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RUS Stimulus Program, BIP, Greatly Favored For-Profit Companies with Grants

We are noted critics of federal policies that prioritize subsidies and support for private companies over the public sector (broadly defined to include local government, nonprofits, and cooperatives).  When we analyzed the stimulus rules, we were horrified at the reversal of Congressional Intent, which was clearly to prioritize publicly accountable entities over private entities.

Telecompetitor brings our attention to an RUS report summarizing awards from the BIP stimulus program.  Download the report here [pdf].

As we feared (and previously wrote here), the private sector was heavily prioritized by the Rural Utility Service.  For-profit companies won more awards and received more funds than entities that are structurally accountable to the community.  While we are not opposed to profits per se (we are strong allies with local businesses in the many aspects of our work), the history of private companies owning infrastructure (thereby making the rules) has taught us that communities do best when they have a strong voice over essential infrastructure.

Further, in the rural areas that RUS oversees, networks that are focused on profit have refused to upgrade to modern networks and often offer poor customer service.  Throwing more public money at the private sector is a terrible long-term solution that will require ever larger subsidies over time when policy should encourage self-reliance and a lessening need for subsidies over time.

These charts are snipped from the RUS Report linked to above.

RUS awards by awardee

RUS Stimulus Program, BIP, Greatly Favored For-Profit Companies with Grants

We are noted critics of federal policies that prioritize subsidies and support for private companies over the public sector (broadly defined to include local government, nonprofits, and cooperatives).  When we analyzed the stimulus rules, we were horrified at the reversal of Congressional Intent, which was clearly to prioritize publicly accountable entities over private entities.

Telecompetitor brings our attention to an RUS report summarizing awards from the BIP stimulus program.  Download the report here [pdf].

As we feared (and previously wrote here), the private sector was heavily prioritized by the Rural Utility Service.  For-profit companies won more awards and received more funds than entities that are structurally accountable to the community.  While we are not opposed to profits per se (we are strong allies with local businesses in the many aspects of our work), the history of private companies owning infrastructure (thereby making the rules) has taught us that communities do best when they have a strong voice over essential infrastructure.

Further, in the rural areas that RUS oversees, networks that are focused on profit have refused to upgrade to modern networks and often offer poor customer service.  Throwing more public money at the private sector is a terrible long-term solution that will require ever larger subsidies over time when policy should encourage self-reliance and a lessening need for subsidies over time.

These charts are snipped from the RUS Report linked to above.

RUS awards by awardee

RUS Stimulus Program, BIP, Greatly Favored For-Profit Companies with Grants

We are noted critics of federal policies that prioritize subsidies and support for private companies over the public sector (broadly defined to include local government, nonprofits, and cooperatives).  When we analyzed the stimulus rules, we were horrified at the reversal of Congressional Intent, which was clearly to prioritize publicly accountable entities over private entities.

Telecompetitor brings our attention to an RUS report summarizing awards from the BIP stimulus program.  Download the report here [pdf].

As we feared (and previously wrote here), the private sector was heavily prioritized by the Rural Utility Service.  For-profit companies won more awards and received more funds than entities that are structurally accountable to the community.  While we are not opposed to profits per se (we are strong allies with local businesses in the many aspects of our work), the history of private companies owning infrastructure (thereby making the rules) has taught us that communities do best when they have a strong voice over essential infrastructure.

Further, in the rural areas that RUS oversees, networks that are focused on profit have refused to upgrade to modern networks and often offer poor customer service.  Throwing more public money at the private sector is a terrible long-term solution that will require ever larger subsidies over time when policy should encourage self-reliance and a lessening need for subsidies over time.

These charts are snipped from the RUS Report linked to above.

RUS awards by awardee

RUS Stimulus Program, BIP, Greatly Favored For-Profit Companies with Grants

We are noted critics of federal policies that prioritize subsidies and support for private companies over the public sector (broadly defined to include local government, nonprofits, and cooperatives).  When we analyzed the stimulus rules, we were horrified at the reversal of Congressional Intent, which was clearly to prioritize publicly accountable entities over private entities.

Telecompetitor brings our attention to an RUS report summarizing awards from the BIP stimulus program.  Download the report here [pdf].

As we feared (and previously wrote here), the private sector was heavily prioritized by the Rural Utility Service.  For-profit companies won more awards and received more funds than entities that are structurally accountable to the community.  While we are not opposed to profits per se (we are strong allies with local businesses in the many aspects of our work), the history of private companies owning infrastructure (thereby making the rules) has taught us that communities do best when they have a strong voice over essential infrastructure.

Further, in the rural areas that RUS oversees, networks that are focused on profit have refused to upgrade to modern networks and often offer poor customer service.  Throwing more public money at the private sector is a terrible long-term solution that will require ever larger subsidies over time when policy should encourage self-reliance and a lessening need for subsidies over time.

These charts are snipped from the RUS Report linked to above.

RUS awards by awardee

Vermonters Angry at Wireless Broadband Stimulus Grant Instead of Fiber Loan

Vermonters are asking some hard questions about the federal broadband stimulus decision to throw money at a wireless network for Vermont rather than loaning money to an organization dedicated to delivering real broadband. Senator Bernie Sanders convened a meeting to discuss the awards toward the end of October.
Senator Bernie Sanders led off his “broadband town meeting” Saturday morning at Vermont Technical College with a ringing affirmation of the need for better broadband coverage in Vermont and the nation. However, nobody in the crowd of nearly 300 people needed to be convinced of that. What they wanted to know was whether a huge new federal grant to a private company was the right way to do it.
VTel, a small private telephone company, received a $116 million grant to build a FTTH network to serve their existing 18,000 footprint as well as a wireless network that is intended to serve the entire state. In contrast, the East Central Vermont Fiber Network (which we have covered previously), applied for a loan to build a FTTH network to everyone in the 24 communities that have joined together to form the network. The ECFiber network would be run by a nonprofit and would repay the loan from revenue generated by selling triple-play services on the network.

