Order Code RL30719
CRS Report for Congress
Received through the CRS Web
Broadband Internet Access
and the Digital Divide:
Federal Assistance Programs
Updated May 5, 2005
Lennard G. Kruger
Specialist in Science and Technology
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress
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 who
use or have access to telecommunications technologies (e.g., telephones, computers,
the Internet) and those who do not. One important subset of the digital divide debate
concerns high-speed Internet access, also known as broadband. Broadband is
provided by a series of technologies (e.g. cable, telephone wire, satellite, wireless)
that give users the ability to send and receive data at volumes and speeds far greater
than current “dial-up” Internet access over traditional telephone lines.
Broadband technologies are currently being deployed by the private sector
throughout the United States. 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.
Some policymakers, believing that disparities in broadband access across
American society could have adverse economic and social consequences on those left
behind, assert that the federal government should play a more active role to avoid a
“digital divide” in broadband access. One approach is for the federal government to
provide financial assistance to support broadband deployment in underserved areas.
Others, however, believe that federal assistance for broadband deployment is not
appropriate. Some opponents question the reality of the “digital divide,” and argue
that federal intervention in the broadband marketplace would be premature and, in
some cases, counterproductive.
Legislation introduced into the 109th Congress (H.R. 3, H.R. 144, H.R. 146,
H.R. 1479, S. 14, S. 497, S. 502) seeks to provide federal financial assistance for
broadband deployment in the form of grants, loans, subsidies, and tax credits. In
assessing this legislation, several policy issues arise. For example, is the current
status of broadband deployment data an adequate basis on which to base policy
decisions? Given the early stages of broadband deployment, 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?
This report will be updated as events warrant.
Contents
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Broadband in Rural and Underserved Areas . . . . . . . . . . . . . . . . . . . . . 2
Federal Role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
State and Local Broadband Activities . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Federal Telecommunications Development Programs . . . . . . . . . . . . . . . . . 9
The Universal Service Concept and the FCC . . . . . . . . . . . . . . . . . . . . 9
Universal Service and the Telecommunications Act of 1996 . . . 10
Universal Service and Broadband . . . . . . . . . . . . . . . . . . . . . . . . 11
Rural Utilities Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Rural Broadband Access Loan and Loan Guarantee Program . . . 13
Community Connect Broadband Grants . . . . . . . . . . . . . . . . . . . 14
Legislation in the 108th Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Legislation in the 109th Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Policy Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Is Broadband Deployment Data Adequate? . . . . . . . . . . . . . . . . . . . . . 19
Is Federal Assistance for Broadband Deployment Premature
or Inappropriate? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Which Approach is Best? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Appendix – Catalog of Selected State and Local Broadband Activities . . . 29
List of Tables
Table 1. Selected Federal Domestic Assistance Programs Related
to Telecommunications Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Broadband Internet Access and the Digital
Divide: Federal Assistance Programs
Background
The “digital divide” is a term used to describe a perceived gap between
perceived “information haves and have-nots,” or in other words, between those
Americans who use or have access to telecommunications technologies (e.g.,
telephones, computers, the Internet) and those who do not.1 Whether or not
individuals or communities fall into the “information haves” category depends on a
number of factors, ranging from the presence of computers in the home, to training
and education, to the availability of affordable Internet access. A series of reports
issued by the Department of Commerce2 (DOC) during the Clinton Administration
argued that a “digital divide” exists, with many rural citizens, certain minority
groups, and low-income Americans tending to have less access to
telecommunications technology than other Americans.3
In February 2002, the Bush Administration’s Department of Commerce
released its first survey report on Internet use, entitled A Nation Online: How
Americans Are Expanding Their Use of the Internet.4 While acknowledging a
disparity in usage between “information haves and have nots,” the report focused on
the increasing rates of Internet usage among traditionally underserved groups:
In every income bracket, at every level of education, in every age group, for
people of every race and among people of Hispanic origin, among both men and
women, many more people use computers and the Internet now than did so in the
recent past. Some people are still more likely to be Internet users than others.
Individuals living in low-income households or having little education, still trail
the national average. However, broad measures of Internet use in the United
States suggest that over time Internet use has become more equitable.5
1 The term “digital divide” can also refer to international disparities in access to information
technology. This report focuses on domestic issues only.
2 See U.S. Department of Commerce, Falling Through the Net: Toward Digital Inclusion,
released October 2000.
3 Not all observers agree that a “digital divide” exists. See, for example: Thierer, Adam D.,
Divided Over the Digital Divide, Heritage Foundation, March 1, 2000.
[http://www.heritage.org/Press/Commentary/ED030100.cfm]
4 Department of Commerce, A Nation Online: How Americans Are Expanding Their Use
of the Internet, February 2002. Based on a September 2001 Census Bureau survey of 57,000
households. See [http://www.ntia.doc.gov/ntiahome/dn/index.html]
5 A Nation Online, pp. 10-11.
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A Nation Online: Entering the Broadband Age, published in September 2004,
is the sixth Department of Commerce report examining the use of computers, the
Internet, and other information technology. For the first time, the DOC report
focuses on broadband, also known as high-speed Internet access. Broadband is
provided by a series of technologies (e.g. cable, telephone wire, satellite, wireless)
that give users the ability to send and receive data at volumes and speeds far greater
than current “dial-up” Internet access over traditional telephone lines.6 The DOC
report found that the proportion of U.S. households with broadband connections grew
from 9.1% in September 2001 to 19.9% in October 2003.7
According to the latest FCC data on the deployment of high-speed Internet
connections (released December 22, 2004), as of June 30, 2004 there were 32.5
million high speed lines connecting homes and businesses to the Internet in the
United States, a growth rate of 15% during the first half of 2004. Of the 32.5 million
high speed lines reported by the FCC, 30.1 million serve homes and small
businesses.8 While the broadband adoption rate stands at 20-30% of U.S.
households, broadband availability is much higher. As of June 30, 2004, the FCC
found at least one high-speed subscriber in 94% of all zip codes in the United States.
The FCC estimates that “roughly 20 percent of consumers with access to advanced
telecommunications capability do subscribe to such services.” According to the
FCC, possible reasons for the gap between broadband availability and subscribership
include the lack of computers in some homes, price of broadband service, lack of
content, and the availability of broadband at work.9
Broadband in Rural and Underserved Areas. While the number of new
broadband subscribers continues to grow, the rate of broadband deployment in urban
and high income areas appears to be outpacing deployment in rural and low-income
areas. In response to a request by ten Senators, the Departments of Commerce and
Agriculture released a report on April 26, 2000, concluding that rural areas lag
behind urban areas in access to broadband technology. The report found that less
than 5% of towns of 10,000 or less have access to broadband, while broadband over
cable has been deployed in more than 65% of all cities with populations over
6 For further information on different types of broadband technologies, including their
respective strengths and limitations, see CRS Issue Brief IB10045, Broadband Internet
Access: Background and Issues.
7 U.S. Department of Commerce, Economics and Statistics Administration, National
Telecommunications and Information Administration, A Nation Online: Entering the
Broadband Age, September 2004, p. 1.
8 FCC, High-Speed Services for Internet Access: Status as of June 30, 2004, December 22,
2004. Available at
[http://www.fcc.gov/Bureaus/Common_Carrier/Reports/FCC-State_Link/IAD/hspd1204.
pdf]
9 Federal Communications Commission, Fourth Report to Congress, “Availability of
Advanced Telecommunications Capability in the United States,” GN Docket No. 04-54,
FCC 04-208, September 9, 2004, p. 38. Available at
[http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-208A1.pdf]
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250,000, and broadband over the telephone network has been deployed in 56% of all
cities with populations over 100,000.10
Similarly, the February 2002 report from the Department of Commerce, A
Nation Online: How Americans Are Expanding Their Use of the Internet, found that
12.2% of Internet users in rural areas had high-speed connections, as opposed to
21.2% of Internet users in urban areas. The report’s survey also found, not
surprisingly, that individuals in high-income households have higher broadband
subscribership rates than individuals in lower income households.11
A study released in February 2004 by the Pew Internet & American Life Project
found that while broadband adoption is growing in urban, suburban, and rural areas,
broadband users make up larger percentages of urban and suburban users than rural
users. Between 2000 and 2003, the study found that while the number of home
broadband users grew from 8% to 36% of the online population in urban
communities, and from 7% to 32% in suburban communities, the number of home
broadband users in rural communities grew from 3% to 19%.12
According to the latest FCC data on the deployment of high-speed Internet
connections (released December 22, 2004), high-speed subscribers were reported in
99% of the most densely populated zip codes, as opposed to 73% of zip codes with
the lowest population densities. Similarly, for zip codes ranked by median family
income, high-speed subscribers were reported present in 99% of the top one-tenth of
zip codes, as compared to 81% of the bottom one-tenth of zip codes.13
On the other hand, the FCC’s Fourth Report, while acknowledging that
disparities in broadband deployment exist, asserts that the gap between the broadband
“haves and have-nots” is narrowing:
[T]he Fourth Report also documents the continuation of a positive trend that first
emerged in our last report: namely, the increasing availability of advanced
telecommunications capability to certain groups of consumers – those in rural
areas, those with low incomes, and those with disabilities – who stand in
particular need of advanced services. Consumers in these groups are of special
concern to the Commission in that they are most in need of access to advanced
telecommunications capability to overcome economic, educational, and other
limitations, they are also the most likely to lack access precisely because of these
limitations. The Fourth Report demonstrates that we are making substantial
10 See U.S. Depts. of Commerce and Agriculture, Advanced Telecommunications in Rural
America: The Challenge of Bringing Broadband Service to All Americans, April 2000, 80
pages. Available at [http://www.ntia.doc.gov/reports/ruralbb42600.pdf]
11 A Nation Online, pp. 40-41.
12 Pew Internet &American Life Project, Rural Areas and the Internet, p. 14. Available at
[http://www.pewinternet.org/pdfs/PIP_Rural_Report.pdf]
13 FCC, High-Speed Services for Internet Access: Status as of June 30, 2004, December 22,
2004, p. 4-5. Available at
[http://www.fcc.gov/Bureaus/Common_Carrier/Reports/FCC-State_Link/IAD/hspd1204.
