The Channel Wire

March 24, 2009

For those tired of debating how the bailed-out banks should spend the taxpayers' money, there is a new target: how to handle the $7.2 billion for federal broadband spending included in the stimulus package recently passed by Congress.

Yesterday, the National Telecommunications and Information Administration (NTIA) hosted a roundtable discussion of the nondiscrimination and interconnection requirements of the American Recovery and Reinvestment Act (aka, the stimulus bill). Public interest groups want assurance of Net neutrality; telecom providers want to encourage applicants to extend service to remote areas of the U.S.

Several years ago, the Federal Communications Commission issued a four-part statement about Net neutrality:

1. Consumers are entitled to access the lawful Internet content of their choice.

2. Consumers are entitled to run applications and services of their choice, subject to the needs of law enforcement.

3. Consumers are entitled to connect their choice of legal devices that do not harm the network.

4. Consumers are entitled to competition among network providers, application and service providers, and content providers.

The telecom companies argue that grant recipients should be to required to do no more than abide by the FCC's four principles; public interest groups maintain that grant recipients should be required to provide unbundled access or permit line sharing for competitors.

One of the main concerns centers around providing nationwide access. For example, the stance of the United States Telecom Association, which represents wireline carriers, is that providers would be dissuaded from applying for the funds if the NTIA adopted stronger nondiscrimination and interconnection rules. Further, the USTA notes that openness requirements would reduce investment and job growth.

Despite those concerns, pointed out Gigi Sohn, founder of Public Knowledge, one of the groups supporting restrictions on the stimulus funds, AT&T is planning on investing nearly $18 billion in its broadband infrastructure this year alone. On her blog, Sohn wrote: "Judging by the huge crowd at the first informational meeting about the grant program (dozens had to be turned away, and thousands were on the Webcast of the event), there is no shortage of network providers and others interested in taking advantage of this extraordinary government benefit. So if the big guys want to take their ball and go home, that's fine. There will be plenty of applicants waiting to take their place in line."

The package is aimed at an estimated 10 million U.S. homes and businesses in rural areas that currently lack broadband access but is not focused on helping urban Americans get faster service.