Are States The Solution For Broadband?

Filed under Infrastructure, by Peter Elstrom on April 16

BW reporters Spencer Ante and Arik Hesseldahl have a nice scoop on states and other municipalities going after federal money for broadband stimulus. Colorado, Ohio, Tennessee, and Virginia are all trying to get a slice of the $7.2 billion that the Obama Administration plans to spend to bring speedy Internet connections to parts of the country that don’t have it.

The involvement of governments is sure to make the federal broadband push even more controversial. Local governments have a mixed track record on this front. Cities including Philadelphia and Houston have tried to build broadband networks for the locals, but the efforts have turned out to be more costly and complicated than expected.

Excerpt after the jump:

Virginia Technology Secretary Aneesh P. Chopra says his state will be applying for more than $100 million to help fulfill Governor Tim Kane's goal of providing broadband service to every business in the commonwealth. "We would like to see public-private partnerships to expand the deployment of broadband," says Chopra.

The states say they have seen firsthand how big pipes can attract business. Over the past few years, broadband lines that have been built in rural Virginia have helped the state to persuade high-tech companies such as Northrop Grumman (NOC) to set up new offices in those areas. In 2007, Northrop Grumman announced it would open up a new data center, and CGI Group said it was opening a software development center—both in western Virginia.
Cities to Line Up for Grants

The states won't be alone in lining up to get a share of the government grants. A senior aide in the Obama Administration says cities will also very likely step up and apply for money. "A lot of cities want to talk with us," said the official.