Fast Net News, DSL Prime, DOCSIS Report

Prefer money without investing. The Big Telco Plan puts a cap on what the big telcos could collect of $2.2B, about $1B more than they grab now from USF. (Chart below for 2010 does not reflect the scheduled drop at Verizon.) They almost certainly will set the rules and numbers to collect the full amount, which they claim is reduced from $9.7B. They are not actually required to build to any additional homes. If they build no additional broadband, they'll almost surely manage to collect the full $2.2B, perhaps by referencing the almost certainly inaccurate cost claims.

      If my projection they will collect the $2.2B is correct, they'd be fools to invest in any further broadband. Investment costs money. Any subsidy related to the investment would reduce what they collect on the already served lines.

      The solution is obvious and probably worth $10B over as many years: don't subsidize lines that already are served. The Big Telco Plan salls for not subsidizing lines where cable has broadband because obviously they don't need a subsidy. Apply the same rule to lines that already have DSL to them.

      President Obama promised to bring broadband to those unserved, not give away billions to the U.S. telcos, among the most profitable companies in the world.

"Scenario #3 is the Coalition’s recommended solution. It focuses exclusively on areas currently served by price cap incumbent LECs, and limits the total annual disbursements from CAF to $2.2 billion for these areas. The $2.2 billion cap is maintained by setting the Alternative Technology Cost Threshold at $256 per service location, which means that the approximately 728 thousand highest‐cost service locations will be served by an alternative broadband technology (i.e., satellite). This scenario would support wireline broadband for 4.2 million high‐cost service locations. ILEC‐provided broadband is currently offered in 2 million of these locations; the remaining 2.2 million locations would be addressed by new build‐out funded by CAF support."