FCC Says Yes to $4.5 Billion Connect American Fund

The Federal Communication Commission (FCC) of the US voted on Thursday to review the not-so-successful USF (universal service fund), and come up with a new fund dubbed Connect American Fund (CAF).

According to FCC, the new fund will be dedicated to bringing broadband connection to even those areas which currently do not have any broadband access whatsoever.

In addition, the newly created $4.5 billion worth fund will eventually bring along with it near about 500,000 jobs over the next 6 years or so, FCC claimed.

Also, the CAF will also be responsible for bringing broadband connection to 7 million additional American households.

"This is a once-in-a-generation overhaul of universal service," [The revamped program] will create jobs in the near term, and lay the foundation for enduring job creation, economic growth, and U.S. global competitiveness for years to come," FCC Chairman Julius Genachowski said in a statement, reports PC World.

Meanwhile, NCTA's president and CEO Michael Powell expressed his point of view on the recent developments by saying: "we remain hopeful that the order otherwise reflects the pro-consumer principles of fiscal discipline and technological neutrality that will bring needed accountability and greater efficiency to the existing subsidy system".