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The universal service fund should be expanded to cover broadband ...

The universal service fund should be expanded to cover broadband services, members on both sides of the aisle said in a House Telecom Subcommittee hearing Tuesday. Differences emerged over how to revamp the program, with Democrats supporting extension of…

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the fund for broadband deployment, an idea not wholly endorsed by Republicans. The hearing reflected a sense of increased urgency about the need for change and a growing consensus that support for broadband services should be part of reform discussions, said members, industry sources and Hill staffers. Passage of legislation is unlikely in the 110th Congress, but proposed legislation and further hearings are building a record for action in the next Congress, where an anticipated increase of Democrats likely will drive momentum for making broadband deployment a national priority, according to interviews with staff and industry. “Congress, not the FCC, is better suited to make the tough political choices on how best to reform the system,” said House Commerce Committee Chairman John Dingell of Michigan, indicating the lead role Congress is likely to play in coming months to revamp the program. Another hearing is likely next fall examining specific problems with the program, including focus on mismanagement that in the past has caused significant waste of taxpayer money, Hill sources said. The high error payment rate in the schools and libraries E-rate fund needs congressional attention, said Rep. Cliff Stearns, R-Fla., subcommittee ranking member. Stearns co-sponsored a USF reform bill with Rep. Joe Barton, R-Texas, that was introduced Tuesday and reflects concern over management of the fund. The bill includes provisions that would mandate economic analysis of decisions and how they comply with the Communications Act. The bill also would require a review of the financial interests of any newly appointed member of the joint board that oversees the fund with the goal of preventing any conflicts of interest. Universal service could be a tool for increasing broadband, Subcommittee Chairman Ed Markey of Massachusetts said. “Any overarching policy blueprint for universal broadband will, by necessity include universal service as a component.” “I think the universal service program needs to be blown up like the Death Star,” said Rep. Michael Doyle, D-Pa., in one of many references to witness and film maker George Lucas, who runs an education foundation and urged Congress to continue supporting subsidies for broadband for schools.