Internet Providers Move to Shape Broadband Push

President-elect Barack Obama's call to improve the nation's broadband infrastructure has cable and phone company lobbyists maneuvering to get a leg up. Policies under serious consideration are corporate tax credits to build new wireless or landline infrastructure, government-backed broadband "bonds" and grants to companies or local governments, legislative aides and lobbyists close to the process say. There also is strong agreement that low-income consumers need to be encouraged to sign up for broadband -- for example, through vouchers to purchase computers or discounts on monthly service. Senate Finance Committee and Commerce Committee members are drawing up a few options, as are House members such as California Rep. Anna Eshoo and Massachusetts Rep. Ed Markey, chairman of the telecommunications subcommittee. The Obama transition team's point person has been former Federal Communications Commission chief of staff Blair Levin. Large cable operators are seeking to increase the FCC's definition of broadband download speed to about five megabits per second, about 6½ times as fast as the current definition, according to people familiar with the situation. Internet-service providers building out "unserved" regions, where service of that speed isn't available, would be given the full benefit of tax incentives or grants. The big cable providers also want to target "underserved" areas, where there is only one broadband provider or the service isn't widely available. In those markets, companies would get incentives to build out next-generation services. The download speed that would qualify as next-generation would likely be in the range of 40 to 50 megabits per second, people involved in the discussions say. The cable plan would disadvantage phone companies, especially smaller ones whose digital-subscriber-line services are slower than cable modems.