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FCC backs $4.5 Billion Internet Fund Bernard Cole Washington, D.C. - The Federal Communications Commission has voted to overhaul a program that has been devoted to building telephone connections in places where it’s expensive to supply service. Replacing the program is the so-called Connect America Fund for Broadband, part of an effort to spur economic growth by increasing the availability of high- speed Internet service. In the decision, the FCC also lowered the rates that companies charge to connect calls. Together the moves are designed to restructure support for rural companies and relieve pressure on the Universal Service Fund, a broader subsidy program that is financed through a charge on consumers’ long-distance calls. Telephone companies already providing service in an area may receive a subsidy to build new Internet connections for five years before funding for the area is open to competitive bidding, according the decision. It will send more funds to hardest-to-serve areas and places stricter limits on new fees carriers may levy to make up for reduced connection charges, FCC staff estimates that consumer benefits from the changes will amount to more than $2 billion annually. The aim is to help cut the number of Americans bypassed by broadband by up to one half over the following five years. Currently, about 18 million Americans live in areas with no access to broadband. To learn more, go to www.fcc.gov.
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