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E-Rate Spending Cap Must Be Raised, Wheeler Tells Lawmakers

More spending on E-rate is necessary, FCC Chairman Tom Wheeler said, agreeing with Sen. Cory Booker, D-N.J. “Closing this connectivity gap requires raising the E-rate spending cap,” Wheeler said in a Jan. 23 letter to Booker, which the agency released…

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Thursday. “Our December Modernization Order makes more funding available for schools and libraries to purchase broadband connectivity capable of delivering speeds up to 1 Gbps over the next five years. We have looked long-term to forecast the funding needs going forward and based the new $3.9 billion spending cap on those forecasts.” He echoed that message in letters to Sens. Amy Klobuchar and Al Franken, both Minnesota Democrats, the same day, plus one to Rep. Mark Pocan, D-Wis. “As you note, the increase may over time require Americans to contribute approximately 16 cents a month for a telephone line -- annually about the cost of a cup of coffee at Dunkin' Dunkin [sic] Donuts,” Wheeler wrote.