Broadband Internet Access and the Digital Divide:Federal Assistance Programs
Summary
The “digital divide” is a term that has been used to characterize a gap between“information haves and have-nots,” or in other words, between those Americans whouse or have access to telecommunications technologies (e.g., telephones, computers,the Internet) and those who do not. One important subset of the digital divide debateconcerns high-speed Internet access, also known as
broadband
. Broadband isprovided by a series of technologies (e.g., cable, telephone wire, fiber, satellite,wireless) that give users the ability to send and receive data at volumes and speedsfar greater than current “dial-up” Internet access over traditional telephone lines.Broadband technologies are currently being deployed primarily by the privatesector throughout the United States. While the numbers of new broadbandsubscribers continue to grow, studies and data suggest that the rate of broadbanddeployment in urban and high income areas may be outpacing deployment in ruraland low-income areas. Some policymakers, believing that disparities in broadbandaccess across American society could have adverse economic and socialconsequences on those left behind, assert that the federal government should play amore active role to avoid a “digital divide” in broadband access. One approach is forthe federal government to provide financial assistance to support broadbanddeployment in underserved areas. Others, however, believe that federal assistancefor broadband deployment is not appropriate. Some opponents question the realityof the “digital divide,” and argue that federal intervention in the broadbandmarketplace would be premature and, in some cases, counterproductive.Legislation introduced in the 110
th
Congress seeks to provide federal financialassistance for broadband deployment in the form of grants, loans, subsidies, and taxcredits. Of particular note is the possible reauthorization of the Rural UtilitiesService broadband program, which is being 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 areas — has beenintroduced (H.R. 42, H.R. 2054, H.R. 3428, S. 101, S. 711), as well as otherbroadband legislation (H.R. 1818, H.R. 2035, H.R. 2174, H.R. 2274, H.R. 2419,H.R. 2569, H.R. 2720, H.R. 2953, H.R. 3246, H.R. 3281, H.R. 3627, H.R. 3893,H.R. 3919, S. 541, S. 761, S. 1032, S. 1190, S. 1264, S. 1439, S. 1492, S. 2242, S.2302).In assessing such legislation, several policy issues arise. For example, is thecurrent status of broadband deployment data an adequate basis on which to basepolicy decisions? Is federal assistance premature, or do the risks of delayingassistance to underserved areas outweigh the benefits of avoiding federal interventionin the marketplace? And finally, if one assumes that governmental action isnecessary to spur broadband deployment in underserved areas, which specificapproaches, either separately or in combination, are likely to be most effective?This report will be updated as events warrant.
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