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Contribution Reform?

Necessary Internet Speeds to Schools Debated as E-Rate Reforms Near

How fast does the Internet connection to schools and libraries really need to be? That question was a major focus of a Broadband US TV panel webcast Tuesday. Panelists disagreed on the need for further research into proper broadband speeds to schools, as some argued the FCC has to act fast, lest students continue to fall behind their international counterparts. As the FCC works on reforms to its E-rate program, the role of commercial networks -- and the agency’s ability to use E-rate funds for infrastructure buildout -- was also up for debate. At some point, the FCC will have to tackle contribution reform if it wants to continue pouring money into upgrades, panelists said.

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Speed, simplicity and smart spending are the major issues the FCC is dealing with, said Commissioner Jessica Rosenworcel. The agency is wading through about 1,500 comments from schools, libraries and other interested entities across the country. There has been a lot of conversation within the agency about how to “fix that priority system” that “tends to benefit the same schools over and over again,” Rosenworcel said. Discussion has also focused on how to use new technologies like wireless LANs to benefit students more effectively, she said. “We can’t just have them stranded in classrooms for the industrial age."

Commercial networks will be the foundation of any E-rate revamp, said Jeb Benedict, Centurylink vice president-federal regulatory. “People consistently underestimate the scope of fiber network that is available,” he said. The large majority of schools nationwide are close to fiber, and carrier ethernet service can ensure capacity at President Barack Obama’s targeted speed levels at low prices, he said. Benedict encouraged “restraint” in the reform, questioning whether Section 254 of the Communications Act, which authorizes the E-rate program, even provides for the kind of infrastructure buildout the FCC is considering. “I'm not sure I'd be wholly comfortable with the E-rate program providing funds for infrastructure as opposed to just services,” he said.

Before pouring billions of dollars into upgrading speeds to every school and library, it would be sensible to research the issue to ensure the spending is smart, said economist Scott Wallsten, senior policy fellow at the Technology Policy Institute. Speed goals invoked by the president and FCC sound “like a number just plucked out of the air,” Wallsten said. “We don’t have any evidence yet” about how increased broadband speeds help students learn, he said. “If we're going to start spending billions of dollars” every year, “we should probably take a little time to know more about what might make sense.” Studying the benefits of upgrading from one speed to another seems like “a logical first step before you spend money,” he said.

There have been several studies about economic development related to broadband usage, said John Windhausen, executive director of the Schools, Health and Libraries Broadband Coalition. And distance learning has been proven an effective way to learn, he said. The government and industry simply can’t take another three or four years to conduct even more research, he said. “We're falling behind our international competitors,” Windhausen said. “It’s patently obvious that the technology needs of schools and libraries are much greater today than they were in the past, and those needs are going to grow."

No one would deny that there are benefits to high-capacity broadband for students, said Sarah Morris, policy counsel at the New America Foundation’s Open Technology Institute. There’s too much focus on what speeds schools have now, and whether that’s sufficient, she said, but that’s not forward-looking enough. “We don’t have a lot of time to wait here."

Increased funding needs to connect schools and libraries will eventually require contribution reform, Benedict said. “We don’t have any choice, because the traditional telephone business is shrinking,” he said. USF is funded by charges tacked on to traditional phone bills. It’s “competitively distorting” when one class of provider is carrying the weight for USF programs that benefit everyone, he said. If the FCC does nothing, the contribution factor will continue to rise unsustainably, Benedict said.