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Shirley Bloomfield

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Obama Administration Is Sending Mixed Signals on Rural Economic Development

Posted: 08/20/11 10:59 AM ET

This week President Obama is traveling to Iowa, Minnesota and Illinois on a three-day economic bus tour to discuss ways to grow the economy, strengthen the middle class, and increase employment in rural America.

It is a worthy goal, given the importance of rural America to the economy. However, when it comes to the Obama administration promoting broadband development in rural America -- a prerequisite for economic growth -- the left hand may not know what the right hand is doing. The Obama administration is sending decidedly mixed signals about its view of telecom and broadband access in rural areas.

The strength of rural America and the future of our economy are dependent on federal agency policies that work together -- not in conflict. One agency moving in the wrong direction will quickly unravel progress that has already been made, and jeopardize the economic recovery in rural America.

The telecom industry has come together to develop a consensus framework for regulatory change that puts our nation in a position to compete globally with countries that have made broadband deployment a priority. Just as diverse telecom companies have worked together to craft this consensus plan, our federal agencies, too, need to be working in tandem.

On one hand our country has the U.S. Department of Agriculture's Rural Utilities Service (RUS), which has been playing a critical role in rural economic development by providing loans to help build and maintain rural utilities, such as electric, telephone, water and waste. Most recently, and perhaps most importantly, RUS has begun providing loans specifically for broadband deployment to small rural broadband companies who are often the only source of telecommunications services in their area.

Thanks to these RUS loans, more rural Midwesterners are seeing the benefits of the telecommunications revolution that has been sweeping across our nation and the globe.

With rural broadband, young rural residents can telecommute to work instead having to move away to find jobs. Rural small businesses have access to many new customers. All residents have access to telemedicine and tele-education services that previously required mutli-hour drives each way. Local police, paramedic and fire departments have access to real time information to help them in an emergency.

On the other hand, a proposal by the Federal Communications Commission (FCC) announced earlier this year threatens to bring higher rates and declining levels of telecom service to much of rural America. This would be devastating to many rural communities who rely on these companies.

If the FCC is successful in changing the rules as they propose for how these small providers are compensated, there would be significant consequences. At a minimum, prices could quickly double or triple. At a time when families are struggling to make ends meet, the size of this increase would make broadband unaffordable.

More likely, many broadband carriers would have to stop building out new networks and reduce investment in maintaining and upgrading existing ones. In some cases, companies would go out of business, stranding rural communities without any service.

Rural carriers are justly proud of the broadband service networks they have developed to serve their customers. Providers have delivered unmatched benefits to millions of Americans, along with numerous businesses and state and local governments.

Recently, three associations representing rural telecommunications providers joined other stakeholders in submitting an industry consensus plan for policy reform that will support the deployment and continued operation of rural networks by providers of all sizes. This plan will support economic growth in rural America by providing rural residents and businesses with affordable broadband service. You can learn more about the proposal and get involved in the debate by visiting www.saveruralbroadband.org.

If President Obama is serious about promoting economic development and jobs during his trip to the Midwest this week, he should urge the FCC to embrace the industry consensus plan.

Shirley Bloomfield is chief executive officer of the National Telecommunications Cooperative Association.

 
 
 
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04:27 PM on 08/21/2011
On this particular issue, Rural Telecommunication/broadband access, this administration seems to be more tea party than the tea party itself. They should not only leave the USF contributon as it is, they should increase the incentives for companies to build and operate rural networks, particularly wireless broadband networks. You sometimes scratch your head thinking do these people understand what they are doing or they have been taken in by some smooth talking lobbyists.
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rory talbot
Former Dem but they r now wing of Corp. party
01:16 PM on 08/21/2011
It's not mixed signals. It's deliberate deception. One thing I've learned about this Administration is that they tell the American people just enough to try to retain their votes, sucker them in, and then cut them off at the knees. Perfect example: Elizabeth Warren. I knew for a FACT that Obama would never appoint her as Head of the Consumer Protection Agency. He is pro-Wall Street through-and-through. He only threw us Progressives a bone by letting her "organize" the agency while keeping his hands on the rug over which she was standing. How is anyone fooled any longer when the YANK comes?!?
10:15 AM on 08/22/2011
Bingo. Yep, no mixed signals here. The government is killing off small farms and businesses. Why? Because big business wants the whole pie. No crumbs for anyone else.
01:14 PM on 08/21/2011
Why would a Democrate push rural development? Most of the T party is from rural America.
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margoharris
I used to be Snow White but I drifted.
12:05 PM on 08/24/2011
So are many who are not. He is the President of all the people.
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aacme
My micro-bio is on a strict need-to-know basis.
09:30 AM on 08/21/2011
Obama Administration? Mixed signals? Surely not.
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bobbythompson3333
GOP President Jan 2013
06:11 AM on 08/21/2011
Good thing Ben Franklin, Edison and Ford had broadband or they never would have gotten anything done.
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The Lone Stranger
Yes, I am a lousy typist. OK!
02:22 AM on 08/21/2011
Obama does not care about rural america. he just wants their disproportionately inflated share of the elctoral college votes.
09:57 PM on 08/20/2011
Would this be the same president whose governmental agencies have been doing their best to regulate farmers into extinction? Such as the Environmental Protection Agency and its attempt to pass rules regulating farm dust? And, even though they backed down from it after outrage from rural America, the Federal Motor Carrier Safety Administration (FMCSA) announced earlier this year that it was considering regulating agricultural equipment as commercial vehicles.

So...the president wants "to discuss ways to grow the economy, strengthen the middle class, and increase employment in rural America." Yet another example of Obama speaking out of both sides of his mouth.
06:44 AM on 08/21/2011
Exactly, not to mention he talks about creating jobs, while putting up all kinds of road blocks to jobs.
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egal
Reality disagrees with Conservative assessments
12:43 PM on 08/21/2011
Actually, those laws aren't what's really hurting farmers (only the largest-scale ones, who aren't the ones in trouble)--

what actually hurts farms is lack of innovation and development to improve farming methods and tools, which is generally countered by the reactions to many of those laws;
lack of funding to any but the bigger farms, and if the GOP countinues with its austerity insistence, this will only get worse and increasingly beggar even the successful farms;
and lack of proper education pushes to get more people into farming and improve the knowledge and skill base of farmers so they don't fade into the dust, literally and figuratively.
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catsrboss
05:16 PM on 08/20/2011
I have broadband only because it's my only choice. I pay three times what my friends pay for internet service in town. We can't bundle , and we have no cable service or any service that allows for cost savings. Many neighbors close to me still have dial-up or no computer at all because of the expense. The only cell service or broadband service is Verizon. We are at their mercy because we have no choices, there is no competition. And I still have trouble downloading video even with broadband. Makes it very difficult or impossible to take classes on line, do your taxes, or communicate with family. It's hard to improve your situation when you have nothing to work with.
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margoharris
I used to be Snow White but I drifted.
12:07 PM on 08/24/2011
Obama is understands all of that and is trying to change it.
02:18 PM on 08/20/2011
A lot of folks in rural areas are sick of waiting for broadband. And, wireless carrier service--supposedly 3G and 4G--simply doesn't work well in many areas: dead spots, trees, terrain and towers that average 6-8 miles away. Plus the demand on the towers during the summer due to tourist and summer residents. Rural America needs in the ground fiber optic. NOW!
01:24 PM on 08/20/2011
Really, a mixed message from the Obama administration? Next they will tell us there is gambling in casinos.