Internet Phone Calls Caught in Crossfire As FCC Adopts Rural Broadband Subsidies

The Federal Communications Commission unanimously adopted a radical changeover Thursday to the $4.5 billion Universal Service Fund, created by a fee attached to telephone bills, and will now channel the bulk of subsidies to expand rural broadband use, rather than rural phone service.

While updating a Depression-era program for the 21st century seems like a no-brainer, the change is pitting traditional phone service provider AT&T against Comcast, which provides calling services over its broadband network, and is exposing the FCC’s intellectual confusion over how to regulate communications in the internet age.

By David Kravets

Full Story: http://www.wired.com/threatlevel/2011/10/voip-future-uncertain/