http://www.reuters.com/article/marketsNews/idUSN0152152520090701 * US officials expect competition among applicants
* Applications accepted from July 14-Aug. 14
* Minimum speed 768 kbps downstream, 200 kbps upstream
* Public interest groups support guidelines (Adds industry, public interest group comments, otherdetails)
WASHINGTON, July 1 (Reuters) - The U.S. government willsoon release $4 billion of loans and grants aimed at expandingbroadband access to underserved areas across the United States,officials said on Wednesday.
The funds are part of a $7.2 billion program to build anaffordable high-speed Internet structure in rural areas. Theproject is being pushed by President Barack Obama, in part, toshore up the U.S. economy with job creation in thetelecommunications sector.
"This funding is a down payment on the president'scommitment to bring the educational and economic benefits ofthe Internet to all communities," Vice President Joe Biden saidin a statement.
The broadband program was tucked into a $787 billion fiscalstimulus package Obama signed into law in February.
Applications for loans and grants will be accepted startingon July 14 and will continue through Aug. 14. Details of thefunding process can be found at www.broadbandusa.gov.
State and local governments as well as non- and for-profitorganizations are eligible to apply.
The Commerce and Agriculture departments and the FederalCommunications Commission are developing a national broadbandprogram to reach those American households and small businesseslacking what many officials consider a necessary service.
Under the rules announced on Wednesday, the USDA andCommerce will review applications, announce a group offinalists on Sept. 15 and start naming winners on Nov. 7,senior administration officials said.
Some industry and public interest groups applauded therelease of the guidelines. The National Cable &Telecommunications Association, which represents Comcast Corp(CMCSA.O), Time Warner Cable Inc (TWC.N) and Cox, said it isreviewing the guidelines.
U.S. Telecom, a trade group that represents VerizonCommunications Inc (VZ.N) and AT&T Inc (T.N), did not commenton the guidelines and said it was reviewing them.
NET NEUTRALITY
The Open Internet Coalition, which comprises publicinterest groups that support so-called net neutrality, said itstrongly supports the guidelines. They favor preventingInternet service providers like Verizon and AT&T from givingpreference to certain content.
The guidelines said: "This requirement ensures neutraltraffic routing."
"The first major decision regarding broadband policy by thenew administration sets a clear course in favor of the openInternet," said Markham Erickson, OIC executive director.
Of the $4 billion to be released soon, $1.6 billion ofgrants will be administered by Commerce's NationalTelecommunications and Information Administration and $2.4billion of grants and loans by the USDA's Rural UtilitiesService.
The grants and loans will be released in three tranches,they said.
Under the rules the minimum Internet speed an applicantcan provide is 768 kilobits per second (kbps) downstream,considered slow by some standards, and at least 200 kbpsupstream to end users.
However, due to likely competition, officials said theyexpect applicants to offer higher speeds. (Reporting by John Poirier; Editing by Derek Caney, SteveOrlofsky and Matthew Lewis)
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