What do you do about it?  Why you become an ilec of course!

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> On May 30, 2019, at 6:31 AM, Mark Radabaugh <[email protected]> wrote:
> 
> USF is actually even worse than what you describe.  It’s the perfect example 
> of a system with zero checks on its ability to grow combined with an 
> incentive for abuse.
> 
> The contribution rate is set based on whatever funds the program needs.   
> Need an extra billion for lifeline?   No problem, the USF percentage just 
> adjusts itself.
> 
> The providers add this to the bottom line as a fee.   Nothing requires the 
> recovery fee to equal the USF remittance -  this becomes a big profit center 
> for the provider.
> 
> The providers get to keep charging excessive fees for locked in customers and 
> get reimbursed by USF.
> 
> Getting money out of USF from the various funds is difficult.   This has 
> inspired a entire industry of consultants to help schools, libraries, 
> providers, etc. to navigate the process.
> 
> Consultants only want to work with the largest providers who have a staff to 
> deal with USF so there is zero incentive for the schools, libraries, etc. to 
> search for competitive or local access.
> 
> The recipients of the schools and libraries funds have no incentive to search 
> for competitive providers since they are paying only a small portion of the 
> actual rate.
> 
> It funds an entire bureaucracy and industry of consultants.
> 
> Small rural carriers are prolific and effective contributors to the 
> politicians of both parties that enable the system.  
> 
> 
> The only check on this is Congress - and talking to your congress critter 
> about USF just makes them go to sleep.   It’s not exciting, and on the list 
> of issues they are hearing about its about number 9,748.    Any attempt to 
> reign it in is met by ’think of the kids’, ’telemedicine’ and some made up 
> number about how many people lack the basic human right of Internet.    
> Showing up in DC lobbying to not spend money is not effective.   Nobody ever 
> won an election by saving money.
> 
> What do we do about it?  Wish I had the answer.   So far the best WISPA has 
> been able to come up with is doing our best to make USF funding available to 
> all providers and to try to avoid funding overbuilds.   The issue is made 
> more difficult by providers who are not willing to do the work required to 
> avoid being overbuilt - file 477’s and offer phone service.
> 
> Mark
> 
> 
>> On May 29, 2019, at 8:31 PM, Ken Hohhof <[email protected]> wrote:
>> 
>> OK, some may think I’m getting into politics, but that is not my intention.
>>  
>> It strikes me that we are starting to get things that look like taxes, swim 
>> like taxes, and quack like taxes, but are not treated like they’re taxes.  
>> Tariffs are starting to seem that way.  Another example that bothers me more 
>> and more as the contribution rate goes up is USF.  What is that other than a 
>> tax on long distance phone service?  That generates a slush fund for some 
>> unelected bureaucrats to dispense.  Mostly to big telcos.
>>  
>> Normally taxes are passed by Congress, and they take the heat for it at the 
>> next election.  Normally Congress also decides how to spend the revenue.
>>  
>> As long as tariffs are relatively small, you can view them as part of trade 
>> policy.  Same with USF, if it wasn’t so big, you could overlook that it is 
>> essentially a tax that nobody voted for, used for corporate welfare.
>>  
>>  
>> From: AF <[email protected]> On Behalf Of Lewis Bergman
>> Sent: Wednesday, May 29, 2019 5:37 PM
>> To: AnimalFarm Microwave Users Group <[email protected]>
>> Subject: Re: [AFMUG] tariffs on servers
>>  
>> I don't think there is much thought to how it works in the consumer level 
>> other than it is supposed to make the tariffed goods more expensive thereby 
>> making other options more competitive.
>> In that respect, it is likely working. Changing global supply chain 
>> relationships doesn't move quickly though. Vietnam for instance has had 
>> trouble meeting the same standards as China. Seems hard to imagine but after 
>> a few decades of manufacturing for the US China has gotten pretty good at it.
>>  
>>> On Wed, May 29, 2019, 5:23 PM Jason McKemie 
>>> <[email protected]> wrote:
>>> One thing about the tariffs that is especially irritating to me is that if 
>>> tariffs are imposed at, for example 30% on steel, then the domestic 
>>> supplier just raises their prices by 29%.  Is this the way that this is 
>>> supposed to work?
>>>  
>>>> On Wed, May 29, 2019 at 3:18 PM Ken Hohhof <[email protected]> wrote:
>>>> I’m in the process of buying a couple Supermicro servers, and I’m told 
>>>> that due to tariffs, prices have already gone up around 10% and will be 
>>>> going up another 15% on or about June 1.
>>>>  
>>>> Are others running into the same thing?  It sounds like I need to place my 
>>>> order now.  That’s not a trivial increase.
>>>>  
>>>> We’ve also received tariff notifications from tower steel vendors, power 
>>>> supply vendors, cable vendors, and we saw Cambium increase prices a few 
>>>> months ago.  Some of these like the steel and cable you just eat, but 
>>>> potentially everything we buy except bandwidth may be going up.  I wonder 
>>>> if bandwidth suppliers will figure out a way to jack up prices claiming 
>>>> tariffs!
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