Verizon Could Get $1.6 Billion in Senate Stimulus Plan

Four words buried in a provision to help subsidize high-speed Internet service contained in the latest Senate version of the economic stimulus legislation could mean hundreds of millions of dollars a year in tax credits for Verizon. The provision might give Verizon $1.6 billion in credits in the next two years, even if it does not hire one more person than it currently plans to do. The changes to the broadband part of the Senate stimulus bill were spearheaded by Senate Commerce Committee Chairman Jay Rockefeller IV (D-WV), who has long advocated for expanded broadband service to rural areas. Verizon is the dominant phone company in his state. The Senate proposal also would not ban Verizon, or any other company benefiting from the credit, from discriminating against certain uses of their Internet service, a principle often called network neutrality. Recipients of those grants would be required to follow network neutrality principles outlined by the Federal Communications Commission.