pdf]
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progress in closing the gaps in access that these groups traditionally have
experienced.14
The September 2004 Department of Commerce report, A Nation Online:
Entering the Broadband Age, found that a lower percentage of Internet households
have broadband in rural areas (24.7%) than in urban areas (40.4%), and that “while
broadband usage has grown significantly in all areas since the previous survey, the
rural-urban differential continues.”15 The report also found that broadband
penetration rates are higher in the West and Northeast than in the South and
Midwest.16 Race and ethnicity were also found to be significant determinants of
broadband use, with 25.7% of White Americans living in broadband households, as
opposed to 14.2% of Black and 12.6% of Hispanic Americans.17
Some policymakers believe that disparities in broadband access across
American society could have adverse consequences on those left behind. While a
minority of American homes today subscribe to broadband, many believe that
advanced Internet applications of the future – voice over the Internet protocol (VoIP)
or high quality video, for example – and the resulting ability for businesses and
consumers to engage in e-commerce, may increasingly depend on high speed
broadband connections to the Internet. Thus, some say, communities and individuals
without access to broadband could be at risk to the extent that e-commerce becomes
a critical factor in determining future economic development and prosperity. A 2003
study conducted by Criterion Economics found that ubiquitous adoption of current
generation broadband technologies would result in a cumulative increase in gross
domestic product of $179.7 billion, while sustaining an additional 61,000 jobs per
year over the next nineteen years. The study projected that 1.2 million jobs could be
created if next generation broadband technology is rapidly and ubiquitously
deployed.18
Some also argue that broadband is an important contributor to U.S. future
economic strength with respect to the rest of the world. According to the
International Telecommunications Union, the U.S. ranks 16th worldwide in
broadband penetration (subscriptions per 100 inhabitants as of December 2004).19
Similarly, data from the Organization for Economic Cooperation and Development
(OECD) found the U.S. ranking 11th among OECD nations in broadband access per
14 Fourth Report, p. 8-9.
15 A Nation Online: Entering the Broadband Age, pp. 12-13.
16 Ibid., p. 12.
17 Ibid., p. A-1.
18 Crandall, Robert W. et al, The Effect of Ubiquitous Broadband Adoption on Investment,
Jobs, and the U.S. Economy, Conducted by Criterion Economics, L.L.C. for the New
Millennium Research Council, September 2003. Available at
[http://www.newmillenniumresearch.org/archive/bbstudyreport_091703.pdf]
19 International Telecommunications Union, Economies by broadband penetration, 2004.
Available at [http://www.itu.int/ITU-D/ict/statistics/at_glance/top20_broad_2004.html]
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100 inhabitants as of June 2004.20 By contrast, in 2001 an OECD study found the
U.S. ranking 4th in broadband subscribership per 100 inhabitants (after Korea,
Sweden, and Canada).21
Federal Role. The Telecommunications Act of 1996 (P.L. 104-104) addresses
the issue of whether the federal government should intervene to prevent a “digital
divide” in broadband access. Section 706 requires the FCC to determine whether
“advanced telecommunications capability [i.e., broadband or high-speed access] is
being deployed to all Americans in a reasonable and timely fashion.” If this is not
the case, the act directs the FCC to “take immediate action to accelerate deployment
of such capability by removing barriers to infrastructure investment and by promoting
competition in the telecommunications market.”
On January 28, 1999, the FCC adopted its first report (FCC 99-5) pursuant to
Section 706. The report concluded that “the consumer broadband market is in the
early stages of development, and that, while it is too early to reach definitive
conclusions, aggregate data suggests that broadband is being deployed in a
reasonable and timely fashion.”22 The FCC announced that it would continue to
monitor closely the deployment of broadband capability in annual reports and that,
where necessary, it would “not hesitate to reduce barriers to competition and
infrastructure investment to ensure that market conditions are conducive to
investment, innovation, and meeting the needs of all consumers.”
The FCC’s second Section 706 report was adopted on August 3, 2000. Based
on more extensive data than the first report, the FCC similarly concluded that
notwithstanding risks faced by some vulnerable populations, broadband is being
deployed in a reasonable and timely fashion overall:
Recognizing that the development of advanced services infrastructure remains
in its early stages, we conclude that, overall, deployment of advanced
telecommunications capability is proceeding in a reasonable and timely fashion.
Specifically, competition is emerging, rapid build-out of necessary infrastructure
continues, and extensive investment is pouring into this segment of the
economy.23
20 OECD, Broadband Access in OECD Countries per 100 inhabitants, June 2004. Available
at [http://www.oecd.org/dataoecd/19/42/34082810.xls]
21 OECD, Directorate for Science, Technology and Industry, The Development of Broadband
Access in OECD Countries, October 29, 2001, 63 pages. For a comparison of government
broadband policies, also see OECD, Directorate for Science, Technology and Industry,
Broadband Infrastructure Deployment: The Role of Government Assistance, May 22, 2002,
42 pages.
22 FCC News Release, “FCC Issues Report on the Deployment of Advanced
Telecommunications Capability to All Americans,” January 28, 1999.
[http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9004.html]
23 Deployment of Advanced Telecommunications Capability: Second Report, p. 6.
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The FCC’s third Section 706 report was adopted on February 6, 2002. Again,
the FCC concluded that “the deployment of advanced telecommunications capability
to all Americans is reasonable and timely.”24 The FCC added:
We are encouraged by the expansion of advanced services to many regions of the
nation, and growing number of subscribers. We also conclude that investment
in infrastructure for most advanced services markets remains strong, even though
the pace of investment trends has generally slowed. This may be due in part to
the general economic slowdown in the nation. In addition, we find that emerging
technologies continue to stimulate competition and create new alternatives and
choices for consumers.25
On September 9, 2004, the FCC adopted and released its Fourth Report
pursuant to Section 706. Like the previous three reports, the FCC concludes that
“the overall goal of section 706 is being met, and that advanced telecommunications
capability is indeed being deployed on a reasonable and timely basis to all
Americans.”26 The FCC notes the emergence of new services such as VoIP, and the
significant development of new broadband access technologies such as unlicensed
wireless (WiFi)and broadband over power lines. The FCC notes the future promise
of emerging multiple advanced broadband networks which can complement one
another:
For example, in urban and suburban areas, wireless broadband services may “fill
in the gaps” in wireline broadband coverage, while wireless and satellite services
may bring high-speed broadband to remote areas where wireline deployment may
be costly. Having multiple advanced networks will also promote competition in
price, features, and quality-of-service among broadband-access providers.27
Two FCC Commissioners (Michael Copps and Jonathan Adelstein) dissented
from the Fourth Report conclusion that broadband deployment is reasonable and
timely. They argued that the relatively poor world ranking of United States
broadband penetration indicates that deployment is insufficient, that the FCC’s
continuing definition of broadband as 200 kilobits per second is outdated and is not
comparable to the much higher speeds available to consumers in other countries, and
that the use of zip code data (measuring the presence of at least one broadband
subscriber within a zip code area) does not sufficiently characterize the availability
of broadband across geographic areas.28
While the FCC is currently implementing or actively considering some
regulatory activities related to broadband,29 no major regulatory intervention pursuant
24 Third Report, p. 5.
25 Ibid., p. 5-6.
26 Fourth Report, p. 8.
27 Ibid., p. 9.
28 Ibid., p. 5, 7.
29 See Appendix C of the Fourth Report, “List of Broadband-Related Proceedings at the
(continued...)
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to Section 706 of the Telecommunications Act of 1996 has been deemed necessary
by the FCC at this time.
Meanwhile, the National Telecommunications and Information Administration
(NTIA) at the Department of Commerce (DOC) was tasked with developing the Bush
Administration’s broadband policy.30 Statements from Administration officials
indicated that much of the policy would focus on removing regulatory roadblocks to
investment in broadband deployment.31 On June 13, 2002, in a speech at the 21st
Century High Tech Forum, President Bush declared that the nation must be
aggressive about the expansion of broadband, and cited ongoing activities at the FCC
as important in eliminating hurdles and barriers to get broadband implemented.
President Bush made similar remarks citing the economic importance of broadband
deployment at the August 13, 2002 economic forum in Waco, Texas.
Subsequently, a more formal Administration broadband policy was unveiled in
March and April of 2004. On March 26, 2004, President Bush endorsed the goal of
universal broadband access by 2007. Then on April 26, 2004, President Bush
announced a broadband initiative which includes promoting legislation which would
permanently prohibit all broadband taxes, making spectrum available for wireless
broadband and creating technical standards for broadband over power lines, and
simplifying rights-of-way processes on federal lands for broadband providers.32
The Bush Administration has also emphasized the importance of encouraging
demand for broadband services. On September 23, 2002, the DOC’s Office of
Technology Policy released a report, Understanding Broadband Demand: A Review
of Critical Issues,33 which argues that national governments can accelerate broadband
demand by taking a number of steps, including protecting intellectual property,
supporting business investment, developing e-government applications, promoting
efficient radio spectrum management, and others. Similarly, the President’s Council
of Advisers on Science & Technology (PCAST) was tasked with studying “demand-
side” broadband issues and suggesting policies to stimulate broadband deployment
and economic recovery. The PCAST report, Building Out Broadband, released in
December 2002, concludes that while government should not intervene in the
telecommunications marketplace, it should apply existing policies and work with the
private sector to promote broadband applications and usage. Specific initiatives
include increasing e-government broadband applications (including homeland
29 (...continued)
Commission,” pp. 54-56.
30 See speech by Nancy Victory, Assistant Secretary for Communications and Information,
before the National Summit on Broadband Deployment, October 25, 2001,
[http://www.ntia.doc.gov/ntiahome/speeches/2001/broadband_102501.htm]
31 Address by Nancy Victory, NTIA Administrator, before the Alliance for Public
T e c h n o l o g y B r o a d b a n d S y m p o s i u m , F e b r u a r y 8 , 2 0 0 2 ,
[http://www.ntia.doc.gov/ntiahome/speeches/2002/apt_020802.htm]
32 See White House, A New Generation of American Innovation, April 2004. Available at
[http://www.whitehouse.gov/infocus/technology/economic_policy200404/innovation.pdf]
33 Available at [http://www.technology.gov/reports/TechPolicy/Broadband_020921.pdf]
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security); promoting telework, distance learning, and telemedicine; pursuing
broadband-friendly spectrum policies, and ensuring access to public rights of way for
broadband infrastructure.34 Meanwhile, “high-tech” organizations such as TechNet,35
the Computer Systems Policy Project (CSPP)36, and the Semiconductor Industry
Association (SIA)37 have called on the federal government to adopt policies toward
a goal of 100 Mbs to 100 million homes by the end of the decade.
Some policymakers in Congress assert that the federal government should play
a more active role to avoid a “digital divide” in broadband access, and that legislation
is necessary to ensure fair competition and timely broadband deployment. Bills have
been introduced into the 109th Congress which seek to provide federal financial
assistance for broadband deployment in the form of grants, loans, subsidies, and/or
tax credits.
State and Local Broadband Activities. In addition to federal support for
broadband deployment, there are programs and activities ongoing at the state and
local level. Surveys, assessments, and reports from the American Electronics
Association,38 Technet,39 and the Alliance for Public Technology40 have explored
state and local broadband programs.
The Appendix of this report provides a state-by-state catalog of selected state
and local broadband programs and activities. This information was compiled by the
Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin as
part of a Policy Research Project (PRP) conducted under contract to the
Congressional Research Service.
34 President’s Council of Advisors on Science and Technology, Office of Science and
Technology Policy, Building Out Broadband, December 2002, 14 p. Available at
[http://www.ostp.gov/PCAST/FINAL%20Broadband%20Report%20With%20Letters.pdf]
35 TechNet represents over 300 senior executives from companies in the fields of
information technology, biotechnology, venture capital, investment banking, and law.
