Cal. PUC’s Telecom Div. told state lawmakers that broadband shoul...
Cal. PUC’s Telecom Div. told state lawmakers that broadband shouldn’t be added to group of basic services supported by universal service subsidies. Conclusion was contained in report submitted in response to directive from state legislature last year asking PUC…
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whether state should expand its universal service programs to require that all local carriers offer high-speed Internet access within universal service entitlement. Report said cost of adding broadband would far outweigh benefits -- quadrupling cost of universal service entitlement and forcing substantial increases to state’s monthly universal service surcharge. Report said many segments of public found current surcharge levels burdensome and would fight any proposals for increases, and didn’t see need for PUC to intervene in developing broadband market now. It cited PUC findings that broadband wasn’t essential service, and said that while 73% of Cal. households had access to broadband services, only 15% actually subscribed. For broadband to be considered essential, 2/3 of households must subscribe, report said. It also said PUC was addressing “digital divide” concerns by considering expanding Cal. Teleconnect Fund, which subsidizes high-speed Internet access for schools, libraries and community-based organizations.