Company Claims Broadband Funds Hurt Private Business

The $7.2 billion for broadband stimulus bill was designed to bring high-speed Internet connections to many parts of the country, but small cable
companies aren’t buying in to it. According to The Associated Press, some
believe that much of the money will fund new networks in places where they already offer service.

“Now as the government awards the money, some phone and cable companies complain that not all of it is being used to bring broadband to places that lack it. Instead, these companies say, much of the money will fund new networks in places where they already offer service.

“From the Blue Ridge Mountains to the Great Plains, some local phone and cable companies fear they will have to compete with government-subsidized broadband systems, paid for largely with stimulus dollars. If these taxpayer-funded networks siphon off customers with lower prices, private companies warn that they could be less likely to upgrade their own lines, endangering jobs and undermining the goals of the stimulus plan.”

Read the Full Story at The Associated Press