Democrats urge changes in broadband program

An Obama administration effort to extend broadband to communities with limited or no service drew criticism today from an unlikely constituency: Democrats.

House Energy and Commerce Telecommunications and the Internet Subcommittee Chairman Rick Boucher, D-Va., used a hearing on the $7.2 billion broadband stimulus program to outline a list of changes he wants adopted for the remaining rounds of decisions on grant and loan applications to ensure the money reaches rural areas that need it most.

In the first round of funding, the Agriculture and Commerce departments received 2,200 applications requesting nearly $28 billion in aid -- seven times the $4 billion in loans and grants available. Formal announcements of recipients will be made beginning in November.

Boucher is particularly concerned that nearly all rural portions of the East Coast are ineligible for the most generous grants covering 80 percent to 100 percent of project costs. That is because locations within 50 miles of cities with populations of 20,000 or more are not considered remote, and thereby disqualified.

"I would urge that in round two the definition of 'remote' be changed to qualify more truly isolated communities," said Boucher, who has held one broadband oversight hearing and promises to conduct more.

Boucher also has been unhappy with rules that could make it tougher for rural applicants to compete for Commerce funding.

Other lawmakers seeking modifications include Rep. Anna Eshoo, D-Calif., who complained that broadband speeds required for rural areas are too slow, and Rep. Zack Space, D-Ohio, who echoed Boucher's complaints.

"We're aware of the concerns that many of you and others have raised," Jonathan Adelstein, administrator of USDA's Rural Utilities Service, responded. "We're prepared to make changes accordingly."

"I want to assure you that this money will be well spent," said Larry Strickling, head of Commerce's National Telecommunications and Information Administration.

Joining the criticism were Republicans, including House Telecommunications and the Internet Subcommittee ranking member Cliff Stearns, R-Fla., who warned that the "haste" with which the program was crafted creates a risk that taxpayer dollars will not be used effectively.

Both Stearns and House Energy and Commerce ranking member Joe Barton recommended that funding go primarily to unserved areas where comprehensive maps of broadband availability are complete. "Underserved is in the eyes of the beholder, but unserved is unserved," Barton said.

By contrast, House Energy and Commerce Chairman Henry Waxman was upbeat. "It is clear that the public interest obligations that attach to this public money have not deterred interest or innovation," he said.