USF subsidy of wireless carriers doesn’t significantly increase w...
USF subsidy of wireless carriers doesn’t significantly increase wireless provider coverage in rural areas, said studies for Verizon by Criterion Economics. Economist Jeffrey Eisenach said FCC, USAC and wireless carrier coverage map data show “unsubsidized carriers cover more people…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
than subsidized” carriers. Subsidized competitive carriers aren’t compelled to expand geographic coverage areas, he told a Wed. briefing. They can add subscribers merely by opening a retail store in a town they already serve, intensifying coverage in the town without pushing out to more rural areas, he said. Another way to look at it, said Eisenach: Most USF-subsidized wireless service occurs in areas where unsubsidized wireless providers already operate. “All but 3.2 million, about 2%, of the population in subsidized areas have duplicative coverage from unsubsidized carriers,” he said. For example, “all but 2 million of Alltel’s 34.7 million subsidized covered pops have coverage from unsubsidized carriers,” Eisenach said. “There is no statistical correlation between the amount of subsidies paid and the proportion of the population or land area that has wireless coverage. I don’t think most people, including policymakers, have focused on the fact that the USF subsidizes lines,” not coverage areas. “We would strongly disagree that USF subsidies don’t equal more wireless service to rural Americans, said a CTIA spokesman. “Rural Americans desire wireless service, just like suburban Americans.”