Fresh Hope for Broadband

On the campaign trail and in the White House, President Barack Obama has embraced the idea of providing high-speed Internet access to every community in America. Now, the Obama Administration's broadband plan looks to be getting a new group of unexpected partners: state and local governments eager to play a leading role in bringing fast Internet connections to the nooks and crannies of the American landscape. Colorado, Ohio, Tennessee, and Virginia are planning to seek broadband stimulus money. Tennessee says it expects to receive as much as $150 million in broadband grants. The money comes at an opportune time for states and municipalities. Many are facing huge budget deficits but would like to finance the broadband plans to help stimulate economic development. How the states use the money has not yet been determined. Some, including Virginia, are leaning toward hiring private companies to own and operate networks on behalf of the states. Others may do the job themselves. If state governments hire AT&T and others to help them build broadband networks, private companies could potentially tap into stimulus funds while sidestepping whatever rules the federal government ends up attaching to its money. One source says AT&T is interested in working with state and local governments on their projects. Regardless of what regulations may come to be written, states see the broadband program as a great opportunity to create jobs for their constituents.