US FCC chairman Julius Genachowski outlined plans to reform the universal service fund in order to free up funding for expanding broadband access. The plans, first mentioned in the National Broadband Plan last year, were unveiled in a speech at the Information Technology and Innovation Foundation in Washington, DC. The FCC is expected to vote on the proposal on 8 February. The plan aims to improve efficiency and accountability at the USF, diverting some of the money saved to the Connect America fund for broadband expansion. The plan also includes changing the intercarrier compensation system, in an effort to eliminate fradulent practices such as 'traffic pumping' and 'phantom traffic' and include VoIP in the system. Over time, Genachowski wants to phase out the entire intercarrier comp system, giving any rural carriers that depend on it more from the USF. Support for fixed networks would also be gradually merged with broadband subsidies to create one programme for servcies support. Industry groups and operators gave a cautious welcome to the proposals, saying they support reform of the fund but need to hear more about the details of the plan.
