Will Congress Give Billions to Broadband?

There seems to be consensus to include broadband deployment in a planned economic recovery stimulus. But is there consensus on how best to provide incentives to build high speed Internet networks? Rep Anna Eshoo (D-CA) called for tax credits that would allow Internet service providers to expense 100 percent of the costs of building out a next-generation network, which would entail speeds of 100 Mbps downstream and 20 Mbps upstream. She suggested a 50 percent expensing option for providers building "current-generation" networks in low-income and rural areas with speeds of 5 Mbps downstream and 1 Mbps upstream. She also suggested that the government authorize broadband providers to issue low-interest bonds to finance their network build-outs, essentially providing them with "cheaper access to credit." She finds historical precedent in the 1862 Pacific Railway Act, which authorized the issuance of bonds to finance the transcontinental railroad. Without stimulus, she warned, many providers would likely cut back on their build-out plans. Sen Olympia Snowe (R-Maine) would like to see in the stimulus package is funding for the Broadband Data Improvement Act, which directs federal agencies such as the Census Bureau and the Federal Communications Commission to improve the quality of data they have about the deployment of broadband services. The bill was signed into law in October, but has yet to garner funding.