Cisco Systems and Alcatel-Lucent want broadband stimulus “Buy American” provisions waived. That troublesome provision is typical of the many "little" details that will have to be ironed out before final rules are announced in June.

 

The provision is one example of conflicting goals within the American Recovery and Reinvestment Act of 2009 generally. The funds are supposed to act as a pump primer during the recession, but most of the money will not be spent until 2010 through 2012, when it is likely, if not certain, the current recession will be over.

 

The broadband stimulus is supposed to promote more broadband use, but also is supposed to create jobs immediately. It now appears little of the $7.2 billion can be spent in 2009, as slippage in the time table now suggests the first disbursements could not be made until the fall, and actual construction would not begin until sometime after that, including the difficulty of undertaking major construction projects in the winter.

 

Goals for the broadband spending include creating jobs, bringing high-speed Internet to more Americans, stimulating investment and connecting schools, libraries and other community centers, says Mark Seifert, National Telecommunications and Information Administration senior adviser.

 

Cisco (News - Alert) has expressed concern about the NTIA portion of the program, which represents the bulk of the funds and likely most of the resulting spending on customer premises gear, an area Cisco thinks will prove a bonanza.

 

“We’re talking about technologies that are no longer made in the United States,” says John Marinho, Alcatel-Lucent (News - Alert) VP, and reported by the New York Times.

 

The Telecommunications Industry Association (News - Alert) also has told NTIA that requiring documentation on equipment origins “will severely complicate” applications for funds.