USTelecom Statement on New Guidelines for Broadband Stimulus Funds
Release Date: 2009-07-02

Background: This week, the Obama Administration announced rules for handing out $4 billion of the $7.2 billion in broadband stimulus funds. The following statement is from Walter B. McCormick Jr., President and CEO of USTelecom:

“We commend the Obama Administration for its focus on the importance of broadband deployment, and its willingness to step up to the plate and commit resources to connect remote and underserved areas of the country.  We agree wholeheartedly that the goal must be universal broadband, and it will take constructive engagement from the public and private sectors to achieve this bold national ambition that can transform our economy, our health care system and so much more.

“We are still analyzing the lengthy and complex grant requirements.  We are concerned that some of the new mandates seem to go well beyond current laws and FCC rules, and may lead to the kind of continuing uncertainty and delay that is antithetical to the President’s primary goals of economic stimulus and job creation.  At a time of record unemployment, it is troubling that those who do not intend to invest a single penny in broadband deployment are calling for broad new mandates, while those who want to move forward with shovel-ready projects are faced with ambiguity as to what they may or may not be allowed to offer under the terms of the new federal grants and loans. As we continue to analyze the rules, and seek explanations, we hope that our concerns can be assuaged.

“That said, we do see many areas of agreement. The nation’s broadband providers have long supported the FCC broadband principles. We embrace transparency.  We are pleased to see funding being made available to private entities, and we are encouraged by the recognition of the importance of network management and managed services that are so central to our economy, the future of health care, public safety and many other areas.  And, we support the idea that federal resources should be made available in a way that complements the more than $60 billion in annual private sector investment in U.S. broadband infrastructure.

“In short, we agree on the goal of reviving our economy and striving toward universal broadband.  Our focus will remain on finding innovative ways to work constructively with the President and the Congress to connect the country, spur investment and renew our economy.”