Broadband 2009

On Tuesday, February 10, 2009, the American Enterprise Institute (AEI) hosted a panel discussion to examine broadband's role in the economy and the economic stimulus package. One particular area the panelists analyzed was the benefit of a rural subsidy for broadband. The debate over how to expand broadband to underserved rural areas is a complicated one, and a real strategy will require careful crafting; the current stimulus package may not be the best vehicle for such a complex undertaking. Additionally, whether or not a subsidy will solve the problem is debatable.

There are many questions we should ask moving forward: will subsidizing broadband in rural areas really benefit those individuals the government intends to benefit? Are the levels of poverty greater in rural areas than in urban areas? At the end of the day, a public-private partnership may offer more attractive benefits, and we should seriously consider this as a part of a national broadband strategy.

The "broadband problem" is one that even the past Administration claimed it would fix-- under the Bush Administration, the catch phrase was "Broadband by 2007." The Obama Administration has a unique opportunity to tackle this problem that some believe has compromised our position as the global leader in technology. Increasing the United States' global ranking will take more than the typical focus on a fix from the "last mile." The connection to the actual Internet backbone cannot be ignored, and a deeper look at the role of competition in the market wouldn't hurt.

A summary of the AEI event can be found at:
http://www.aei.org/events/filter.all,eventID.1881/summary.asp

A Report on Broadband Use by Rural Small Businesses can be found at:
http://www.sba.gov/advo/research/rs269tot.pdf

Testimony from Connected Nation on their public-private partnership initiative can be found at:
http://www.house.gov/smbiz/hearings/05-09-07-sub-broadband/testimony-05-09-07-connect-kentucky.pdf