CHICAGO–(BUSINESS WIRE)– Fitch Ratings believes the national broadband plan that the Federal Communications Commission (FCC) is expected to deliver to Congress in March will likely lead to new proceedings that could ultimately resolve key issues related to Universal Service Funding (USF) reform and wireless spectrum inventory. According to its recently released ‘Biannual Telecommunications Regulatory Register’, Fitch expects that the national broadband plan will focus on broadband issues associated with education, energy, health care and civic participation. To the degree that the plan leads to a change in the telecommunications’ competitive environment, this could lead to further consolidation or a strategic change in the magnitude or direction of investment for the industry.
The programs, ‘Broadband Technology Opportunities Program’ and ‘Broadband Initiatives Program’, created as a result of the funding allocation from the American Recovery and Reinvestment Act of 2009 (ARRA), are awarding funds based on their first application period. While the large telecommunications providers chose not to participate in the first application period, it is possible that a second round could be of interest. Nevertheless, the programs have received a large number of applications for funding grants from public and private parties interested in completing broadband service projects. All funds from these programs, approximately $7.2 billion, must be awarded by Sept. 20, 2010.
Fitch’s ‘Biannual Telecommunications Regulatory Register’ addresses the topic of the National Broadband Plan, the status of the $7.2 billion recovery act broadband program and an update on net neutrality. The report aims to give the reader an ability to evaluate the potential effects of regulatory developments on industry participants. In addition, the report provides a review of important regulatory developments in the U.S. telecommunications industry over the past six months. The full report is available on Fitch’s web site at ‘www.fitchratings.com’.
Additional information is available at ‘www.fitchratings.com’.
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