Senate considers altered broadband provisions

As the Senate continues to hammer out the details of its massive, so-called "stimulus" package, it may alter the provisions directed at broadband deployment.

A bipartisan group of at least 15 legislators is working to trim the legislation by about $107 billion and may cut $1.5 billion of the bill's broadband funding, The New York Times reported. The Senate version of the bill initially called for $9 billion to fund broadband deployment.

The Senate--which may complete voting on the bill Friday--will also consider a revised amendment from Sen. Jay Rockefeller (D-W.V.) to provide tax credits for companies to deploy broadband services in rural and unserved areas.

The senator's amendment would provide a 30 percent tax credit for companies to provide current-generation broadband in rural or "unserved" areas, as well as a 40 percent tax credit for companies providing next-generation broadband.

Current-generation broadband would be defined as 5 megabits per second or better, while next-generation broadband would be defined as at least 100Mbps. The amendment also provides a 40 percent tax credit for wireless broadband offered at 6Mbps or better and a 30 percent tax credit for wireless broadband at a speed of at least 3Mbps.

Rockefeller initially proposed smaller tax credits but had suggested extending them to "underserved" regions, as well as rural and "unserved" areas. He filed the changed amendment late Thursday night, according to an aide for the senator.

Rockefeller offered the amendment, the aide said, to maximize the tax credits for communities that need broadband services the most.

After the Senate votes on the nearly trillion-dollar package, the bill will have to be reconciled with the House version before it can be sent to the president to become law. The House bill includes $6 billion for broadband funding. Democratic leaders in Congress have said they intend to get the bill to Barack Obama's desk before they leave for a week-long recess on February 16.

[plee86]

Gee, Stephanie, nice of you to so blatantly telegraph your personal political opinion about the legislation. That's what journalism needs right now: more injection of a reporter's personal opinion into news items. Perhaps you should include a link to the Republican National Committee and the Weekly Standard at the end of this piece.

In the future, I hope you will begin putting quotation marks and adding "so-called" before such terms like "network neutrality," "green energy" or "climate change." Keep up the good work being a fair and neutral reporter of the news!

[Michichael]

What personal opinion? It seems like a straightforward reporting of the facts to me. She puts the word stimulus in quotations because that's what it's being called. A "stimulus" package. This is probably to differentiate it from the other stimulus packages going through the lawmakers right now. I think you're reading into it too much kiddo.

[tomws]

Actually, plee86, it seems you're so accustomed to run-of-the-mill liberal reporting from the mainstream press that you're having problems recognizing the "fair and neutral" version here.

Nice try at misdirection, though. Keep it up and maybe you can be a politician some day.

[plee86]

Ah, no. It's called a stimulus plan (no quotations). Putting it into quotation inserts the reporter's personal opinion that it's not really a stimulus plan but something else, especially when she also added "so-called" before it. She's editorializing and it's inappropriate. It's not her job to make the argument for or against the legislation. Describe it as what it's called: a stimulus plan, not a so-called "stimulus" plan. Would it be appropriate for a journalist to write, so-called "conservative" former President George Bush? That would be just as objectionable because it's inserting the journalist's personal opinion of George Bush into what should be a neutral description of him. Whether or not George Bush really is or is not a conservative is for others to decide. The fact is, he considers himself one and a journalist should reflect it and not editorialize or cast doubt on it. Same goes for the stimulus bill.

And for the reply from tomws, it's pretty clear from his tiresome rant against the liberal media that he's of the type that couldn't identify bias if it was a bus that ran him over. No doubt Rush is the Moses bringing down the Word of God from the mountaintop. I wouldn't expect anything from him except for thuggery.

[Dango517]

Well maybe, "so-called "stimulus" package" (from above article above) is a bit much but all-in-all mostly just the facts. Certainly wouldn't burn her at the stake for one quip. But do read further here on ....... woe, woe, woe is me, the sky is falling, Cnet. I'm sure you'll find far greater offences then this.

Not bad Stephanie, not bad. In fact real journalism for a change. Amazing!

[Hold_Fast_Kilroy]

The really scary thing is that Congress was sworn in the end of January correct? And they are already getting ready for a weeks vacation, after only a month on the job? How do I get a gig like that? Oh wait, I am honest, law-abiding and pay my taxes on time, prolly would not let me thru the doors. Never mind.

[fgoldstein]

Rockefeller's version of the bill is a pure and targeted gift to Verizon, who needs it about as much as Saudi Arabia needs more sand.

Grants can be used by any provider; tax credits are only useful to corporations (not coops, municipalities, non-profits, partnerships or proprietorships, common in rural areas) who are already making a profit and paying taxes. So that limits the appeal and rules out almost all competitive providers. The 100/20 Mbps speed is a bit hard for cable to reach, and is way beyond ATT U-Verse or other DSL. It requires FTTH, but the asymmetry fits FiOS. Very few FiOS subscribers actually have that speed, given the price, but it just has to be offered. Nor is there any requirement for "open" networks, which the House bill asks for, though it leaves the definition to the FCC and gives *zero* guidance, which is really bad drafting.

Since Verizon's FiOS plans are likely to be changed exactly zero by the tax credit, the net stimulus effect will probably be zero. (The wireless piece might have a bit more appeal, but it's still probably limited to licensed cellular/PCS carriers with 3G systems. LIke, uh, Verizon. Clearwire/Sprint lack the profitability angle, though ATT and some smaller cellcos can play..) So I hope the House does not accept this in conference.