March 29, 2008 6:00 AM PDT

If this is Uncle Sam's broadband strategy, give me a break

by Charles Cooper
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Earlier this week, the U.S. Department of Agriculture approved a $267 million loan to a Denver, Colo.-based company called Open Range. The idea: build out broadband service for 518 rural communities in 17 states

The loan represents one of the federal government's biggest ever public-private investments in broadband service. Considering Uncle Sam's miserly approach, to date, that's not saying much. But here's what caught my eye: Those without service will have access to broadband and other technologies for the first time in their lives.

Give me a break!

They must be kidding, right? Over the years, the agency has invested billions of dollars on all sorts of infrastructure projects deemed vital to the public, such as water and waste pipes or electrification. That it's taken so long for broadband to win similar consideration is stunning.

When I called the agency find out whether this was a one-off, agency spokesman Joe Fletcher told me there was "no guarantee it will happen in the future."

Let's hope he's playing cute. In the meantime, the hired help in Washington do read their mail, so here's a great opportunity to e-mail and Twitter them to death until they get the message. For once, government bureaucrats have come up with a good idea--one which is long overdue--and here's to hoping they don't live down to expectations and screw it up.

Unfortunately, there's still no consensus about the impact of public capital investment to expand broadband's reach. What it will take is a champion, someone to bulldoze the idea through the government. Something like the mid-1950s push by President Eisenhower and Congress to create the National System of Interstate and Defense Highways.

Andrew F. Haughwout of the Brookings Institution has a interesting piece analyzing the track record of public investments over the years. What you'll find is that the estimates are all over the map so people will pick the expert closest to their political persuasion.

".. research on the effects of infrastructure investment on firms' and households' location decisions tends to find that the benefits of new investments are localized. They are highest near where the investments are placed. This finding makes sense, particularly for public works like playgrounds, parks, or public buildings: the farther someone has to travel to use the facility, the less its net value."

Makes sense to me. You lay a foundation in the right way and the government ultimately reaps benefits in the coin of increasing annual GDP. I'm open to being convinced otherwise, but we've passed the point where the Internet has attained quasi-utility status. Think how different your own lives would be without it. Or how governments and private companies near you would function if they were shut off from the grid.

Something more. The Gordon Gekko types may demur but the fine print in the social contract I subscribe to says society ought to intervene when fate throws folks a curve ball. We can save the philosophical shouting match for another day. In the end, there's no convincing rationale for leaving folks stranded as second-class digizens.

Charles Cooper has covered technology and business for more than 25 years. Before joining CNET News, he worked at the Associated Press, Computer & Software News, Computer Shopper, PC Week, and ZDNet. E-mail Charlie.
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by satayboy March 29, 2008 7:13 AM PDT
This doesn't sound so very different from the rollout of land-line telephones and electricity. Why should we expect it to be any different for broadband?
Reply to this comment
by vanwahlgren March 29, 2008 8:10 AM PDT
Give me a break. The folks have broadband already.. They just want the folk to subsidize cheaper broad band for these multimillionaire farmers.. check it out the average farm income is up to about $90k. probably passing $100k as these figures are 4 yrs old when corn was $2 bushel... now its $5 bushel.
Reply to this comment
by hardedge March 29, 2008 9:00 AM PDT
There's no rationale, huh? How about I'm paying for it? You want to give away some of that extravagant salary CNET pays you, put it in an envelope, slap a stamp on it, and send it to the heartland. Don't volunteer what I'm breaking my butt to earn as something that's morally appropriate for the government to distribute as it whims. You've spent much too much time in liberal-land, Charlie. Please get your hand out of my pocket.
Reply to this comment
by Brentbb0 March 30, 2008 4:15 PM PDT
Check this out, Mr. Conservative
A DAY IN THE LIFE OF JOE REPUBLICAN
by John Gray

Joe gets up at 6 am and fills his coffeepot with water to prepare his morning coffee. The water is clean and good because some tree-hugging liberal fought for minimum water-quality standards.

With his first swallow of coffee, he takes his daily medication. His medications are safe to take because some stupid commie liberal fought to insure their safety and that they work as advertised. All but $10 of his medications are paid for by his employer's medical plan because some liberal union workers fought their employers for paid medical insurance ? now Joe gets it too.

He prepares his morning breakfast, bacon and eggs. Joe's bacon is safe to eat because some girly-man liberal fought for laws to regulate the meat packing industry. In the morning shower, Joe reaches for his shampoo. His bottle is properly labeled with each ingredient and its amount in the total contents because some crybaby liberal fought for his right to know what he was putting on his body and how much it contained. Joe dresses, walks outside and takes a deep breath. The air he breathes is clean because some environmentalist wacko liberal fought for laws to stop industries from polluting our air.

