You write about these two regimes (telephony and cable/internet) as if their separate existence is inviolate. In today's world, where voice is often just another application running on top of IP, the existence of two regimes seems backwards, enshrining a century-old technology (POTS) that already starting to disappear.
If we as a society don't want to impose a requirement that rural communities be connected to the nation's essential communication infrastructure, then let that be the case; let's get rid of the requirement and rethink the whole thing. But if we as a society believe that rural areas should have access to the country's communication infrastructure, then we should change the requirement that service be provided via a 19th century technology. In the 21st century, isn't it just as bad for Internet access to be expensive and slow, as it was 80 years ago for telephone access to be expensive or unavailable? Standards have changed.
It seems to me that (specific legalities of the decision aside) you are focusing too much on the technical aspects of common carrier status, and not enough on the underlying policy objectives of that regulation. If universal service regulation is to have any relevance today, it should align itself with the reality of modern communications technology (where access to the Internet, not telephone networks, is what matters), and with what it means today to be "connected".
A "universal service" policy that ignores the fact that TCP/IP-based broadband Internet has replaced telephony as the essential communication technology is just a farce.
> A "universal service" policy that ignores the fact that TCP/IP-based broadband Internet has replaced telephony as the essential communication technology is just a farce.
It is also not an accurate description of the status quo: the grandparent post talks a lot about the 1996 Telecommunications Act and its supposed foundations, but doesn't understand:
1) The distinction between "telecommunication services" and "information services" that controls where common carrier regulation can be applied, from that Act, or
2) The fact that the 1996 Telecommunications Act eliminated the "separate buckets" treatment of phone and other services for universal service, promoting universal service for access to "advanced telecommunication and information services" not just telephone service.
3) The fact that reforms to the regulations of the Universal Service Fund following and based on the 1996 Telecommunications Act mean that it is now used not just for telephone but also broadband access, demonstrating that -- whether or note ISPs are defined as "telecommunications service" providers subject to common carrier regulations and whether or not open internet / net neutrality rules are adopted -- broadband is already moving substantively into the same "bucket" as telephone service.
I was using USF as an example of the onerous, misguided sort of program that is imposed on telecommunication service providers regulated under Title II. I wasn't trying to imply that only telecommunication service providers can be subject to USF fees (frankly, I was trying to punt on explaining the distinction because in practice voice providers are subject to USF fees but broadband providers are not subject to those fees). The fact that USF money is now being used for broadband doesn't change the fact that internet service is not subject to the tax. Moreover, while classification as an information provider doesn't prevent internet providers from being subject to USF fees, classification as telecommunications providers would pave the way for them to be taxed.
While the regimes aren't inviolate, Congressional action would probably be required to change the status quo. Besides that, the fact that you can reimagine the legal rules doesn't change the philosophical and political positions that led to the existing status quo. It's a mistake to think that the drafters of the 1996 telecom act didn't understand what they were doing. They made a conscious effort to try and deregulate the industry while conceding to keep much of the existing regime applicable to voice service.
All this could be changed if you let Congress have another shot at the classifications, but you really don't want that. The forces that made telephone regulation the morass that it is will conspire to turn internet regulation into a morass as well. It sounds good to say that rural areas should have access to internet service, but opening that can of worms is a disaster in the making.
Infrastructure regulation in the U.S. is a disaster because of the disproportionate power of rural voters. It's not efficient to build infrastructure to rural and exurban areas, but rural votes, particularly in the Senate, hold infrastructure projects hostage unless inefficient infrastructure is built in those areas. That's why Amtrak is obligated to run a nationwide network when it should just run a train line from DC to Boston. Indeed, the desire to provide universal service is responsible for much of the dysfunctional aspects of the telecom industry to begin with. Many cable providers are monopolies because municipalities granted monopoly status as a concession for building service broadly instead of just to the profitable locations.
Look at the aspects of the telecom industry that are actually getting people excited. T-Mobile's new LTE network, for example. The reason it works is because T-Mobile avoids a whole bunch of capital construction by only focusing on urban areas. Cities get LTE, and everyone else gets HSPA or 2G. Or look at Google's fiber service: hitting major urban areas and avoiding anywhere that doesn't yield a lot of subscribers per mile of fiber. That's the right way forward--that's how we get internet speeds in the U.S. that match countries in Asia and Europe that are much more heavily urbanized. Treating internet service the way we treat other public infrastructure will destroy that.
If we as a society don't want to impose a requirement that rural communities be connected to the nation's essential communication infrastructure, then let that be the case; let's get rid of the requirement and rethink the whole thing. But if we as a society believe that rural areas should have access to the country's communication infrastructure, then we should change the requirement that service be provided via a 19th century technology. In the 21st century, isn't it just as bad for Internet access to be expensive and slow, as it was 80 years ago for telephone access to be expensive or unavailable? Standards have changed.
It seems to me that (specific legalities of the decision aside) you are focusing too much on the technical aspects of common carrier status, and not enough on the underlying policy objectives of that regulation. If universal service regulation is to have any relevance today, it should align itself with the reality of modern communications technology (where access to the Internet, not telephone networks, is what matters), and with what it means today to be "connected".
A "universal service" policy that ignores the fact that TCP/IP-based broadband Internet has replaced telephony as the essential communication technology is just a farce.