Proposal by Qwest would help spread of high-speed Internet

PROPOSAL BY QWEST WOULD HELP SPREAD OF HIGH-SPEED INTERNET
[SOURCE: Associated Press 6/30, AUTHOR:Catherine Tsai]
Qwest Communications International Inc. is proposing changing a subsidy that helps underserved customers get affordable phone service so they also can get high-speed Internet access. The proposal also would shrink the amount of money wireless competitors would get from the federal program. The Universal Service Fund, or USF, is paid for with a nearly 12 percent surcharge on phone bills. It subsidizes phone service in rural areas, mountain communities and other places where installing equipment and making a profit would be difficult. Qwest is the primary telephone-service provider in Arizona and 13 other states, mainly in the West. Denver-based Qwest and others say the fund, which has grown to about $4 billion, hasn't kept up with the times and is subsidizing phone service to areas that no longer are unserved or unprofitable to serve. Qwest proposes changing the formula for doling out USF subsidies to wireless companies so it is distributed on a per-household basis, rather than per phone. Currently, a wireless company serving a home where all four family members have mobile phones can get subsidies for four customers, even though it is serving one home. Qwest estimates the change could trim subsidies paid to wireless companies from $1 billion to $500 million annually, leaving $500 million to subsidize rural broadband services.
http://www.azstarnet.com/business/189817

* Qwest presents plan to FCC
http://www.neca.org/wawatch/wwpdf/062807_2.pdf

* Qwest Wants Rural Subsidies To Carriers Slashed
http://www.informationweek.com/news/showArticle.jhtml?articleID=20090029...