Telecom Companies Scramble for Funding


Source: BusinessWeek
Author: Rachael King

The economic stimulus legislation known as the American Recovery & Reinvestment Act of 2009 set aside $7.2 billion in grants and loans to encourage the installation of broadband networks in areas with little or no access to it, from hard-to-reach hinterlands to low-income inner-city neighborhoods. The Obama Administration considers access to high-speed Internet connections a critical way of bridging socioeconomic gaps, creating jobs, and spurring economic growth. The program isn't without its critics. Some say it doesn't go far enough in bringing Web access to the most remote areas, while others fret the government hasn't left itself a big enough window for disbursing so large a sum. Applicants, meantime, are racing to meet the August 14 deadline, though some say the government wants more detail than they can readily provide. The government asks for detailed proof a particular area lacks the cables and other equipment needed to provide fast Web access—and that service hasn't been available for years. The companies with the most data on broadband availability include the incumbent large providers, such as Comcast, AT&T, and Verizon Communications. Those companies have historically been reluctant to give up mapping data they consider proprietary and competitive, and it's difficult for many smaller providers to get information elsewhere.

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