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August 12, 2021 01:25 am

Big Telecom Comes Out On Top In $65 Billion Upgrade

The White House-backed infrastructure bill now moving toward Senate approval divvies up $65 billion in broadband funding in ways that largely please the big cable and telecom companies. Axios reports: The bipartisan infrastructure bill would devote funding to both broadband deployment and adoption. The deployment side includes:- $42.45 billion in grants to states to be used for broadband projects with speeds of at least 100/20 mbps, to be first spent in locations without high-speed internet.- $2 billion each to support a rural broadband construction program called ReConnect run by USDA and to the Tribal Broadband Connectivity Program from NTIA.- $1 billion in grants to build so-called "middle mile" infrastructure to connect local providers to the larger internet access point. On the adoption side:- $14.2 billion to provide a $30-a-month voucher to low-income Americans to pay for internet service, replacing the current $50-a-month Emergency Broadband Benefit program but increasing the number of Americans who will be eligible and giving consumers more choice on how to spend the benefit.- Requiring that providers who receive money from the state grants offer a low-cost plan, although the bill does not specify a price.- $2.75 billion for digital inclusion grants, such as projects to improve digital literacy or online skills for seniors. Why telecom likes it: The bill doesn't include measures that President Biden championed as part of his early infrastructure proposal, the American Jobs Plan. The bill will prioritize funding broadband in areas that lack high-speed service, so existing providers will largely avoid the threat of a government-backed competitor, and the money will be available to a larger pool of providers than just those who offer fiber service. While municipal broadband projects could still receive funding, those networks will not be prioritized when the money is allocated, as Biden's plan originally proposed, and the bill will not eliminate state laws that restrict municipal broadband projects.

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