ACA Backs Broadband Stimulus Spending
Voices Support in Letters to Congressional Leaders
Todd Spangler -- Multichannel News, 2/9/2009 12:58:25 PM
The American Cable Association, which represents smaller independent cable operators, voiced its support for federal spending on broadband-network services in letters last week to congressional leaders, saying the money will create new jobs.
The ACA urged lawmakers to make federal assistance available to cable providers as part of the economic stimulus package pending in Congress to deliver faster broadband service in these communities, in separate letters dated Feb. 3 to Sen. Jay Rockefeller (D-W.V.) (available here) and Rep. Henry Waxman (D-Calif.).
"Small and medium-sized cable operators are ready and able to provide faster Internet speeds into smaller markets and rural areas," ACA president and CEO Matt Polka said, in a statement. "With government assistance, these broadband providers could pull the trigger on thousands of shovel-ready projects over the next 18 months that would create new jobs in this economy, and provide Main Street America faster Internet speeds."
The House of Representatives passed the $819 billion economic stimulus package Jan. 28, http://www.multichannel.com/article/162932-House_Passes_800_Billion_Stimulus_Package_Replete_With_Broadband_Provisions.php which sets aside $6 billion for broadband grants and loans. http://www.multichannel.com/article/162648-_6B_Broadband_Bill_Calls_for_Open_Access.php
The Senate version of the bill, which pegs broadband spending at about $7 billion, is pending. After the Senate package is approved, the two bills will need to be reconciled.
According to the ACA, operators in smaller markets and rural areas across the country cannot maximize their systems' capabilities because they cannot afford to connect to the Internet backbone which runs past -- rather than through -- their communities. As a result, these broadband providers must connect to the national fiber network through existing lower-capacity connections, such as T-1 lines, which slow speeds for their users.
The ACA represents 900 small and midsize independent cable companies, which together provide broadband services for more than 7 million subscribers primarily in rural and smaller suburban markets.
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