Boucher USF Bill Leaves Out Satellite Broadband, Say Providers
Universal Service Fund revamp legislation recently introduced by House Communications Subcommittee Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb. (CD July 23 p1) doesn’t offer much for satellite broadband providers, said industry executives. The legislation, which would create a fund to help extend Internet to the most rural regions, leaves out the technology that could expand broadband the furthest at the lowest cost, they contend.
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While the bill mentions satellite broadband and technology neutrality, it leaves much to be desired by both of the major satellite broadband providers, said an executive. Boucher’s legislation would let broadband providers use the resale of satellite broadband to fully extend coverage to a service area, something unlikely to add substantial new business for satellite broadband providers, the executive said. WildBlue and Hughes Network Systems already have resellers in rural areas around the country. Another concern is that satellite broadband providers would have to pay into the universal service fund without getting any payout, the executives said.
"We absolutely want to participate in the USF program,” said Lisa Scalpone, WildBlue general counsel. “Although this bill says it is technology neutral, for us, the current version of the bill would have the effect of precluding satellite from direct participation. I think we can meet all the service requirements of the USF program."
Unlike WildBlue, Hughes would prefer not take part in USF in any form, said Hughes General Counsel Dean Manson. The company has long provided broadband service to country’s most rural regions without any government involvement, and it doesn’t need it now, said he said. In proposed rules at the FCC and in the Boucher legislation “it seems pretty clear that satellite would play no meaningful role and at best a minor role in any USF deployment of funding,” Manson said. “We think that rather than fit a round peg into a square hole in that construct, it is a better policy direction to say that satellite is uniquely focused on a certain population and should be left out.”
While there’s some concern Hughes could be left contributing to a USF without receiving money in return, the company is still working on Capitol Hill and at the FCC to remove satellite broadband from the discussion, said Manson. Still, he said, “if it became inevitable that satellite would have to be included in the contribution obligation, we would have to look at distribution side to make sure it is set up and attempt to make sure is technology neutral as possible and fair.”