Summary
1. The obvious answer to the question is that there is stimulus money available for underserved areas. 2. However, despite some rhetoric to the contrary, Verizon has rural areas as last on its list for broadband expansion 3. In addition, the carrier does not like the strings attached to these funds.
Analysis
The most important reason for hiring Shirley Bloomfield is probably to help smooth the rough waters created by the divestiture of Verizon Communication’s northern New England assets. We have talked about all of the publicity on the exaggerated problems at FairPoint Communications in the transition process. Bloomfield has built up a lot of political capital and credibility over the years on rural issues. That will be useful in helping to make the Washington politicians understand that constituents in rural areas will be much better off in getting service from independent telcos, especially as Verizon wants to sell off many more lines.
Bloomfiled was with the NTCA for 20 years. She has been a vocal supporter of Jonathan Adelstein at the FCC. At Qwest, a lot of her concentration was on rural matters. Another plus is that she worked in the past for the current chairman of the House Appropriations Committee.
