The problem, as Larry Downes, a Senior Adjunct Fellow at TechFreedom, explains to us, is that the program is full of fraud and abuse. The program’s original intention was good but, since there was no cap, anyone who was eligible applied for service. As a result, the program grew and grew but had no checks and balances.

Now, the FCC says that is now going to audit the program and projects that it will save $3 billion. With this savings, it plans to initiate a pilot program to bring broadband to eligible participants.

However, Downes told us that the FCC doesn’t have the authority to this. In addition, the agency is beginning its broadband plan before its checks and balances are implemented. Downes is concerned that the FCC will have already spent the money before it finds out if its reforms are adequate.

Although the FCC released its order this week, it could potentially be reversed if a group or party tries to challenge it.

While the “spectrum crunch” issue is not disputed, the way in which new spectrum would be distributed is sparking a big debate in Washington. The solution involves putting the spectrum that is no longer used by broadcast radio and television companies up for auction. However, the problem is between policymakers and the FCC. Legislators want to hold open auctions for the spectrum, but the FCC wants to have the power to say who is and isn’t included in the auction.

According to Bruce Mehlman, the former Assistant Secretary of Commerce for Tech Policy and the Co-Chair of the Internet Innovation Alliance, open auctions are the better alternative for users and the U.S. economy. As he explained, old government decisions that set limitations are the reason for the current mess. He, therefore, believes that the market should be open for anyone who wants to participate in the auction to have the opportunity to do so.

“The biggest challenge is if the FCC gets its way… I think the spectrum crunch these very auctions are expected to alleviate doesn’t get alleviated… then problems continue,” said Mehlman.

Incidentally, several small wireless carriers including Sprint and T-Mobile, recently asked lawmakers to preserve the FCC’s authority in auctions. Verizon and AT&T are not in favor of this preservation because they believe the FCC could favor the smaller mobile players.

What’s the answer for the spectrum crunch? Please let us know your thoughts.

In all honesty, the report did not make many recommendations, which Adam Thierer, a senior research fellow with the Technology Policy Project at the Mercatus Center at George Mason University, considers a positive move. It’s no secret that new media has brought a fair share of challenges to the table, but Thierer told us that he doesn’t think the government stepping in would provide any solution. He believes that the market will work itself out.

Where do you see media going in the future?

WebProNews spoke with Joel Kelsey, a political advisor with nonprofit group Free Press, who is working to raise awareness about these continuing “revolving door” issues in Washington. Because these incidents are portraying the U.S. government negatively, he is encouraging the public to contact their senators and ask them to enforce a standard that those within government agencies must abide to.

Free Press also has an action fund set up in which users can contact Representative Darrell Issa, the chairman of the House Oversight and Government Reform Committee, and ask him to investigate Baker’s recent announcement.

Although WebProNews spoke with John Bergmayer, a staff attorney with Public Knowledge, before the House voted, he said it be “really unlikely” for the FCC’s rules to be overturned. He further explained that he didn’t think the Senate would have enough votes to repeal it.

On Mashable, Ben Parr reports that the President said he would veto the action if it were to come before him.

Bergmayer did say that the opponents to the FCC rules could try to repeal the action through a broader budget deal, which means that the issue of net neutrality is growing into a large political concern.

How do you think this debate will play out?

Jim Lakely, the Co-Director of the Center for Digital Economy at The Heartland Institute, disagrees with this way of thinking. He believes that the deal will go through for a variety of reasons.

For starters, he told WebProNews that the marketplace is actually more competitive than people think. Although consumers are primarily drawn to the bigger players like AT&T, Verizon, T-Mobile, and Sprint, there are smaller providers such as Leap Wireless and U.S. Cellular that serve as competition as well.

A lot of people are also opposed to the deal out of fear of price increases. Because the wireless marketplace is so “customer-sensitive,” Lakely doesn’t think this would be problem. If prices did go up, he said customers would move to another provider, which is not what AT&T or T-Mobile would want.

He believes the biggest benefit of the merger would be the development of 4G for consumers. By combining the talents and assets of each company, he said that 4G would be available to more people quicker.

What are your thoughts on the merger?

Also, earlier this month, T-Mobile had a lawsuit filed against it by EZ Texting, which is a company that helps businesses send mass marketing messages to consumers.  EZ Texting accuses T-Mobile of blocking access to its network because it conducts business with a website that provides information about medical marijuana.

Regarding this case, Gigi Sohn, the president and co-founder of Public Knowledge, said, “This case is yet another example of a totally arbitrary decision by a carrier to block text message calls between consumers and organizations they want to communicate with. The FCC should put a fast end to this blocking by issuing the ruling we asked them for three years ago.”

As a result of these recent developments, some groups are beginning to ask that net neutrality be extended to mobile platforms. If not, they fear that innovation would plummet in the mobile industry.

ChaCha, the question and answer service based on sending text messages, has spoken out toward this cause. Scott Jones, the company’s CEO and co-founder, has even said that if T-Mobile carries out its plan to enforce the tax, it would have to drop T-Mobile customers from its SMS services.

On the other hand, T-Mobile justifies its actions by saying it is trying to prevent against unsolicited commercial texts. The mobile carrier also believes its action would be a net positive for its partners.

Incidentally, T-Mobile’s tax would not include companies such as Facebook and Twitter.

A hearing for EZ Texting is set for tomorrow, September 30. Also, if T-Mobile follows through and does impose its new fee, companies will feel the effects of it on October 1.

As this net neutrality fight continues, what do you think of these recent activities and their implications?

Google Voice is said to be a competitive threat to voice services that already come with the iPhone. Industry analysts have also said that AT&T is likely concerned that its company could lose revenue as a result of Google Voice services.

The FCC is looking into the matter as part of its continuing investigation regarding wireless open access and handset exclusivity. The letters also seek to find out if AT&T had any input in the decision to reject Google Voice.

Ironically, Google CEO Eric Schmidt announced his resignation from Apple’s board Monday, August 3. Although his resignation came just days after the FCC’s investigation began, the FTC had already been investigating ties between the companies and whether they were breaking antitrust laws.

What will become of the FCC’s investigation? How will it impact Apple’s iPhone? Was the timing of Eric Schmidt’s resignation simply a coincidence? Will these proceedings affect Google and Apple’s cordial relationship?

Ask.com product manager Ryan Massie thinks his company has the formula for success when it comes to the local search market. Massie told attendees at the Kelsey Group’s ‘Drilling Down on Local’ conference, “When someone comes to that search box and we give them exactly what we want–the right result, the right content, take them to the right page–they’re going to come back. That’s success.” Ask launched their local search product, Ask City, earlier this year.

Long running technology journal InfoWorld will come to an end in the world of print. Publisher IDG will focus on InfoWorld’s online version as well as events they will host. InfoWorld.com vice president Virginia Hines said on the site the move would, “remove the distraction of maintaining and fretting over a costly, nearly obsolete distribution channel.” The print version ends in April.

Viacom general counsel Michael Fricklas said YouTube is not protected by the DMCA when it comes to copyright infringement. Fricklas said in a Washington Post op-ed piece that DMCA safe harbor provisions are “not available to someone who ‘derives a financial benefit’ from copyrighted material he stores if he has the “right and ability to control” it.” Viacom is suing YouTube and Google for one billion dollars over infringement.