How Do the Feds Fund Broadband?

Coverage Type: 

HOW DO THE FEDS FUND BROADBAND? LET ME COUNT THE WAYS
[SOURCE: Reason Foundation, AUTHOR: Steve Titch]
[Commentary] Perhaps the real question to ask about the so-called “digital divide,” isn't how to address it, but whether it exists at all, at least when it comes to rural telecommunications. OPASTCO, the trade group that represents some 520 small rural telcos, says some 90 percent of its membership is offering broadband Internet. And that group of 90 percent makes broadband available to 90 percent of their customers. In addition, half of the OPASTCO membership is offering wireless services and half (not necessarily the same or opposing half) are offering video. True, much of this is due to subsidies, but not all. Although the bloated Federal Universal Service Fund most often comes to mind, there’s almost no end to the federal government’s bounty in funding approaches. First there’s the Rural Utilities Service at the U.S. Department of Agriculture, which oversees two federal assistance programs exclusively dedicated to broadband. One program is the Rural Broadband Access Loan and Loan Guarantee program, which has $500 million banked for 2007. The RUS also oversee the Community Connect Broadband Grant Program, which has allocated $9 million so far in 2007. These programs are on top of other general federal programs from various departments (HUD, Commerce, Homeland Security, Education) that can be tapped to fund broadband. These include The USF’s High Cost Program, Schools and Libraries Fund and Rural Health Care Fund, but also: Rural Telephone Loans and Loan Guarantees; Community Development Block Grants; Indian Community Development Block Grants; Grants for Public Works and Economic Development Facilities; The Appalachian Regional Commission; The Delta Regional Authority; The Denali Commission; Distance Learning and TeleMedicine Program; Interoperable Communications Equipment Grants; Telehealth Network Grants; Public Telecommunications Facilities Program; Technology programs overseen by the Department of Education; Library grants; Medical Library Assistance.
http://www.reason.org/outofcontrol/archives/2007/04/how_do_the_feds.html


How Do the Feds Fund Broadband?