Why the Stimulus Bill Discounts Broadband

Why did broadband get slighted in the economic stimulus bill? Will the technology get more government funding in the future? And does the debate over broadband foreshadow how the technology community will be treated in the future by the Obama Administration? Blair Levin, a former senior official at the Federal Communications Commission, was a top technology policy adviser on the Obama transition team said, "Did we leave the door open to additional money? I think the answer is the door is open and should be open." Levin and other technology leaders say there are several reasons that broadband got less money than expected in the stimulus bill. For starters, there is no track record of the federal government funding broadband networks. That made it harder to garner support for a larger subsidy in a Congress trying to accommodate numerous claims from more established constituencies. "When it comes to building roads, that is a clear government project," says Levin. "Building rural broadband is clear, too. But with other parts of broadband there is not a consensus." There's also an information gap. There are no clear, comprehensive data on which regions need broadband investment, which fueled concerns that it would be difficult to spend money quickly and wisely. "We were concerned that the money would be used effectively and appropriately," says Levin. "You have to have the strategy before you determine where the money is sent." Then there were economic questions. While most economists acknowledge that communications boosts the productivity of the economy over time, there are concerns about the job-creation potential of broadband investment in the near term—the primary objective of the stimulus package.