When it comes to spending government money on broadband deployment, there’s no shortage of propositions. In fact, there are so many it’s impossible to analyze each. However, three of the most well-publicized ideas come from the Communications Workers of America (CWA), the Telecommunications Industry Association (TIA) and Free Press.
The CWA wants Congress to take three general steps. The union, which represents employees of AT&T Inc., Qwest Communications International Inc. and Verizon Communications Inc., among others, first is calling for funding of the Broadband Data Improvement Act. Congress passed the bill in October 2008. It enables states to map the presence and absence of broadband infrastructure, but allots no money for that undertaking.
CWA also has requested that Congress adopt tax incentives, loans and direct grants “to stimulate investment in underserved areas and in next-generation high-speed networks,” Larry Cohen, CWA president, said in a Dec. 2, 2008, speech. The union further wants programs that will improve “digital literacy,” Cohen said. Several entities back the idea of giving vouchers to low-income Americans who don’t have computers or who can’t afford broadband access.
The TIA supports CWA’s proposal and has some thoughts of its own. It has asked lawmakers to create a $25 billion grant program to fund broadband infrastructure deployment in unserved areas. TIA’s members, which include suppliers such as Acme Packet Inc. (APKT), Cisco Systems Inc. (CSCO) and Nortel Networks (NT), would reap the benefits of such a program, making more sales as their provider customers build additional networks.
Then there’s the $44 billion pitch by Free Press. Over the course of three years, the media reform organization wants to put that money toward a number of efforts. For instance, like CWA, the group wants a grant program for rural broadband deployment — it proposes $15 billion over three years and the money would come from a Universal Service Broadband Infrastructure Fund. Free Press also wants $10 billion for a bond program, which would pay the interest on certain corporate bonds issued specifically for broadband infrastructure investment. The group said the idea would be “particularly attractive” to CLECs because they’d invest in uncompetitive special access markets. Qualifying networks would have to be able to deliver more than 50mpbs, Free Press said.
