New FCC Regulation Could Force Low Income Americans To Pay More For Internet Access

New FCC Regulation Could Force Low Income Americans To Pay More For Internet Access


And continuing with Huawei, here’s a troubling
circumstance. Americans living in remote and low income
areas could end up paying more for telecommunications services if a move by the US Federal Communications
Commission to block them from doing business with the, with Huawei is successful. Legal journalist Mollye Barrows, contributor
with America’s Lawyer, is here now to explain. Hey Mollye, thank you for being with us. I mean, explain how sort of the rural and
really also some lower income areas, those Americans might be affected by this move. Hi Bart. Yes, absolutely. It seems so many of these political tit for
tat stories that we do. The, whether it’s the government shutdown
or any other number of issues, it seems like it’s the low income people, the ones that
are the, the wage earners going from paycheck to paycheck that, that are hit by some of
these decisions. And this is no different. So the Trump administration congress, as we’ve
talked about, are taking a number of steps designed to hinder the US operations of the
Chinese tech companies, Huawei and ZTE over surveillance and security concerns and their
ties to the Chinese government as you said. Well, as a result of that, the FCC is considering
a rule that would bar carriers that buy equipment or services from those two companies from
using what’s called the Universal Service Fund. It’s a financial well that rural carriers
can dip into to help with expansion and they often rely on it because they serve customers
in those remote and low income areas. Well industry experts say rural telecommunications
carriers relying on that USF could suffer under this rule, particularly if they are
required to retire existing less expensive equipment that they bought from Huawei. It’s an important issue regardless of where
you fall over the security concerns. Because rural areas tend to be more expensive
to serve and many Americans, well some anyway who live there, they don’t have access to
fast or affordable Internet access Bart. So it is a shame that they’ve been kind of
caught in this situation. Right. You’re so right. And I, you know, we, we talk a lot of times
in the states, this may be true in other parts of the, of the world for our viewers, but
I mean, in the states, you talk about the big cities, you know, in New York and LA and
I mean, this whole middle part of the country and outside of some of the big cities, Chicago,
Saint Louis, et cetera. I mean, a lot of those folks, they don’t have,
they don’t have five g, they don’t have four g. They got no g. They got nothing going for them. And it’s crazy. It’s driving the home prices down. They can’t do businesses. It’s, so this could be a real problem. So Mollye, what are the attorneys for Huawei
saying about the rule? Well, that was a great report a little bit
earlier when Alex was talking about some of the legal ramifications, but among the other
complaints that they’re talking about these technology companies say that excluding them
from using the USF are excluding their carriers that buy from them from using that fund would
lead these providers to forfeit those subsidies if they’re forced to replace their network. And consumers are ultimately going to be the
ones who end up paying higher cost. So attorneys for Huawei say if the company
is allowed to compete freely, that’s going to be a huge difference. It’s going to yield a savings of at least
20 billion and building US mobile infrastructure from 2017 through next year. And the company charged that the FCC rule
goes beyond the authority of that independent agency because evaluating national security
concerns isn’t supposed to be part of their universal service funds mission. So Huawei says this prohibition is on government
loan or grant programs and that the USF subsidy, it should not be included. And even if it was there quote is, if it would,
it would be arbitrary and capricious for the commission to rely upon it as a basis where
it’s proposed rule banning expenditure of any USF support funds on equipment services
manufactured by specified company. So the FCC is now reviewing this rule. We’ll see what they decide. You’re right. It’s probably tied to a great extent of what
happens in the national bigger picture with the federal government’s relationship with
China. But let’s certainly hope that as much as our
country relies on advancement in technology, people in rural areas need it too. They need fast Internet service. They need good cell phone carriers, they need
good coverage. And let’s hope they don’t get caught in the
middle of this political tit for tat Bart. Yeah, and you know, Mollye, even though Huawei’s
just really 1% of that service in rural America, it’s an important service, if that’s your
service. As you say, it may impact the least fortunate
among us. We always love having Mollye Barrows, contributor
to America’s Lawyer. Thank you Mollye.

