Federal government looking to “invest” in broadband
Within two weeks Congress will consider a massive investment bill that includes an infusion of $6 billion for broadband and $650 million to get the government’s cash-strapped DTV coupon program back up and running. It’s part of a $550 billion proposal that House Appropriations Committee Chair David Obey (D-WI) calls the only way to handle the nation’s financial crisis.
“The economy is in such trouble that, even with passage of this package, unemployment rates are expected to rise to between eight and nine percent this year,” Obey declared in a press statement released Thursday. “Without this package, we are warned that unemployment could explode to near twelve percent.”
The “American Recovery and Reinvestment Bill of 2009″ is designed to create and save between three and four million jobs, Obey says, “and begin the process of transforming [the United States] for the 21st century.” It is also packed with tech- and science-related investment programs. The broadband plan will target high speed Internet access “so businesses in rural and other underserved areas can link up to the global economy.” And the proposal includes $10 billion for science and research.
“We need to put scientists to work looking for the next great discovery, creating jobs in cutting-edge-technologies, and making smart investments that will help businesses in every community succeed in a global economy,” the proposed law’s summary explains. There’s also $32 billion allocated for the development of renewable technologies, $31 billion to make public facilities more energy efficient, $10 billion for transit and rail construction, and $19 billion for water purification, flood control, and environmental restoration programs.
Not surprisingly, questions are coming in fast about how this tsunami of money will be spent, especially regarding broadband. Obey’s statement promises that the appropriations bill will come with “unprecedented accountability.” Programs with “proven track records” will be favored for the cash. Information about the grantees will be published on a Web site. The Government and Accountability Office will get funding to watch the programs. And the package comes without earmarks.
But the advocacy group Free Press has already filed comments on the broadband aspect of the plan. The group says it’s happy about the bill, although it doesn’t think $6 billion is enough. Beyond that concern, it wants Congress to require any new network funded by this program to adhere to open access and nondiscrimination principles, or possibly open them to providers at wholesale access rates. In addition, some government agency must oversee the program to “enforce concrete administrative accountability.”
It bugs me that even a fairly reputable news organization such as Ars Technica takes the government’s and interest group’s line down without a question. No counter argument to Obey’s (what an appropriate last name for a politician) claim that such a so called stimulus package is the “only way to handle the nation’s financial crisis.” Or that it will “create and save between three and four million jobs.” Well if the government can do that… why can’t it just go for broke and double that. Get rid of unemployment all together. And can someone explain how rural businesses will benefit from being linked up to the “global economy?” Aren’t most companies hosting sites on 3rd party machines? Especially small companies? One could easily use dialup to maintain such a site. In the least they could get a T1. A little pricey but so is business broadband.
The best part of this whole government stimulus package is that “For every dollar invested in broadband the economy sees a ten-fold return on that investment.” That comes from page 2 of the press release linked above. If that is true… why aren’t people tripping over each other to invest in broadband? A 1000% increase is one hell of a return. Can I get in on that investment… you know… besides the money the government is “investing” on my behalf with my money which they’ve stolen? Perhaps I can put my 401K into some broadband fund?
If broadband as a whole or even a subsection of the market offered that kind of return on investment you can be absolutely sure that entrepreneurs and private investors would be taking advantage of it. That’s how the market works. It ebbs and flows into greater efficiencies. The fact broadband is not where these people want it is an indication that it is not currently profitable to do so. Whether that’s due to it’s nature (current technological imitations, etc.) or due to restrictions and regulation by the State is a topic all its own.
