Sunday, February 6, 2011

Genachowski Call for Reform of Intercarrier Compensation and USF

FCC Chairman Julius Genachowski reiterated his call for reform of the nation's intercarrier compensation regime and Universal Service Fund. The FCC is slated to vote on these issues tomorrow - February 8, 2011.

Specifically, Genachowski is calling for reforms based on pillars:

  • Modernizing the Programs To Support Broadband Networks

  • Ensuring Fiscal Responsibility

  • Demanding Accountability

  • Enacting Market-Driven and Incentive-Based Policies

Genachowski is proposing a multi-year transition path, in partnership with the states, to phase
down intercarrier payments and shift any necessary recovery to USF. He would also set the Universal Service Fund on the path to reform by taking existing funding that's being used inefficiently and without accountability, and transitioning it to the Connect America Fund. The program would fund broadband for unserved areas out of savings from existing programs, while constraining the size of the Fund.

See also