Posted on 09/10/2010 8:43:21 AM PDT by Andrea19
The Federal Communication Commissions multi-billion dollar Universal Service Fund (USF) has a rocky history of waste and abuse. Yet, a new proposal by the Commission would make it even worse, directing up to $400 million in universal service support to subsidies for just two network providers. And, yes, their names are literally written in the FCCs proposal.
The newly outlined health infrastructure program is intended to help rural health care providers to connect to broadband networks. The FCCs plan is to subsidize up to 85% of the cost for health care organizations to connect to broadband networks, but only if they hook up to ones run by two university and government consortiums: Internet2 or National LambdaRail.
This is an absurd attempt at picking winners and losers in the marketplace. Much can be said about giving the Commission yet another multi-million dollar subsidy program to administer. But, even worse is their attempt to redirect money toward only two network providers. This enormously disrupts the free-market by skewing consumer choice and slowing broadband investment. Why would a rural health care institution ever buy from a private broadband provider if they can get an 85% discount with two others? And what incentive does the private sector have to invest in rural broadband networks if government subsidies ensure they cant fairly compete for customers?
The Commission is well known for picking winners and losers in the marketplace...
Read more: http://www.atr.org/fcc-plotting-subsidies-pick-winners-losers-a5385#ixzz0z8o7xFKs
(Excerpt) Read more at atr.org ...
Help promote Conservative activism here & here & here & here
@FrankR Lol, your best one yet!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.