Shocker: More USF Waste
from the where-do-i-sign-up-for-this-program dept
The Universal Service Fund has come under some heat lately, as it's becoming increasingly clear it's little more than a poorly managed, unaccountable boondoggle. Adding further fuel to the fire is a story from last year that's been dug up, pointing out how just before Michael Powell left the FCC, he the FCC approved a waiver that let a Hawaiian telco get $500 million in USF money -- to wire 20,000 lots there. Only 5,400 of those lots are occupied, and at current growth rates, it will be 40 years before they're all in use. So for those keeping score at home, that's roughly $93,000 for each of those 5,400 lots. But it gets better: most of those people already have landlines from another telco. Want one more? The president of the company apparently was a Naval Academy classmate of Powell's. The story may be a bit old, but again highlights the many unanswered questions about the USF. For the company in question, it looks like it's got a good thing going. Before this approval for $500 million, it had already received $160 million in federal aid to build a network that had 1,300 customers -- that's a cool $123,000 per customer. Update: Looks like the original article's indictment of political favoritism was off base, as Powell never attended the Naval Academy, let alone in the '70s, graduating from William and Mary in 1985. Also, this particular decision came after he'd left the FCC. The attack on Powell was unwarranted, but plenty of questions remain about the original deal and what looks like some questionable USF funding.






Reader Comments (rss)
(Flattened / Threaded)
WOW!
Under occupied and overpaid? HELL YEAH!
[ reply to this | link to this | view in thread ]
[ reply to this | link to this | view in thread ]
I love this country
[ reply to this | link to this | view in thread ]
Re: I love this country
Wow, I don't think anyone has ever invited me to be ruled by them before.
A first for everything, I suppose!
[ reply to this | link to this | view in thread ]
[ reply to this | link to this | view in thread ]
DOWN WITH USF
2 weeks are up this wednesday and I will be sending my lawyer a letter to start a class action against the USF administration and any orginizations that are part of this funds management (read telcos).
I will post a new website where anyone can post their comments and track the results of this case.
I am a doer not just a BS artist and this is one where my children are affected by money taken from me that they never see. I will get it back to their school.
[ reply to this | link to this | view in thread ]
Re: DOWN WITH USF
I would love to see the outcome.
[ reply to this | link to this | view in thread ]
Fiber
[ reply to this | link to this | view in thread ]
Re: Fiber
The rural people didnt get asked if they wanted the line or would they rather have the money spent on their childs school they simply were given a line that costs a ton and a choice to use it or not. BUT the telco providing says "Ouch that cost us so much we need 13,000 to help us cover our costs to administrate that line that isnt being used." So the USF charges us city folk money to cover the administrative costs of a line that isnt used by a person who either doesnt know its there or doesnt want it.
So I am starting a telco in the middle of nowhere and installing lines as fast as a fat kid on cupcakes so I can get a bank load of assistance from the USF before it goes under!
[ reply to this | link to this | view in thread ]
Barrow
[ reply to this | link to this | view in thread ]
Correct this MAJOR ERROR
Powell is a graduate of William & Mary, and is on the board of governors there. He resigned in February 2005, this decision was made under Kevin Martin in May 2005. This story is bunk.
That's not to say that the USF isn't a fraud-filled boondoggle. It is, but point the blame where it belongs: Congress and the USF champion there, Commerce Chairman Ted Stevens.
[ reply to this | link to this | view in thread ]
Yeah, WTF?
Naval Academy? Powell?
Man, Where does this shit come from?
And why am I bothering to continue reading this?
[ reply to this | link to this | view in thread ]
USF WASTE!!!
[ reply to this | link to this | view in thread ]
Re: DOWN WITH USF
[ reply to this | link to this | view in thread ]
Add Your Comment