ACA Criticizes Some Broadband Stimulus Fund Distribution

The American Cable Association says that the Rural Utilities Service has been handing out broadband stimulus money to fund service in competition with its members -- small and medium-sized cable/telecom companies.

In a letter to RUS administrator and former FCC Commissioner Jonathan Adelstein, ACA President Matthew Polka said ACA was "disappointed" to learn that some of the grant and loan money was going to areas "already sufficiently served with broadband." Polka said that the award process does not allow for operators to review the applications to ensure their accuracy. Polka wants RUS to adopt a formal review process that allows aggrieved parties to submit additional evidence, and in the meantime review all the round one applications (round two bids were due March 15) to make sure that no funding will be used to overbuild existing service.