TIA praises Senate Finance Committee for Internet bill

The Telecommunications Industry Association (TIA--www.tiaonline.org) has applauded the U.S. Senate Finance Committee for passing out of committee economic stimulus legislation that includes the provisions of the Broadband Internet Access Act of 2001 (S.88). The bill encourages service providers to extend their high-speed Internet access networks to underserved areas of the country and to invest in next-generation broadband facilities.

The bill establishes a temporary, two-tiered tax credit to spur deployment of high-speed and broadband Internet access technologies. It includes a 10% tax credit for expenses related to deploying current-generation high-speed Internet access services to rural and underserved areas and a 20% tax credit for deploying next-generation broadband services. All provisions of the stimulus package would expire at the end of 2002.

The TIA estimates that its broadband provisions would have a stimulative impact to the economy of about $2 billion in increased investment. The accelerated broadband deployment in turn would have further economic reverberations through increases, for example, in electronic commerce and sales of computer hardware and software.

"Just as the interstate highway system provided a boost to the economy through faster transport of goods and people, so will broadband open up a new level of prosperity through the faster transport of information," says TIA President Matthew Flanigan. "This legislation will help to extend the productivity gains of high-speed Internet access to homes and small businesses across the United States, increasing economic output significantly. We are grateful for the leadership demonstrated by the Senate Finance Committee in recognizing the critical importance of the telecommunications and technology sectors to our nation's economic prosperity."