Vermonters Angry at Wireless Broadband Stimulus Grant Instead of Fiber Loan

Vermonters are asking some hard questions about the federal broadband stimulus decision to throw money at a wireless network for Vermont rather than loaning money to an organization dedicated to delivering real broadband. Senator Bernie Sanders convened a meeting to discuss the awards toward the end of October.
Senator Bernie Sanders led off his “broadband town meeting” Saturday morning at Vermont Technical College with a ringing affirmation of the need for better broadband coverage in Vermont and the nation. However, nobody in the crowd of nearly 300 people needed to be convinced of that. What they wanted to know was whether a huge new federal grant to a private company was the right way to do it.
VTel, a small private telephone company, received a $116 million grant to build a FTTH network to serve their existing 18,000 footprint as well as a wireless network that is intended to serve the entire state. In contrast, the East Central Vermont Fiber Network (which we have covered previously), applied for a loan to build a FTTH network to everyone in the 24 communities that have joined together to form the network. The ECFiber network would be run by a nonprofit and would repay the loan from revenue generated by selling triple-play services on the network.

Vermonters Angry at Wireless Broadband Stimulus Grant Instead of Fiber Loan

Vermonters are asking some hard questions about the federal broadband stimulus decision to throw money at a wireless network for Vermont rather than loaning money to an organization dedicated to delivering real broadband. Senator Bernie Sanders convened a meeting to discuss the awards toward the end of October.
Senator Bernie Sanders led off his “broadband town meeting” Saturday morning at Vermont Technical College with a ringing affirmation of the need for better broadband coverage in Vermont and the nation. However, nobody in the crowd of nearly 300 people needed to be convinced of that. What they wanted to know was whether a huge new federal grant to a private company was the right way to do it.
VTel, a small private telephone company, received a $116 million grant to build a FTTH network to serve their existing 18,000 footprint as well as a wireless network that is intended to serve the entire state. In contrast, the East Central Vermont Fiber Network (which we have covered previously), applied for a loan to build a FTTH network to everyone in the 24 communities that have joined together to form the network. The ECFiber network would be run by a nonprofit and would repay the loan from revenue generated by selling triple-play services on the network.

Vermonters Angry at Wireless Broadband Stimulus Grant Instead of Fiber Loan

Vermonters are asking some hard questions about the federal broadband stimulus decision to throw money at a wireless network for Vermont rather than loaning money to an organization dedicated to delivering real broadband. Senator Bernie Sanders convened a meeting to discuss the awards toward the end of October.
Senator Bernie Sanders led off his “broadband town meeting” Saturday morning at Vermont Technical College with a ringing affirmation of the need for better broadband coverage in Vermont and the nation. However, nobody in the crowd of nearly 300 people needed to be convinced of that. What they wanted to know was whether a huge new federal grant to a private company was the right way to do it.
VTel, a small private telephone company, received a $116 million grant to build a FTTH network to serve their existing 18,000 footprint as well as a wireless network that is intended to serve the entire state. In contrast, the East Central Vermont Fiber Network (which we have covered previously), applied for a loan to build a FTTH network to everyone in the 24 communities that have joined together to form the network. The ECFiber network would be run by a nonprofit and would repay the loan from revenue generated by selling triple-play services on the network.

Vermonters Angry at Wireless Broadband Stimulus Grant Instead of Fiber Loan

Vermonters are asking some hard questions about the federal broadband stimulus decision to throw money at a wireless network for Vermont rather than loaning money to an organization dedicated to delivering real broadband. Senator Bernie Sanders convened a meeting to discuss the awards toward the end of October.
Senator Bernie Sanders led off his “broadband town meeting” Saturday morning at Vermont Technical College with a ringing affirmation of the need for better broadband coverage in Vermont and the nation. However, nobody in the crowd of nearly 300 people needed to be convinced of that. What they wanted to know was whether a huge new federal grant to a private company was the right way to do it.
VTel, a small private telephone company, received a $116 million grant to build a FTTH network to serve their existing 18,000 footprint as well as a wireless network that is intended to serve the entire state. In contrast, the East Central Vermont Fiber Network (which we have covered previously), applied for a loan to build a FTTH network to everyone in the 24 communities that have joined together to form the network. The ECFiber network would be run by a nonprofit and would repay the loan from revenue generated by selling triple-play services on the network.

Vermonters Angry at Wireless Broadband Stimulus Grant Instead of Fiber Loan

Vermonters are asking some hard questions about the federal broadband stimulus decision to throw money at a wireless network for Vermont rather than loaning money to an organization dedicated to delivering real broadband. Senator Bernie Sanders convened a meeting to discuss the awards toward the end of October.
Senator Bernie Sanders led off his “broadband town meeting” Saturday morning at Vermont Technical College with a ringing affirmation of the need for better broadband coverage in Vermont and the nation. However, nobody in the crowd of nearly 300 people needed to be convinced of that. What they wanted to know was whether a huge new federal grant to a private company was the right way to do it.
VTel, a small private telephone company, received a $116 million grant to build a FTTH network to serve their existing 18,000 footprint as well as a wireless network that is intended to serve the entire state. In contrast, the East Central Vermont Fiber Network (which we have covered previously), applied for a loan to build a FTTH network to everyone in the 24 communities that have joined together to form the network. The ECFiber network would be run by a nonprofit and would repay the loan from revenue generated by selling triple-play services on the network.