The IP Evolution

Regulations need to change to support consumer demand for standalone broadband

Basic telephone service provides a reliable connection with family members, emergency services and business opportunities. Many people today, however, use other methods for their daily conversations. Even in rural areas like ours, there is growing demand for standalone broadband Internet service that comes without the requirement of a landline phone.

America is undergoing an IP Evolution as technology makes it possible to connect and communicate via Internet Protocol, the standardized method used to transmit information between devices across the Internet.

America is undergoing an IP Evolution as technology makes it possible to connect and communicate via Internet Protocol, the standardized method used to transmit information between devices across the Internet.

While rural telecommunications companies across the nation understand and acknowledge this trend, their hands are tied when it comes to offering a true standalone broadband service. This is one of the areas telcos are addressing as a group through NTCA—The Rural Broadband Association.

NTCA has petitioned the Federal Communications Commission (FCC) to consider changes to rules that punish consumers who would prefer standalone broadband. “The Universal Service system needs to be designed to accommodate those consumers who are looking for broadband but may not want telephone service,” says Mike Romano, senior vice president of policy for NTCA.

Currently, telcos such as ours receive Universal Service support based upon whether a consumer chooses to take telephone service. Universal Service is a fee that is paid within the industry to ensure we achieve maximum value from the nation’s interconnected networks. Telecommunications companies pay into the fund, then draw from the fund based on the cost of serving consumers in their area.

“If a consumer only wants broadband, Universal Service support is lost for that consumer’s line — and their broadband rates skyrocket as a result,” explains Romano. “That is an unsustainable and, frankly, somewhat questionable public policy result of a system that is supposedly being repositioned to support broadband.

“We’ve urged the FCC to fix that,” Romano continues. “We have been in very productive conversations with them, but there are still many details to be ironed out.”

As your telecommunications provider, we will continue to work on this issue with our fellow companies through our national association. We will make sure rural consumers have a voice at the table as Washington develops regulations to guide us through the IP Evolution.