Bi-partisan Congressional support for expanding access to rural and urban broadband is strong, but Republicans and Democrats struggle over the method of paying for more infrastructure. The Washington Examiner explains Republicans believe the solution is simple: Tax cuts for the companies installing the new infrastructure, and money from the FCC’s Universal Service Fund. Democrats disagree, and claim more taxes and additional funding is necessary to meet the massive amount of buildout essential for providing high-speed internet access.
So far, 48 senators and 71 house representatives asked Trump to make policy decisions concerning high-speed broadband a priority. A letter signed by senators stated, “Expanding access to broadband, both rural and urban, is the infrastructure challenge of our generation, and we cannot afford to wait to make progress on this important goal.”
Despite this common goal, there is no time frame for passing the congressional infrastructure bill, says FCC chairman Ajit Pai. He says the Universal Service Fund, which aims to provide universal broadband access in areas where it is not financially feasible for companies to expand, will fund the necessary communications infrastructure demanded by the bill.
In addition, Republicans in Congress want tax cuts to play an important role as motivation for infrastructure development, says Rep. Leonard Lance, (R-N.J.), vice chairman of the House Energy Subcommittee on Communications and Technology. Financial advisers have recommended $137 billion in cuts to boost private investment over the next ten years. The result they say, is three million new jobs, and a $500 billion annual boost to the economy.
Democrats argue tax breaks are not enough for businesses to agree to build broadband access to remote areas, such as tribal lands, and champion a $1 trillion spending bill. Blair Levin, who works with Brookings Institution, said tax breaks are a faulty option. “[T]he money could alternatively be used for acquisitions, dividend hikes, share buybacks, raises for executive or larger cash reserves,” he explained in a blog post.
The Trump administration has more possibilities for funding, according to the account. The president is also considering auctioning more spectrum to wireless carriers to spur investments in more infrastructure, a method supported by several technology groups. Finally, some lobbyist organizations back the installation of fiber optic cables during road and other construction projects, to reduce the cost of digging. The idea is instead of finding additional funding, project costs can be cut with smart installation, Inside Towers reported. With so many options, a decision on where funding will be found may not be finalized for some time.
March 30, 2017
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