FCC Takes Action That Will Impact Rural Broadband

Source: IMPACT 20/20 11/09/2011

(Nov. 9, 2011) - On October 27, the Federal Communications Commission (FCC) issued an announcement regarding the creation of a new “Connect America Fund.”  In a unanimous vote, the FCC approved comprehensive reform of its Universal Service Fund and intercarrier compensation systems.

While the FCC announcement went unnoticed by many, members of the IMPACT 20/20 Taskforce for Broadband, who have been advocating changes to the USF for the last two years, received the news with cautious optimism.  The taskforce formed two years ago, as one of three initiatives undertaken by IMPACT 20/20, a group of northwest Minnesota leaders who purposed to grow the economy of the region.

Dick Sjoberg, President of Sjoberg’s Inc., member of Governor Dayton’s Broadband Taskforce, and member of the IMPACT 20/20 Taskforce for Broadband, believes that the announcement by the FCC is an important first step in the right direction, but there are still many details to be worked out. “The contents of the ‘Connect America Fund Plan’ reflect the vision of the IMPACT 20/20 group,” Sjoberg said, “but IMPACT 20/20 must remain vigilant during the implementation of the FCC’s plan as ‘the devil is in the details.’”

Nancy Vyskocil, President of the Northwest Minnesota Foundation, and also a member of IMPACT 20/20 Taskforce for Broadband, echoes Sjoberg’s feelings.  “What we have right now is a seven-page Executive Summary,” Vyskocil said. “We all know that with the number of stakeholders and dollars that are involved, the plan will be much more complex than what we are seeing right now.”

The reforms approved by the FCC create a new Connect America Fund with an annual budget of no more than $4.5 billion.  The fund will extend broadband infrastructure to the millions of Americans who currently have no access to broadband – as many as 24 million people. Research conducted by IMPACT 20/20 Taskforce for Broadband revealed the fact that almost 3,700 households in northwest Minnesota fall into this category.  This information became the catalyst for taskforce members to voice their support for changes to the Universal Service Fund (USF) that include funding high-speed broadband.

While the impact will not be immediate, the FCC estimates that, over the next six years, the Connect America Fund will expand broadband access to over 7 million residents of rural areas who are currently unserved, and will put the country on the path to universal broadband within a decade.

The mention of expanding broadband access in rural areas did not go unnoticed by Mike St. Onge, Regional Manager for Titan Machinery and member of the IMPACT 20/20 Taskforce for Broadband. In his position as Regional Manager for Titan Machinery, St. Onge oversees 17 equipment stores and knows firsthand how important broadband is to the regional economy. According to St. Onge, “technology capabilities allow for producer expansion, attraction of new agribusinesses, and retention of our current businesses.  This needs to be the mission of all of Minnesota, as well as those who serve rural areas.”

The reform outlined by the FCC may mean the realization of IMPACT 20/20’s primary goal – that all residents of the region will have access to broadband speeds of at least 10 Mb download and 5 Mb upload, a significant increase from the current average speeds of 2.4 Mb download and 0.8 upload.

For more about IMPACT 20/20, visit www.impact2020.org.