Is stimulus for rural broadband effective?


By Jonathan Ellis – When Congress appropriated $7.2 billion in 2009 to bring high-speed Internet service to unserved areas of America, South Dakota didn’t miss out.

One of the first projects nationally to get under way came via a $20.5 million grant to SDN Communications. SDN chipped in more than $5 million of its own money to enhance its high-speed fiber network, linking 75 communities and 300 so-called “anchor institutions.”

The federal subsidies, Tom Simmons, the senior vice president of public policy at Midcontinent Communications argues, could actually limit broadband development. Private companies might be less inclined to invest in expanding or upgrading their networks if they have to compete with companies receiving government subsidies. “While the government might have the best of intentions, in the long run they could be doing harm.” more> http://tinyurl.com/3lqnuro

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