Federal Broadband Stimulus Program Bolsters CA's Broadband Industry

(WEB HOST INDUSTRY REVIEW) — At an open meeting hosted last week by high-capacity fiber-optic equipment provider Infinera (www.infinera.com) at its Sunnyvale, California, headquarters, state officials and leaders from the broadband industry expressed high hopes that the federal broadband stimulus program would have a significant impact on broadband availability and the industry in the months ahead.

The American Recovery and Reinvestment Act of 2009 directed $7.2 billion of government funds for broadband and wireless Internet access to unserved and underserved communities across the US. Infinera co-founder and chief marketing and strategy officer Dave Welch called on the federal government to ensure that broadband policy encourages competition, praising the proposed Broadband Deployment Conduit Act as an enabler of more competition and more cost-effective broadband networks. 

He also urged the US government to pursue policies that support companies that, like Infinera, compete through innovation. “Innovations, like our photonic integration technology, are the only way to deliver long-term improvements in network capacity, reliability, and scalability to support the growing needs of the Internet,” he said in a statement.

Joe Camicia, who is California’s Chief Information Officer chief of staff and a member of the Governor’s Broadband Task Force, praised the award of $7.5 million to “LA CAN” for an upgrade of 188 public computer centers in low income areas of Los Angeles. “Today, people are waiting in lines at public libraries to use computers so they can apply online for jobs,” Camicia stated. “This is an example of how federal dollars will help individuals tremendously.”

He hopes to see California win some 10 percent of the total broadband and wireless funding. “We are eagerly awaiting more announcements,” he said.

California State Assembly member Paul Fong described Infinera as an important source of innovation in the technology industry, and praised the company for continuing to invest in the Silicon Valley area, especially in light of the recession and budget crisis hitting the state economy.

Tad Deriso, head of Mid-Atlantic Broadband Cooperative (www.mbc-va.com), an Infinera customer since 2007, said MBC’s success in deploying its Virginia network and delivering services to customers and communities throughout its region demonstrated that broadband networks can stimulate economic growth in depressed regions. “As a result of the availability of cost-effective, reliable broadband from MBC, a major technology company came to our region and opened a data center in an abandoned manufacturing building. So instead of an empty building, it is now producing tax revenue and jobs for southern Virginia.”

On Monday, MBC was awarded a $16 million grant to build an extension to its existing network, which will bring fiber-based broadband to 121 schools in southern and southeastern Virginia. Deriso said Infinera’s Digital Optical Networks helped MBC simplify deployment and management. “We have 10 full-time employees and manage a network that spans 2500 miles,” Deriso said. “That’s only possible because we have an Infinera optical network.”

Prior to the establishment of the Recovery Act, Governor Arnold Schwarzenegger instituted a Broadband Task Force in October 2006 to bring experts from government and business together to identify and eliminate obstacles to making broadband access universal in the state. In furthering the expansion of Broadband Services in Rural Communities, he signed legislation last year authorizing community service districts to provide broadband services to their residents.

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