Telecoms consider 'bailout' too

The prospect of a $10 billion government infusion into the telecom sector was discussed at the annual Columbia Institute of Tele-Information's annual summit on communications and media policy. CITI's project director for telecom finance, Dan Reingold, outlined a proposal to have $10 billion invested in broadband service companies, with taxpayers receiving an aggregated 10% stake in return. Reingold, a former telecom analyst at Credit Suisse Group, Merrill Lynch & Co. and Morgan Stanley, says the plan would in the near term generate jobs and help bolster the faltering economy, and in the long term it would boost the U.S.'s competitive position globally. However, the prospect for such an investment raises questions about winners and losers. Would the capital infusion go to phone and cable broadband incumbents, or rivals such as Clearwire?