The cause of expanding broadband/Internet wired and wireless services has received new emphasis by the federal government. The more there is available broadband access at affordable rates, the better for the economy, affecting consumers, businesses, governments and educational institutions.
A recent article in the New York Times, "High Speed for the Sparsely Wired", July 9, 2010, focused on the expansion of broadband/Internet services to the those living with slow dial up access or none at all.
Although $7.2 billion was allocated for the broadband projects, only 200 projects totaling $3 billion has been awarded as a grant or loan by the Agriculture and Commerce Departments. The Commerce Department received 1,885 applications but awarded only 82 grants. The remaining stimulus money must be allocated by September 30, 2010. This will push applications to be resubmitted. Much of the funding is for fiber cable extensions and microwave transmission.
The FCC chairman, Julius Genachowski, strongly supports extending the broadband services to rural areas. He stated:
Extending broadband [services] in rural areas is as important to jobs and growth in the 21st century as extending electricity was in the 20th century.
Expanding broadband coverage (wired or wireless) will benefit content providers as well businesses by expanding the potential customer base. Rural libraries will be become the focal point in many communities for broadband access, offering services to those who cannot afford their own access. The stimulus funds are directed toward the "middle mile" connections to schools and hospitals as well as the "last mile" that services businesses and homes.
The FCC manages the Universal Service Fund (USF) that has traditionally subsidized telephone service to schools, libraries, health care providers and low income consumers. The FCC is considering converting the USF to focus on broadband communications. This may mean that broadband customers will be paying into the USF, something the present providers typically do not support.
Most of the large ISPs have ignored the rural and poorer regions of the U.S. because they believe that there is little revenue and probably no profits serving these areas. However some of the small service providers are concerned that once broadband access is available, then the large ISPs will enter their local market and lure their customers away with lower rates.
The broadband extension can be a significant change for the rural areas, not just for entertainment like YouTube, but could also facilitate expanded health care through video conferencing, access to distance educational opportunities and enhancing small business access to their customers.
A second New York Times article from June 27, 2010 "Broadband Availability to Expand", dealt with doubling of the wireless communication frequency spectrum available.
President Obama signed a memorandum that will make about 500 megahertz available for mobile broadband service and other applications. Some of this spectrum would be released by the federal government and the remaining portion would be from private companies such as television stations.
The memorandum embraces the FCC's National Broadband Plan. This announcement places the White House behind actions that the FCC does not have the authority to perform. The memorandum directs the National Telecommunications and Information Administration (NTIA) to determine what federally controlled communications spectrum can be made available in the next five years. Since the spectrum will be auctioned off, then Congress will get involved with where the auction funds are spent. The hope is to improve government communications facilities with the auction profits.
The losers in this effort could be the wired carriers. Cable companies may see their investment reduced in value as the competition from wireless broadband access increases.
Anything that requires congressional action these days appears to be difficult. Most in Congress are not technically savvy. This and other higher priorities may delay congressional action on the wireless reallocation for years.
