Barton Has Concerns About Stimulus Overbuilds As Well

Rep. backs up NCTA's concerns of grants going to existing service

By John Eggerton -- Broadcasting & Cable, 3/4/2010 4:51:45 PM

The National Cable & Telecommunications Association got some backup in its letter to the heads of the National Telecommunications & Information Administration on broadband stimulus grant money apparently being used to overbuild existing service, which is something cable operators have been worried about.

That support came from House Energy & Commerce Committee ranking member Joe Barton (R-Tex.) in remarks at a communications subcommittee oversight hearing March 4 on NTIA and the Rural Utilities Service's distribution of $76.2 billion in funds for broadband deployment and adoption.

"What disturbs me most are the rumors that some of the funds that have been distributed by NTIA and RUS are for projects that overlay existing broadband infrastructure," said Barton. "I'm aware of at least two projects that appear to be overbuilds, and given the relaxing of the rules for the next round of funding from the NTIA, this problem will only get worse. What due diligence are the NTIA and the RUS doing themselves to ensure money is not being spent where facilities already exist?" he asked.

Barton was also concerned that the stimulus program in general might be more about waste than jobs.

Barton's audience included the two targets of the NCTA letter: NTIA chief Larry Strickling and RUS head and former FCC Commissioner Jonathan Adelstein.

Strickling told the committee that NTIA had plenty of due diligence in place to make sure it had sufficiently vetted the bidders. "As stewards of taxpayer funds, we are determined to invest every dollar wisely. My goal is to not make a bad grant, and you have my assurances we have the processes and protections in place to prevent that from happening," he told the committee, according to prepared testimony."