Internet providers scramble for slices of broadband pie
It looks like President-elect Barack Obama’s promise to improve the nation’s broadband Internet access has been embraced by both politicians and the telecommunications industry. As usual, however, things get tricky once we dig into the details. The Wall Street Journal reports that how "broadband" is defined, and where the money gets spent (in the form of tax credits, government-backed bonds, and grants), will determine which industries benefit.
The big division is between phone and cable companies. The cable companies want to increase the definition of broadband to 5 megabits per second, which is about 6.5 times the current definition, and to receive government backing to both improve existing networks and build new networks in "underserved" areas. Smaller phone companies, which provide slower service, are pushing for a lower definition of around 1.5 to 3 megabits per second. The definition of broadband also affects the proposed Clearwire network built with WiMax technology.
