Michigan Governor Signs Bills to Speed Broadband Deployment

Michigan Governor John Engler recently signed Senate Bills 880, 881 and 999 to help make high-speed Internet connections available and affordable to consumers across the state. Almost unanimously approved in the Michigan House and Senate, the Governor’s broadband initiative was supported by a coalition of more than 50 statewide associations, local groups and companies. The bills are as follows:

• SB 880 creates a statewide right-of-way authority, eliminating excessive fees and permit delays and leveling the field for all service providers. The bills also shield phone customers from rate increases.
• SB 881 creates a broadband finance authority that will provide low interest loans to expand broadband access in areas across the state that are underserved.
• SB 999 provides tax credits to telecommunications providers who invest in new broadband infrastructure and provides, upon certification of the state Public Service Commission, for a dollar-for-dollar tax credit for right-of-way fees paid under SB 880.

The broadband initiative should have a significant impact on the Michigan economy, according to a study released in December 2001 by the Michigan Economic Development Corporation (MEDC).

Performed by Gartner Consulting, an international information technology consulting group, the study showed that accelerating the build out of a statewide broadband infrastructure in Michigan would result in an increase of $440 billion over the next 10 years in Michigan's gross state product, compared to the increase that would occur if the broadband network expanded at its present rate. The network also would result in 497,000 more new jobs for Michigan during the same period, the study held.

More information on Governor Engler's initiative and the MEDC study are available at http://www.michigan.gov/