Monday, October 29, 2007

USF Reform - the first steps

The FCC is reportedly making deals with cellular companies about capping their USF funding. To get approval for their buy-out, Alltel had to agree to be capped at its current funding rate of $299M per year. (Alltel is the largest recipient of USF funding -- Alltel is also the most rural cellco). Since ATT wants approval to buy Dobson, it will have to okay a similar cap. "Dobson received around $32 million and AT&T about $82 million from the fund through September."


  • "Last year $4 billion was paid out by the fund to subsidize the cost of wireless deployment."
  • "In total, $7 billion is set to be paid out by the fund this year."
  • "It is expected that the same condition would be attached to Verizon Communications Inc. (VZ), which announced plans to buy Rural Cellular Corp. ( RCCC) for $2.67 billion in July, shortly after AT&T's deal was made public."
  • Cellcos are not get E-911 compliant.

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