He walks to the subway station for his government-subsidized ride to work. It saves him considerable money in parking and transportation fees because some fancy-pants liberal fought for affordable public transportation, which gives everyone the opportunity to be a contributor.

Joe begins his work day. He has a good job with excellent pay, medical benefits, retirement, paid holidays and vacation because some lazy liberal union members fought and died for these working standards. Joe's employer pays these standards because Joe's employer doesn't want his employees to call the union. If Joe is hurt on the job or becomes unemployed, he'll get a worker compensation or unemployment check because some stupid liberal didn't think he should lose his home because of his temporary misfortune.

It's noontime and Joe needs to make a bank deposit so he can pay some bills. Joe's deposit is federally insured by the FSLIC because some godless liberal wanted to protect Joe's money from unscrupulous bankers who ruined the banking system before the Great Depression.

Joe has to pay his Fannie Mae-underwritten mortgage and his below-market federal student loan because some elitist liberal decided that Joe and the government would be better off if he was educated and earned more money over his lifetime.

Joe is home from work. He plans to visit his father this evening at his farm home in the country. He gets in his car for the drive. His car is among the safest in the world because some America-hating liberal fought for car safety standards. He arrives at his boyhood home. His was the third generation to live in the house financed by Farmers' Home Administration because bankers didn't want to make rural loans. The house didn't have electricity until some big-government liberal stuck his nose where it didn't belong and demanded rural electrification.

He is happy to see his father, who is now retired. His father lives on Social Security and a union pension because some wine-drinking, cheese-eating liberal made sure he could take care of himself so Joe wouldn't have to. Joe gets back in his car for the ride home, and turns on a radio talk show. The radio host keeps saying that liberals are bad and conservatives are good. He doesn't mention that the beloved Republicans have fought against every protection and benefit Joe enjoys throughout his day.

Joe agrees: "We don't need those big-government liberals ruining our lives! After all, I'm a self-made man who believes everyone should take care of themselves, just like I have."
by gtobynj March 29, 2008 10:52 AM PDT
Lovely idea. I somehow feel that universal healthcare is far more important than internet access, after that we'll talk.
Reply to this comment
by BakerSt224 March 29, 2008 11:48 AM PDT
This is long overdue. The 'folks' do NOT have broadband already, heck some of us don't even have cell phone coverage out here AT ALL. As for multimillionaire farmers, check your rural demographics and you'll see that most people, including farmers, are not millionaires. Universal Health Care is more important you say? What's more important than the ability to communicate and be informed. As digital becomes the new standard of both news media and Universal Communication a connection that allows even the poorest 'folk' to join the discussion and add their voice is exactly what's needed to push for things like Health Care. You want economic prosperity and political change? Give the people the chance to be informed and the voice to make that change. This is almost akin to giving rural people back the freedom of speech. At least it's a means of joining them in the national/international/global or whatever discussion, which is good news for everyone involved.
Reply to this comment
by sleeknub March 29, 2008 12:24 PM PDT
What ever happened to the idea that if you want something you have to go out there and get it? Mr. Cooper's suggestion that some of us are leaving the others behind doesn't sit with me. The fact is that some of us are going out there and making something for ourselves while others aren't. SInce when was it anyones duty to provide for everyone else?

That said, I think broadband proliferation very important ("the ability to communicate and be informed" is great for democracy). If private business is unwilling to provide broadband to some areas then the people of these areas need to get together and form a plan to tax themselves for this service, if they deem it important enough. If you don't want to be second class then don't be, you are the only one that can make sure of that.
Reply to this comment
by cowcowboogie March 29, 2008 2:40 PM PDT
What about satellite? Isn?t that already available? Whenever a ponderous agency like Agriculture gets involved, well, they?re already involved in just about everything anyway. From the Cow-cow boogie to sippin? soda through a straw.

Okay, there has to be a ?good? agency somewhere to provide seed money for the entrepreneur to jump on board. What about the Government Accountability Office (GAO)? They at least try; but then congress never would let them take away some of their money stream.

For a much bigger project than Eisenhower freeways, see my proposal to begin the final trek west, to reclaim what belongs to American and its citizens. See http://greatwesternproject.blogspot.com

For an example not to follow is the Tennessee Valley Authority a 75 year-long federal intervention program that just about has total control of 80,000 square miles of sovereign land in seven Southeastern states.

