Originally published in January 2009.
Broadband is nearly non-existent in the rural markets and underserved urban markets. Looking at the United States broadband network of networks is like looking at a piece of Swiss Cheese.
Money is great. Cash is great. What is the plan behind how the $6 Billion broadband money will be spent? I can go on and on about the need to give our youth greater access to information via broadband but I would be either singing to the choir or wasting my breath.
Broadband deployment needs to be actively pursued by the nation. Unless the entire country has access to broadband technology and services, the nation will continue to suffer economically. All boats must float in the country if we are to see widespread economic growth. How many universities across the country are sitting in Tier 2 markets with the most minimal of broadband services? How many businesses sitting in Tier 2 markets can benefit from advanced broadband services? The answers are thousands.
The $6 Billion is actually not a lot for deploying broadband systems ubiquitously across the nation. However it is a good start. What is needed is a clear national broadband policy that will encourage private industry to invest in the sector. Local and state government participation will be needed to assist in correctly identifying areas in need. Existing grant programs within the federal government can be used to distribute the money.
By using existing programs it is inferred that these programs criteria will be used to determine where and how the money will be spent. The question is whether or not these existing programs represent U.S. broadband policy. There are just a few existing government programs that have given out broadband grants in the past, including the U.S. Department of Agriculture’s (USDA’s) tiny Rural Development Broadband Loan and Loan Guarantee Program.
In my recent article/analysis entitled: “Occam – A Model on How to Leverage Existing Government Funding Programs?”, the United States Department of Agriculture (USDA) has been lending money for telecom (especially in rural markets) for years. In the last couple of years the USDA has handed out millions of dollars in for rural broadband. According to the USDA, enough money distributed to buildout networks in 22 states. This is all good news.
The money will create jobs and buildout networks critical for growing local economies. On a much larger scale, the USDA Rural Utilities Service (RUS) fund needs to be leveraged and funded in such a way to facilitate telecom growth. This level of deployment has to be stepped up.
That all being said: What is our national broadband policy?
Without a clear policy, money will be distributed in a haphazard fashion. If you distribute enough money, eventually you will build a nationwide broadband network. That is not a realistic policy when you consider we are in a deep and long recession. A policy will be needed backed by an action plan.
The reality is more money will be needed. Since we don’t have a national broadband policy how do I know that? The answer is $6 Billion will not be enough to wire the entire northeast region of the United States that is why. Don’t tell me all the people living in the area of the country from New Jersey, New York, and through New England have access to broadband because they do not and $6 Billion is a drop in the bucket. As of this writing Julius Genachowski is expected to be the next FCC Chairman. What are his views?
Up until this point I have been focusing on rural broadband and broadband availability in underserved markets. A national broadband policy needs to address more than what I have primarily focused on. A national broadband policy needs to focus on spectrum as well. According to the mainstream media, President Obama wants to delay the Februa