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FCC Mulls Funding Rejig To Extend Broadband Reach to Rural America

US Federal Trade Commission chairman Julius Genachowski has outlined a new plan to bring broadband to additional 18 million people in the country.

The telecom regulator announced that it would be making changes to the Universal Service Fund, which helps operators to bring broadband connection to rural areas in the United States.

The FCC informed that it was considering a plan submitted by the chairman to create the Connect America Fund, under which the money collected in the Universal Service Fund, from America’s telephone users, to deploy broadband infrastructure in areas which don’t have little or no broadband access.

Genachowski claims that the restructuring of the fund would help the regulator utilise the money more efficiently and help bring broadband to 18 million Americans.

"Despite spending $4.5bn per year, USF is failing to get broadband to approximately 18 million Americans in rural areas," Genachowski said.

"This plan would ensure money is spent in a more targeted and efficient way, bringing greater fairness and benefit for consumers who pay into USF each month." he added.

According to New York Times, a source with the knowledge of the plans informed that the money paid by Americans to the Universal Service Fund was not likely to decrease and might even rise, as per the new plans.