U.S. to release US$4 billion for high-speed Internet

The program is part of the US$787 billion stimulus package Congress passed in February. Biden and other officials spoke during an event in Wattsburg, Pennsylvania, according to an e-mailed news release from the Agriculture Department.

For-profit corporations may apply for funding, as can states, local governments and non-profit groups, the agencies administering the program said in a notice. Successful applicants will need to treat Web traffic equally, according to the rules.

The funding “will bring high-speed Internet service to communities across the country, create thousands of jobs, and improve economic, health care, and education opportunities” in rural communities, Agriculture Secretary Tom Vilsack said in the statement.

Biden called the program “a first step toward realizing President Obama's vision of a nationwide 21st century communications infrastructure.” The funding is to be released in three rounds, according to the statement.

The US$7.2 billion is intended to bring fast Internet service to areas that don't have it and to those that the government deems “underserved,” according to the stimulus measure. The Commerce Department's National Telecommunications and Information Administration will spend US$4.7 billion and the Agriculture Department US$2.5 billion. The funds made available Wednesday include as much as US$1.4 billion for the Commerce Department program, or about 30 percent of its total, according to the notice. The Agriculture Department is to receive as much as US$2.4 billion, the agencies said.

Awards will be announced in November, and subsequent funding rounds will conclude by September 2010, according to the notice.

Goals for the broadband spending include creating jobs, bringing high-speed Internet to more Americans, stimulating investment and connecting schools, libraries and other community centers, Mark Seifert, a senior adviser at the NTIA, told Congress in testimony April 2.

Verizon Communications Inc., Dallas-based AT&T Inc. and cable companies had urged the agencies in filings not to set new conditions on how Internet access should be provided.

The phone companies have said new rules could hinder their ability to manage congestion on networks they have spent billions to build.

New rules could create uncertainty and discourage investment, the National Cable & Telecommunications Association said in its filing to the NTIA.

Members of the Washington-based trade group include Philadelphia-based Comcast Corp. and New York-based Time Warner Cable Inc.

The cable association was reviewing Wednesday's announcement, Brian Dietz, a spokesman, said in an e-mail. Alberto Canal, a spokesman at New York-based Verizon, said in an e-mail that his company supports the stimulus program, and believes funds should flow to “unserved areas.” AT&T was reviewing the announcement, spokesman Michael Balmoris said in an e-mail.

Public Knowledge, a Washington-based public interest group, is “pleased that the requirements for the broadband grant program include strong non-discrimination and interconnection conditions,” Gigi Sohn, the group's president, said Wednesday in an e-mailed statement.

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