Pai and Wheeler split on how to pay for expanding broadband into underserved America

Pai and Wheeler split on how to pay for expanding broadband into underserved America

WASHINGTON – From a podium in Omaha, Neb., FCC Republican Commissioner Ajit Pai, announced his vision of bringing broadband Internet services to rural America.

Contrary to Federal Communications Commission Chairman Tom Wheeler’s vision of offering $1.7 billion in subsidies to expand the Lifeline Assistance Program, Pai proposed making modest changes to the existing Universal Service Fund rules.

“It’s time we made good on the promise of delivering broadband to rural Americans,” Pai said. “The time for talk is over; the time for action has arrived. That’s why I am putting on the table a concrete and specific plan for correcting this historical accident and giving rate-of-return carriers a chance to participate in the Connect America Fund if they want to do so.”

Pai went on to highlight why his approach was superior to Wheeler’s.

“I have concluded after careful study that targeted changes to existing universal service rules can solve the stand-alone broadband problem,” Pai explained. “In short, I agree with Sens. John Thune, Amy Klobuchar, Deb Fischer and 58 of their colleagues who wrote to us last month: ‘No new models or sweeping changes are needed to adopt and implement a targeted update to fix the issue … instead a simple plan that isolates and solves this specific issue is all that is needed right now.’”

Several rural and independent telecommunications associations have also expressed support for this approach.

“This broad, bipartisan coalition is right,” Pai added. “The rule changes needed to redirect funding to support stand-alone broadband facilities can fit on a single page, which I have attached as an appendix to this statement. They would include stand-alone broadband costs when calculating high cost loop support and interstate common line support. They would determine how much of that support should be attributed to stand-alone broadband. And they would direct that support be used to offset the cost of service.”

Pai made sure to highlight that his one-page plan was by far the more affordable option, noting that this scenario would serve the FCC’s goal of expanding broadband “within the existing budget.”

Expansion of the USF and Lifeline programs has faced conservative opposition due to claims they smack of big government giveaways that are open to fraud and abuse. Despite the potential for such programs to be exploited, expanded broadband access remains a priority for the FCC and lawmakers.

Pai summarized this consensus with his closing remarks, “The lack of high-speed broadband in rate-of-return areas is causing real hardships to real people and real businesses today. Let’s get this fixed. Let’s get rural America connected once and for all.”