a four-word addition in the bill may divert credits from rural regions to areas that are already well-served with broadband, a change that appears to benefit Verizon.

The bill gives companies a 20 percent tax credit on investments on “current-generation” broadband (serve with speeds of at least 5 megabits per second). “Next-generation broadband” (100 megabits) also receives a 20 percent tax credit for unserved, low-income and rural areas. But a new section defines a “qualified subscriber” for this credit as “any nonresidential subscriber maintaining a permanent place of business in a rural, underserved, or unserved area, or any residential subscriber.”

So the credit now goes to the extension of next-generation service to “any residential subscriber” — rural, suburban, urban! Verizon has the most fiber optic cables and is best able to roll out this service. The company already plans to add 3 million more customers this year and another 3 million in 2010, a $4 billion investment that will qualify for $800 million a year in tax credits with no change in the company’s plans.

"> Four Words Steer Broadband Money Away from Rural - Daily Yonder

Four Words Steer Broadband Money Away from Rural

The Senate stimulus bill contains funding and tax credits that aimed at encouraging extension of broadband to rural and underserved urban communities. But the New York Times notes that a four-word addition in the bill may divert credits from rural regions to areas that are already well-served with broadband, a change that appears to benefit Verizon.

The bill gives companies a 20 percent tax credit on investments on "current-generation" broadband (serve with speeds of at least 5 megabits per second). "Next-generation broadband" (100 megabits) also receives a 20 percent tax credit for unserved, low-income and rural areas. But a new section defines a "qualified subscriber" for this credit as "any nonresidential subscriber maintaining a permanent place of business in a rural, underserved, or unserved area, or any residential subscriber."

So the credit now goes to the extension of next-generation service to "any residential subscriber" — rural, suburban, urban! Verizon has the most fiber optic cables and is best able to roll out this service. The company already plans to add 3 million more customers this year and another 3 million in 2010, a $4 billion investment that will qualify for $800 million a year in tax credits with no change in the company's plans.

Share This:

The Senate stimulus bill contains funding and tax credits that aimed at encouraging extension of broadband to rural and underserved urban communities. But the New York Times notes that a four-word addition in the bill may divert credits from rural regions to areas that are already well-served with broadband, a change that appears to benefit Verizon.

The bill gives companies a 20 percent tax credit on investments on “current-generation” broadband (serve with speeds of at least 5 megabits per second). “Next-generation broadband” (100 megabits) also receives a 20 percent tax credit for unserved, low-income and rural areas. But a new section defines a “qualified subscriber” for this credit as “any nonresidential subscriber maintaining a permanent place of business in a rural, underserved, or unserved area, or any residential subscriber.”

So the credit now goes to the extension of next-generation service to “any residential subscriber” — rural, suburban, urban! Verizon has the most fiber optic cables and is best able to roll out this service. The company already plans to add 3 million more customers this year and another 3 million in 2010, a $4 billion investment that will qualify for $800 million a year in tax credits with no change in the company’s plans.

 

x

News Briefs