by Ally Stackhouse, Westside Story
The FCC got a shot in its arm when the federal court on Friday upheld the FCC decision to convert the $4.5 billion program which paid for telephone service in rural areas into a fund which will subsidize high-speed Internet service in high-cost areas. This program is known as Connect America and is a part of a bigger $8 billion universal service fund which pays for a number of initiatives like providing communication links for schools, low income families and others. The overhaul of the fund was approved by the FCC in October 2011. However the move was soon challenged in dozens of writs filed by phone companies. The most vociferous opponents of the move were small carriers who stood to lose money in the form of subsidies because of the changes.
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