The Obama administration has made connecting to broadband Internet services a high priority, $4.7 billion for broadband stimulus, but as reported in the Washington Post August 14, in "Major Carriers Shun Broadband Stimulus," AT&T, Verizon and Comcast look the other way.One primary reason cited is the cash on hand by these carriers. They have the funds to perform the expansion in their territories available without the grants. Another opinion is that these carriers do not want to have any more oversight of their business practices and executive compensation as the carmakers and financial institutions are experiencing. I also think that the net neutrality issue may be another potential barrier. The big carriers want to control and manage the Internet traffic their way without the FCC getting involved.
Walter B. McCormick, Jr., President of the trade group USTelecom is "concerned that 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." The scrutiny promised of industry practices, such as limiting customer access and Comcast's peer-to-peer trafic blocking (which is still being investigated by the FCC) and the recent blockage of the Google voice service on the iPhone worry these carriers. The carriers' behavior smacks of monopolistic practices which they appear to not want to change.
Public advocate Ben Scott has said "They weren't going to apply. They are using this as an opportunity to grandstand against net neutrality." This means that the more rural areas of the country will not see the broadband expansion envisioned within the territories of the large carriers. Large carriers are not considering their rural territories at all. In fact, the large Telecos are selling their rural services to smaller Telcos like Fairpoint.
The large carriers have about 85% of the access lines in the US. They do not want to invest in the low density rural or urban poor services because of the financial investment even though they have the cash. The net neutrality aspect of the broadband stimulus package passed by congress has the large carriers reluctant to subject themselves to the restricted conditions. The large carriers are in protection mode. This is a self serving decision that does not help the country, economy or employment.
The Agriculture and Commerce departments will hand out about $7.2 billion in broadband stimulus grants though 2011. This effort should deliver broadband services to the rural areas of the country. It will also make broadband access to the urban poor and their local businesses.
I am no fan of the large carriers. I am sad that the Telecom Act never really delivered the anticipated competition with several national carriers competing in the same market--the only exception being wireless service. Even there, you cannot just buy any cell phone and have it work on any network.
What I hope develops is greater competition to the large carriers.
