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FCC announces funding for expanding broadband services

The Federal Communications Commission (FCC) has released details of its plan to provide increased funding for the wider deployment of broadband Internet and communications services to millions of Americans.

In a Report and Order and Further Notice of Proposed Rulemaking issued in November, 2011, the Commission laid out the structure of its new Connect America Fund. The Fund, which has the stated goal of bringing broadband services to 18 million people, mostly in rural and otherwise underserved areas, is based on the Commission’s overhaul of its universal service and intercarrier compensation schemes. It also represents an important milestone, enlarging the scope of the Commission’s universal service mission to include access to mobile broadband Internet services.

The Fund’s annual budget, which will not exceed $4.5 million, is the same size of the current universal services funding level. Further, the Commission believes that expanded broadband access can serve as an important engine for economic growth. It estimates that the new Fund will generate approximately 500,000 new jobs and $50 billion in economic growth over the next six years.

Read the complete text of the Commission’s Order on the formation of the Connect America Fund.

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