Monday, February 9, 2009

Broadband Stimulus: Small Details, Big Difference

The revised Senate version of the "stimulus" bill has not yet been passed. Nor has it been reconciled with the House version. But there could be big differences. The revised Senate version funnels money through the National Telecommunications & Information Administration. The House version splits disbursements between NTIA and the Agriculture Department.

The difference? For a company such as Qwest Communications, the Agriculture Department funds would not be available, because of Agriculture Dept. rural loan program rules. The NTIA program does not operate under those rules, making Qwest eligible to apply.

Essentially, Agriculture Dept. rules ascertain eligibility on a statewide basis, while NTIA would fund on a community basis. As Qwest serves both urban and rural communities in each of its states, it has been ineligible for rural broadband loans that it might otherwise qualify for.

So the reconciliation process will be crucial.

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