Hi All,

I finally got my USF comments filed in the right spots (I hope, things are 
different than the last time I filed directly :-).

Your comments will apply to multiple FCC documents.  Here's the list:
WC Docket No. 10-90
GN Docket No. 09-51
WC Docket No. 07-135
WC Docket No. 05-337
CC Docket No. 01-92
CC Docket No. 96-45
WC Docket No. 03-109

You'll go here to file them:
http://fjallfoss.fcc.gov/ecfs/upload/display?z=7t6a4

Notice the proceeding box.  You'll put one of the above numbers into that 
box then fill out the rest of the form.  There is a spot you can click that 
will let you put more than one proceeding into your filing.  That'll save 
you a lot of time.

The easiest way to do this is to include the above numbers into a document 
that you write then attach the document at the bottom of the filing form.

Here's mine:
*********************************

Friday, March 18, 2011



Comments on USF.

WC Docket No. 10-90

GN Docket No. 09-51
WC Docket No. 07-135
WC Docket No. 05-337
CC Docket No. 01-92
CC Docket No. 96-45
WC Docket No. 03-109





Dear Sirs,



                I have been reading the current NPRM on USF and have gone 
from excited to frustrated to outright petrified, all in the first 20 pages 
or so.



                At this point I think my life as an ISP is pretty well over. 
It's just a matter of time before I join the ranks of the buggy whip 
industry.



                You site example upon example of creative rule 
interpretations, shady practices and out right misappropriations.  Yet there 
is not one word dedicated to enforcement.  Nothing about removal of 
companies from the program when they clearly abuse the current programs.



                What good is an overhaul of the USF system and all of it's 
side bar programs into a new CAF or any other program if the same ol' 
companies are still going to have access to it?  They cheated the system 
before, they'll do it again!



                I'd always wondered how it happened that PTI bought out the 
US West system here in Odessa.  Then PTI was bought out by Century Tel. 
Then Century Tel bought out Embarq.  Next they bought Quest, not an area 
Quest covered, but Quest.  Quest, the renamed US West!



                Where in the world does a small rural telco get the money to 
buy out a huge company like US West/Quest?  Now I know.  They game a system 
that no one cares is being scammed.



                I had a "temp" cable run to my house for 3 years.  On a 
short drive last week I spotted 2 more "temp" runs, one of which I know has 
been there for more than a year.  Just cable strung across the ground along 
side the ditch.  There is one main trunk, just outside of town, that's been 
ground laid for 7 years now!  They can afford to buy out Quest but they can't 
afford to maintain the network that they already have?



                So, take USF funds for a "high cost" area, don't fix things 
in the "high cost" area and instead buy out your competition.  Nice gig.



                Why is there ANY talk of expanding subsidies to companies 
that act this way?  Why do I even have to worry about what I'm going to do 
to try to compete with a company that gets it's money from what amounts to a 
tax on communications?



                What needs to happen here is to just stop the funding.  It's 
clearly not needed in MOST cases these days.  The "high cost" areas are high 
cost due in too large a part to fraud, waste and abuse, not to the costs 
associated with improving the networks.  These guys had their chance, they 
blew it by playing the part of the stereotypical corporate greedmonger.  It's 
time to turn off the spigot.  Those that can really run a business will be 
fine, those that can't can, should and will fail and be replaced by better 
companies with better practices and probably better equipment.



                If you insist upon trying to "fix" the problem by creating a 
new and expanded program please, in God's name, make it a simple program! 
Heck, even the question you asked required nearly 300 single spaced type 
written pages. Don't create something that will require a staff of people to 
understand and or comply with.  Don't make a program that's so convoluted 
that it's easily abused due to people's inability to fully understand it. 
Please do not, again, create a program that's only understood by those with 
a vested financial interest in the program.  Make sure it's understandable 
by anyone that is interested in using it OR keeping the participants honest.



                There is quite a bit of talk in the industry about consumer 
vouchers, pay the customer and let all of us fight over the customer.  I don't 
think that's a good option for the entrepreneur.  It will take money to 
build the networks that the consumer will be expected to draw service from. 
That means that the network must first be built and it'll be paid for only 
after it's in place, if we get the customer.  My biggest fear here is that 
companies will basically give services away just so that the customer will 
use them because they are the cheapest one.  Also, think of how many 
consumers you already likely know that are gaming Workers Comp. systems and 
other programs like them.  Who's going to make sure that the consumer is 
really paying what they claim they are or even have any service?  It'll take 
a lot more inspectors to monitor the consumer than the providers.



