-the-board price increases, especially on those who can least afford it, should raise a red flag for the Commission. When prices rise across the industry, and where there are only a limited number of players in the game, we have to ask ourselves whether there is any meaningful competition in the marketplace."http://www.fcc.govhttp://

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