TechNet’s policy document, “A National Imperative: Universal Availability of Broadband
by 2010,” is available at [http://www.technet.org/news/newsreleases/2002-01-15.64.pdf]
36 CSPP is composed of nine CEOs from computer hardware and information technology
companies. See “A Vision for 21st Century Wired & Wireless Broadband: Building the
Foundation of the Networked World,” [http://www.cspp.org/reports/networkedworld.pdf]
37 See Semiconductor Industry Association, “Removing Barriers to Broadband
Deployment,” [http://sia-online.org/downloads/Broadband_Combined.pdf]
38 American Electronics Association, Broadband in the States 2003: A State-by-State
Overview of Broadband Deployment, May 22, 2003.
[http://www.aeanet.org/publications/idet_broadbandstates03.asp]
39 TechNet, The State Broadband Index: An Assessment of State Policies Impacting
Broadband Deployment and Demand, July 17, 2003, 48 p. Available at
[http://www.technet.org/resources/State_Broadband_Index.pdf]
40 Alliance for Public Technology, A Nation of Laboratories: Broadband Policy
Experiments in the States, March 5, 2004, 48 p. Available at
[http://apt.org/publica/broadbandreport_final.pdf]
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Federal Telecommunications Development Programs
Table 1 (at the end of this report) shows selected federal domestic assistance
programs throughout the federal government that can be associated with
telecommunications development. Many (if not most) of these programs can be
related, if not necessarily to the deployment of broadband technologies in particular,
then to telecommunications and the “digital divide” issue generally.
The Universal Service Concept and the FCC.41 Since its creation in
1934 the Federal Communications Commission (FCC) has been tasked with “...
mak[ing] available, so far as possible, to all the people of the United States, ... a
rapid, efficient, Nation-wide, and world-wide wire and radio communications service
with adequate facilities at reasonable charges....”42 This mandate led to the
development of what has come to be known as the universal service concept.
The universal service concept, as originally designed, called for the
establishment of policies to ensure that telecommunications services are available to
all Americans, including those in rural, insular and high cost areas, by ensuring that
rates remain affordable. Over the years this concept fostered the development of
various FCC policies and programs to meet this goal. The FCC offers universal
service support through a number of direct mechanisms that target both providers of
and subscribers to telecommunications services.43
The development of the federal universal service high cost fund is an example
of provider-targeted support. Under the high cost fund, eligible telecommunications
carriers, usually those serving rural, insular and high cost areas, are able to obtain
funds to help offset the higher than average costs of providing telephone service.44
This mechanism has been particularly important to rural America where the lack of
subscriber density leads to significant costs. FCC universal service policies have
also been expanded to target individual users. Such federal programs include two
income-based programs, Link Up and Lifeline, established in the mid-1980s to assist
economically needy individuals. The Link Up program assists low-income
subscribers pay the costs associated with the initiation of telephone service and the
Lifeline program assists low-income subscribers pay the recurring monthly service
charges. Funding to assist carriers providing service to individuals with speech
and/or hearing disabilities is also provided through the Telecommunications Relay
Service Fund. Effective January 1, 1998, schools, libraries, and rural health care
providers also qualified for universal service support.
41 The section on universal service was prepared by Angele Gilroy, Specialist in
Telecommunications Policy, Resources, Science and Industry Division.
42 Communications Act of 1934, As Amended, Title I sec.1[47 U.S.C. 151].
43 Many states participate in or have programs that mirror FCC universal service
mechanisms to help promote universal service goals within their states.
44 Additional FCC policies such as rate averaging and pooling have also been implemented
to assist high cost carriers.
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Universal Service and the Telecommunications Act of 1996. Passage
of the Telecommunications Act of 1996 (P.L.104-104) codified the long-standing
commitment by U.S. policymakers to ensure universal service in the provision of
telecommunications services.
The Schools and Libraries, and Rural Health Care Programs. Congress,
through the 1996 Act, not only codified, but also expanded the concept of universal
service to include, among other principles, that elementary and secondary schools
and classrooms, libraries, and rural health care providers have access to
telecommunications services for specific purposes at discounted rates. (See Sections
254(b)(6) and 254(h)of the 1996 Telecommunications Act, 47 USC 254.)
1. The Schools and Libraries Program. Under universal service provisions
contained in the 1996 Act, elementary and secondary schools and classrooms and
libraries are designated as beneficiaries of universal service discounts. Universal
service principles detailed in Section 254(b)(6) state that “Elementary and secondary
schools and classrooms ... and libraries should have access to advanced
telecommunications services...” The act further requires in Section 254(h)(1)(B) that
services within the definition of universal service be provided to elementary and
secondary schools and libraries for education purposes at discounts, that is at “rates
less than the amounts charged for similar services to other parties.”
The FCC established the Schools and Libraries Division within the Universal
Service Administrative Company (USAC) to administer the schools and libraries
or “E (education)-rate” program to comply with these provisions. Under this
program, eligible schools and libraries receive discounts ranging from 20 to 90
percent for telecommunications services depending on the poverty level of the
school’s (or school district’s) population and its location in a high cost
telecommunications area. Three categories of services are eligible for discounts:
internal connections (e.g. wiring, routers and servers); Internet access; and
telecommunications and dedicated services, with the third category receiving funding
priority. According to data released by program administrators, $12.9 billion in
funding has been committed over the first six years of the program with funding
released to all states, the District of Columbia and all territories. Funding
commitments for funding Year 2004, the seventh and current year of the program,
totaled $1.9 billion as of April 19, 2005.45
2. The Rural Health Care Program. Section 254(h) of the 1996 Act requires
that public and non-profit rural health care providers have access to
telecommunications services necessary for the provision of health care services at
rates comparable to those paid for similar services in urban areas. Subsection
254(h)(1) further specifies that “to the extent technically feasible and economically
reasonable” health care providers should have access to advanced
telecommunications and information services. The FCC established the Rural Health
Care Division (RHCD) within the USAC to administer the universal support program
45 For information on the status, funding and implementation of the program see CRS Issue
Brief IB98040, Telecommunications Discounts for Schools and Libraries: The “E-Rate”
Program and Controversies, by Angele A. Gilroy.
CRS-11
to comply with these provisions. Under FCC established rules only public or non-
profit health care providers are eligible to receive funding. Eligible health care
providers, with the exception of those requesting only access to the Internet, must
also be located in a rural area.46 The funding ceiling, or cap, for this support was
established at $400 million annually. The funding level for Year One of the program
( January 1998 - June 30, 1999) was set at $100 million. Due to less than anticipated
demand, the FCC established a $12 million funding level for the second year (July
1, 1999 to June 30, 2000) of the program but has since returned to a $400 million
cap. As of May 3, 2005, covering the first seven years of the program, a total of
$105.8 million has been committed to 2,461 rural health care providers. The primary
use of the funding is to provide reduced rates for telecommunications and Internet
services necessary for the provision of health care.47
The Telecommunications Development Fund. Section 714 of the 1996 Act
created the Telecommunications Development Fund (TDF). The TDF is a private,
non-governmental, venture capital corporation overseen by a seven-member board
of directors and fund management. The purpose of the TDF is threefold: to promote
access to capital for small businesses in order to enhance competition in the
telecommunications industry; to stimulate new technology development and promote
employment and training; and to support universal service and enhance the delivery
of telecommunications services to rural and underserved areas. The TDF is
authorized to provide financing to eligible small businesses in the
telecommunications industry through loans and investment capital. At this time the
TDF is focusing on providing financing in the form of equity investments ranging
from $375,000 to $1 million per investment.48 Initial funding for the program is
derived from the interest earned from the upfront payments bidders submit to
participate in FCC auctions. The availability of funds for future investments is
dependent on earning a successful return on the Fund’s portfolio. As of December
31, 2004, the TDF had $50 million under management of which $14million is
committed to thirteen portfolio companies.49
Universal Service and Broadband. One of the policy debates surrounding
universal service is whether access to advanced telecommunications services (i.e.
broadband) should be incorporated into universal service objectives. The term
universal service, when applied to telecommunications, refers to the ability to make
available a basket of telecommunications services to the public, across the nation, at
46 Any health care provider that does not have toll-free access to the Internet can receive the
lesser of $180 in toll charges per month or the toll charges incurred for 30 hours of access
to the Internet per month. To obtain this support the health care provider does not have to
be located in a rural area, but must show that it lacks toll-free Internet access and that it is
an eligible health care provider.
47 For additional information on this program including funding commitments see the RHCD
website: [http://www.rhc.universalservice.org]
48 The TDF also provides management and technical assistance to the companies in which
it invests.
49 For additional information on this program see the TDF website at
[http://www.tdfund.com]
CRS-12
a reasonable price. As directed in the 1996 Telecommunications Act [Section
254(c)] a federal-state Joint Board was tasked with defining the services which
should be included in the basket of services to be eligible for federal universal service
support; in effect using and defining the term “universal service” for the first time.
The Joint Board’s recommendation, which was subsequently adopted by the FCC in
May 1997, included the following in its universal services package: voice grade
access to and some usage of the public switched network; single line service; dual
tone signaling; access to directory assistance; emergency service such as 911;
operator services; access and interexchange (long distance) service.
Some policy makers expressed concern that the FCC-adopted definition is too
limited and does not take into consideration the importance and growing acceptance
of advanced services such as broadband and Internet access. They point to a number
of provisions contained in the Universal Service section of the 1996 Act to support
their claim. Universal service principles contained in Section 254(b)(2) state that
“Access to advanced telecommunications services should be provided to all regions
of the Nation.” The subsequent principle (b)(3) calls for consumers in all regions
of the Nation including “low-income” and those in “rural, insular, and high cost
areas” to have access to telecommunications and information services including
“advanced services” at a comparable level and a comparable rate charged for similar
services in urban areas. Such provisions, they state, dictate that the FCC expand its
universal service definition.
Others caution that a more modest approach is appropriate given the “universal
mandate” associated with this definition and the uncertainty and costs associated
with mandating nationwide deployment of such advanced services as a universal
service policy goal. Furthermore they state the 1996 Act does take into consideration
the changing nature of the telecommunications sector and allows for the universal
service definition to be modified if future conditions warrant. Section 254(c)of the
act states that “universal service is an evolving level of telecommunications services”
and the FCC is tasked with “periodically” reevaluating this definition “taking into
account advances in telecommunications and information technologies and services.”
Furthermore, the Joint Board is given specific authority to recommend “from time
to time” to the FCC modification in the definition of the services to be included for
federal universal service support. The Joint Board, in July 2002, concluded such an
inquiry and recommended that at this time no changes be made in the current list of
services eligible for universal service support. The FCC, in a July 10, 2003 order
(FCC 03-170) adopted the Joint Board’s recommendation thereby leaving unchanged
the list of services supported by Federal universal service.
