What strings on a broadband buildout stimulus package?

There's a lot of short-sighted glee in the prospects of money for broadband buildouts across America. The money would be part of an economic stimulus package, but all parties better step back and think long and hard as to the consequences here.

With strings being attached to the financial sector bailout and the in-process auto manufacturing bridge-loan bailout, it's hard to see a scenario where federal dollars are offered without some clear performance criteria in exchange. And maybe some other kickers.

And what would those criteria be, hmm?  This would be a fun question to ask Kevin Werbach, but since he's hunkered down at the FCC looking at the skeletons in Kevin Martin's closet, I'm going to have to speculate on my own.

Widening out broadband reach is an obvious goal, so expanding the reach of networks beyond their initial build-outs sounds reasonable. However, you want to have a sustainable business model - not a black hole for more money - once a buildout is complete. No sense in building a broadband bridge to nowhere.

Accelerating builds may be another option to examine. Verizon's FiOS builds in Washington D.C. and Philadelphia are currently projected to take around seven years, with the most economically sustainable (i.e. profitable) areas being built first. This is just good business sense; if you can't make a profit, you can't afford future investments. Can providing a one-time lump sum cut the build time in half?  It's an interesting question.

Will a pledge to Net Neutrality be required?  Or no bandwidth caps? Suddenly, federal money might look a little radioactive.

Expect to see a lot of sustained lobbying from the telcos in the coming months. They'll want to get as much cash as they can without a lot of strings attached, but I can't see the incoming Obama administration providing a free lunch for anyone.

- Doug