FCC Meddling In Broadband Construction Could Spell Disaster

FCC Chairman Julius Genachowski spoke recently at a conference on broadband coverage in our country, explaining how the agency expects to comply with the Congressional mandate in the stimulus legislation to report by next February how best to make internet service available to every American. Behind him was a huge monitor displaying real time Twitter "tweets" from the audience members responding to his remarks. One audience member wrote, unnoticed by Genachowski, that "It would have taken the government until 2025 to have created Twitter."

During a hearing before the House Energy and Commerce Committee last week ranking member Congressman Cliff Sterns asked whether deeper FCC involvement in internet expansion is really a good idea. FCC Commissioner Robert McDowell echoed those sentiments during a break in the hearing. "I think we should proceed with caution, McDowell said, "There's a potential for good, but there's also a potential for government micromanagement." Amen.

Internet Construction Funding Bottleneck

Jonathan Adelstein, the FCC commissioner tapped by President Obama to head up the Rural Utilities Service within the Department of Agriculture, acknowledged today that FCC has been too slow in funding Bush era projects for health information technology in rural areas. Of 69 projects for which funds were appropriated, only 37 are in the vendor selection process and only one has actually been funded thus far. This does not bode well for the pace of spending the $7.2 billion appropriated for rural broadband construction projects in the economic stimulus legislation. The bulk of these projects are to be administered by RUS, under Adelstein's leadership.

Internet Expansion Is The New FCC Priority

Announcing his nomination of Julius Genachowski to chairmanship of the FCC, President Obama charged the new leader with designing a plan to bring broadband internet connectivity to rural and low income areas within one year, signaling additional federal spending on communications network construction in the coming months. If you are in the wireless broadband tower construction segment, keep your eyes on the FedBizOpps.gov website for your chance to bid on these projects.