Rural Utilities Service. The Rural Electrification Administration (REA),
subsequently renamed the Rural Utilities Service (RUS), was established by the
Roosevelt Administration in 1935. Initially, it was established to provide credit
assistance for the development of rural electric systems. In 1949, the mission of
REA was expanded to include rural telephone providers. Congress further amended
the Rural Electrification Act in 1971 to establish within REA a Rural Telephone
Account and the Rural Telephone Bank (RTB). The RTB is described as a public-
private partnership intended to provide additional sources of capital that will
supplement loans made directly by RUS. Another program, the Distance Learning
and Telemedicine Program, specifically addresses the needs engendered by passage
CRS-13
of the Telecommunications Act of 1996 (P.L. 104-104). Its passage has contributed
to an increase in demand for telecommunications loans. Currently, the RUS
implements two programs specifically targeted at providing assistance for broadband
deployment in rural areas: the Rural Broadband Access Loan and Loan Guarantee
Program and Community Connect Broadband Grants.
Rural Broadband Access Loan and Loan Guarantee Program. The
Farm Security and Rural Investment Act of 2002 (P.L. 107-171) authorized a loan
and loan guarantee program to eligible entities for facilities and equipment providing
broadband service in rural communities. Section 6103 makes available, from the
funds of the Commodity Credit Corporation (CCC), a total of $100 million through
FY2007 ($20 million for each of fiscal years 2002 through 2005, and $10 million for
each of fiscal years 2006 and 2007). P.L. 107-171 also authorizes any other funds
appropriated for the broadband loan program. On January 30, 2003, the RUS
published in the Federal Register amended regulations establishing the Rural
Broadband Access Loan and Loan Guarantee Program, as authorized by P.L. 107-
171.50 For FY2003, loans totaling $1.455 billion were made available. Of this total,
$1.295 billion was for direct cost-of-money loans, $80 million for direct 4-percent
loans, and $80 million for loan guarantees.51 For FY2003, the RUS received over 80
applications requesting loans totaling $1 billion.
In its FY2004 budget request, the Administration proposed cancelling the
mandatory $20 million from the Commodity Credit Corporation (as provided in P.L.
107-171), while providing $9.1 million in discretionary funding through the FY2004
appropriations process. The $9.1 million in discretionary budget authority would
support almost $200 million in loans during FY2004. In addition, the Administration
proposed $2 million for broadband grants in FY2004. The FY2004 House
Agriculture Appropriations bill, passed by the House on July 14, 2003 (H.R. 2673;
H.Rept. 108-193) also cancels the mandatory $20 million from the Commodity
Credit Corporation, while providing $9.1 million in loan subsidies and $8 million for
broadband grants. The Senate Agriculture Appropriations bill, as passed by the
Senate on November 6, 2003, while also blocking the $20 million from the
Commodity Credit Corporation, provides $15.1 million in loan subsidies and $10
million in broadband grants. The Conference Agreement on the FY2004
Consolidated Appropriations Act (H.R. 2673; H.Rept. 108-401) provides $13.1
million in loan subsidies (which will support a loan level of $602 million) and $9
million for broadband grants. The FY2004 Consolidated Appropriations Act was
signed into law on January 23, 2004 (P.L. 108-199).
For FY2004, $38.8 million (mandatory budget authority) is carried over from
prior years and is available to support a direct and guaranteed loan level of $1.6
billion. Additionally, the $13.1 million of discretionary budget authority
(appropriated for FY2004) supports a loan level of $600 million. Therefore, the total
loan level available for FY2004 is about $2.2 billion. On March 29, 2004, RUS
50 Rural Utilities Service, USDA, “Rural Broadband Access Loans and Loan Guarantees,”
Federal Register, Vol. 68, No. 20, January 30, 2003, pp. 4684-4692.
51 Rural Utilities Service, USDA, “Rural Broadband Access Loans and Loan Guarantees
Program,” Federal Register, Vol. 68, No. 20, January 30, 2003, pp. 4753-4755.
CRS-14
announced the availability of $2.211 billion, consisting of $2.051 billion in direct
cost-of-money loans, $80 million for direct 4 percent loans, and $80 billion for loan
guarantees.52
The Administration’s FY2005 budget proposal requested $9.9 million in
discretionary authority, which would support about $331 million in loan levels
(includes direct treasury rate loans, direct 4% loans, and guaranteed loans). The
mandatory funding provided by the Farm Bill for 2004 and 2005, a total of $40
million, would be rescinded. The FY2005 House Agriculture Appropriations bill,
passed by the House on July 13, 2004 (H.R. 4766; H.Rept. 108-584), provides $9.9
million (representing approximately $464 million in lending authority) for the cost
of broadband treasury rate loans. The FY2005 Senate Agriculture Appropriations bill
(S. 2803; S.Rept. 108-340) approved by the Senate Appropriations Committee on
September 14, 2004, provides $12.78 million for the cost of broadband treasury rate
loans (representing $600 million in lending authority). The FY2005 Consolidated
Appropriations Act (P.L. 108-447) provides $11.715 million for the cost of
broadband loans, representing $550 million in lending authority.
The Administration’s FY2006 budget proposal requests $10 million in
discretionary authority, which would support about $359 million in loan levels
(includes direct treasury rate loans, direct 4% loans, and guaranteed loans). The
budget proposal would cancel mandatory funding for FY2006 ($10 million) as well
as cancelling unobligated carryover balances from FY2004 and FY2005.
Community Connect Broadband Grants. Complementing the broadband
loan program, the RUS has established a broadband pilot grant program which issues
grants to applicants proposing to provide broadband service on a “community-
oriented connectivity” basis to rural communities of under 20,000 inhabitants. The
program targets rural, economically-challenged communities by providing support
for broadband service to schools, libraries, education centers, health care providers,
law enforcement agencies, public safety organizations, residents and businesses. In
the program’s initial year, FY2002, $20 million was made available; RUS received
more than 300 applications requesting a total of $185 million. On May 15, 2003,
RUS announced 40 awards totaling $20 million for the FY2002 program. On July
18, 2003, RUS announced the availability of $10 million for the FY2003 program;
34 FY2003 grant awards totaling $11.3 million were announced on September 24,
2003.
The FY2004 Consolidated Appropriations Act (P.L. 108-199) provides $9
million for broadband grants in FY2004. On July 28, 2004, the Secretary of
Agriculture announced the availability of FY2004 funds for broadband grants. The
application period closed on September 13, 2004. Awards were announced on
October 29, 2004.
The Administration’s FY2005 budget proposal requested no funding for
broadband grants. The FY2005 House Agriculture Appropriations bill, passed by the
52 Rural Utilities Service, USDA, “Rural Broadband Access Loans and Loan Guarantees
Program,” Federal Register, Vol. 69, No.60, March 29, 2004, pp. 16231-16232.
CRS-15
House on July 13, 2004 (H.R. 4766; H.Rept. 108-584), provides $9 million for
broadband grants. The FY2005 Senate Agriculture Appropriations bill (S. 2803;
S.Rept. 108-340) also provides $9 million for broadband grants. The FY2005
Consolidated Appropriations Act ( P.L. 108-447) provides $9 million for broadband
grants.
The Administration’s FY2006 budget proposal requests no funding for
broadband grants.
Legislation in the 108th Congress
In the 108th Congress, legislation was introduced to provide financial assistance
to encourage broadband deployment (including loans, grants, and tax incentives), and
to allocate additional spectrum for use by wireless broadband applications. The
FY2005 Consolidated Appropriations Act (P.L. 108-447) provides continued funding
in FY2005 for the Rural Broadband Access Loan and Loan Guarantee Program and
the Community Connect Broadband Grants in the Rural Utilities Service (RUS) of
the U.S. Department of Agriculture. Also passed in the 108th Congress was the
Commercial Spectrum Enhancement Act (Title II of P.L. 108-494, signed by the
President on December 23, 2004), which seeks to make more spectrum available for
wireless broadband and other services by facilitating the reallocation of spectrum
from government to commercial users.
In the Jobs and Growth Tax Relief Reconciliation Act of 2003 (H.R. 2/P.L. 108-
27), the Senate inserted a provision allowing the expensing of broadband Internet
access expenditures. This provision was not retained during the House/Senate
Conference. The broadband expensing provision was subsequently attached to S.
1637, the Jumpstart Our Business Strength (JOBS) Act, which was passed by the
Senate on May 11, 2004 as a substitute amendment to H.R. 4520. However, the
broadband expensing provision was not retained in the final version of H.R. 4520,
which subsequently became public law. The following is a complete listing of bills.
H.R. 138 (McHugh)
Rural America Digital Accessibility Act. Provides for grants, loans, research,
and tax credits to promote broadband deployment in underserved rural areas.
Introduced January 7, 2003; referred to Committee on Energy and Commerce,
Committee on Ways and Means, and Committee on Science.
H.R. 340 (Issa)
Jumpstart Broadband Act. Requires the FCC to allocate additional spectrum for
unlicensed use by wireless broadband devices. Introduced January 27, 2003; referred
to Committee on Energy and Commerce.
H.R. 363 (Honda)
Jumpstart Broadband Act. Requires the FCC to allocate additional spectrum for
unlicensed use by wireless broadband devices. Introduced January 27, 2003; referred
to Committee on Energy and Commerce.
CRS-16
H.R. 768 (English)
Amends the Internal Revenue Code of 1986 to provide a broadband Internet
access tax credit. Provides tax credits for five years to companies investing in
broadband equipment. Provides a 10% tax credit for “current generation” broadband
service (defined as download speeds of at least 1 million bits per second) for rural
and low-income areas (both residential and business subscribers), and a 20% tax
credit for “next generation” broadband service (defined as download speeds of at
least 22 million bits per second) for all residential subscribers and business
subscribers in rural and underserved areas. Introduced February 13, 2003; referred
to Committee on Ways and Means.
H.R. 769 (English)
Amends the Internal Revenue Code of 1986 to allow the expensing of
broadband Internet access expenditures. Introduced February 13, 2003; referred to
Committee on Ways and Means.
H.R. 1396 (Markey)
Spectrum Commons and Digital Dividends Act of 2003. Uses proceeds of
spectrum auctions to establish a Public Broadband Infrastructure Investments
Program at the National Telecommunications and Information Administration.
Introduced March 20, 2003; referred to Committee on Energy and Commerce.
H.R. 3089 (Andrews)
Greater Access to E-Governance Act. Establishes grant program at the
Department of Commerce to provide funds to State and local governments to enable
them to deploy broadband computer networks for the conduct of electronic
governance transactions by citizens in local schools and libraries. Introduced
September 16, 2003; referred to Committee on Energy and Commerce.
H.R. 4699 (McHugh)
Establishes a grant program to support broadband-based economic development
efforts. Introduced June 24, 2004; referred to Committee on Transportation and
Infrastructure and to Committee on Financial Services.
H.R. 5419 (Upton)
Commercial Spectrum Enhancement Act. Facilitates the relocation of spectrum from
governmental to commercial users. Introduced November 20, 2004; referred to
Committee on Energy and Commerce. Passed House November 20, 2004. Passed
Senate December 8, 2004. P.L. 108-494 signed by President December 23, 2004.
S. 159 (Boxer)
Jumpstart Broadband Act. Requires the FCC to allocate additional spectrum for
unlicensed use by wireless broadband devices. Introduced January 14, 2003; referred
to Committee on Commerce, Science and Transportation.
