U.S. wireless group opposes net openness in stimulus

WASHINGTON (Reuters) - A group representing U.S. wireless companies is seeking changes to $6 billion in grants aimed at promoting expanded Internet and wireless services as part of an economic stimulus bill proposed by Democrats.

The CTIA industry group said a requirement that providers who get grant money abide by so-called "open access" principles will impede investment in wireless and Internet access for the rural and hard-to-serve areas targeted by the measure.

"The utility of the program will be compromised if carriers are hesitant to participate because of uncertainty about the vague, undefined and unnecessary 'open access' obligation," CTIA President Steve Largent said in a letter to Rep. Henry Waxman of California, the Democratic chairman of the House Energy and Commerce committee, and ranking Republican Rep. Joe Barton of Texas.

The committee will hold a hearing Thursday on parts of the $825 billion stimulus proposal.

Free Press and other public interest groups want "openness" to be mandated to get government funds. The groups say the program could turn into a giveaway to private companies with no accountability and reinforce big companies' dominance of the Internet.

Free Press defines openness as to "prohibit discrimination against any lawful content on the networks and empower consumers with freedom of choice among Internet providers."

CTIA also asked the lawmakers for an expedited process to site cell phone towers, asking that grant recipients have their applications for tower locations acted on within 75 days.

(Reporting by Kim Dixon; Editing by Tim Dobbyn)