July 14, 2008

GAO finds USF poorly accounted for

grito.jpgIf there was ever any doubt about it, the USF as a means to provide service to the under served has been a complete disaster. From it’s beginning it’s be a money pot for the telcos and bureaucrats. According to a newly released GAO report, nothing has improved.

“There is a clearly established purpose for the high-cost program,” GAO concluded, “but the FCC has not established performance goals or measures.” Specifically, the agency hasn’t set across-the-board benchmarks for its recipients for “intermediate and multiyear periods.” Translation: the agency hasn’t established meaningful expectations at all.

But that’s not the worst of it. GAO basically says that the USF’s audits of carriers aren’t really audits. “Carrier data validation focuses primarily on completion and not accuracy”—a polite way of saying that USF auditors make sure all the data is submitted, but don’t check whether it’s accurate.

“These weaknesses could contribute to excessive program expenditures,” the GAO concludes. Uh, yeah—like a program that now costs over $4 billion a year.(Ars Technica)

For those of you who think the government should be involved in internet infrastructure, this may give you reason to doubt the wisdom of your position.

Filed under FCC, Legislation / Regulation by admin

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