Re: Broadband "Bailout"?

[David Farber <dave () farber net>]

Begin forwarded message:

From: "George Ou" <george_ou () lanarchitect net>
Date: December 30, 2008 8:11:28 PM EST
To: "'Barry Gold'" <bgold () matrix-consultants com>, "'Lauren  
Weinstein'" <lauren () vortex com>
Cc: nnsquad () nnsquad org
Subject: [ NNSquad ] Re: Broadband "Bailout"?

The proposals are tax incentives to accelerate the pace of investment  
of next-generation broadband by network operators beyond what the  
market would induce.  These proposals are not going to pay for the  
bulk of the investment (probably upwards of 90%) will still have to be  
absorbed by the network operators.  The idea is that while these  
incentives cost the government money, the additional economic output  
from the broadband investments and the additional tax revenues they  
bring will offset the initial government spending.

This isn't a "bailout" in the automaker sense where automakers need  
billions just to stay alive and keep the lights on, it's a stimulus  
plan designed to spur the economy through increased technology  
investments.  The network operators are being asked to invest hundreds  
of billions of dollars of their own money over the next few years.



George





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