Reduced USF support for small, rural carriers in Minnesota, as...
Reduced USF support for small, rural carriers in Minnesota, as a result of the FCC’s USF overhaul, would mean higher rates for consumers, more difficulties for providers to obtain loans and the potential for providers to go out of business,…
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said a report by the Minnesota Telecom Alliance. It cited Paul Bunyan Communications in the state, which had announced plans to lay 500 miles of fiber to expand services to 2,600 potential customers in underserved areas. Now the company plans to lay only 100 miles that would reach fewer than 400 potential customers and might not plan any additional expansion in 2012, the report said. Another local provider, Halstad Telephone, had planned to upgrade its DSL services. As a result of the changes, it now plans to raise rates to help offset the estimated $250,000 per year revenue loss, the report said. Companies in the state are pulling back from investment due to the FCC’s reform and uncertainty over what might come next, said Brent Christensen, the alliance CEO.