Wednesday, February 9, 2011

FCC addressing Universal Service & Interconnection Fees

First, for those of you who aren't up on the jargon, Universal Service refers to the idea that telephone companies should try to provide a certain basic level of telephone service to all customers.  Historically, the level of service was defined as basic voice service.  Since the 1980s, there have been a number of calls to raise the minimum level of Universal Service to include some degree of computer/Internet access.
The FCC's finally taken the first step in significantly increasing the level of Universal Service, with a unanimous vote to issue a Notice of Proposed Rulemaking (NPRM for jargon fans) - the first formal step in changing regulations.  The proposal includes redefining minimal Universal Service as broadband data connection, with the idea that voice service can be carried over that connection.  The goal is a phased transition from a voice-based Universal Service to a broadband-based Universal Service.

Another part of the NPRM is a proposal to phase out the mandatory per-minute interconnection charges that accrue when a call involves multiple telephone companies. That's good, because those fees (and the fact that costs drop faster than the fees are reset), are a stumbling block for cellphone pricing plans. 

Story on Connected Planet
FCC News Release

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