De los cambios institucionales y las respuestas locales y estatales a la

328. In the USF/ICC Transformation Order and FNPRM, the Commission concluded that we have authority under section 254 and section 706 of the Act to provide support for modern networks capable of providing both voice and broadband and to condition receipt of support for the provision of voice telephony on the offering of broadband services over those networks.892 Consistent with that decision, we conclude that sections 254 and 706 authorize us to fund bundled voice and broadband services as well as standalone broadband services as part of a discrete, time-limited Pilot Program structured to determine how best to bring advanced services to low-income consumers. These conclusions are consistent with the overwhelming bulk of the comments we received on this issue.893

329. In enacting section 254, as part of the Telecommunications Act of 1996, Congress expressly recognized the importance of ensuring that low-income consumers “have access to telecommunications and information services, including . . . advanced telecommunications and information services.” Section 254 sets forth additional principles upon which we must “base policies for the preservation and advancement of universal service.”894 _{Among these principles are that “[q]uality} services should be available at just, reasonable, and affordable rates,” and that “[a]ccess to advanced telecommunications and information services should be provided in all regions of the Nation.” Recently, in the USF/ICC Transformation Order and FNPRM, consistent with the recommendations of the Joint Board, we adopted an additional principle that “[u]niversal service support shall be directed where possible to networks that provide advanced services as well as voice services.”895

330. As we explained in the USF/ICC Transformation Order and FNPRM, section 254 provides express statutory authority to support telecommunications services that we have designated as eligible for universal service support.896 _{To the extent carriers offer traditional voice telephony services} over traditional circuit-switched networks, our authority to provide support for such services is well- established. Section 254 also allows us to impose conditions on the support provided to entities designated as ETCs. Indeed, we have a “mandatory duty” to adopt universal service policies that advance the principles outlined in section 254(b), and we have the authority to “create some inducement” to ensure (Continued from previous page)

providers to offer discounted broadband service after completing digital literacy training programs. See Broadband Technology Opportunities Program (BTOP) Quarterly Program Status Report Submitted to the Committee on Appropriations United States Senate and House of Representatives, the Committee on Commerce, Science and Transportation United States Senate and the Committee on Energy and Commerce United States House of Representatives, December 2011, available athttp://www.ntia.doc.gov/files/ntia/publications/btop-quarterly- congressional-report-dec-2011.pdf. In the “Connect to Compete” initiative, cable broadband providers will provide discounted broadband service at minimum speed tier of 1 Mbps to eligible families when at least one student is enrolled in the Free School Lunch Program, the family has not subscribed to broadband service for the past 90 days and does not have an overdue bill or unreturned equipment owed to the participating cable company. See FCC & “Connect to Compete” Tackle Barriers to Broadband Adoption, available at http://www.fcc.gov/document/fcc-and- connect-compete-broadband-fact-sheet(providing details of the discounted broadband service and which consumers are eligible).

892_{See USF/ICC Transformation Order and FNPRM, FCC 11-161 at paras. 60-73.}

893_{See, e.g., MMTC PN Comments at 1-2 (recognizing Commission authority to create broadband pilot project);} GRTI PN Comments at 4-5 (citing sections 254(b)(2) and (b)(3) of the Communications Act and sections 151 and 154(i) as legal authority for the Commission to fund broadband pilot program); Cox PN Comments at 5-6 (arguing that the Commission has broad legal authority to fund broadband pilot program under sections 254(c) and 706). 894_{47 U.S.C. § 254(b).}

895

See USF/ICC Transformation Order and FNPRM, FCC 11-161 at para. 65.

896

that those principles are achieved.897 Congress made clear in section 254 that the deployment of, and access to, information services – including “advanced” information services – are important components of a robust and successful federal universal service program.898 Also, the statute is clear that universal service support should include addressing low-income needs.899 _{Using a discrete, time-limited broadband} pilot program to determine whether the low-income program can successfully be used to increase broadband adoption among low-income consumers is therefore consistent with the purposes of section 254. Accordingly, we find authority under section 254, as supported by section 4(i),900_{to provide limited} USF support through a Low-Income Broadband Pilot Program and to require ETCs receiving support through the Pilot Program to offer either a bundle of voice and broadband services or standalone broadband service.

