[Satellite News 12-21-09] Despite the U.S. government shutting down Dec. 21 due to inclement weather, the U.S. Federal Communications Commission (FCC) held hearings to address broadband issues as it approaches its Feb. 17 deadline to submit a national connectivity plan to President Obama.
    In his opening remarks, FCC Chairman Julius Genachowski said the commission is sorting through a variety of issues in crafting a plan, including the acquisition of enough spectrum to support increased demand for enterprise applications.
    “Broadband is critical to helping small businesses operate more efficiently and compete globally … but over 50 percent of small businesses are still without Web sites. Many small businesses do not have access to a basic broadband connection. One estimate indicates that 26 percent of rural business sites do not have access to a standard cable modem and 9 percent don’t have DSL. And many more do not have access to the high-speed, high-quality broadband connections that are critical in today’s fiercely competitive global marketplace,” said Genachowski.
    One of the major obstacles to establishing a broadband access plan for rural communities in the United States, according to the FCC, is the lack of available private financing for network deployment, whether through capital investment, debt financing or other financial support. “While several federal programs support broadband deployment in unserved and underserved areas, challenges in obtaining private debt or equity support that prevent effective deployment remain,” the FCC wrote in a report, issued Dec. 18, which the commission referred to during the meeting.  “Even with government support, many enterprises may be unable to achieve a profitable operating model, and the business case for potential deployment projects in many rural areas may be inadequate to merit sufficient private sector support.”
    Following opening remarks, the FCC made proposals to expand funding to acquire spectrum for wireless broadband through the Universal Service Fund, which is supported by phone service surcharges and subsidies amounting to $7 billion a year. The FCC also said it may reallocate spectrum held by television broadcasters and federal agencies to be used for the broadband plan.
   FCC official Blair Levin, in charge of managing and crafting the national broadband plan, said the overall goal would be to encourage competition and leverage private-sector investments. Public Knowledge, a fair broadband market advocacy group, voiced concerns over the commission’s approach. “The plan does not do enough to bring new competition to the broadband market, and does not address the fact that the market is still dominated by the nation’s big phone and cable companies,” a Public Knowledge representative said in a statement to the commission.
    The Universal Service Fund proposal also drew criticism from rural phone carriers, which said that they rely on the subsidies to operate. Genachowski said that he was more concerned about providing support for future technologies. “It’s tempting to kick the can further down the roadm byt for many reasons, it’s important to begin tackling these issues now. We must make sure that the fund fully supports the technology of today and tomorrow, not just the technology of the past," he said.
    The FCC also said that it is still behind schedule due to lack of up-to-date broadband market research and a slow-moving U.S. National Telecommunications Industry Association (NTIA) funding process. In an October report, the U.S. Government Accountability Office said the NTIA and U.S. Rural Utilities Service (RUS) completed the first funding round before the agencies had the data needed to target funds to unserved and underserved areas and before the FCC completed the national broadband plan. The situation makes it very likely that the agencies will not have the national plan for the second round as well, the GAO said.
    The NTIA claims it will make decisions on all awards by summer. The RUS indicated it would issue all awards by Sept. 10.
    Despite the debate over how to fund the broadband plan, the FCC did grant licenses to pave the way for more connectivity options. One of those recipients was KVH Industries, which the commission granted permanent Earth Station onboard-Vessel (ESV) license authority for its mini-VSAT Broadband satellite communications service. This commission approved the spread spectrum mini-VSAT Broadband service and 24-inch diameter TracPhone V7 antenna as meeting new FCC regulations for broadband maritime services.
    “This is a major achievement for the mini-VSAT Broadband service, which brings the economic and operational benefits of VSAT service to large new markets of commercial and leisure vessels. While the FCC jurisdiction applies only to U.S. flagged vessels and operations in U.S. territory, the FCC’s approval serves as a major endorsement of the viability and reliability of our global spread spectrum network for maritime operators worldwide," KVH CEO Martin Kits van Heyningen said in a statement.