U.S. broadband stimulus funding rules for "underserved" areas could produce controversy, delay

While designed to stimulate employment and do so quickly, the federal economic stimulus package enacted in February and specifically the $7.2 billion it allocated as a down payment on a badly needed upgrade of America's aged telecommunications infrastructure may not work as rapidly as intended. With unemployment persisting and exceeding that forecast by the Obama administration as it took office just before the enactment of the stimulus package, this could prove problematic.

The $7.2 billion allocation is targeted for build out of telecom infrastructure in those areas of the nation that are "unserved" and "underserved" when it comes to broadband access. Under the rules governing the award of grants and loans issued last week by the two federal agencies overseeing them, generally only deep rural America where dialup and satellite are the sole options for Internet connectivity will likely meet the definition of unserved. Proposed broadband projects to serve these areas are unlikely to generate much controversy...