The Benton Foundation blasted the Bush administration for failing...
The Benton Foundation blasted the Bush administration for failing to achieve universal broadband access by 2007. Mostly completed in September, the report was held until now so it could include material on a November Joint Board on Universal Service…
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decision to include broadband as a supported service, said Charles Benton, foundation CEO and founder. The board ordered the FCC to create a specific broadband fund under the program, a “critical first step,” but not enough unless the “FCC acts immediately,” the report said. And the $300 million proposed annual broadband fund is “woefully inadequate for tackling the challenge at hand,” the report said. With broadband deployment costing $1,000 a line, a $300 million yearly fund at most would add 300,000 broadband connections, boosting penetration “only about 1 percent,” the report said. The National Exchange Carrier Association pegs annual costs at closer to $3 billion. The Bush administration should have drafted a strategy for universal broadband deployment, the report said. Nearly 60 percent of households with incomes above $150,000 have broadband, compared with less than 10 percent of households with incomes below $25,000. Broadband deployment should be covered under the Universal Service Fund, especially for rural areas, the report said. “Making the transition to broadband can, over the long run, save consumers tremendously,” the report said. Broadband service costs could be lowered through a “modernized” USF program and policies allowing municipalities to offer the service, it said.