What I find hilarious about the whole argument that the phone companies have is that Comcast (of all the evil companies) and most all major cable companies strung fiber up along their entire networks YEARS AGO. Comcast bought up AT&T Broadband in late 2002, and then immediately after for most of 2003 into 2004 had trucks everywhere in the streets as they were putting up fiber -- consequently you can now get a 50 meg Comcast connection practically anywhere in their footprint for $60 per month, and 100+ megs if you pony up for it -- they just doubled it from 25 megs at that price point, and now they are in trials in some markets of making 100 megs the 60 buck plan and 200 megs the expensive one.
The phone companies have wider networks, better facilities, better rights-of-way, more revenue (especially from all the business customers -- we pay over a grand a month for Metro Ethernet at work -- I somehow doubt the phone company isn't making a pretty penny) and could bring fiber to the curb (it doesn't HAVE to be to the premises -- although Verizon proved that they can actually pull that off and the results are pretty sweet) if they wanted to the same way the cable guys have -- but they'd rather whine about how providing a basic service they way they made their billions off phone service just doesn't bring them enough money.
As much as I love to hate on Comcast, their internet service is pretty good considering the competition I have -- which is Centurylink, who loves to send me fliers saying that 40 meg internet is available for $29.99 for the first year -- except it's actually only 1.5 megs here, it tops out at 8 megs in the middle of the city (Olympia, WA), and the only 20 and 40 meg connections to be had are in the surrounding suburbs of Seattle and parts of Tacoma -- their latest marketing scheme on radio and TV is that they offer GIGABIT internet -- and plaster advertising about it everywhere... which would be cool, except it's basically only in limited neighborhoods near downtown Seattle, even less available than their 20 and 40 meg VDSL... but from hearing and seeing the ads you'd think it's practically everywhere. Really the only way to get "decent" phone-system based internet here is if you were lucky enough to be in a GTE area... Verizon picked them up, really did a good job pushing FIOS out to most of the area -- but then sold off all their markets in the NW to Frontier Communications. In other words you now have a mid-sized ISP who owns an amazing network -- it's like having all the benefits of Verizon's massive wallet, without having to deal with Verizon.
So I have absolutely no love for phone companies... I have very little love for Comcast, but at least they provide me with a reasonable connection -- and lately they've gotten MUCH better about not dropping down considerably during prime time (I get my full 50 megs now, and drop to around 30 during heavily congested times... it's much better than when it was supposed to be around 25 megs but peaked at 14 and dropped as low as 2). But AT&T in particular has absolutely no excuse -- from what I understand UVerse is a network that was done on the cheap, has limited bandwidth for multiple DVRs and shares the TV bandwidth with the internet. At least Verizon tried with FIOS, and did their fiber network right the first time... as for CenturyLink, they are absolutely worthless to me -- except I can call up Comcast like clockwork and say "CenturyLink sent me a flier that says 40 meg service is now in my area" and I get $15 bucks off for 6 months...
The internet is a UTILITY just like phone service. No one can say at this day and age that it isn't -- it should be regulated the same way phone service is. Tack on $5 for a "universal broadband service charge" the same way the phone service has, and require that at least the minimum standard of "broadband" (I think it's 6 megs now) across the entire network -- which means even if you live in the middle of nowhere you'll still get 6 megs -- in the areas where they have to compete with cable (who gets franchise fees) that's the incentive to provide faster service. Whoever it was at the FCC that let them change internet service from "common carrier" to "information service" was an idiot.
I'm not a huge "government regulation" type of guy either -- but even I can see that the internet is right up there with phone service as far as an essential utility. In fact since you can actually use the internet as phone service without actually subscribing to phone service means it might even be a little more useful and essential than phone service at this point. I'm all for a USF fee for the internet -- the phone companies LOVE their USF money because even though it's a large capex up front, it's money they get from everyone continually... with everyone dropping their landlines, it's a great way to ensure they continue to get their USF money -- and that (selfishly) I can find a nice place in the country where I would actually have a reasonably priced option and not have to choose between satellite internet (never again) or dropping $250 a month on a T1 line that, although only 1.5 megs would be rock solid (I'd take the T1). When real estate agents are now being asked "What sort of internet can I get out here?" (and it's not just I who ask this question) I'd say you've crossed into "essential utility" territory...