S. 160 (Burns)
Amends the Internal Revenue Code of 1986 to allow the expensing of
broadband Internet access expenditures. Introduced January 14, 2002; referred to
Committee on Finance.
CRS-17
S. 305 (Kerry)
Amends the Internal Revenue Code of 1986 to include in the criteria for
selecting any project for the low-income housing credit whether such project has
high-speed Internet infrastructure. Introduced February 5, 2003; referred to
Committee on Finance.
S. 414 (Daschle)
Economic Recovery Act of 2003. Provides a 10% tax credit for “current
generation” broadband service (defined as download speeds of at least 1.0 million
bits per second) for rural and low-income areas, and a 20% tax credit for “next
generation” broadband service (defined as download speeds of at least 22 million bits
per second). Introduced February 14, 2003; placed on Senate Legislative Calendar.
S. 905 (Rockefeller)
Provides tax credits for five years to companies investing in broadband
equipment. Provides a 10% tax credit for “current generation” broadband service
(defined as download speeds of at least 1.0 million bits per second) for rural and low-
income areas, and a 20% tax credit for “next generation” broadband service (defined
as download speeds of at least 22 million bits per second). Introduced April 11,
2003; referred to Committee on Finance.
S. 1637 (Frist)
Jumpstart Our Business Strength Act. Allows the expensing of broadband
Internet access expenditures. Introduced September 18, 2003; referred to Committee
on Finance. Reported by Committee on Finance (S.Rept. 108-192) on November 7,
2003; placed on Senate Legislative Calendar. Passed by the Senate, May 11, 2004,
as a substitute amendment to H.R. 4520. Senate Conferees appointed July 15, 2004.
S. 1796 (Coleman)
Rural Renaissance Act. Establishes a Rural Renaissance Corporation which
would fund a variety of types of rural revitalization projects, including a project to
expand broadband technology. Introduced October 29, 2003; referred to Committee
on Finance.
S. 2577 (Clinton)
Broadband Rural Research Investment Act of 2004. Authorizes $25 million for
the National Science Foundation to fund research on broadband services in rural and
other remote areas. Introduced June 24, 2004; referred to Committee on Commerce,
Science, and Transportation.
S. 2578 (Clinton)
Broadband Expansion Grant Initiative of 2004. Authorizes $100 million in
grants and loan guarantees from the Department of Commerce for deployment by the
private sector of broadband telecommunications networks and capabilities to
underserved rural areas. Introduced June 24, 2004; referred to Committee on
Commerce, Science, and Transportation.
CRS-18
S. 2580 (Clinton)
Technology Bond Initiative of 2004. Provides an income tax credit to holders
of bonds financing the deployment of broadband technologies. Introduced June 24,
2004; referred to Committee on Finance.
S. 2582 (Clinton)
Establishes a grant program to support broadband-based economic development
efforts. Introduced June 24, 2004; referred to Committee on Environment and Public
Works.
Legislation in the 109th Congress
Many of the legislative proposals related to providing financial assistance for
broadband deployment are being reintroduced into the 109th Congress. A complete
listing of bills is provided below.
H.R. 3 (Young, Don)
Transportation Equity Act: A Legacy for Users. Directs the Secretary of
Transportation to conduct a study on the feasibility of installing fiber optic cabling
and wireless communications infrastructure along rural interstate highway corridors;
such study will identify rural broadband access points. Introduced February 9, 2005;
referred to Committee on Transportation and Infrastructure. Passed House on March
10, 2005.
H.R. 144 (McHugh)
Rural America Digital Accessibility Act. Provides for grants, loans, research,
and tax credits to promote broadband deployment in underserved rural areas.
Introduced January 4, 2005; referred to Committee on Energy and Commerce and the
Committee on Ways and Means.
H.R. 146 (McHugh)
Establishes a grant program to support broadband-based economic development
efforts. Introduced January 4, 2005; referred to Committee on Transportation and
Infrastructure and to Committee on Financial Services.
H.R. 1479 (Udall)
Rural Access to Broadband Service Act. Establishes a Rural Broadband Office
within the Department of Commerce which would coordinate federal government
resources with respect to expansion of broadband services in rural areas. Directs the
National Science Foundation to conduct research in enhancing rural broadband.
Expresses the Sense of Congress that the broadband loan program in the Rural
Utilities Service should be fully funded. Provides for the expensing of broadband
Internet access expenditures for rural communities. Introduced April 5, 2005;
referred to Committees on Science and on Energy and Commerce.
S. 14 (Stabenow)
Fair Wage, Competition, and Investment Act of 2005. Allows the expensing of
broadband Internet access expenditures. Introduced January 24, 2005; referred to
Committee on Finance.
CRS-19
S. 497 (Salazar)
Broadband Rural Revitalization Act of 2005. Establishes a Rural Broadband
Office within the Department of Commerce which would coordinate federal
government resources with respect to expansion of broadband services in rural areas.
Expresses the Sense of Congress that the broadband loan program in the Rural
Utilities Service should be fully funded. Provides for the expensing of broadband
Internet access expenditures for rural communities. Introduced March 2, 2005;
referred to Committee on Finance.
S. 502 (Coleman)
Rural Renaissance Act. Creates a Rural Renaissance Corporation which would
fund qualified projects including projects to expand broadband technology in rural
areas. Introduced March 3, 2005; referred to Committee on Finance.
Policy Issues
Legislation introduced into the 109th Congress seeks to provide federal financial
assistance for broadband deployment in rural and underserved areas. In assessing this
legislation, several policy issues arise.
Is Broadband Deployment Data Adequate? Obtaining an accurate
snapshot of the status of broadband deployment is problematic. Anecdotes abound
of rural and low-income areas which do not have adequate Internet access, as well
as those which are receiving access to high-speed, state-of-the-art connections.
Rapidly evolving technologies, the constant flux of the telecommunications industry,
the uncertainty of consumer wants and needs, and the sheer diversity and size of the
nation’s economy and geography make the status of broadband deployment very
difficult to characterize. The FCC periodically collects broadband deployment data
from the private sector via “FCC Form 477" – a standardized information gathering
survey. Statistics derived from the Form 477 survey are published every six months.
Additionally, data from Form 477 are used as the basis of the FCC’s (to date) four
broadband deployment reports. The FCC is working to refine the data used in future
Reports in order to provide an increasingly accurate portrayal. In its March 17, 2004
Notice of Inquiry for the Fourth Report, the FCC sought comments on specific
proposals to improve the FCC Form 477 data gathering program.53 On November
9, 2004, the FCC voted to expand its data collection program by requiring reports
from all facilities based carriers regardless of size in order to better track rural and
underserved markets, by requiring broadband providers to provide more information
on the speed and nature of their service, and by establishing broadband-over-power
line as a separate category in order to track its development and deployment. The
FCC Form 477 data gathering program is extended for five years beyond its March
2005 expiration date.54
53 Federal Communications Commission, Notice of Inquiry, “Concerning the Deployment
of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely
Fashion, and possible Steps to Accelerate Such Deployment Pursuant to Section 706 of the
Telecommunications Act of 1996,” FCC 04-55, March 17, 2004, p. 6.
54 FCC News Release, FCC Improves Data Collection to Monitor Nationwide Broadband
(continued...)
CRS-20
Is Federal Assistance for Broadband Deployment Premature or
Inappropriate? Related to the data issue is the argument that government
intervention in the broadband marketplace would be premature or inappropriate.
Some argue that financial assistance for broadband deployment could distort private
sector investment decisions in a dynamic and rapidly evolving marketplace, and
question whether federal tax dollars should support a technology that has not yet
matured, and whose societal benefits have not yet been demonstrated.55
On the other hand, proponents of financial assistance counter that the available
data show, in general, that the private sector will invest in areas where it expects the
greatest return – areas of high population density and income. Without some
governmental assistance in underserved areas, they argue, it is reasonable to conclude
that broadband deployment will lag behind in many rural and low income areas.56
Which Approach is Best? If one assumes that governmental action is
appropriate to spur broadband deployment in underserved areas, which specific
approaches, either separately or in combination, would likely be most effective?
Targeted grants and loans from several existing federal programs have been
proposed, as well as tax credits for companies deploying broadband systems in rural
and low-income areas. How might the impact of federal assistance compare with the
effects of regulatory or deregulatory actions?57 And finally, how might any federal
assistance programs best compliment existing “digital divide” initiatives by the
states, localities, and private sector?
54 (...continued)
Rollout, November 9, 2004. Available at
[http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254115A1.pdf]
55 See Leighton, Wayne A., Broadband Deployment and the Digital Divide: A Primer, a
Cato Institute Policy Analysis, No. 410, August 7, 2001, 34 pp. Available at
[http://www.cato.org/pubs/pas/pa410.pdf]. Also see Thierer, Adam, Broadband Tax
Credits, the High-Tech Pork Barrel Begins, Cato Institute, July 13, 2001, available at
[http://www.cato.org/tech/tk/010713-tk.html].
56 See for example: Cooper, Mark, Consumer Federation of America and Consumers Union,
Expanding the Digital Divide & Falling Behind on Broadband, October 2004, 33 pages.
Available at [http://www.consumersunion.org/pub/ddnewbook.pdf]
57 See CRS Issue Brief IB10045 for a detailed discussion of regulatory issues.
CRS-21
Table 1. Selected Federal Domestic Assistance Programs Related to Telecommunications Development
Web Links for More Information
FY2004
[http://12.46.245.173/cfda/cfda.html]: Go to “All
Program
Agency
Description
(obligations)
Programs Listed Numerically” and search by
program
Public
National
Assists in planning, acquisition,
$23.5 million
[http://www.ntia.doc.gov/otiahome/ptfp/index.html]
Telecommunications
Telecommunications
installation and modernization of
Facilities – Planning
and Information
public telecommunications
and Construction
Administration, Dept.
facilities
of Commerce
Grants for Public
Economic
Provides grants to economically
$198.3 million
[http://www.doc.gov/eda/]
Works and Economic
Development
distressed areas for construction
Development
Administration, Dept.
of public facilities and
Facilities
of Commerce
infrastructure, including
broadband deployment and other
types of telecommunications
enabling projects
CRS-22
Web Links for More Information
FY2004
[http://12.46.245.173/cfda/cfda.html]: Go to “All
Program
Agency
Description
(obligations)
Programs Listed Numerically” and search by
program
Rural Telephone
Rural Utilities Service,
Provides long-term direct and
$145 million
[http://www.usda.gov/rus/telecom/index.htm]
Loans and Loan
U.S. Dept. of
guaranteed loans to qualified
(hardship
Guarantees
Agriculture
organizations for the purpose
loans);
of financing the improvement,
$250 million
expansion, construction,
(cost of money
acquisition, and operation of
loans);
telephone lines, facilities, or
$120 million
systems to furnish and improve
(FFB Treasury
telecommunications service in
loans)
rural areas
Rural Telephone
Rural Utilities Service,
Provides supplemental financing
$174 million
[http://www.usda.gov/rus/telecom/rtb/index_rtb.htm]
Bank Loans
U.S. Dept. of
to extend and improve
Agriculture
telecommunications services in
rural areas
CRS-23
Web Links for More Information
FY2004
[http://12.46.245.173/cfda/cfda.html]: Go to “All
Program
Agency
Description
(obligations)
Programs Listed Numerically” and search by
program
Distance Learning
Rural Utilities Service,
Provides seed money for loans
$39 million
[http://www.usda.gov/rus/telecom/dlt/dlt.htm]
and Telemedicine
U.S. Dept. of
and grants to rural community
Loans and Grants
Agriculture
facilities (e.g., schools, libraries,
hospitals) for advanced
telecommunications systems that
can provide health care and
educational benefits to rural areas
Rural Broadband
Rural Utilities Service,
Provides loan and loan
$602 million
[http://www.usda.gov/rus/telecom/broadband.htm]
Access Loan and
U.S. Dept. of
guarantees for facilities and
Loan Guarantee
Agriculture
equipment providing broadband
Program
service in rural communities
Community Connect
Rural Utilities Service,
Provides grants to applicants
$9 million
[http://www.usda.gov/rus/telecom/initiatives/index_i
Broadband Grants
U.S. Dept. of
proposing to provide broadband
nitiatives.htm#broadband]
Agriculture
service on a “community-
oriented connectivity” basis to
rural communities of under
20,000 inhabitants.
