More Funding For Rural Broadband-----Maybe

An updated version of the Rural Utilities Service broadband loan program passed in the Congress amid Presidential threats of a veto.

The Congress announced the passage of an updated bill that would reform the Rural Utilities Service Broadband Access Loan and Loan guarantee program. This loan program has in the past helped telephone cooperatives, utilities, private ILECs and even independent broadband wireless ISPs secure loan monies for rural broadband deployments.

I don't have a lot of details on the specifics of the program as yet and it will need to pass a threatened Presidential veto to survive, but the program in the past contained some limitations such as funding being used only for capital expenditures and not for operational expenditures (the loan program) and a limited grants program for very rural communities. The loan program has also had some commercial wireless ISP fraud problems and defaults that hampered progress as well.

The President reportedly has said the bill is fiscally irresponsible, which I thought considering some of his other budget requests quite humorous. In any event, even Republicans seem against him on this. The bill passed 81-15 (I believe in the Senate).

Tim Sanders

The Final Mile

Thursday, May 22, 2008 in Business  | Permalink |  Comments (0)