We reported last month on a decision from the FCC to make Connect America funds available to expand broadband. At the time we did not have much detail on the measure, but on January 30th, the FCC released its official statement. The agency reached a unanimous decision to open up Connect America Fund dollars for experimental projects.

The FCC restructured the Universal Services Fund (USF) in 2010 to create the Connect America Fund. Until now, those funds were only available to large incumbents. Because some incumbents did not want to be bound terms associated with the funds, they did not take the money and so a portion of it has not been distributed.

In the January 30th announcement, the FCC stated that it will open up funding to entities other than large incumbents in experimental processes, including nonprofits, cooperatives, municipal and tribal governments, and private businesses. The FTTH Council reported:

Specifically, the Commission’s order outlines a call for multiple pilot projects to examine how best to make the technology transition while preserving consumer welfare and promoting the widespread deployment and use of broadband networks. As part of those projects, the Commission, informed by recommendations of the FTTH Council, will be using “test beds” to experiment with different models of bringing next-generation high-speed broadband to rural areas. 

Interested parties must first file an expression of interest, describing how they would invest the funds. In keeping with the original goal of the Connect America fund, the FCC hopes to hear from organizations with rural broadband project plans. According to a Daily Yonder article on the process:

[Jonathan Chambers, the chief of the FCC’s Office of Strategic Planning and Policy Analysis] said the initial “expression of interest” isn’t a complex document. The FCC wants to hear who is interested in applying for support, what homes or institutions they want to serve and an estimate of the cost to get the job done.

The Rural Broadband Association (NTCA) recently filed a report with the FCC as it examines the role of the Universal Services Fund (USF) in communications. Telecompetitor reports that NTCA filed the report as part of comments on November 7, 2013. The report by Vantage Point telecommunications engineering firm criticizes the argument that satellite is a magic pill for rural broadband availability. You can view a PDF of the report at FCC.gov.

The report lists high latency, capacity limitations, and environmental impacts the three main obstacles that complicate satellite usage. In the Executive Summary, the report goes on to note:

While satellites will continue to provide an important role in global communications, satellites do not have the capacity to replace a significant amount of the fixed wireline broadband in use today nor can they provide high‐quality, low‐latency communications currently available using landline communication systems. While recent advances have increased satellite capacity, the capacity available on an entire satellite is much smaller than that available on a single strand of fiber. 

Telecompetitor speculates that the organization was motivated in part by the potential loss of USF funding to NCTA members. From the article: 

The FCC has previously stated that as it transitions today’s voice-focused Universal Service Fund to focus instead on broadband, it envisions that homes in the areas that are most expensive to serve would receive broadband from a satellite (or possibly broadband wireless) provider. And depending how far the FCC is able to stretch its limited pool of USF dollars, it wouldn’t be surprising for the commission to consider expanding the number of homes targeted for satellite service – a move that eventually could leave some NTCA members without USF funding.

Regardless of the motivation, the fact remains that satellite is a poor replacement for wireline services. Latency, lack of capacity, and environmental factors degrade the quality of the service; data caps degrade its effectiveness. From the report:

When we think of the enormous cyclops we don't usually imagine him in a suit and tie but the Free Press does and it works. In their recent Media Giants infographic, the Free Press uses the hulking one-eyed beast to represent corporate behemoths slowly taking control of our media through smaller shell companies.

As media power is consolidated, every one else's voices fade. We all become like the one-eyed cyclops: seeing things through his limited vision. The Free Press sums it up like this:

Media companies are using shady tactics to dodge the Federal Communications Commission’s ownership rules and snap up local TV stations across the U.S.

Gannett, Nexstar, Sinclair and Tribune are on major buying sprees. To grow their empires, these corporations are using shell companies to evade federal caps on how many stations one company can own. And so far the FCC has done nothing to stop this trend.

In some communities, one company owns two, three and even four local TV stations — and airs the same news programming on all of these outlets. The result: An echo chamber where all the news looks and sounds the same.

Take action now through the Free Press' campaign or contact your elected officials directly.