331. We also have authority under section 706 of the 1996 Act to provide USF support to ETCs through a low-income broadband Pilot Program to subsidize low-income consumers’ purchase of broadband services. In section 706, Congress recognized the importance of ubiquitous broadband deployment to Americans’ civic, cultural, and economic lives and, thus, established a federal policy of “encourag[ing] the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans.”901 _{Of particular importance, Congress adopted a definition of “advanced} telecommunications capability” that is not confined to a particular technology or regulatory classification. Rather, “‘advanced telecommunications capability’ is defined, without regard to any transmission media or technology, as high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video communications using any technology.”902 Section 706(a) directs the Commission to “encourage the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans.”903 _{Section 706(b) requires} the Commission to “determine whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion” and, if the Commission concludes that it is not, to “take immediate action to accelerate deployment of such capability by removing barriers to infrastructure investment and by promoting competition in the telecommunications market.”904 The Commission has 897

Qwest Corp. v. FCC, 258 F.3d 1191, 1200, 1204 (10th Cir. 2001).

898

47 U.S.C. § 254(b)(2), (b)(3). 899

See 47 U.S.C. §§ 254(b)(1), (b)(3) (implementing Congress’s universal service directives in sections 254(b)(1)

and 254(b)(3) that quality services should be available at affordable rates and to consumers throughout the nation). 900_{47 U.S.C. § 4(i) (providing Commission authority to “perform any and all acts . . . as not inconsistent with [the} Communications Act] as may be necessary in the execution of its functions”).

901

47 U.S.C. § 1302(a); Section 706(a) is more than just a statement of policy, as Commissioner McDowell contends. It directs the Commission to “utiliz[e], in a manner consistent with the public interest, convenience, and necessity, … regulating methods that remove barriers to infrastructure investment.” Id. As discussed in para. 332,

infra, providing federal support for low-income consumers’ purchase of broadband services does remove barriers to

infrastructure investment.

902_{47 U.S.C. § 1302(d)(1); see also National Broadband Plan for our Future, GN Dkt. 09-51, Notice of Inquiry, 24} FCC Rcd 4342, 4309, App., para. 13 (2009) (“advanced telecommunications capability” includes broadband Internet access); Inquiry Concerning the Deployment of Advanced Telecomms. Capability to All Americans in a Reasonable

and Timely Fashion, CC Dkt. No. 98-146, Report, 14 FCC Rcd 2398, 2400, para. 1 (section 706 addresses “the

deployment of broadband capability”), 2406, para. 20 (same). The Commission has observed that the phrase “advanced telecommunications capability” in section 706 is similar to the term “advanced telecommunications and information services” in section 254. See Rural Health Care Support Mechanism, WC Dkt. No. 02-60, Order, 21 FCC Rcd 11111, 11113, n.9 (2006).

903_{47 U.S.C. § 1302(a).}

found that broadband deployment to all Americans has not been reasonable and timely905and observed in its most recent broadband progress report that “too many Americans remain unable to fully participate in our economy and society because they lack broadband.”906 This finding triggers our duty under section 706(b) to “remov[e] barriers to infrastructure investment” and “promot[e] competition in the telecommunications market” in order to accelerate broadband deployment throughout the Nation.

332. Providing support to carriers to subsidize low-income consumers’ purchase of broadband services helps achieve section 706’s objectives. The Commission has recognized that a key barrier to infrastructure investment is “lack of affordability of broadband Internet access services.”907 _Providing federal support for low-income consumers’ purchase of broadband services will expand the base of consumers able to purchase broadband services. The additional revenue generated by these new consumers in areas where broadband is already available will provide additional resources for deployment projects where broadband networks are not yet available. Effective support for broadband services to low-income consumers thus “removes barriers to infrastructure investment” as section 706(b) directs us to do, and the pilot program we establish here is an important first step to designing such support.908