[RTC List] Broadband stimulus?

[Sean McLaughlin]

Internet-Access Funds To Be Included In US Stimulus Plan
Dow Jones
December 02, 2008: 04:16 PM EST

WASHINGTON -(Dow Jones)- The federal government's economic stimulus 
package will include investment in broadband Internet infrastructure and 
funds to upgrade and repair the national power grid alongside more 
traditional funding for road and bridge repair, a senior aide to House 
Speaker Nancy Pelosi, D- Calif., said Tuesday.

Details of the package including how much money will be included in the 
larger economic rescue package for the technology investments and how 
such funding would be allocated are still being worked out, the aide said.

The overall size of the package, including an income tax cut for the 
majority of working Americans, could be around $500 billion, but that 
too is still being finalized.

The investments in technology infrastructure would fit in with Pelosi's 
determination that the spending package not only gives the ailing U.S. 
economy a short-term jolt, but also pays dividends over the longer term, 
the aide said.

A substantial investment in upgrades to the country's power grid could 
be a precursor to a revamped energy policy placing more emphasis on 
renewable energy technologies - a key priority of both Pelosi and 
President-elect Barack Obama.

Similarly, the goal of universal broadband Internet coverage was often 
mentioned by Obama on the campaign trail.

Unlike other traditional forms of infrastructure spending, the backbone 
to the Internet has largely been financed by private companies in the U.S.

Congress could opt to provide hefty tax credits to the phone and cable 
companies who have been responsible for the rollout of broadband 
Internet access.

Or lawmakers could opt to expand existing subsidies to the companies to 
offset the costs of providing high-speed Internet service in rural, 
underpopulated parts of the country.

A third option would be to increase aid to states, which are likely to 
have a better idea where Internet service isn't currently available.

Several major technology and communications companies including Google 
Inc. ( GOOG), AT&T Inc. (T), Verizon Communications Inc. (VZ), 
Alcatel-Lucent (ALU), and Cisco Systems Inc. (CSCO) have joined forces 
with unions, state governments, and advocacy groups to press the case 
for the inclusion of Internet build-out incentives in the stimulus package.

"We're reasonably confident that if we work together like we are here 
that we can see broadband incentives in the economic recovery package in 
January," Communications Workers of America President Larry Cohen said 
Tuesday.

More than 50 companies and organizations that have previously disagreed 
on some aspects of Internet policy signed on to a statement saying Obama 
should make high-speed Internet access a top national priority.

Cohen said 100,000 jobs could be created by immediately investing in 
more high-speed Internet networks across the country. "Jobs is the best 
single stimulus," he said.

The demand for services created by broadband Internet access could 
create another two million jobs, Cohen argued.

As with his campaign, Obama's transition operation regularly refers to 
Internet access as an important factor in creating jobs and spurring 
innovation.

The "call to action" statement that the CWA and companies have signed 
says Internet access could be boosted in underserved areas through tax 
incentives, grants, low-cost loans, loan guarantees and government 
subsidies.

-By Corey Boles and Fawn Johnson, Dow Jones Newswires; 202-862-6601; 
corey.boles at dowjones.com and fawn.johnson at dowjones.com

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  (END) Dow Jones Newswires
  12-02-08 1616ET
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