Feeds

Network giants reject 'buy American' Obama mandate

Parts are cheap, labor is not

Next gen security for virtualised datacentres

Cisco Systems and Alcatel-Lucent want "buy American" provisions stricken from Barack Obama's $7.2bn US stimulus program to expand broadband internet access.

Bloomberg has reported the networking giants have filed complaints with the federal agency overseeing broadband funds, saying a mandate for US parts would be "grossly inefficient" and a "radical departure" from normal markets.

President Obama's economic stimulus package requires projects funded under the law use steel, iron and manufactured goods produced in the US. Exceptions can only be made if the agency involved deems the mandate "inconsistent with the public interest," supplies are "no longer produced in the US in reasonably available quantities and of satisfactory quality," or will increase the overall project by more than 25 per cent.

"We're talking about technologies that are no longer made in the United States," Alcatel-Lucent veep of public affairs John Marinho told Bloomberg.

"The completely globalized supply chain of the broadband equipment sector means that many types of the most important equipment is not produced in the United States," Cisco said in a filing with the US National Telecommunications and Information Administration.

Recreation of Cisco chief John Chambers joining Axis of Evil

Cisco has requested the public interest waiver for a large selection of its telecom equipment, including edge and core routers and switches, IP set-top boxes, WiMax and WiFi equipment, plus hardware and software for security, storage, data center switching, load balancing, and application management.

"Reorienting the global electronics supply chain for this specific program in a short period of time would be both inefficient and expensive," Cisco said in the filing.

In a letter to the US agency over seeing the allocation of funds, Alcatel claims that construction labor makes up the overwhelming majority - from 70 to 90 per cent - of the cost of broadband network rollouts.

"Broadband deployment is an effective way to provide immediate job stimulus for construction workers and technicians regardless of where the equipment came from." Alcatel president Robert Vrij wrote.

Those speaking against Cisco and Alcatel-Lucent getting a "buy American" waiver is Debbie Goldman, Washington DC-based policy director for the Communications Workers of America.

"This is about creating American jobs - not Chinese jobs," Goldman reportedly said. ®

5 things you didn’t know about cloud backup

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.