CRS-24
Web Links for More Information
FY2004
[http://12.46.245.173/cfda/cfda.html]: Go to “All
Program
Agency
Description
(obligations)
Programs Listed Numerically” and search by
program
Community
Office of Vocational
Provides access to computers and
$9.9 million
[http://www.ed.gov/fund/grant/apply/AdultEd/CTC/i
Technology Centers
and Adult Education
technology, particularly
ndex.html]
Program
Dept. of Education
educational technology, to adults
and children in low-income
communities in both urban and
rural areas who otherwise would
lack that access
Education
Office of Elementary
Grants to State Education
$692 million
[http://www.ed.gov/Technology/TLCF/index.html]
Technology State
and Secondary
Agencies for development of
Grants
Education, Dept. of
information technology to
Education
improve teaching and learning in
schools
Star Schools
Office of Assistant
Grants to telecommunication
$20.4 million
[http://www.ed.gov/programs/starschools/index.html]
Secretary for
partnerships for
Educational Research
telecommunications facilities and
and Improvement,
equipment, educational and
Dept. of Education
instructional programming
Ready to Teach
Office of Assistant
Grants to carry out a national
$14.3 million
[http://www.ed.gov/programs/readyteach/index.html]
Secretary for
telecommunication-based
Educational Research
program to improve the teaching
and Improvement,
in core curriculum areas.
Dept. of Education
CRS-25
Web Links for More Information
FY2004
[http://12.46.245.173/cfda/cfda.html]: Go to “All
Program
Agency
Description
(obligations)
Programs Listed Numerically” and search by
program
Special Education –
Office of Special
Supports development and
$39.1 million
[http://www.ed.gov/about/offices/list/osers/index.htm
Technology and
Education and
application of technology and
l?src=mr/]
Media Services for
Rehabilitative
education media activities for
Individuals with
Services, Dept. of
disabled children and adults
Disabilities
Education
Telehealth Network
Health Resources and
Grants to develop sustainable
$5 million
[http://telehealth.hrsa.gov/grants.htm]
Grants
Services
telehealth programs and networks
Administration,
in rural and frontier areas, and in
Department of Health
medically unserved areas and
and Human Services
populations.
Medical Library
National Library of
Provides funds to train
$66.3 million
[http://www.nlm.nih.gov/ep/extramural.html]
Assistance
Medicine, National
professional personnel;
Institutes of Health,
strengthen library and
Department of Health
information services; facilitate
and Human Services
access to and delivery of health
science information; plan and
develop advanced information
networks; support certain kinds
of biomedical publications; and
conduct research in medical
informatics and related sciences
CRS-26
Web Links for More Information
FY2004
[http://12.46.245.173/cfda/cfda.html]: Go to “All
Program
Agency
Description
(obligations)
Programs Listed Numerically” and search by
program
Interoperable
Dept. of Homeland
Provide funding to jurisdictions
$79.7 million
[http://www.ojp.usdoj.gov/odp/library/bulletins.htm#
Communications
Security
across the nation for
grants]
Equipment
demonstration projects that will
explore uses of equipment and
technologies to increase
interoperability among the fire
service, law enforcement, and
emergency medical service
communities.
Homeland Security
Dept. of Homeland
To foster and identify novel uses
$9 million
[http://www.dhs.gov/dhspublic/interapp/editorial/edit
Information
Security
of existing "state-of-the-market"
orial_0454.xml]
Technology and
information technology that will
Evaluation Program
remove barriers and improve
information sharing and
integration of State and local
public safety interoperability
communications.
CRS-27
Web Links for More Information
FY2004
[http://12.46.245.173/cfda/cfda.html]: Go to “All
Program
Agency
Description
(obligations)
Programs Listed Numerically” and search by
program
State Library
Office of Library
Grants to state library
$157.6 million
[http://www.imls.gov/grants/library/lib_gsla.asp#po]
Program
Services, Institute of
administrative agencies for
Museum and Library
promotion of library services that
Services, National
provide all users access to
Foundation on the Arts
information through State,
and the Humanities
regional, and international
electronic networks
Native American and
Office of Library
Supports library services
$3.21 million
[http://www.imls.gov/grants/library/lib_nat.asp]
Native Hawaiian
Services, Institute of
including electronically linking
Library Services
Museum and Library
libraries to networks
Services, National
Foundation on the Arts
and the Humanities
Appalachian Area
Appalachian Regional
Provides project grants for
$77 million
[http://www.arc.gov/index.do?nodeId=21]
Development
Commission
Appalachian communities to
support the physical
infrastructure necessary for
economic development and
improved quality of life.
CRS-28
Web Links for More Information
FY2004
[http://12.46.245.173/cfda/cfda.html]: Go to “All
Program
Agency
Description
(obligations)
Programs Listed Numerically” and search by
program
Denali Commission
Denali Commission
Provides grants through a federal
$55 million
[http://www.denali.gov]
Program
and state partnership designed to
provide critical infrastructure and
utilities throughout Alaska,
particularly in distressed
communities
Prepared by CRS based on information from the Catalog of Federal Domestic Assistance, updated March 2005.
CRS-29
Appendix – Catalog of Selected State and Local Broadband
Activities58
ALABAMA
Alabama Research and Education Network
The Alabama Education and Research Network (AREN) provides high-speed
Internet access for many public entities in Alabama including state government,
universities, community colleges, K-12 schools, and libraries. Many colleges and K-
12 schools receive free Internet access through AREN via funding from the Alabama
Education Trust Fund. Some new education customers have to pay partial rates;
however, private schools, commercial customers and ‘general fund’ state agencies
must pay standard prices for Internet access through AREN. The Alabama
Supercomputer Authority (ASA) is a state-funded corporation that runs AREN and
the Alabama Supercomputer Center.
Facts about AREN. Available: [http://www.asc.edu/network/index.shtml]. Accessed:
April 4, 2004.
ALASKA
GCI: Total network strategy
General Communications Inc. is a large telecommunications provider in Alaska. GCI
has a commitment to the whole state of Alaska, not just the high-profit urban areas.
By serving the smaller areas, the larger areas benefit by being able to be in contact
with the remote villages. They feel that even if this means that GCI loses money in
one village, the overall benefit of including them in the network outweighs that loss.
Large consumers such as Wells Fargo are able to reach nearly all Alaskans because
of this philosophy. Almost 70 percent of long distance in the state is provided by GCI
mostly due to GCI’s network investment and closing the network gap. GCI moved
aggressively into the universal service arena and now USF pays for the bulk of the
access in rural areas. The value of being able to deliver things and information
virtually, rather than physically, is greater in Alaska than in other states due to the
geographic challenges. GCI is involved in many rural areas’ education and telehealth
programs.
Duncan, Ron. President, GCI, Anchorage, Alaska. Personal interview, January 14,
2004.
USDA Rural Broadband Grant
The Regulatory Commission of Alaska is in charge of administering a $15 million
grant from the U.S. Department of Agriculture (USDA) Rural Utility Services fund
for increasing broadband access to rural areas in Alaska. The $15 million is
technically two $7.5 million appropriations authorized in the Consolidated Farm and
Rural Development Act. An Evaluation Grant Committee made up of several
different people from different types of agencies including the Denali Commission
58 This information was compiled by the Lyndon B. Johnson School of Public Affairs at the
University of Texas at Austin as part of a Policy Research Project (PRP) conducted under
contract to the Congressional Research Service. The PRP was entitled, “Exploring the
Digital Divide: Regional Differences in Patterns of Internet Use in the United States.” The
project involved 14 graduate students from the Master of Public Affairs program under the
direction and supervision of Professor Kenneth S. Flamm.
CRS-30
help to review the applications and choose awardees. However, the complete list of
the board’s members and the recipients of the grant are not public yet as the
application appeal process is still open. The main goals for the grant include serving
communities with specific income and poverty levels and no local dial-up access.
The intent is for the grant funding to provide hardware and technology.
Gazaway, Rich. Common Carrier Specialist, Regulatory Commission of Alaska,
Anchorage, Alaska. Personal interview, January 14, 2004.
Government Technology. Available: [http://www.govtech.net/news/news.phtml
?docid=2002.08.14-3030000000018960]. Accessed: November 1, 2003.
ARIZONA
Community Telecommunications Assessment Program
The Government Information Technology Association runs the Community
Telecommunications Assessment Program as a means of evaluating the availability
of rural broadband service providers. If the CEA finds a gap in broadband
availability, then the program will investigate the possibility of using grants, loans,
or other public policy initiatives to encourage the deployment of broadband in the
area..
Government Information Technology Agency E-Bits. Available:
[http://gita.state.az.us/ebits/ebits/Winter%202003%20E-bits.htm]. Accessed: April
10, 2004.
Arizona's Rural Telecommunication Development Initiatives
From 2001 to 2006, Arizona will spend at least $100 million on the
Telecommunications Open Partnerships of Arizona (TOPAZ). TOPAZ is a statewide
network that is designed to bring broadband access to rural communities.
Specifically, TOPAZ will provide broadband capabilities to 100 government offices
in 167 rural communities in Arizona. In addition, GETA, the Department of
Education and the School Facilities Board are working together to provide broadband
to 545 rural schools. TOPAZ is the state’s effort to build one large public network
by contracting with nine telecommunication companies. Through TOPAZ, eligible
organizations such as government offices, schools, libraries, colleges, and non-profit
health providers, will be able to buy broadband services at competitive prices.
Government Information Technology Agency. Available:
[http://gita.state.az.us/telecom/news/topazpr.htm].
Accessed: Jan 31, 2004.
Digital Divide Network. Available: [http://www.digitaldividenetwork.org
/content/stories/index.cfm?key=134]. Accessed: Jan 31, 2004.
