Secrets of Big Telco: Why They Are Not Lining Up for Obama’s Broadband Plan

Today, BusinessWeek published a story written by Arik Hesseldahl and I, “Big Telcos Drag Their Heels on Broadband Stimulus.”

It reveals for the first time why some of the major telecom companies are dragging their heels on asking for federal money, and includes text from a letter we obtained from industry trade group, USTelecom (see it below).

Here’s the top of the story:
Big Telcos Drag Their Heels on Broadband Stimulus
Telecom giants are concerned that Washington’s $8 billion plan to promote broadband access will force them to open their networks to other providers

As Washington prepares to dole out some $8 billion to promote the spread of broadband access, don’t expect Big Telco to rush to the front of the line.

Some of the largest U.S. telecom operators, including AT&T (T), Verizon Communications (VZ), and Qwest Communications International (Q), are dragging their heels on asking for federal money. Some may sit out early funding rounds entirely or ultimately ask for only a sliver of the total.

Telecom giants are concerned that once finalized, the program will include burdensome regulations that will force them to open their equipment to rivals or otherwise hamper their ability to manage broadband networks, according to three people familiar with the thinking of the big service providers.

BUSINESSWEEK OBTAINS LETTER
That sentiment was captured in a Mar. 16 letter sent by industry group USTelecom to the Commerce and Agriculture Depts. and the Federal Communications Commission. In the letter, which was obtained by BusinessWeek, the group urged government officials to not let the broadband stimulus get mired down in contentious policy debates. “The agencies should not try to impose other requirements on grantees as part of this process,” wrote USTelecom CEO Walter McCormick.

Click here to read the entire letter.

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