Friday, December 12, 2008

Paging the Economy! Can We Get Some Stimulation Please?

It is impossible to watch the news these days without hearing stories on the economic recession and how it is impacting the country. As the recession continues, national and state leaders are examining a variety of ingredients in some far-off economic stimulus packages – all wondering if any of them will help to stir the economy. Early on, there was talk of a possible focus on physical infrastructure – investing in improved roads, airports and schools for the country – creating jobs through the implementation of these projects, simultaneously improving the backbone of the country. But FINALLY, the idea of increasing broadband infrastructure became part of the discussion.
Last weekend, in a radio address, Pres.-elect Obama pledged rollout of a massive public works program as part of his economic stimulus plan, including a renewal of the country’s information superhighway. While some have said that physical infrastructure projects take too much time to show results, others say the recession is deep enough that we have plenty of reason to invest for the long term. If we are moving toward an infrastructure-focused plan, it seems that broadband, our gateway to 21st century competitiveness, should be the key component.

Edward Glaeser’s recent column in the New York Times talks about the challenge of not losing focus on human capital in the mix of all the public infrastructure projects, especially when considering the unskilled workers. And really, broadband is A LOT more than just physical infrastructure. It is more so a tool that allows citizens and communities to reach their full capacity by enabling them to be connected to each other. A global conversation, if you will. But reaching those left behind will require not only infrastructure, but also training and education that will help unskilled workers reap the benefits of this tool.

This plan holds lots of potential promise for those interested in a national broadband strategy, but there is much left to be defined. It will be interesting to see how a massive broadband deployment program would be rolled out. From the FCC? From individual states? From some yet-unnamed entity? Broadband is not currently considered a public utility. Traditional public works programs are defined by the government investing in government-owned infrastructure. So if that’s the case moving forward, who will own this valuable infrastructure? If the funding goes to private service providers, what will be the criteria for deployment? How do we ensure competition between the providers, and what areas will be targeted? These questions are just some of the complicated issues to be sorted out in the country’s economic stimulus plan. At the e-NC Authority, we will be watching with great interest to see how it unfolds.

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