For more about the TVA see http://norsworthyopinion.com

Ernest Norsworthy
Visalia, California
Reply to this comment
by GO ILLINI March 29, 2008 4:12 PM PDT
It angers me how ungrateful some of you people are... "What ever happened to the idea that if you want something you have to go out there and get it?" Next time you want food, grow it yourself. Sleeknub's general post is so naive that I wonder who exactly let him become a member at this website.
"The folks have broadband already." no some of these "folks" don't.
"Don't volunteer what I'm breaking my butt to earn" So you're "breaking your butt" huh? Try giving up your 9 to 5 office job for a 5 to 11 real work job.
Reply to this comment
by john_dean1 March 29, 2008 5:23 PM PDT
What 12 year old comes up with this? "The government's laying out a big loan to a private company charged with hooking up millions of people still too far from an Internet connection. But *** -why has it taken forever?" I'll go back the the bars if I want such language. Grow up.
Reply to this comment
by rmurraymd March 29, 2008 5:31 PM PDT
Anyone who views as a satellite viable supplier of broadband has never had it. It is faster than dialup except during peak times (half the day). And I use the term faster generously. Also your total download per 24 hours is limited by the "fair use policy" to 350MB to 500 MB (depending on your fee schedule). This is smaller than many software updates. Video steaming does not work and downloading a movie is out of the question.
Reply to this comment
by Brentbb0 March 30, 2008 4:25 PM PDT
To hardedge:

A DAY IN THE LIFE OF JOE REPUBLICAN
by John Gray

Joe gets up at 6 am and fills his coffeepot with water to prepare his morning coffee. The water is clean and good because some tree-hugging liberal fought for minimum water-quality standards.

With his first swallow of coffee, he takes his daily medication. His medications are safe to take because some stupid commie liberal fought to insure their safety and that they work as advertised. All but $10 of his medications are paid for by his employer's medical plan because some liberal union workers fought their employers for paid medical insurance ? now Joe gets it too.

He prepares his morning breakfast, bacon and eggs. Joe's bacon is safe to eat because some girly-man liberal fought for laws to regulate the meat packing industry. In the morning shower, Joe reaches for his shampoo. His bottle is properly labeled with each ingredient and its amount in the total contents because some crybaby liberal fought for his right to know what he was putting on his body and how much it contained. Joe dresses, walks outside and takes a deep breath. The air he breathes is clean because some environmentalist wacko liberal fought for laws to stop industries from polluting our air.

He walks to the subway station for his government-subsidized ride to work. It saves him considerable money in parking and transportation fees because some fancy-pants liberal fought for affordable public transportation, which gives everyone the opportunity to be a contributor.

Joe begins his work day. He has a good job with excellent pay, medical benefits, retirement, paid holidays and vacation because some lazy liberal union members fought and died for these working standards. Joe's employer pays these standards because Joe's employer doesn't want his employees to call the union. If Joe is hurt on the job or becomes unemployed, he'll get a worker compensation or unemployment check because some stupid liberal didn't think he should lose his home because of his temporary misfortune.

It's noontime and Joe needs to make a bank deposit so he can pay some bills. Joe's deposit is federally insured by the FSLIC because some godless liberal wanted to protect Joe's money from unscrupulous bankers who ruined the banking system before the Great Depression.

Joe has to pay his Fannie Mae-underwritten mortgage and his below-market federal student loan because some elitist liberal decided that Joe and the government would be better off if he was educated and earned more money over his lifetime.

Joe is home from work. He plans to visit his father this evening at his farm home in the country. He gets in his car for the drive. His car is among the safest in the world because some America-hating liberal fought for car safety standards. He arrives at his boyhood home. His was the third generation to live in the house financed by Farmers' Home Administration because bankers didn't want to make rural loans. The house didn't have electricity until some big-government liberal stuck his nose where it didn't belong and demanded rural electrification.

He is happy to see his father, who is now retired. His father lives on Social Security and a union pension because some wine-drinking, cheese-eating liberal made sure he could take care of himself so Joe wouldn't have to. Joe gets back in his car for the ride home, and turns on a radio talk show. The radio host keeps saying that liberals are bad and conservatives are good. He doesn't mention that the beloved Republicans have fought against every protection and benefit Joe enjoys throughout his day.

Joe agrees: "We don't need those big-government liberals ruining our lives! After all, I'm a self-made man who believes everyone should take care of themselves, just like I have."

Time to wake hardedge. Its the real world out here.
Reply to this comment
by telestarnext March 31, 2008 8:10 AM PDT
HAHAHAHHA
I studied and made a 100 on my test. My LIBERAL buddy drank all night and passed out 2 hours before the test. He made a 50. The LIBERAL teacher has to be fair so she (he) takes 25 from my score and gives it to him so we can both be equal and we both get a 75.
Want the same car as your neighbor? be a liberal. It's only fair. He has one so I should be able to have the same even though I can't afford it. As one Liberal told me , as long as I have a job (and pay my taxes). He will always have money.
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About Coop's Corner

Charles Cooper has covered technology and business for more than 25 years. A graduate of Queens College and Columbia University, Cooper received the Excellence in Journalism award from the Northern California branch of the Society for Professional Journalists for column writing.

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