Monday, April 13, 2009

Broadband Stimulus: Internal Contradictions

Not that it really will matter, but among the more-obvious internal tensions built into the "broadband stimulus" provisions of the American Recovery and Reinvestment Act is the difference between "create jobs" and "create broadband." ARRA is supposed to be about jobs, broadband is secondary.

The other obvious intellectual inconsistency is the preference for non-profit applicants for the National Telecommunications & Information Administration program, with the concomitant preference for projects that can be self-sustaining after program funds are exhausted.

The logical way to create self-sustaining capabilities is to allow for-profit entities to create a business case, and then fill a need by building new broadband infrastructure, or by creating other enabling mechanisms to encourage greater use or greater speeds and capabilities.

But that would be business logic, not political logic. There is a logic to political rationality. It just isn't the same thing as business rationality.

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