ARKANSAS
Arkansas State Video Network
The Office of Information Technology runs the Arkansas State Video Network which
connects over 200 sites in the state to provide interactive video conferencing. The
network is designed to support distance learning, telemedicine, and teleconferencing.
Video Network Project. Available: [http://www.oit.state.ar.us/AgPlan
/Colloborative_Projects/video.htm]. Accessed: April 14, 2004.
Broadband Investment by AIR2LAN
The Enterprise Corporation of the Delta has invested $250,000 in the local ISP
AIR2LAN to help subsidize broadband deployment to underserved areas that do not
CRS-31
already have other broadband options. See press release in reference citation for full
story.
Enterprise Corporation of the Delta, Broadband Investment by AIR2LAN. Available:
[http://www.ecd.org/news/news_files/ECD%20Invests%20in%20AIR2LAN.pdf].
Accessed: January 25, 2004.
CALIFORNIA
California Research and Education Network
The California Research and Education Network is a "multitiered advanced network-
services fabric to serve all research and education in California." The network has
three tiers: CalRen-XD (an experimental and development network), CalRen-HPR
(a high performance–research network), and CalRen-DC (provides Internet to K-20
schools and staff).
CalREN. Available: [http://www.cenic.org/calren/index.html]. Accessed: April 14,
2004.
California Teleconnect Fund
The California Public Utilities Commission runs a program similar to e-rate called
the California Teleconnect Fund (CTF). The CTF was founded in 1994 and began to
provide discounts in 1997. Participating institutions include schools and libraries,
hospitals, and community-based organizations (CBOs). Schools and libraries qualify
for a 50 percent discount on switched 56 lines, ISDN, T-1, DS-3 and OC-192
services. Eligible schools include all public K-12 schools and private K-12 schools
with endowments less than $50 million. Municipal and County owned and operated
hospitals are eligible for a 20 percent discount on switched 56 lines, ISDN, T-1, and
DS-3. CBOs qualify for a 25 percent discount on switched 56 lines (two), or ISDN
lines (two), or one switched 56 line and one ISDN line, or one T1 line. Participation
is very high among schools and libraries with over 6000 entities that participate in
the program, however, CBOs and hospitals have not reached participation goals, with
only 68 and 21, respectively.
CA Teleconnect Fund. Available: [http://www.cpuc.ca.gov/static/industry/telco/
public+programs/ctf_faq.htm]. Accessed: April 10, 2004.
Final Report to the Legislature on the California Teleconnect Fund. Available:
[http://www.cpuc.ca.gov/PUBLISHED/REPORT/33549.htm#P442_30054].
Accessed: April 10, 2004.
Center for Health and Technology
The University of California, Davis Health System created the Center for Health and
Technology’s Telemedicine Program in 1996 to bring telemedicine to nearly 80
facilities in California in predominantly rural settings. Some of their applications
include mental health care, endocrinology and prenatal care. Through the Center, a
number of telemedicine research projects have been initiated. The Telemedicine
Learning Center was begun in 2003 with a grant from the California Telemedicine
and e-Health Center to better educate and train medical providers in the uses of
telemedicine. The Center began a research project in the uses of pediatric care in
especially underserved communities. The project is focusing on how telemedicine
consultations can increase the standard and quality of care for abused and injured
children in these rural areas. In conjunction with the Center and the Medical
Investigation of Neurodevelopmental Disorders (M.I.N.D.) Institute, a project was
begun in 2002 to investigate 63 telemedicine uses in caring for children with autism
CRS-32
in rural communities. This project was supported by a grant from the National
Institute of Mental Health.
Telemedicine Information Exchange. Available: [http://tie.telemed.org/programs
/showprogram.asp?item=2728]. Accessed: April18, 2004.
Broadband Report (Response to Senate Bill 1712)
As directed by Senate Bill 1712, the Public Utilities Commission considered the
proposal that universal service should be expanded to include broadband by requiring
all carriers to provide broadband in their “basic service” package. In the Final
Broadband Report, the Commission finds that broadband should not be required in
the “basic service” package. The reason for this is as follows, (1) the public does not
wish to subsidize broadband by telephone surcharges,(2) requiring broadband would
quadruple the price of all customers’ basic service packages, (3) only a limited
number of Californians chose to subscribe to broadband where it is available, about
17 percent of those that have access subscribe to broadband, and (4) the Commission
does not believe that broadband is an “essential service.”
Broadband Report. Available: [http://www.cpuc.ca.gov/static/industry/telco/reports
/020814_broadband_report.htm].
Accessed: April 8, 2004.
COLORADO
Colorado Multi-Use Network
The state of Colorado implemented the Multi-Use Network (MNT) to connect rural
and urban communities in the state as a means to bridge the digital divide. MNT was
originally conceived of in the 1998 “Strategic Plan for Statewide
Telecommunications Infrastructure.” The development of MNT began in 2000 when
the state contracted with Qwest Communications to build the fiber optic network.
The state has allocated $37 million to MNT over ten years, while Qwest has
contributed $60 million dollars for construction. Qwest owns and maintains the
network, which has a backbone infrastructure that consists of 70 Aggregated Network
Access Points. The state plans to consolidate approximately 200 networks for state
agencies and education into the MNT. In order to offset the costs of the network, the
state added a 33 percent surcharge on telecommunications, and the funds are placed
in the Colorado Digital Divide Elimination Fund.
The Colorado Department of Personnel and Administration Division of Information
Technologies. Available: [http://www.colorado.gov/dpa/doit/mnt/]. Accessed: April
4, 2004.
Beanpole Initiative
The Beanpole Initiative, the sister project to the Multi-Use Network (MNT), handles
“last mile” access so that rural entities can connect to the MNT. The Beanpole Bill
was approved in 1999 and $4.7 million was allocated to distribute as grants to help
rural communities connect to the MNT.
The Colorado Department of Personnel and Administration Division of Information
Technologies. Available: [http://www.colorado.gov/dpa/doit/mnt/]. Accessed: April
4, 2004.
CRS-33
CONNECTICUT
Connecticut Education Network
In July 2000, the Department of Information Technology began planning for the
Connecticut Education Network (CEN), an optical network that when complete will
connect all public schools, libraries, and colleges in Connecticut to free high-speed
Internet access. Deployment of the CEN has already begun with over 200 sites
connected statewide. When the CEN is complete (scheduled for 2005), Connecticut
will be the first state to have an all optical backbone that connects all public schools,
which will allow the state to implement new state-wide learning opportunities.
Connecticut Education Network. Available: [http://www.ct.gov/cen/site/default.asp].
Accessed: February 11, 2004.
DELAWARE
Entrepreneurs Offer Broadband Services
Entrepreneurs and small business owners are taking action to increase broadband
services in their areas by purchasing the equipment to offer wireless broadband
access in some of Delaware’s not-so-hot spots.
Delaware Online. Available:
[ h t t p : / / w w w . d e l a w a r e o n l i n e . c o m / n e w s j o u r n a l / b u s i n e s s / 2 0 0 3 / 0 5
/18broadbandreache.html]
Accessed: November 25, 2003.
FLORIDA
Tele-Competition Innovation and Infrastructure Enhancement Act
In May 2003, under Senate Bill 654, the Tele-Competition Innovation and
Infrastructure Enhancement Act was created to reduce network access rates and to
protect broadband services from local government regulation, with the exception of
right-of-ways. This act increases competition in the telephone industry and prohibits
the regulation of Voice Over Internet Protocol.
Frequently Asked Questions about Telecommunications Legislation. Available:
[http://www.psc.state.fl.us/faq/telecom_legislation.cfm]. Accessed: April 15, 2004.
GEORGIA
Telecom Tax Credit
The state of Georgia offers telecommunication companies a state tax credit for
existing telecom infrastructure. Tax credits are one percent, three percent, or five
percent depending on location.
Telecommunications Industry Association. Available:
[http://www.tiaonline.org/policy/states.cfm]. Accessed: April 12, 2004.
Georgia Electronic Design Center – Yamacraw Initiative
The Yamacraw Initiative began in 1999. It is administered by the Georgia Centers for
Advanced Telecommunications Technology. The state has set up the $5 million
Yamacraw Seed Capital Fund, which is available to private companies that are
improving infrastructure and developing new technologies. The funds that are
received must be matched 3:1 by the private company.
GEDC. Available: [http://www.yamacraw.org/index.html]. Accessed: April 4, 2004.
CRS-34
HAWAII
Technology Infrastructure Renovation Tax Credit
Hawaii offers a tax credit for renovation of "technology-enabled infrastructure," such
as broadband networks. The tax credit is four percent of the renovation costs.
Hawaii Statutes. Available: [http://www.capitol.hawaii.gov/hrscurrent
/vol04_ch0201-0257/hrs0235/hrs_0235-0110_0051.htm]. Accessed: April 15, 2004.
Next Generation Network
Hawaii’s Information and Communication Systems Division is currently overseeing
the construction of the Next Generation Network, a fiber optic network that will
connect all state buildings on all the islands. Verizon-Hawaii and Cisco systems have
partnered with the state to build the network.
ICSD – Selective List of ISCD Projects. Available: [http://www.hawaii.gov
/icsd/projects/]. Accessed: April 14, 2004.
IDAHO
IDANET
State of Idaho Internet (IDANET) is Idaho's broadband digital telecommunications
initiative. To bring broadband to rural areas, IDANET serves as the State's attempt
to leverage its telecommunications buying power by aggregating existing dollars
spent by State agencies and Higher Education. By serving as anchor tenant, the State
hopes to encourage commercial providers to deploy broadband telecommunications
services in rural and urban Idaho to serve State government and others. The network
should be completed in 2004. Recently, the State has entered into agreements with
Electric Lightwave, Inc. (ELI), Qwest Corporation, and Syringa Networks, acquiring
telecommunications services for IDANET.
IDAnet. Available: [http://www2.state.id.us/idanet/]. Accessed: January 18, 2004.
Idaho Rural Initiative
The Idaho Rural Initiative was adopted by the state legislature in 2001. Section 63-
3029I of the Idaho Code enacts a three percent investment tax credit for companies
investing in broadband equipment in Idaho. This tax credit lasts from January 1, 2001
to December 31, 2005.
Idaho Legislature. Available: [http://www3.state.id.us/oasis/2001/H0275.html].
Accessed: January 18, 2004.
Broadband Investment in Rural Idaho
As part of the Idaho Rural Initiative, Syringa Networks, LLC, a consortium of 12
Idaho local telecommunications companies, is investing $40 million in fiber optic
cable and other digital equipment so that rural communities in southern and eastern
Idaho will have broadband access. The 1,350 mile network runs from Council in the
northwest to Soda Springs in the southeast. Syringa considers itself a middle-mile
provider, connecting small and large towns. Recently, Syringa became one of the
telecommunications companies that provides service to the state-operated IDANET.
Association for Telecommunications and Technology Professionals Serving State
Government, Networks: 2003- 2004 NASTD State Reports, (Lexington, KY: 2003),
p. 40.
