subsidies

The FCC is to give more than $18 billion to broadband companies to expand rural provision. The subsidies will cover the next 15 years. The funding is part of the "Enhanced Alternative Connect America Cost Model." It's based on the rationale that ... broadband access benefits society, but that private businesses don't consider it financially worthwhile to build networks in rural areas. That's because these locations require more cabling but with fewer potential customers. The FCC has consistently reasoned that it's more efficient to subsidize private broadband carriers to expand their networks, ... (view more)