Media Helps Carriers Spread Broadband Stimulus FUD

[Commentary] Large telecom carriers like Verizon, Qwest and AT&T say they are refusing to apply for broadband stimulus funds because they don't want to accept government "strings" and because they can't "compete" with government, and the national media repeats their charges verbatim. The National Telecommunications and Information Agency (NTIA) and the Rural Utility Service (RUS) are the two federal agencies tasked with distributing $7.2 billion for projects extending broadband Internet services to areas that have been largely abandoned by the incumbent carriers. The agencies have started processing applications and expect to start doling out grants later this year. It's not surprising that the carriers would squawk about this program -- it puts their failures under a harsh spotlight -- but it's a little startling to see the media swallow their propaganda lock, stock and hogwash. And hogwash is what it is. One canard being floated is that lack of large carrier participation is proof that the broadband stimulus program is failing. That's absurd on the face of it -- thousands of vendors are competing for billions of dollars in grants to introduce broadband in areas that the large carriers haven't deigned to serve. Craig Settles, president of broadband strategy consulting firm Successful.com, wrote in an email that "Just knowing that the bigger companies weren't likely to play by itself probably encouraged a few more organizations to apply."