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Complaints Brew From U.S. Telecommunications Budget

Posted on: Saturday, 4 July 2009, 09:15 CDT

A broadband industry group said on Thursday that U.S. government guidelines to spend $4 billion to expand broadband services to underserved areas across the United Sates might be exceeding current laws.

USTelecom, which represents Verizon Communications and AT&T Inc., said that it was still analyzing requirements for providing loan and grant money to applicants involving state and local governments, as well as non profit and for profit organizations
.

"We are concerned that some of the new mandates seem to go well beyond current laws and FCC rules," USTelecom President Walter McCormick said.

According to McCormick, the rules might lead to uncertainty and may even delay President Barack Obama's plans to revive the U.S. economy with job creation through the telecommunication industry.  The U.S. Department of Agriculture and Commerce released the rules on Wednesday.

The funds are from a $7.2 billion program that’s goal is to build an affordable high-speed Internet structure in rural areas.  The broadband program was part of the $787 billion fiscal stimulus package Obama signed into law just a few weeks after his inauguration.


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On The Net:

Verizon Communications

AT&T


Source: redOrbit staff

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