Obama and his administration desire to increase broadband highspeed internet access to rural Americans. The new rules modify the Universal Serice Fund originally created during Bill Clinton's administration. This fund comes from taxes on phone lines and currently brings in around $8 Billion a year.
The fund will be divided into two parts. First, covering mobile and broadband service to areas currently not serviced by private business. Second, expansion of internet access. The majority of funds will focus on expanding mobile and broadband coverage.
Many are justifiably concerned that fees on phone and internet will increase. However, Democratic FCC Chairman Genachowski stated that he doesn't "expect that overall consumer rates will go up as a result of this." We shall see over time.
The plan will go into effect this year, with funds being put to use between 2012 and 2016. Between 2017 and 2020, the USF will be discontinued and rural areas will stop receiving subsidies to keep their phone land lines alive.
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