Verizon
Verizon Communications Inc. will “likely not” seek funding under the program, said Alberto Canal, a spokesman. Federal officials extended the deadline to seek funds to Aug. 20 after applicants encountered slow computers.
The program, which aims to build more connections for high- speed Internet known as broadband, is part of the $787 billion stimulus package Congress passed in February. AT&T, Verizon and cable companies had argued against program rules that demand equal treatment for Web traffic. Such requirements could deter investment and hinder operators ability to manage congestion on networks, the companies have said.
AT&T has “concerns about the complexity” created by some rules for grant applicants, Michael Balmoris, a spokesman for the Dallas-based company, said in an e-mailed statement.
“At this time, we are not able to participate,” Balmoris said.
Officials plan to extend as much as $3.8 billion in loans and grants in the initial round, said Mark Tolbert, a Commerce Department spokesman, in an interview today.
All funds must be awarded by Sept. 30, 2010, under rules set by Congress.
Prime Targets
“Nobody really thought a company like Verizon that invests so much in broadband already would be the prime target for funds,” Canal, the Verizon spokesman, said in an e-mail.
Broadband spending by AT&T and New York-based Verizon, the second-largest U.S. telephone company, dwarfs what they would get from a portion of the federal grants and loans. AT&T plans to invest more than $11 billion this year to expand its high- speed networks. Verizon is spending $23 billion over seven years to build out its fiber-optic network.
Comcast may serve as a partner for program applicants seeking to encourage people to use high-speed Internet, said Sena Fitzmaurice, a spokeswoman, in an interview. Philadelphia- based Comcast serves mainly urban and suburban areas, and offers broadband to more than 99 percent of its cable customers, she said.
“Most of the areas that dont have broadband built out to them are rural areas,” Fitzmaurice said.
Small-Company Participation
Smaller companies that serve rural areas are more likely to participate, Scott said.
If “youve got households and you cant make an economic case to get to them now, but using a grant you can, its good business,” Scott said.
The government Web site for applications was running slowly, and officials added servers as they extended the deadline, the Commerce Departments Tolbert said.
“Theres been a great deal of interest,” he said.
Companies, local governments, non-profit groups and other entities that have begun the electronic process by 5 p.m. today have until Aug. 20 to complete it, Tolbert said.