16-cent E-rate phone fee hike will fund $1.5 billion in school broadband

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The head of the Federal Communications Commission is proposing an extra $1.5 billion in annual spending on broadband for schools and libraries, all to be funded by a 16-cent increase on the monthly bills of phone customers. Under Chairman Tom Wheeler’s plan , announced yesterday and scheduled for a vote on December 11, the E-rate program’s annual spending cap would rise from $2.4 billion to $3.9 billion. Wheeler tried to make the increased cost to ratepayers sound as small as possible. “If the FCC reaches the maximum cap recommended, the estimated additional cost to an individual rate payer would be approximately 16 cents a month, about a half a penny per day, or about $1.90 a year—less than a medium-sized soda at a fast food restaurant or a cup of coffee,” a fact sheet released yesterday says . Read 5 remaining paragraphs | Comments

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16-cent E-rate phone fee hike will fund $1.5 billion in school broadband

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