FCC wants phone fee used for broadband

Subsidies for rural phone service would be redirected in a more focused effort to expand rural Internet service, under a proposal federal regulators are considering.

The money comes from the 15.5 percent Universal Service Fee on long-distance phone calls. A plan that the Federal Communications Commission is taking up Tuesday would shift the revenue toward extending high-speed Internet service in areas that don't have it now.

The proposal is designed to accelerate the spread of broadband service, a priority of the Obama administration. It is likely to benefit larger telecommunications companies such as Windstream Corp. more than smaller firms that have traditionally received much of the money, said FCC and industry officials.

Supporters have promoted faster broadband speeds as a way to keep and attract businesses and residents in shrinking rural areas.

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