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Jan. 24, 2009

The House Committee has approved a $2.825 billion package for the broadband industry, as part of a larger piece of economic recovery legislation.

The ARRA (the American Recovery and Reinvestment Act) also made funds available for healthcare and clean energy as well.

“The proposal aims to be technologically neutral, allowing participation by terrestrial wireless, satellite and wireline providers, subject to aggressive performance requirements and other pro-consumer policy considerations.

The provisions allow any eligible entity to apply for a grant, including wireless service providers, mobile communications infrastructure providers or a state or unit of local government the bill summary states.

Approximately $1 billion would go to the deployment of wireless service, about 25 percent to wireless voice service in unserved areas and the remaining 75 percent to advanced wireless broadband in underserved areas.

CTIA President Steve Largent fought to block the open-access requirement, stating that open-access is too vague and that participating wireless carriers should have federal assurance that permission to build new towers will be easier to obtain.

“Each state planning to participate is required to submit to NTIA a report indicating its geographic regions that are priority areas for broadband deployment. In addition, grant recipients will be required to adhere to open access principles,” it continues.

For its part, M2Z won a round when the FCC dropped its content filtering requirement in December, thereby removing one more objection of consumer advocacy groups. Meanwhile, a vote to approve the auction of M2Z’s desired spectrum was moved to circulation because of the FCC’s renewed focus on digital television.

M2Z then began a court battle against the FCC based on a dispute about the decision’s timing.

While the legislation isn’t what incumbent wireless carriers wanted, it may be beneficial to startups such as M2Z Networks, which is already attempting to build an open-access nationwide mobile WiMAX system.

Separately, President Obama yesterday appointed FCC Commissioner Michael Copps to acting chairman.

The move was widely expected. Copps will then return to his commissioner role when the imminent nomination of Julius Genachowski is approved by Congress in February.

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Source: The House Committee.