It’s too soon to grade the FCC’s Universal Service Fund...

needed and “broadband is the future.” But the order’s implication is still uncertain, he said. He hopes the companies that would get the subsidies would help states like Massachusetts to solve the last mile issue. Matt Wood, policy director with the Media Access Project, agreed it’s too soon to evaluate the order. The order could potentially expand broadband but it’s uncertain if the order would improve broadband affordability, he said. The cable industry’s major concern is the right-of-first-refusal issue in the order, said Kathryn Zachem, a senior vice president with Comcast. Hank Hultquist, a vice president with AT&T, noted the new Connect America Fund has a two-phase mobility fund. In the first phase, up to $300 million will be available for mobile voice and broadband. But it’s uncertain which if any carriers will take the money, he said. The order is bad news for many rural and small companies, which would probably be put out of business as a result of the order, said Michel Guite, CEO with VermontTel. Guite said his company would probably see little impact, partly because it’s a recipient of federal broadband grants and loans. Regarding the appropriate role for federal and state regulators over broadband services, Why said it’s all about consumer expectation. Consumers don’t understand the technical differences of communications services that regulators deal with, he said. Though it’s unclear if and what agencies have authority over IP services, there needs to be a source of authority for consumer protection, Wood said. Meanwhile, a court decision on net neutrality (CD Oct 17 p1) could implicate the FCC’s authority on other issues, said Christine Kurth, aide to Commissioner Robert McDowell. It’s possible that the Congress might act on the issue of whether the FCC has authority over broadband services, she said.