Tuesday, October 4, 2011

Broadband Stimulus: Money for Nothing?

The 2009 stimulus bill earmarked more than $7 billion for broadband grant funding. Most of the money was allocated to the Commerce Department and the Agriculture Department. According to a report put together by House Republicans, of the $4 billion so far made available, only $138 million had been spent by the end of 2010. The Republicans have asked about the status of the rest of the money.

Because no clear answers have thus far been provided, the GOP is putting forth a bill this week requesting that some of thegrant money targeting broadband expansion be rescinded. And, really, why shouldn’t they?

Proponents of the funding will cry foul, lamenting that the money is necessary for building economic growth in rural areas. In fact, several political campaigns have made increased access to broadband a key campaign platform. But if the GOP report is accurate, why has so little of the money been spent? Who has oversight responsibility to ensure that projects are planned and executed properly?

Language in the report states that the lack of implementation is equivalent to, “putting the cart before the horse.” The report also raises concerns that, “some cable and phone companies believe awards have been issued for projects that substantially duplicate their existing service areas.”

Look at it another way: If you were running a business, wouldn’t you want to know that the money set aside for building your company was being used properly? The need for expanded broadband access is indisputable; the key is ensuring that the money to build the networks is applied effectively.

What’s your take on the subject?

Labels: Broadband Plan, Economy, Stimulus