BROADBAND INTERNET ACCESS AND THE DIGITAL DIVIDE: FEDERAL ASSISTANCE PROGRAMS
[SOURCE: Congress Research Service, AUTHOR: Lennard Kruger & Angele Gilroy]
While the numbers of new broadband subscribers continue to grow, studies
conducted by the Federal Communications Commission (FCC), the Department of
Commerce (DOC), and the Department of Agriculture (USDA) suggest that the rate
of broadband deployment in urban and high income areas may be outpacing
deployment in rural and low-income areas. Legislation introduced (but not
enacted) in the 109th Congress sought to provide federal financial assistance
for broadband deployment in the form of grants, loans, subsidies, and tax
credits. Many of these legislative proposals either have been or are likely to
be reintroduced into the 110th Congress. Of particular note is the possible
reauthorization of the Rural Utilities Service (RUS) broadband program, which
is expected to be considered as part of the 2007 farm bill. Legislation to
reform universal service which could impact the amount of financial
assistance available for broadband deployment in rural and underserved areas
has been introduced into the 110th Congress (H.R. 42, S. 101, S. 711), as well
as other legislation related to broadband and the digital divide (H.R. 1818, S.
541, S. 761, S. 1032).
In assessing such legislation, several policy issues arise. For example, is the
current status of broadband deployment data an adequate basis on which to base
policy decisions? Is federal assistance premature, or do the risks of delaying
assistance to underserved areas outweigh the benefits of avoiding federal
intervention
in the marketplace? And finally, if one assumes that governmental action is
necessary to spur broadband deployment in underserved areas, which specific
approaches, either separately or in combination, are likely to be most
effective?
http://www.nationalaglawcenter.org/assets/crs/RL30719.pdf
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