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FCC Chairman Sees Rural Realities in Southwest Alaska

August 29, 2011|Rhonda McBride
(Page 2 of 2)

“I have a feeling they’ll pick the heating fuel over broadband as a basic matter of survival,” says Bill Popp, head of Alaska’s broadband task force.  

Popp was glad to hear that the FCC chairman supports expanding the Universal Service Fund to include broadband subsidies for consumers.  Phone companies are required to contribute  to the fund -- and in many cases they make their payments by adding a surcharge to their customers’ bills. Some of the fund is used to subsidize rural telephone service.   

“Broadband is going to be a key element of our future growth for resource extractive industries,” says Popp. “That’s everything from mining, to oil and gas, to even fishing.”

Popp says Alaska will be able to develop its resources faster if internet access is available in remote communities. 

“These resource extraction industries are highly technical in nature.  When you look at oil and gas and mining, it requires an immense amount of data moving back and forth between the mine site -- or the drilling pad and the headquarters of the facility,” said Popp. 

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Popp says communities without broadband are at a tremendous disadvantage. 

“Alaska is truly unique in these issues. We have situations that you don’t find anywhere else in the United States. And to have the Chairman of the FCC see it first hand is an important step. There are a lot of options on the table that we need to do more work on,” said Popp. 

The FCC Chairman told the broadband task force that modernizing the Universal Service Fund will require cost cutting and shifting dollars to areas where they are most needed.

Sen. Begich worries about the potential impact on rural telephone service in Alaska, which is provided by a number of small companies or cooperatives.  

“We have a lot of companies, Cordova is an example, which have utilized that service fund  to build out their telephone network, which has a whole bunch of loans attached to it and they expect that cash flow to pay off those loans,” said Begich.  “It has to be a very careful balance.” 

But for those in New Stuyahok, where the FCC Chairman spent a few hours, life is already precarious.

And Bill Popp says the broadband task force has to keep this in mind.

“Do we want our communities to dry up and blow away, because they are just no longer competitive and can no longer survive?”  

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