The $3 Bogey

Verizon, like other Baby Bells is beginning to charge about $2.87 per high speed Internet connection and will be passing it on to the Universal Service Fund, reports the New York Times. USF, subsidizes the services in rural and lesser developed regions. USF, is a nice subsidy and should continue in some form or the other – but only for phone service, not for the high speed internet connections. Since most of the rural carriers are either not providing or charging huge amount of money for the high speed data connections, it is no point subsidizing them. This is an area which needs clarity, something the “boob covering, Stern Bashing FCC” has failed to give. The politicians have anyway turned this issue into a hair-ball the size of Shaq O Neal’s ego.

My personal opinion: And in reality why should the urban users pay a subsidy. High speed internet is a lucrative business, and many municipalities and rural areas have shown that they can figure out a way to figure out a better deal for themselves.


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