Congressman Seeks Changes For Broadband Rules
Congressman Rick Boucher, Chairman of Communications, Technology and Internet, has expressed concern over the strict nature of existing broadband rules for remote communities that are within 50 miles of a city with a population of no less than 20,000.
In his opening statement to the subcommittee in the second hearing for the ARRA, Boucher states, “Almost the entire eastern U.S. is disqualified from 80 to 100 percent of the grants by this inappropriate standard, which in a mountainous terrain is not a reasonable yardstick for measuring need”, adding “In these situations, which are commonly found, only through the award of grants can a broadband infrastructure be built”.
Boucher addressed another concern during his statement to the committee. His concern is for rural applicants who wish to be considered for the National Telecommunications and Information Administration (NTIA) program, the applicant must first be rejected by the Rural Utilities Service (RUS) program. After the rejection is filed they are free to file for the NTIA program if the deadline has not already passed.
This scenario has the potential to deny many smaller providers the opportunity to expand and add a competitive service to the market for broadband. The need for these smaller companies is great, as they offer the consumer more choices. By creating more choices larger companies are forced to lower prices in order to compete.
In the time period between filing an application with the RUS program and the time of rejection may cause the applicant to miss the deadline date for the NTIA funding window. In this scenario smaller companies lose the advantage that the broadband stimulus money could have given them in order to compete in the larger market.
Boucher would like to see the committee consider allowing applicants to make their own designation of which agency will be primary for considering the application.
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