Minnesota Farmers Union

(February 8, 2009) - One the biggest drawbacks of living in rural America is the high cost and low quality of connectivity: antiquated dial-up internet speeds, costly satellite television and cellular phone service that cackles more than Grandma's hens.

Congress hopes to address these needs in the Obama stimulus package. Presently, the House-passed version of the plan holds $6 billion in grants to expand America's broadband networks. The Senate plan contains $9 billion in cash.

The bigger fight, however, won't be over how much to spend; it'll be over how best to spend it. And, with billions literally on the table, the battle promises to be a classic rural v. urban match with rural advocates out-lobbied and outspent by industry giants who want most of the loot for themselves and their urban subscribers.

The House plan employs grants to dole out its $6 billion. The U.S. Department of Agriculture's Rural Utility Service is put in charge of half the money, with $1.5 billion or so earmarked specifically for use in "rural areas without sufficient access to high-speed broadband service."

The rest of the House money, $3 billion, would be invested through grants administered by the Commerce Department. Much of it would flow to "unserved' rural areas while the remainder would be spent on better broadband in "underserved" areas.