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Verizon Responds to Bits on Broadband Stimulus

David Fish posted in PolicyBlog Broadband Policy on January 30, 2009, 03:01 PM EST

Saul Hansell writes in the NYT “Bits” blog that Verizon is one of the companies that could use tax credits contained in legislation being developed in the U.S. Senate to deploy additional broadband.

We believe that federal policy should encourage investment in a new ultra high-speed communications infrastructure. We also believe tax credits are the best way to encourage additional deployment of ultra high-speed networks across the country that will generate jobs, stimulate the economy, enhance international competitiveness, and improve productivity. And, like President Obama, we are convinced broadband is helping to address challenges in health care, the environment and education.

In order to qualify for the tax credits for next-generation networks under the current draft as we understand it, Verizon and other companies would have to increase the speeds that are now available on our wireline and wireless networks. The Senate Finance Committee should be commended for its effort to promote the development of a next-generation communications infrastructure for America.

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Reader Comments

I'm particularly interested in how Verizon is going to manage the projected broadband stimulus. Will there be overseer positions created in each state to manage the buildout, or does this assume that each operator will be responsible for managing it? I'm particularly interested in the coordination between the operators and the state and local governments. Tom Tauke has good experience working in Iowa - I'd be particularly interested in his thoughts about how best to ensure that we're seeing cooperation between the public and private sectors to maximize the stimulus.

Kurt Scherf posted on 2/2/2009 3:47:41 PM

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Kurt, Thanks for writing with some good questions. At this point, we don’t know enough to provide good answers. As you know, the Senate hasn’t voted on its bill; and both houses of Congress will have to agree on the final measure. (The NYT blog had to make a number of assumptions.) The House bill approved last week includes some grant money that would be distributed through the Rural Utilities Service (RUS) at USDA and the National Telecommunications and Information Administration (NTIA) at the Department of Commerce. Both of those organizations have existing staff and procedures (as do local units of government); and it is possible Congress will specify more guidelines. Your question points to a concern expressed by some lawmakers: numerous units of government will need to act quickly, if the goal is a quick stimulus. On the topic of cooperation, the House bill includes $320-plus million to fund the “mapping” bill Congress passed last year. In short, that will allow organizations like Connected Nation to “map” the nation to see what areas have what speeds of broadband or none at all. The next step, as Connected Nation did in Kentucky and is now doing in other states, is to encourage public-private partnerships to target and fund build-out activity. Again, none of this is “real” until Congress passes and the president signs the stimulus bill. David

David Fish posted on 2/2/2009 6:28:43 PM

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I don;t understand why a tech company such as Verizon performs so poorly. Verizon should not get any stimulus; Verizon performs under par.

Rick Hendricks posted on 3/12/2009 6:47:04 PM

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