CA Infrastructure Proposal

In an interesting twist California has been issued a recommendation that they float infrastructure bonds to increase broadband penetration in underserved areas. The rationale being that like rail, air and interstate, broadband improves productivity. –

California should consider issuing debt to augment private investment in enhancing and expanding high-speed communications services, a state task force said on Thursday.

It said that better, faster and more available broadband capabilities would propel economic growth for the most populous U.S. state, where 96 percent of households already have access to basic high-speed communications.

The task force did not specify how much debt California should issue, or in what kind, to help finance future broadband infrastructure, noting public debt is just one form of funding that should be considered.

“It’s a way to get different pots of money available,” Anne Neville, manager of the California Broadband Initiative in the state’s business, transportation and housing agency, told Reuters in a telephone interview.

Gov. Arnold Schwarzenegger commissioned the report, which recommends California issue infrastructure bonds and use proceeds “in partnership” with investment from the private sector to finance components of high-speed capable networks in unserved and underserved markets.

5 years ago this would have made sense, but now it is probably a dead letter. California is in the midst of a funding crisis right now so additional bond debt would probably not be considered. Nor would a typical wired infrastructure be the most cost effective for a low density usage environment. That is why this country needs to get WiMax off the ground in a big way. It is uniquely designed to handle these type of scenarios.

Interesting but it will sit on a shelf in Sacramento never to be acted on.