Monday, February 16, 2009
Tax credit for expanding broadband in the rural area
In general I am FOR the broadband for the rural areas. However, I think the requirements for defining Broadband in the stimulus package are too ambitious, particularly for a short term plan. Based on the Bloomberg report, the stimulus plan called for a 10 percent tax credit for carriers that build out broadband networks in rural and underserved areas, providing download speeds of at least 5 megabits per second and upload speeds of at least 1 megabit per second. Carriers would have qualified for a 20 percent tax credit if they expanded broadband service with download speeds of at least 100 megabits and upload speeds of at least 20 megabits per second. I live in San Diego. I think of my neighborhood as suburban as it is 20 minutes away from downtown San Diego. But I guess it could qualify as urban area. I have U-verse service from AT&T and on the description of my account I have 3.0 Mega bits per seconds for down stream and 1.0 Mega bits per second for upstream. God knows how much bandwidth I really have but these are my nominal maximum values. I use a wireless router for having wireless internet access in my house. The wireless router transform the U-verse signal to WiFi which has maximum bandwidth of 1.0 Mega bit second for the downlink. Occasionally I experience slowness in my connection. However, I am happy with the service overall. That's why I think 5 mega bits per second for rural areas is too ambitious for a short term plan. Based on what I am hearing in the media the purpose of the stimulus plan is to jolt the economy in the short term!