Boston, MA 02/04/2014 (wallstreetpr) – The Federal Communications Commission has pledged to double its investment in high speed Internet at schools. In its endeavors, the White House is working with wireless providers like Verizon Communications Inc. (NYSE:VZ) and Sprint Corporation (NYSE:S).
The FCC is planning to invest an addition $2 billion in a span of 2 years for bettering broadband networks in American schools and libraries. The investment through a subsidy program called E-Rate which is funded by fees Americans pay on their phone bills every month. The program, created in 1996, aims at helping schools and libraries at educational institutions avail discounts on Internet services and digital devices. As of now, E-Rate gives schools around $2.4 billion per annum. This amount, according to FCC officials, is now not enough to serve its purpose.
Proposed plan
Nevertheless, FCC’s plan, which is to be announced tomorrow, will not be based on any increased expenses to wireless and phone customers. As reported by the FCC officials, only around 50% of the funds collected by E-Rate have truly been contributed towards equipping educational places with high speed Internet. This and the following year, the broadband grants will be doubled by employing the unused E-Rate funds accumulated over the years. At a later stage, funds would be generated by reforming the E-Rate program which would cut down on paying for obsolete telephone services like dial-up services.
Tech giants and wireless service providers
On one side, the White House is in talks with wireless providers like Verizon Communications Inc. (NYSE:VZ) and Sprint Corporation (NYSE:S) in regards to bringing about improved digital experiences in American schools. And on the other side, to carry out the entire plan into action, it is also collaborating with companies such as technology giants Apple Inc (NASDAQ:AAPL) and Microsoft Corp. (NASDAQ:MSFT). As a projected target, the FCC’s E-Rate venture will bring speeds of about 100Mbps (100 megabits per second) to schools.
