Tuesday, June 16, 2009

Will 'Buy American' provisions trip up broadband stimulus?

Cisco Systems and Alcatel-Lucent want broadband stimulus “Buy American” provisions waived. That troublesome provision is typical of the many "little" details that will have to be ironed out before final rules are announced in June. The provision is one example of conflicting goals within the American Recovery and Reinvestment Act of 2009 generally. The funds are supposed to act as a pump primer during the recession, but most of the money will not be spent until 2010 through 2012, when it is likely, if not certain, the current recession will be over.

The broadband stimulus is supposed to promote more broadband use, but also is supposed to create jobs immediately. It now appears little of the $7.2 billion can be spent in 2009, as slippage in the time table now suggests the first disbursements could not be made until the fall, and actual construction would not begin until sometime after that, including the difficulty of undertaking major construction projects in the winter...