Friday, April 3, 2009

Is $7.2 Billion For Broadband Construction Going Begging?

In remarks at a convention of the cable TV industry in Washington D.C. yesterday, House Energy and Commerce Communications Subcommittee Chairman Rick Boucher spoke out against open access requirements which could discourage major cable networks from applying for $7.2 billion in grants for construction of broadband towers and other facilities to make internet access available in presently unserved and underserved areas of our nation. The funds, appropriated in the economic stimulus legislation passed earlier this year, have so far been rejected by major cable operators because of the absence of a clear regulatory definition of what "open access" means in terms of availability of facilities to other networks at wholesale rates. Boucher urged the major industry players to apply for the grant money.

Another bottleneck in the way of funding these tower construction contracts is the dispute among Congressional leaders over where the money should be spent. Boucher and House Energy and Commerce Chairman Henry Waxman want the new facilities to be built in both unserved localities, and underserved localities where some service is available. Republicans Joe Barton and Cliff Sterns, ranking members on Waxman's committee and Boucher's subcommittee, want to restrict all the $7.2 billion to construction in completely unserved localities. Until these two regulatory bottlenecks are resolved, the construction contractors waiting for these projects to be released for bidding will continue to go hungry.
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