• by Wendy Davis  @wendyndavis, March 10, 2009

Now that lawmakers have allocated $7.2 million for broadband development, advocates are calling on federal agencies tasked with making grants to ensure that recipients build state-of-the-art networks.

"We need to make sure the money is spent wisely on projects that deliver the biggest bang for the buck," Ben Scott, policy director of Free Press, said Monday during a conference call with other broadband advocates and reporters.

Free Press is especially concerned that stimulus funds shouldn't be used to build networks that are "obsolete" because they're too slow. In a report issued Monday, the organization urged the National Telecommunications and Information Administration--tasked with distributing $4.7 billion in broadband stimulus--to establish speed guidelines for the new networks. Free Press specifically proposed that the National Telecommunications and Information Administration require grant applicants to declare the minimum and average speeds their networks will be able to offer consumers.

The organization also said that the U.S. Department of Agriculture's Rural Utilities Service--charged with making $2.5 billion of broadband grants and loans--should revise current policies. At present, the agency bars grant recipients from offering telephone service over broadband networks if the customer already has phone service from a local telecom. Free Press said this limitation "undermines the ability of new entrants to operate profitably by offering 'triple play' services of phone, Internet and television."

The Federal Communications Commission, National Telecommunications and Information Administration and Rural Utilities Service are scheduled to hold a public meeting today in Washington to discuss implementation of the broadband stimulus.