Senate Finance Committe: tax credits and broadband

[David Farber <dave () farber net>]

Begin forwarded message:

From: Stephen Ronan <sronan () PANIX COM>
Date: February 4, 2009 11:53:30 AM EST
To: CYBERTELECOM-L () LISTSERV AOL COM
Subject: Re: Senate Finance Committe: tax credits and broadband
Reply-To: Telecom Regulation & the Internet <CYBERTELECOM-L () LISTSERV AOL COM 
>

Thanks, Fred

In regard to tax credits for 100/20 "next generation" service, my  
understanding now is that if a current business plan is to bring fiber  
to the very wealthiest residents of urban mansions, townhouses or  
condos and to estates in the poshest suburbs or rural areas and to  
charge the customer an arm and a leg for doing so, this bill would  
provide a 20% tax credit for making the "last mile" connection to  
subscriber, whether or not the provider offered any service whatsoever  
to unserved or underserved persons or rural areas and whether or not  
an additional job were created beyond the current plan.

And, in regard to "current generation" service (5/1 wired or 3/.768  
wireless), if the current plan is to persuade the richest residents of  
rural areas to switch their connection from, say, DSL to cable or from  
cable to wireless (according to NCTA, 9 out of 10 rural youth have a  
mobile phone and 90% have an Internet connection, half have more than  
100 channels of video) <http://www.usdoj.gov/atr/public/workshops/telecom2007/submissions/228096.htm 
>, the provider could get a 10% tax credit for doing so, regardless  
of whether it connected an additional person beyond the current plan,  
connected anyone who currently lacks a connection, lowered anyone's  
subscription cost, improved the speed of anyone's connectivity or  
created an additional job.

Anyone disagree with that interpretation?

Anyone think that a system of tax credits for broadband couldn't be  
rather better designed to accomplish public purposes?

   - Stephen Ronan

On Wed, 4 Feb 2009, Fred R. Goldstein wrote:
> This appears to have two main things.




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