                In my case we can maintain the network just fine.  We can't 
quickly cash flow the construction of it.  We can, and do, sell at a 
competitive rate.  Our speeds are very competitive with DSL and cable.  I 
just did a couple of installations on two farms roughly 15 miles from town 
and the customers got speeds around 12 mbps both download and upload.  Not 
to my main router, but to http://www.speakeasy.net/speedtest, the Seattle 
site.  Monthly rate for these customers?  $40.00  Once the infrastructure is 
paid for keeping it running and upgraded is relatively easy and affordable.



                How should this be done?  Set a 10 year sunset on ALL 
subsidies.  Expand the current programs into broadband.  Require all 
companies to pay in or draw out based upon what is being done today.  If the 
telco in an area pays into USF then all broadband companies in the area will 
also pay in.  If the local telco draws out then all broadband providers will 
also draw out.



                There needs to be competition and alternative technologies 
in all areas.  We should have competitors, not just government chosen 
winners that happen to be good at the paperwork game.  Don't add new 
competitors though, encouraging companies to start up just because they see 
"free government money" would be bad for everyone.  Help the companies that 
are ALREADY working to fulfill the public demand.



                Keep all of the dollar amounts where they are today, don't 
play favorites, involve all current operators.  Base all payments, either in 
or out, on what the current telco does, just expand the system to include 
all broadband providers.



                This will allow entrepreneurs to put their time, effort and 
man hours into network improvements and expansion rather than government 
paperwork.



                By doing this you'll create several layers of competition in 
nearly all rural areas of the country.  Often with different hardware and 
business models.  Then, in 10 years cut off the funds.  In a couple of 
additional years those that build out good networks that are self 
sustainable will still be in business, the wasteful or inefficient ones will 
weed themselves from the market.  The customer will have choices and 
competition to drive costs down and services up.  As importantly the 
government will be out of the telecom corporate welfare business and can 
devote it's time and resources to the real hardship cases that remain.



                If this is also not an option, then whatever programs you do 
create need to be non exclusive in nature.  Don't make the paperwork 
overhead so high that the average mom and pop shop can't participate.  Don't 
pick favorites, programs need to benefit all operators or none of them.  Don't 
create complicated programs that only a lawyer can understand.  I know I've 
said this before but it bares repeating many times.



                The market will adjust to the needs of the consumer if there 
is a fair and level playing field.  DSL systems were first created in the 
sixties.  Yet we didn't see their wide spread use until the '96 telecom act 
forced competition into the telecom industry.  Don't screw up the broadband 
industry by removing real, effective, innovative competition with a new 
government funded welfare program for the good ol' boys telecom club.



                Also, I think there needs to be some talk about 
expectations.  What do people need certain speeds and capacities for and who 
should pay for those activities?



                The capacity needs for email are one thing, eBay is another. 
Watching a few Youtube videos is easy enough to do.  But when we start 
talking about watching TV or movies via the internet an entirely new level 
of technology and capacity are needed.  And for what?  Primarily 
entertainment.  Is it right to take money from one person and give it to 
another just so that the consumer can watch the latest Batman movie over the 
internet instead of waiting a couple of days for a movie to show up in the 
mail?



Is it also fair to expect the transport operators to pay for all of this 
entertainment's requirements on the system.  Should companies like Netflix 
with network loads not pay anything to those that actually deliver their 
services?  Nearly 6 months ago they were already 20% of the peak demand on 
the internet.

http://www.readwriteweb.com/archives/netflix_streaming_accounts_for_20_of_peak_internet.php

This means that every single internet provider out there had what amounts to 
a 20% increase in their upstream costs with NO increase in revenue to 
support it.  Who will pay for this once things like Netflix and Hulu really 
get popular?



                The consumer is really the one that should pay those costs. 
Yet the national broadband plan, most press and certainly most consumers 
think that internet costs should come down even further!  Can you just 
imagine everyone in the country switching to a nice shiny new Suburban and 
then expecting Texaco to pay for the extra gas they need?  Why is the 
internet industry thought of any differently?



                Perhaps Netflix will make some real strides in compression 
technology or display capabilities.

http://imgur.com/gallery/NvGso

It would sure be nice if the whole discussion of how much capacity Netflix 
needs became more of a non issue.



Thank you for your time,

Marlon K. Schafer

Owner

Odessa Office Equipment

(509) 982-2181

****************************************



If you worry about your competition getting funded and you not getting 
funded then you need to weigh in on this filing.  This is, in my opinion, 
the biggest thing that the FCC has done since I've been a WISP.  This will 
make my business or kill it.  Nothing in between.



Take care,

marlon



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