Danny Hutson

31 thoughts on “New FCC Regulation Could Force Low Income Americans To Pay More For Internet Access

  1. AOC, Chief of Staff Reportedly Hid $1 Million in Campaign Contributions – Could Face Jail Time. Alexandria Ocascio-Cortez poor little girl from the Bronx.

  2. More scare tactics? You can always tell them when the commentator peppers his "report" with "may" "could" "possibly" and so forth. Look, you don't "need" a phone with internet access, I've never owned one and I'm just fine, besides, almost anywhere you go in America there's an internet service provider that will be happy to put wifi in your home or appartment.

  3. Huawei and ZTE should be banned. I have said the same to my local govt reps here in Canada. Where I live, the internet carriers had to agree to service the rural areas in order to be allowed to service the urban areas. That spread the cost out, and made internet available to nearly all.

  4. Already am. I’m older, disabled, living in a very small town with a large low-income population. Oddly enough, with high taxes, limited health care, low income, huge problem with local corruption and monopoly on power, gas, phone, cable & internet—I’m just one of 2-3 people in town who votes Democrat. Everyone else is too busy voting against their own interests, worshiping the orange Cheeto, and screaming about minorities driving through town. (Not a single minority living in our borough and less than 5 in the entire county. As a gal originally from the North Fl and Alabama region; I’d NEVER seen racism like this until I moved here…and YES, my kids are finally going to be able to move me this summer. Moving someone on dialysis, Medicare who is mostly bedridden because of an orthopedic genetic disorder-is extremely difficult & expensive)
    I cut my cable about 4 years ago because I couldn’t afford it-have to watch TV on internet because even with fancy antennae’s, you can’t receive ANY channels. Cheapest basic cable? $125/mo for 11 channels. (3 of which are religious, plus NewsMax, FoxNews and The Blaze..ABC, CBS, NBC, FOX & PBS). My Internet broadband? $110/mo for second to lowest tier. Lowest tier is $100/mo. Our Cable/Internet Co is a local company & our only choice. I assume this would effect us? I just CAN’T cut anymore bills. I guess I AM lucky that my kids help out, I LOVE reading-usually get 2-3 books/mo cheap from eBay. (AND I get Amazon Prime since I get a discount.). Since I no longer have friends or family anywhere nearby; I have a precious kitty I rescued 4 years ago and I can’t recommend Chewy dot com enough! I pay 1/2 what I used to from the only local store that delivers, for her food and litter and they’re always sending her “specials”!

  5. The FCC just need to suck a dick and ashit pai need to be deported back to his country and be stoned to death

  6. The Republican party hates the poor. They've made up laws to punish us for decades. Enough is enough already.

  7. Make America great again. Don't worry Trump is not done yet, By the end of his presidency he will have you all riding Horse and buggies again.

  8. Most people don't even know Huawei. You have to order it online so I don't see this effecting too many people.

  9. I've heard from reliable sources that US users of internet pay 10 times what customers in other countries pay and get one tenth the broadband speeds.

  10. Wait hold on you're telling that Trump made a decision that directly negatively effects Americans. Specifically the working class, no way he's never fone that before said no one with any amount of common sense.

  11. This is what capitalism is all about, folks. The wealthy, privileged, and powerful exploiting the hell out of everyone who can't fight back. Time to end the madness.

  12. Yup cuz China owns are ass in most things. And now were realizing it and trying to half fix it. The internet should get be a government utility like water,gas and electricity. Then you wont have to worry about other countrie network.

  13. When the poor can’t afford any more to pay for internet and stop using it, will the rich be able to do without their money?

  14. To agree with a comment by a viewer below, it is absolutely astonishing that low-income Republicans continue voting against their own interests. I truly believe these are not humans; rather some type of aliens created by the Republicans themselves.

  15. The fact that we deal with a communist nation at all is a travesty. The human rights violations in China are even worse than tRUMPs, and we look the other way for a few bucks.

  16. Seriously do the republicans in charge of the fcc want to get beheaded? Thats where it is going. They are already on wafer thin ice with the whole net neutrality repeal.

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