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Free Press: US should spend $44 billion on broadband

By Grant Gross , IDG News Service , 12/17/2008
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The U.S. government should spend US$44 billion to improve its broadband infrastructure and extend broadband to rural and other underserved areas, a media reform advocacy group recommended Wednesday.

Free Press called on the U.S. Congress and President-elect Barack Obama to move quickly to approve new programs to roll out broadband. Earlier this month, Obama included broadband in his announcement of a plan for the largest government-funded infrastructure program since the interstate highway system in the 1950s. The new spending is necessary to stimulate the struggling U.S. economy, Obama said.

Free Press, one of several advocacy groups in Washington, D.C., calling for a new national broadband policy, recommended about a dozen new government programs to address broadband rollout in a report released Wednesday. The programs, costing $44 billion over three years, would "immediately create tens of thousands of new jobs in the telecommunications, manufacturing and high-tech sectors," the report said.

Representative Nancy Pelosi, speaker of the House of Representatives, has predicted an infrastructure stimulus package costing about $600 billion. Asked if Congress might balk at $44 billion for broadband, Ben Scott, Free Press' policy director, noted that the group's proposal would make up a small fraction of the infrastructure stimulus package. "We think that would be money well spent," Scott said.

Members of Congress have talked about passing the infrastructure package in January, and Free Press would support quick action. While Free Press sees all of its recommendations as important, the priority should be to bring broadband to areas in the U.S. that don't yet have it, Scott said.

Among the Free Press recommendations:

-- $15 billion over three years for a Universal Service Broadband Infrastructure Fund, which would subsidize companies rolling out broadband in areas that do not now have it. Funding should only go to services providing at least 5 Mbits per second of broadband, with priority given to companies rolling out 50Mbps service, Free Press said.

-- $5 billion for a new Universal Service Mobility Infrastructure Fund, which would fund the deployment of wireless broadband networks to rural areas and along highway corridors.

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Don't be fooled there is already a fund paid by consumers that iBy Anonymous on December 18, 2008, 10:01 amDon't be fooled there is already a fund paid by consumers that is supposed to cover high costs for Hospitals, Schools, Libraries etc.. in rural areas. Companies...

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Really...I have 5 neighbors withing 5 square miles and...By Anonymous on December 17, 2008, 11:38 pm...what profit making internet company is going to run a 50 mb/s line out much less 5 mb/s to service 5 families who average 40k annually? Just more 'rich' folk...

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I agree that we need toBy Bobb on December 17, 2008, 10:01 pmI agree that we need to provide broadband access to rural areas throughout America. Even though my fiercely conservative principles have found Obama to be wanting...

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Rural BroadbandBy Anonymous on December 17, 2008, 5:12 pmReally glad to see that rural areas are included. We need access so that no one is left out of the economic, educational, and cultural opportunities. Pure market...

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Many of us in rural America can afford a reasonable monthly broadband bill...By Rural America on December 17, 2008, 4:23 pmMany of us in rural America can afford a reasonable monthly broadband bill... it just isn't available. DSL & cable are just not here and they are not coming. And...

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