The Federal Communications Commission on Thursday officially voted to overhaul the troubled Universal Service Fund (USF) and create the "Connect America Fund," which will be used to bring broadband to areas that currently do not have access.
The $4.5 billion CAF will create about 500,000 jobs over the next six years, according to FCC estimates, and bring broadband to 7 million additional Americans.
A separate Mobility Fund, meanwhile, will focus on the expansion of mobile broadband.
The FCC first voted to overhaul back in February, and opened it up to public comment. The commission fielded 2,700 comments on the topic and FCC chairman Julius Genachowski submitted a plan to his fellow commissioners earlier this month, which was voted upon today.
The USF is a government fund created in 1997 intended to provide all Americans with access to telecom services, as well as Internet service in schools and libraries. Since the majority of Americans now have access to phone service, the CAF would essentially put phone funds toward broadband. One of the major complaints about USF over the years is that it was wasteful and had little oversight. "The fund pays some companies almost $2,000 a month – that's more than $20,000 a year – for a single home phone line," Genachowski said earlier this month.
More details are available on the FCC Web site.