News

Broadband stimulus debate shifts to Senate

The Senate Appropriations Committee voted in favor of the $9 billion Broadband Technologies Opportunity Program last Tuesday, moving it closer to inclusion in the economic stimulus package. On the same day, the Senate Finance Committee approved broadband tax incentives.  The Senate broadband provisions closely track CWA's Speed Matters recommendations to create jobs and improve global competitiveness through broadband investment.

The Senate Appropriations Committee approved the $9 billion that the bill requested - the vast majority of which will go directly to funding grants for the deployment of broadband in unserved and underserved areas. Additional funding will go towards accelerating broadband adoption, upgrading technology and capacity at community computing centers and to implement the Broadband Data Improvement Act (passed earlier this year, but not funded). The program will be administered by the Department of Commerce National Telecommunications and Information Administration (NTIA).

The grants through the Broadband Technologies Opportunity Program will be available to state and local governments, nonprofits and public-private partnerships.

Unfortunately, the bill fails to include a provision requiring grant recipients to follow the FCC's Open Internet principles. Instead, it requires the NTIA to define its own principles -- a process that could cause lengthy delays in getting grant money out the door at a time when our economy is bleeding jobs.

Meanwhile, the Senate Finance Committee approved investment tax credits for "qualified broadband expenditures." This tax incentive would help offset the cost of deploying broadband for telecommunications providers in rural and underserved areas. Japan and South Korea -- global leaders in broadband deployment -- built their high-speed networks with the benefit of tax credits.

The program provides increased tax incentives for companies deploying next-generation broadband lines in rural, underserved and unserved areas - defining next-generation as 100 megabits per second(mbps) download and 20 mbps upload speed.

The House of Representatives yesterday approved the American Recovery and Reinvestment Act, which addresses funding for broadband. The three provisions for broadband in that bill include:

  • $350 million to implement the Broadband Data Improvement Act, the broadband mapping and demand stimulation program
  • $2.85 billion for Wireless and Broadband Development in Unserved and Underserved Areas through the use of grants that require "open access" networks, administered through the Dept of Commerce's NTIA
  • $2.85 billion for Wireless and Broadband Development in Unserved and Underserved Areas administered through the Department of Agriculture Rural Utilities Service Distance Learning, Telemedicine and Broadband Program. Priority in funding would go to past RUS recipients, thereby limiting the impact of the program.

Description of the Chairman's Modification to the Revenue Provisions of the "American Recovery and Reinvestment Tax Act of 2009" (Senate)

CWA part of growing consensus on broadband stimulus policies (Speed Matters)

President Bush signs Broadband Data Improvement Act (Speed Matters)