By now it’s obvious that the government’s “stimulus” spending spree has failed to achieve its intended results—just as critics of Keynesian economic theory predicted. Compounding the policy blunder is the failure of officials to properly vet some of the costly public works projects. Case in point is the $7.2 billion broadband deployment scheme: Federal officials failed to determine whether targeted communities actually lack Internet service options. In a number of cases, in fact, the government subsidies will put existing private service providers at a competitive disadvantage.
The Federal Communications Commission is nothing if not persistant. Exactly one month ago today, a federal appeals court unanimously ruled that the FCC had no authority to regulate the Internet. But yesterday, FCC chairman Julius Genachowski announced the agency would try to do so anyway. Specifically, Genachowski wants to put into place so-called “net neutrality” rules, restricting how broadband network providers such as Verizon and Comcast can manage traffic on their networks. No statue, however, actually gives the FCC power to regulate broadband networks. Congress has only given the agency …
House Cloakroom: April 12 – 16 Analysis: After a two week recess the House eases its way back into work with a light week full of suspension bills. However, if the Senate is able to finish up its work extending provisions such as unemployment insurance, COBRA, and the Doc Fix those items could possibly, though not likely, be seen on the floor this week as well. Additionally, the retirement of Supreme Court Justice Stevens could possibly put many of the legislative priorities for Congress and the administration in flux over …
As if the Administration’s stimulus program didn’t have enough problems, the Government Accountability Office has now issued a report raising concerns on the handling of $7.2 billion in broadband communications grants warning the programs “present risks of waste, fraud and abuse“. The agencies – the Commerce Department’s National Telecommunications and Information Administration, and Agriculture’s Rural Utilities Service were charged with awarding grants to help build out broadband Internet infrastructure, such as bringing wireless broadband connectivity to 41 Minneapolis public housing high-rises. But the complete mapping data on where investment is …
Is the Internet in clear and present danger? Yes, say proponents of neutrality regulation of the Internet. In a speech last month calling for FCC neutrality regulation, Chairman Julius Genachowski stopped short of quoting Oliver Wendell Holmes, but did all he could to paint a dire picture of the Internet’s future: “This is not about protecting the Internet against imaginary dangers,” he said. If we wait too long to preserve a free and open Internet, it will be too late.” The warning evoked a certain sense of deja vu, and …
The Heritage Foundation is proud to announce that the FCC is the recipient of the First Annual Wanton Abuse of State-funded Technological Elucidation (WASTE) Award. Yes, the name is clunky, but so is their website. If you don’t believe it, see for yourself. The website’s search function leaves much to be desired. Also, as Cynthia Brumfield of IP Democracy has noted, everything on the website is published as a separate file (Word documents, PDF, etc.) to be downloaded by the user. The agency that is responsible for the nation-wide broadband …
ProPublica reports: A key stimulus program to bring Internet service to rural America may not be up to the job of spending its $2.5 billion in extra funding effectively, according to a report (PDF) released Monday by the U.S. Department of Agriculture’s inspector general. … Monday’s report found that the Rural Utilities Service continues to grant loans to areas that already have broadband service and to communities near major cities.
The more we learn what is buried in the 1400+ pages of the economic stimulus bill, the more we’re sure it will fail. The latest boondoggle: broadband. The Los Angeles Times reports: [I]nsiders said some of the compromises forged by House and Senate negotiators could lead to problems in how the billions of dollars of new grants for broadband access are distributed. For instance, the final bill divides the money — and the power to dispense it — between the Commerce Department and an Agriculture Department agency with a history …
