Not everyone is happy with the way USDA’s Rural Development office is doling out rural broadband loans. According to a story on C/net yesterday, the department is being sued by Mediacom Communications, the same company supplying us with our high speed access. Apparently a competitor (Lisco) in Fairfield, IA received a low interest loan to develop a system in a community that already has 2 other providers.

According to the story, “The lawsuit seeks to force the USDA to rewrite the regulations that determine how the program is administered. It’s also looking to block Lisco’s $9.5 million loan.”

On the surface it seems like Mediacom has a point. If the intent of the program is to provide incentives to companies in rural markets that don’t have broadband access it doesn’t seem to make sense to provide this money in a market where companies have already invested private dollars. In this case Lisco followed the language of the regulations. Mediacom is saying that the language needs to change. I can’t say I disagree. Let’s get those tax dollars working in areas where farmers can’t get broadband right now. Of course there’s at least one company that would argue that all farmers already have broadband available.