Broadband Expansion Program Advances in House

January 27, 2009

By Mike Peters

The U.S. House Energy and Commerce Committee has approved legislation drafted by the House Appropriations Committee to make nearly $3 billion available for the purpose of expanding broadband access. The broadband legislation is part of President Obama's $825 billion economic stimulus package. The funds would be available in the form of grants to broadband providers who will build out broadband and wireless networks in rural and underserved areas.

FCC Net Neutrality Provision Included in Broadband Legislation

The broadband plan includes a provision that recipients of the grants must adhere to the Federal Communications Commission's (FCC) 2005 broadband policy statement concerning net neutrality principles. The FCC's position would prohibit Internet service providers from interfering with a consumer's right to access any lawful content and to run any application they choose. Broadband advocacy groups see the net neutrality provision as a victory for a free and open Internet.

Broadband Providers and FCC at Odds over Control of Peer-to-Peer Internet Traffic

Many broadband service providers have opposed the FCC net neutrality guidelines. Recently, the FCC sent a letter to Comcast questioning its network management system through which Comcast slows peer-to-peer traffic during periods of heavy network congestion. Comcast must respond to the FCC on this issue by the end of January.

Steve Largent, president and chief executive of CTIA, a trade group that represents the wireless industry, addressed concerns over the issue in a letter to House and Senate Leaders. He stated, "As you develop policies for recovery, we believe any broadband incentives should be technology neutral in order to encourage wireless providers to deploy next generation mobile and fixed broadband services to our consumers and businesses."

$3 Billion Broadband Expansion Funds Designated for Underserved Areas

Of the nearly $3 billion approved for broadband expansion, three-quarters would be allocated for underserved areas and the remaining funds would go toward parts of the country that do not currently have any broadband service.