The Federal Communications Commission (FCC) chairman, Julius Genachowski, will propose the preliminary plans to subsidize and combine rural telephone service into a single entity by converting the $8 billion fund.

Officials said that the FCC will outline the proposal in a speech on Monday, outlining ways to provide broadband Internet service to areas that lack effective service.

The actual longstanding subsidy known as the Universal Service Fund, money gathered through tacking on consumers’ phone bills. The money allocated is said to be distributed among telephone companies sponsoring the high costs of providing service to rural areas.

The proposal apparently delineates phasing out the payments between phone companies and merging of existing methods of payments into a new pool, the Connect America Fund for rural phone service.

According to Mr. Genachowski’s draft of the proposal also discusses the current Universal Service Fund and its “unsustainable” spending methods, including “inefficiencies and perverse incentives” which result in the waste of fund.

However the planning is equipped for making broadband available to underserved areas and help paying for the service and will be discussed for Monday.