Friday, January 23, 2015

Where high hopes of fiber telecom infrastructure collide with weak federal funding

Changes to RUS Broadband Loan Program Include Rural Gigabit Pilot - Telecompetitor: When President Obama spoke last week about reforms to the USDA Rural Utilities Service broadband loan program, he was referencing changes adopted in the 2014 Farm Bill, a USDA official advised in an email to Telecompetitor.
Joan Engebretson's


It seems the President’s objective is to encourage municipal construction of broadband networks, which would compete with existing providers.  The push to allow municipalities to construct broadband networks, which is prohibited by state law in 19 states but not in Iowa, will do little or nothing for the actual rural customers for which Obama claims to be concerned.

The fact is that most companies want nothing more than to roll out the next generation of broadband services, but simply do not have the cash flow to do so.  The biggest hurdle facing those consumers without high-speed internet services is provider’s lack of funding to get these services to the most remote customer in their areas.

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