Monday, January 26, 2009

Broadband stimulus package no blank check - FierceBroadbandWireless

The broadband industry wanted taxes incentives, arguing that this avenue would offer a quicker stimulus to the economy and speed up buildouts. The industry says the grant and loan avenue could take months to make inroads as the money would funnel through the bureaucratic process. Moreover, the open access requirements have yet to be defined. As written in the bill, the FCC is supposed to create the rules. Newly appointed FCC Chairman Julius Genachowski likely won't deal with that issue for months. If broadband players are required to open up their networks to competitors, they'll likely pass on any grants, experts warn.

And finally, the broadband speed requirements will likely be another hindrance. In order to qualify for the bulk of the money, a wired broadband provider has to deploy a service offering 45 Mbps on the downlink, while a wireless broadband operator must provide 3 Mbps on the downlink. Experts say wired players aren't prepared to deploy such systems in rural areas, and wireless broadband operators will have the upper hand.
Broadband stimulus package no blank check - FierceBroadbandWireless

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