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Private sector: Just give us the (broadband stimulus) money
Cable, wireless and satellite providers have put together a united front on broadband stimulus grant monies, telling the National Telecommunications & Information Administration (NTIA) that it should simply allow private companies to apply for the $4.7 billion in federal cash without having to partner with governments or other eligible entities in the process. Needless to say, a variety of others pointed out that private sector companies were the ones who hadn't invested the resources in broadband so they needed to work with the government before they got the money.
Currently, the economic stimulus package law says government, nonprofit and tribal organizations are all free to apply for broadband buildout money, but service and network providers can only apply if the NTIA determines if is in the public interest. The Independent Telephone and Telecommunications Alliance, speaking for an alliance of private-sector telecom companies, wants NTIA to make eligible any entity that holds an FCC license, a stated certification, cable franchise or similar government authority; since such businesses have been already vetted, no other review is necessary.
Both the Communications Workers of America and Telecommunications Industry Association (TIA) came out in support of private industry being able to apply directly for the funds. CWA favored demonstrated job creation to be considered in doling out the funds while TIA argued that the test for funds should be based on the ability to use them to provide efficient and quality service.
On the other side of the coin, a spokesperson for the National Association of Regulatory Utility Commissioners, pointed out there was a need for at least a coordination role for state and local government entities in the grants, while the New America Foundation suggested that profit should be a byproduct, not a goal, of the programs, with private sector incumbents being a part of the problem - rather than part of the solution.
For more:
- Multichannel News discusses private sector posturing. Article.
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Comments
Posted by Anonymous | March 17, 2009 - 1:32pm
While no one would deny the Private sector from making a profit. The private sector has clearly demostrated that they have little concern for the public. Simply, giving them the money will result in more delays, false promises and the consumers still paying too much and twice, since these grants are from Taxpayers dollars.
Secondly, the private sectors has shown that if strict guidelines are not in place, they will profit first and serve, eventually; maybe.
Posted by Craig Settles | March 17, 2009 - 1:01pm
The scales should tilt heavily towards local government partnerships with service providers and vendors in order to ensure that the networks that get built address the needs of the local community and local stakeholders. The incumbents are selling services that often are not be fast enough, efficient enough or affordable relative to the price they want to charge and the speeds they deliver, and thus are unable to address economic development, new business attraction, healthcare delivery, education reform and a host of other real needs.
Let local communities define their needs, and let them select which partners they want to work with. I've documented local governments that first tried to get what they wanted from incumbents, then moved to other alternatives after incumbents refused to meet the governments' needs - www.successful.com/msp/snapshot-1-09.pdf.
When governments found or created what they wanted, those same incumbents fought the communities tooth and nail to prevent the networks that were eventually built. These sharks circling around the NTIA have no credibility and obviously no shame.
Why should NTIA and RUS let history repeat itself by turning money over to incumbents? The incumbents aren't the only game in town, and the free world will not collapse into Armageddon when local governments and local providers create successful networks.
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