The State of the Internet…

…is strong.

But we will be led to think differently in tonight’s faux State of the Union Address.? Obama will undoubtedly speak on the subject of what I have decided to call Social Internet Expansionism.? This is the extension of networks into rural areas for people that can’t afford or don’t want Internet according to Pew studies, but of whom Obama asserts need it and has determined it will create 300,000 non-farm jobs for every 1 percent increase of penetration.? This assertion is of course based on a paper by Robert Crandall, William Lehr, and Robert Litan who have repeatedly stated that their research is being taken out of context.? Mainly because the project was completed almost 2 years ago and was looking at 2005 numbers for non-rural areas.

Nonetheless, the Obamulus will pour almost $7 billion into funding projects led by the National Telecommunications and Information Administration and to a lesser extent the Department of Agriculture who previously headed the Rural Utilities Service Braodband Grant and Loan Program (RUS).

My top 10 questions for the President regarding Social Internet Expansionism:

1) Will the public or private sector be building your networks?

2) How precisely will bureaucracy define “unserved” and “underserved” areas?

3) If it is the private sector, how will grant winners be chosen?

4) Will the grantee manage the network after it is built?

5) If so, will maintenance costs be solely their responsibility?

6) Will the government pick winners?

7) What if a grant holder does not have a stake in an area, and they begin building a network in direct competition with an existing area network provider who does not have government financing?

8) What if a service provider who does not have government financing is pushed out of business because of a service provider that has government financing?? Will the out of business service provider receive compensation?

9) If a service provider constructs a network in a government mandated rural area and cannot attain service contracts and therefore cannot continue service in that area, will they receive compensation for any privately invested funds?

10) If Social Internet Expansionism proves unsuccessful, will you return the original investors money in form of a tax rebate?