Funding Broadband for Underserved Communities in Review

Yesterday, the Subcommittee on Communications and Technology held the first (of possibly several) hearings focused on scrutinizing the rollout of the $7 billion fund administered by the National Telecommunications and Information Administration and the Rural Development Agency.
 
Testimony from the Inspector Generals from each respective agency indicated that there was concern that the Broadband Technologies Opportunity Program (BTOP) will need greater scrutiny going forward to avoid fraud and abuse by fund recipients. The BTOP is the primary vehicle used to fund organizations seeking to deploy broadband networks in underserved and rural communities.  In addition, it was announced that only 5 percent of the $7B funds have been spent. The Subcommittee will explore legislative steps to “reclaim” funds that have been granted, but not spent.
 
There was also testimony from recipients of broadband grants and stakeholders in opposition to the BTOP.  On one side of the debate was a consortium of universities and not-for profit organizations that were deploying a broadband network in rural and remote communities in Michigan successfully.  On the other side of the debate was a private broadband company arguing that federal dollars should not be used to fund broadband networks in areas that have private sector competitors.
 
Rep. Greg Walden, the subcommittee chair, made it clear that an in-depth review of the BTOP program would take place in the weeks and months to come.  Unfortunately, the administers of the BTOP were away at an international conference and where not able to participate in this initial hearing.