Basic access at what cost

Over the past couple weeks, there has been a continual flow of filings for the CRTC’s Telecom Notice of Consultation 2010-43: Proceeding to review access to basic telecommunication services and other matters.

So an article in the Washington Post entitled “Reforms urged in federal funding for phone lines” seemed timely.

Americans are turning away from home phone lines and toward mobile, but a federal program continues to pour $8 billion a year into phone service for rural homes and businesses. Last year in Chelan, Wash., for instance, the fund paid an average of $17,763 each for 17 residents to get phone lines.

The US challenge is different from Canada in some respects. We don’t have to deal with political gaming and arbitrage caused in part by state and federal regulation of telecom service. But there are some issues raised in the Post article that should make us pause and reflect as well.

How do we avoid picking winners and losers among service providers and technologies? How do we avoid absurd levels of subsidies in the name of universal accessibility?