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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (42739)	1/16/2009 10:45:06 AM
From: Paul V.	Read Replies (2) \| Respond to of 95530

Donald, Gottfried, and threaders, what does this article in WSJ mean for the entire technology sector, semi equipment and manufacturers, cell phone and other techs. How much will it increase the bottom lines and our portfolio's? online.wsj.com <Stimulus Bill Includes Digital TV Coupon, Internet Funding (This article was originally published Thursday.) By Fawn Johnson Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--An economic stimulus bill that is expected to pass Congress next month includes $650 million for the U.S. Commerce Department to distribute $40 coupons that offset the cost of digital TV converter boxes. The bill also includes $6 billion to promote deployment of high-speed Internet access in unserved and underserved areas, considerably less than the $44 billion requested by Internet advocates. TV stations are to stop broadcasting in analog format on Feb. 17, which would mean that people who rely on over-the-air TV broadcasting won't see their programs unless they buy a digital television or converter box, or subscribe to a cable or satellite TV service. President-elect Barack Obama's transition team and some Democrats have proposed that Congress delay the Feb. 17 date. Several Republicans oppose putting off the transition. Lawmakers, Obama officials and consumer advocates were in an uproar earlier this month when the Commerce Department announced that it needed to create a waiting list for people applying for the coupons. If the extra money for the converter box coupon program remains part of the broad stimulus package, lawmakers almost certainly will have to delay the digital TV shift because people won't receive their coupons until after Feb. 17. The stimulus bill's additional money for converter box coupons is more than the $250 million the Commerce Department under President Bush said it would support. In a letter sent Wednesday to Capitol Hill, outgoing Commerce Secretary Carlos Gutierrez said the current administration supports legislation that would allow the agency to immediately begin distributing coupons. With an additional $250 million, the department could issue 6 million coupons in the near term and another 3.5 million as the program expires, the letter said. Gutierrez also said the Feb. 17 digital TV shift shouldn't be delayed. The Internet funding portion of the stimulus bill is considered a down payment on efforts Obama will make to blanket the country with high-speed connections, according to an Obama transition team official. "While $6 billion is not as much as we had hoped for, it is a substantial investment," said Ben Scott, policy director of Free Press, an Internet advocacy group. "This money should be tied to a single agency that can uphold clear principles of public service and enforce concrete administrative accountability." The bill divides the Internet grants between the U.S. Department of Agriculture and the Commerce Department. At Commerce, $1 billion of the funds will be set aside solely for wireless Internet buildout. The Commerce Department grant program in the bill mandates minimum speeds for basic Internet connections and designates some funds for deluxe link-ups that would support video-conferencing. The USDA grant program in the bill doesn't mandate any speeds and may be aimed at ensuring that some type of mobile voice service is available even in the most remote areas. The bill also contains $350 million to fund an Internet mapping program that was enacted last year. That project is designed to zero in on specific areas that have little or no Internet access. Free Press wants the Internet grant program to reside in one place, either at the Federal Communications Commission or the Commerce Department, because the money will be easier to track that way. Markham Erickson, executive director of the Open Internet Coalition, said his group will be watching closely to see that the money goes first to communities that have no Internet connections. The coalition represents a host of advocacy groups and tech companies, including Google Inc. (GOOG), eBay Inc. (EBAY), and Amazon.com, Inc. (AMZN). "Funds should be prohibited for upgrades of existing equipment. Priority should go to reach people who don't have access to broadband currently, and who are not covered by pre-existing buildout plans," Erickson said. Qwest Communications International Inc. (Q) is in agreement with that idea. "Unserved areas can be quickly identified and the economic impact would be more beneficial than simply upgrading underserved areas that already have broadband service," said Qwest Federal Relations Senior Vice President Shirley Bloomfield. Cisco Systems Inc. (CSCO) Director of Technology and Communications Policy Jeff Campbell said the Internet grants are "a great start" toward expanding Internet connections. Down the road, "we need to see similar focus on upgrading the overall infrastructure," he said. -By Fawn Johnson, Dow Jones Newswires; 202-862-9263; fawn.johnson@dowjones.com>