NNSquad - Network Neutrality Squad
[ NNSquad ] Obama Broadband? / ITIF: "Competition to take on telecom and cable is 'misguided' idea"
Date: Sat, 10 Jan 2009 06:45:09 -0500 From: David Farber <dave@farber.net> Subject: [IP] Obama's Broadband Plan --- Reply-To: dave@farber.net To: ip <ip@v2.listbox.com> Begin forwarded message: From: "Bruce Kushnick" <bruce@newnetworks.com> Date: January 9, 2009 2:29:36 AM EST To: <oia@lists.bway.net> Subject: [OIA] Obama's Broadband Plan --- Placing bets on just how little change will occur, or more to the point about how much of our change ends up in the pockets of AT&T and Verizonâ http://www.businessweek.com/print/magazine/content/09_03/b4116027365196.htm Obama's Broadband Plan Tax breaks for companies that increase Internet speed or create new networks are likely to go to existing large players By Arik Hesseldahl The Obama Administration has pledged support for universal broadband, or making speedy Internet service available to all Americans. But the ideas under consideration by the President-elect's transition team are likely to fall short of the radical changes some activists have sought. At the core of the $20 billion to $30 billion effort under discussion by Obama's advisers are tax breaks for companies that extend the availability of broadband or, in regions where it already exists, boost the speed of service, several people involved in the discussions tell BusinessWeek. Companies that build broadband networks in areas with no service could receive as much as 60% of their investment back in tax credits. Companies that increase the speed of existing networks could get tax credits of as much as 40%. The tax incentives also could be structured to promote high broadband speeds, according to Jeffrey Campbell, director of technology and communications policy for network equipment maker Cisco Systems (CSCO). For example, some analysts say the government could give 20% tax credits for 20-megabit-per-second service and 40% credits for 100-megabit service. As currently conceived, the incentives would be available to any company. However, those most likely to benefit would be existing broadband providers such as AT&T (T), Verizon Communications (VZ), and Comcast (CMCSA), because they have the capital to make investments, and it costs less to extend their networks than it does to build new ones. The new Administration appears unlikely to push forcefully for more competition in broadband, an idea that activist groups such as Free Press and Public Knowledge say is essential if the U.S. wants to catch up to broadband leaders such as Korea. "Broadband is a natural duopoly," counters Robert D. Atkinson, president of the Information Technology & Innovation Foundation, a nonpartisan think tank. Proposals to create a third competitor to take on the telecom and cable companies in most markets, he says, are "misguided." ... _______________________________________________ Open Infrastructure Alliance http://lists.bway.net/listinfo/oia Archives: https://www.listbox.com/member/archive/247/=now RSS Feed: https://www.listbox.com/member/archive/rss/247/ Powered by Listbox: http://www.listbox.com ----- End forwarded message -----