Consumer Groups Urge Proper Use of Broadband Stimulus
Rep. Chip Pickering joined consumer group Free Press on Monday in a national conference call aimed at discussing the best way to spend the $7.2 billion set aside for broadband expansion in President Barack Obama’s stimulus package.
Pickering (R-Miss.) was joined by Ben Scott, of the Free Press, and Markham Erickson, of the Open Internet Coalition. The call came just one day before the three federal agencies responsible for overseeing the funds ““ the Federal Communications Commission (FCC), the US National Telecommunications and Information Administration (NTIA) and the Rural Utilities Service (RUS) ““ hold their first joint public meeting.
As a part of the $787 billion American Reinvestment and Recovery Act, $4.7 billion will be granted to the National Telecommunications and Information Administration for broadband development in "unserved," "underserved" and low-income communities. An additional $2.5 billion will go to the Department of Agriculture’s Rural Utilities Service for rural broadband.
"It all hinges on getting the policy right to make sure the money is spent right" Ben Scott told BBC News. "We’re going into an extraordinary period where the government is directly investing in broadband infrastructure.
“This process of handing out $7 billion, although there’s a great deal of urgency to get the money out the door, must fundamentally be data driven.”
"We need to make sure the money is spent wisely.”
A portion of the money will also be spent on "broadband education, awareness, training, access, equipment and support", with the sole purpose of stimulating job growth.
"It’s very important that they (the grants) go to economically viable commercial entities that are sustainable over the long term," said Pickering.
"When we have competition we have much greater innovation and investment," he said.
"Where we have a duopoly, we have seen reduced economic activity, reduced investment and reduced innovation."
Erikson told BBC: “NTIA has to move by Washington standards in lightning-fast time.”
The Information Technology and Innovation Foundation last week released a report called “The Need for Speed: The Importance of Next-Generation Broadband Networks.”
The ITIF said it “argues that supporting the deployment of faster broadband networks will be crucial to enabling next-generation Web-based applications and services that will play important roles in improving quality of life and boosting economic growth.”
The report showed that Americans get an average broadband speed of 5 MBPS. Meanwhile, consumers in Japan get 63 MBPS and those in South Korea receive 49 MBPS.
“While getting broadband service to the Americans who lack it is an important policy target, next-generation broadband will deliver a wave of new benefits to consumers, society, businesses, and the economy,” ITIF added.
"Deploying next generation broadband to 80% of US households that currently lack it can bring the needed economic stimulus by ensuring approximately two million American jobs," said ITIF President Robert Atkinson.
—
On the Net: