The need for federal regulators to funnel broadband stimulus funding to areas of greatest need instead of building duplicate high-speed networks in already competitive market areas, has been highlighted by a new Federal Communications Commission report, says GTA TeleGuam.

Released last week, the FCC (News - Alert) report notes that one out of three counties in the United States and its territories are unserved by broadband. 24 million people living in 8.9 million households with lower income levels than the nation as a whole, fall within the unserved areas.

The latest and most comprehensive report shows no unserved areas in Guam. However, the areas in the Commonwealth of Northern Mariana Islands, that lack broadband infrastructure include – Saipan, Tinian and Rota. Also, because of data irregularities, the FCC excluded two county equivalent areas in CNMI.

The FCC report estimates that 1,024 out of 3,230 U.S. counties and territories are unserved by broadband. The minimum speed threshold for broadband is 4Mbps downstream and 1Mbps upstream.

“Privatization and competition have given Guam affordable choices and a world-class communications infrastructure,” Daniel J. Tydingco, executive vice president of external and legal affairs for GTA (News - Alert) TeleGuam, said. “Broadband stimulus funding sought for Guam should go to needy areas such as CNMI.

“Broadband is lacking where there is limited or no competition and where incumbent providers have little incentive to make adequate investments so they can maintain profit margins,” Tydingco said. “Unfortunately, in these poor areas broadband access is limited or not affordable, stifling economic growth and expansion.”

Tydingco said DSL costs in CNMI are two to three times higher than Guam. He said a basic T-1 connection from Guam to Saipan costs about $6,000 a month. This is the cost for a STM-1 connection from Guam to Los Angeles.

Guam faces a fierce competition. It has two aggressive wireline-based broadband providers and four wireless carriers that blanket the island with their broadband coverage. In addition to this, it also has 12 submarine cables with landing points on Guam that offer wide choice and route diversity.

“Communications providers on Guam have made demonstrable progress in infrastructure deployment and investment on the island,” Tydingco said, noting that GTA TeleGuam alone has invested more than $75 million since the Government of Guam privatized the company in January 2005. Another $10 million is planned for 2010.

It has been anticipated by GTA TeleGuam that nearly $100 million in stimulus funding sought for Guam will tilt the competitive playing field in favor of one company and return Guam to pre-privatization days of high rates, slow innovation and poor service.

“A taxpayer-funded public overbuild of communications infrastructure on Guam will jeopardize competition, risk current and new investments on the island, and it will cost Guam a net-loss of good-paying telecom jobs,” Tydingco said.

The National Telecommunications and Information Administration, was formally asked by GTA TeleGuam to reject an $89.7 million second round funding request for Guam.

In related news, GTA TeleGuam has begun testing a new broadband access technology that can provide up to a ten-fold increase on the speed of its Spyder Internet access on Guam.