(Washington) - In a filing before the Federal Communications Commission, the Fiber-to-the-Home Council reiterated its support for the National Broadband Plan's "Connect American Fund" (CAF), but also urged the FCC to reconsider its recommendations to reform the Universal Service Fund by ending a program that supports the efforts of rural telecoms to upgrade to high-bandwidth networks.

In its filing, the Council expressed concern that ending the "High-Cost" component of the USF and depending on the CAF to replace it will end up "stranding users in high cost areas" and making it more difficult to meet the Plan's goal of providing 100 megabit broadband service to 100 million U.S. homes by 2020. Instead, the Council said, the FCC should consider reforming the High-Cost fund and using it in tandem with the CAF to more effectively encourage broadband deployment in unserved areas as well as broadband improvements in high cost areas.

Click here to download the filing.

The Council noted that the High-Cost fund's approach of leveraging private investment for capital expenditures by providing support to carriers for their operating expenses has helped expand broadband deployment into previously unserved areas. It said that rural telecoms receiving High-Cost support as a group spend up to $2 billion annually in new, broadband capable infrastructure.

"The CAF appears to be primarily focused on making 'dollar-for-dollar' grants for capital expenditures to construct broadband facilities in unserved areas," the Council said. "In other words, because deployments in these unserved areas are unlikely to provide a sufficient return to attract investment, the CAF is not leveraging its funds. This is understandable given the objectives of the CAF, but it is a very expensive endeavor."

In addition, given the fund's importance to the operating revenues of many rural carriers, the Council expressed concern that many private lenders are now holding up financing for network upgrades and deployments until the issue of Universal Service Fund reform is settled - something the Council noted is already hindering the efforts to rural carriers to help meet the goals of the National Broadband Plan.

About the Fiber-to-the-Home Council

Now in its ninth year, the Fiber-to-the-Home (FTTH) Council is a non-profit association consisting of companies and organizations that deliver video, Internet and/or voice services over high-bandwidth, next-generation, direct fiber optic connections - as well as those involved in planning and building FTTH networks. The Council works to create a cohesive group to share knowledge and build industry consensus on key issues surrounding fiber to the home. Its mission is to educate the public and government officials about FTTH solutions and to promote and accelerate deployment of fiber to the home and the resulting quality of life enhancements such networks make possible. The Council organizes North America's largest annual FTTH event, the FTTH Conference & Expo, to be held September 12 - 16, 2010 in Las Vegas. More information about the Council can be found at www.ftthcouncil.org.

Media Contact:

David St. John
Media Relations
FTTH Council
315.849.3800
media@ftthcouncil.org