Federal rules are hurting companies’ ability to deploy...
Federal rules are hurting companies’ ability to deploy broadband, two Iowa executives wrote in a Monday Des Moines Register op-ed (http://dmreg.co/16jxzx6). Don Jennings, executive vice president of Partner Communications Cooperative, and Debra Lucht, general manager of Minburn Communications, focused on…
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the effects of the FCC’s November 2011 USF order on Iowa companies and cited a recent survey of 100 Iowa telcos. “Companies responding to the survey estimated they will lose $47.1 million in high-cost Universal Service Fund compensation from 2012 to 2017” due to the order, they wrote. “Eight in 10 companies answering the survey said the order will mean a cutback of investment in network infrastructure.” The Iowa Telecom Association requested the survey, conducted by Wichita State University’s Center for Economic Development and Business Research in the School of Business. The impact will lead telcos to cut their number of employees by “almost 10 percent by 2017, resulting in a direct loss of $14.9 million in wages,” they said of the survey. Both executives noted ways the FCC order has influenced their own company decisions.