The Great Broadband Cash Giveaway

Money is in the air and the big cash sharks are circling.  Last month President Obama signed into law a $787 billion economic stimulus package which contained $7.2 billion worth of broadband grants and loan programs.

Advocates of universal broadband access are interpreting the large allocation of funds toward broadband development as a clear indication that Congress is committed to connecting the country and maintaining an open Internet.  In particular, The American Cable Association, which represents more than 900 smaller and medium-size independent cable companies, praised the legislation’s emphasis on providing rural areas with broadband.  That and the possibility that they may be able to take a bite out of the multi-billion dollar feeding frenzy.

The bill mandates that the grants “accelerate broadband deployment in unserved and underserved areas and to strategic institutions that are likely to create jobs or provide significant public benefits”.  In this ambiguity the money may also go to any recipient that best serves an area’s needs, including wireless providers, wireline providers, or any provider offering to construct last-mile, middle-mile, or long-haul facilities.

There is no doubt that this is a great opportunity for carriers who might provide high speed Internet and WiFi in rural and urban areas.  Whether or not this translates into affordable Internet access for consumers is another matter all together.

You can read the bill in its entirety at http://www.recovery.gov/ and view a detailed explanation of the plan at www.recovery.com.