Monday, August 27, 2012

FCC Ponders HigherTaxes on Broadband Access

The Federal Communications Commission is considering a proposal to impose a new tax on broadband Internet service, to support the Connect America Fund. 

Consumers already pay a fee on their landline and cellular phone bills to support the FCC's Universal Service Fund. The fund was created to ensure that everyone in the country has access to telephone service, even if they live in remote areas.
Last year, the FCC overhauled a $4.5 billion portion of the Universal Service Fund and converted it into a broadband Internet subsidy, called the Connect America Fund. The new fund aims to subsidize the construction of high-speed Internet networks to the estimated 19 million Americans who currently lack access. 
The FCC issued a request for comments on the proposal in April 2012. 

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