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FCC to present National Broadband Plan today

New spectrum and Universal Service Fund changes likely to spark most controversy

By CAROLINE GABRIEL

Published: 15 March, 2010

READ MORE: Spectrum | US | Broadband | Regulator

Today will see the introduction of the FCC's long awaited National Broadband Plan for the US, which will be presented to Congress on Wednesday.

The executive summary of the plan has already been published and many elements have become clear over the past few weeks anyway. The cornerstones will be freeing up more spectrum for mobile broadband; the '100 squared proposal', to bring 100Mbps services to 100m homes by 2020; a new plan to build the much delayed national wireless public safety system; and a shift of the Universal Service Fund grants from traditional rural voice priorities to data and broadband.

The document includes a 'Mobile Future Auction' proposal, which would create a novel approach to spectrum sales, allowing current licensees, such as broadcasters, to give up spectrum voluntarily in return for a share of auction proceeds. This would be one way to achieve FCC chief Julius Genachowski's target of opening up 500MHz of extra mobile spectrum by 2020, but has encountered fierce opposition from the broadcasting sector.

The FCC has also made noises in the summary about stimulating broadband competition, and plans to collect far more detailed data on this issue, though there is little indication of how it will use that data. However, there are a few specifics, such as a broadband certification program that gives consumers a realistic idea of the speeds they are getting; and a review of wholesale competition rules especially with regard to high charges for middle mile broadband in rural areas.

Another important clause concerns updated rules to make it more attractive to use microwave for backhaul, to increase capacity in urban areas and coverage in rural ones.

While the spectrum and Universal Service Fund plans are likely to spark the greatest debate, there are huge numbers of details still to be clarified or worked out. Of course, the plan remains a roadmap until accepted - including investment commitments - by Congress. The plan could cost as much as $350bn over a decade, although the administration will hope to get much of this from private companies. The largest single government contribution is likely to be around $18bn for the public safety network. Few now believe it will be possible to achieve this, even in a public-private partnership, without a large chunk of tax money.

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