If we really want to have more competition in this country and get better infrastructure, here are two suggestions:
1) End USF
The original purpose of the USF has been fulfilled, and it is now a slush fund for telecom companies. USF has been rewarding failure and propping up untenable telcos in rural areas that pocket the money and don’t upgrade their networks. Instead of propping them up, we should be encouraging the “creative destruction” of these untenable businesses that can then be replaced by more nimble companies that don’t have USF has their main profit source.
2) Establish a “Broadband Bounty” program with the leftover USF money. Provide a rebate for the purchase of broadband service by consumers in unserved or underserved areas. This strategy would reward providers who can deliver service, not just the ones who have the best lobbyists or access to the RUS funding programs.
Government assistance sounds good on paper, but the larger telecom companies are able to “game” it to their benefit and the ratepayers and taxpayers foot the bill. Pull the plug on these dinosaurs and let them survive or not survive on their own.
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