CRS-35
ILLINOIS
Community Technology Grant Program
Under the Eliminate the Digital Divide Law, the Department of Commerce and
Community Affairs is authorized to administer the Community Technology Grant
Program with funding from the Digital Divide Elimination Fund. The fund was
created by the State Treasury to subsidize the construction of high-speed Internet
service or advanced telecommunications infrastructure, and related training for
populations living in rural areas or low-income communities of the state. It provides
grants to expand the Community Technology Centers. This fund was established in
July 2003.
Illinois Department of Commerce and Economic Opportunity. Available:
[http://www.illinoisbiz.biz/tech/tech_eliminate.html]. docid=2003.07.30-62042.
Accessed: Jan 31, 2004.
INDIANA
Intelenet Grant Programs
The Intelenet Commission provides the Intelenet Basic Grant to K-12 schools to
assist them in connecting to the Internet and to the Indiana Telecommunications
Network (ITN). The grant provides schools with $10,000 per year to help them
connect to the ITN. The Commission also offers the Video Distance Learning Grant,
of which there were nearly 40 recipients in 2003. The Video Distance Learning
Grants provide funding for custom video equipment packages.
Intelenet – School Grants. Available: [http://www.in.gov/intel/schoolgrants/].
Accessed: April 4, 2004.
Broadband Project
Broadband Project is a state-wide survey on current Internet use, especially
broadband use in Indiana. This project focuses on small communities, and examines
various areas such as basic infrastructure, e-Gov services, Internet access and use,
attitude, etc.
State of Indiana. Available: [http://www.in.gov/doc/businesses/images
/PowerPoint/Broadband.ppt#43]. Accessed: February 2, 2004.
State of Indiana. Available: [http://www.in.gov/doc/businesses/eBroadband.htm].
Accessed: February 2, 2004.
Indiana Telecommunications Network
The Indiana Telecommunications Network (ITN) was created to efficiently serve the
public sector’s telecommunications needs by consolidation into one state-wide
network. Members of the ITN include K-12 schools, public libraries, government
offices, and higher education institutions. ITN was established through cooperation
between the Intelenet Commission of the state of Indiana and the Indiana Higher
Education Telecommunication System. ITN members purchase Internet connections
ranging from a DS-3 service to primary T-1 line to a 56k line; prices range from
$7,000 to $400 a month. The network is projected to save the state over $34 million
in telecommunications services over its first ten years.
Indiana Telecommunications Network. Available: [http://www.in.gov/itn/about/].
Accessed: February 2, 2004.
CRS-36
IOWA
Iowa Rural Development Council
The Iowa Rural Development Council (IRDC) is “a cooperative partnership of
individuals and organizations that have a common interest in securing a high quality
of life for all Iowans, with a special focus on those who reside in rural Iowa
communities.” The Council focuses on various fields, including technology and
telecommunications as well as other life issues such as agriculture, business
development, child care, cultural and recreational opportunities, educational and
social programs, healthcare, and workforce development. The Council was designed
to help improve the operations of those programs and services that already exist,
especially those using federal and state funds. The IRDC supports business and home
access to broadband and encourage Iowans to learn more about the benefits of
advanced telecommunications services in their life.
Iowa Rural Development Council. Available: [http://www.iowarural.org/about.html].
Accessed: February 24, 2004.
Iowa Communications Network
Construction for the Iowa Communications Network (ICN), a state-wide fiber optic
network, began in 1991. Phase I and II of the project installed 104 network endpoints,
including one in each of the 99 counties in Iowa. In 1995, phase III installed full-
motion video conference sites in public and private school districts, education
agencies, and libraries across the state. The ICN provides users with Internet access,
phone services, and video conferencing. ICN allows for new online services
including, telemedicine, improved e-government services, and distance learning.
Users of the ICN include hospitals, state and federal government, libraries, schools,
and institutions of higher education. The ICN, through distance learning programs,
has given students the opportunity to communicate with the International Space
Station and to work with other students in Europe.
Iowa Communications Network. Available: [http://www.icn.state.ia.us]. Accessed:
February 2, 2004.
KANSAS
Research and Education Network
The network provides a backbone across the state that connects to the Great Plain
Network gigaPOP with hubs in Kansas City, Lawrence, Manhattan, Wichita and
Hayes. In addition, the consortium provides training, offers consulting services,
designs internal networks, and maintains servers for its members.
Kansas Research and Education Network. Available: [http://www.kanren.net].
Accessed: March 22, 2004.
KAN-ED
The State of Kansas and the Kansas Telecommunications Industry have partnered to
form KAN-ED, a broadband network “designed to connect all K-12 schools, higher
education institutions, public libraries, and hospitals” in the state. The KAN-ED Act
passed in 2001 and presented a comprehensive technical plan to the 2002 legislature.
The Kansas Board of Regents is responsible for governance. The project is
attempting to unite the 48 service providers in Kansas to the KAN-ED network, so
that every citizen in Kansas has access to high-speed Internet service for the same
price. Part of the funding for this project is provided by e-Rate.
CRS-37
KAN-ED. Where Kansans Access the Information Age. Available: [http://www.kan-
ed.org]. Accessed: February 4, 2004.
KAN-ED. Reaching all of Kansas Equally.
KAN-ED. Where Kansans Access the Information Age.
KENTUCKY
Kentucky Housing Corporation Broadband Initiative
In 2003, the Kentucky Housing Corporation (KHC) became the first state to require
that all new low income housing be equipped with broadband wiring if the developer
receives at least 50 percent of its funding from KHC. The KHC is also looking at
ways to provide low income families with computers and subsidized Internet access.
Wired News: A Broadband Hookup in Every Home. Available:
[http://www.wired.com/news/politics/0,1283,57249,00.html]. Accessed: April 14,
2004.
Kentucky Information Highway (KIH)
The Kentucky Information Highway (KIH) is a statewide network that was created
in 1995 through a contract with Qwest, BellSouth, and other local telephone
companies as a means of making broadband available to all 120 counties. There are
over 3,000 sites connected to KIH, including 1,200 schools from all 176 school
districts in the state. Access is limited to public entities such as local government
agencies, higher education institutions and school districts, and rates for access vary
depending on the type of connection.
KIH Online. Available: [http://ky.gov/got/kih/]. Accessed: February 17, 2004.
KIH Online. Available: [http://ky.gov/got/kih/kih.ppt]. Accessed: April 15, 2004.
Broadband for Everyone, Inc.
Broadband for Everyone, Inc. is a private ISP working to provide high-speed Internet
access nationwide. Based in Georgetown, KY, BFE was created in 2002 and focuses
on wireless broadband, especially in rural but also some urban regions.
Broadband for Everyone. Available: [http://www.mybfe.com/]. Accessed: February
17, 2004.
LOUISIANA
Louisiana Broadband Council
The 2004 legislature has proposed HB 1265, which would create the Louisiana
Broadband Council. The council would be created within the Governor’s Council for
Rural Development and would serve as a central broadband planning agency to
eliminate the digital divide throughout the state. The bill is currently assigned to the
House Commerce Committee.
Bayou Buzz. Available: [http://www.bayoubuzz.com/articles.aspx?aid=1368].
Accessed: April 12, 2004.
Louisiana State-wide Backbone
LaNet is Louisiana’s statewide network that provides a telecommunications
connection between schools, government, and community groups. This network is
the result of collaborative work between the Office of Telecommunications
Management, several state agencies and higher education facilities. It provides
medium to high-speed Internet access to its subscribers and is paid for by monthly
fees from each subscriber.
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Alliance for Public Technology. A Nation of Laboratories: Broadband Policy
Experiments. Available: [http://apt.org/publica/broadbandreport_final.pdf].
Accessed: April 12, 2004.
MAINE
Maine Science and Technology Foundation
Legislation (L.D. 1632) created a working group to identify the challenges and
opportunities for deployment of broadband technology infrastructure to all parts of
Maine. Specifically the legislation directed the Maine Science and Technology
Foundation to determine the physical condition of the information technology
infrastructure, particularly in rural areas, and to report its recommendations, together
with any necessary implementing legislation, to the Legislature.
Rural Broadband Initiative
The Rural Broadband Initiative is conducting a research survey on broadband
deployment and demand in several areas of Maine. RBI is a nonprofit organization
out of Wilton, Maine that addresses broadband issues in rural areas in Maine as well
as around the country.
Rural Broadband Initiative. Available: [http://www.ruralbroadbandinitiative.org
/about/]. Accessed: April 14, 2004.
MARYLAND
Western Maryland Broadband Study
The Tri-County Council for Western Maryland and the Maryland Technology
Development Corporation created the Western Maryland Broadband Deployment
Strategy in November 2003. This project hopes to identify and help eliminate the
areas without service and determine best practices for this region.
Western Maryland Broadband Deployment Strategy. Available:
[http://www.tccwmd.org/W%20Md%20Executivev1.pdf]. Accessed: April 14, 2004.
Maryland Interactive Video Distance Learning Network
Installed by Verizon, the Maryland Interactive Video Distance Learning Network
(MIDLN) offers a "full motion, two-way interactive video system provided over a
digital fiber optic network." The network is available in almost 125 sites across the
state, including secondary schools, community colleges, and universities. MIDLN
offers students distance learning opportunities, and it also allows for increased
collaboration and resource sharing between schools.
Maryland Interactive Video Distance Learning Network. Available:
[http://www.aacc.cc.md.us/distancelearning/interactive.cfm]. Accessed: February 9,
2004.
Net.Work.Maryland Plan
The General Assembly passed legislation in 1998 that formed the Task Force on
High Speed Network Development. The legislature, based on recommendations from
the task force, allocated $6 million to begin the development of the high-speed
network. In order to receive funding and support for Net.Work.Maryland the plan is
being implemented with three initial pilot projects.
Maryland Department of Budget and Management, Net.Work.Maryland Plan.
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Task Force for Underserved Rural Areas
The General Assembly passed a bill in April 2003 to create a Task Force on
Broadband Communications Deployment in underserved rural areas. The Task Force
is to present a final report before June, 2005.
Maryland Department of Budget and Management, Net.Work.Maryland Plan.
MASSACHUSETTS
MassBroadband Initiative
This joint effort between the Massachusetts Technology Collaborative and the
Massachusetts Software & Internet Council attempts to define and encourage the
continuation of the deployment of broadband services throughout Massachusetts.
This report outlines the roadmap recommended by the MTC and summarizes the
broadband situation in Massachusetts.
MassBroadband Initiative. Available: [http://www.mtpc.org/NewsandReports
/reports_other/reports.htm]. Accessed: April 14, 2004.
MICHIGAN
Michigan Broadband Development Authority Act
This act (Public Act 49 of 2002) provides a method to assure that economic,
technological, and logistical integrated broadband services are provided throughout
Michigan on a non-discriminatory basis. It declared the need for Michigan's
government to assist in the financing of both the private and public sectors to offer
affordable broadband services to underserved areas throughout the state. The
Michigan Broadband Development Authority was enacted in March 2002 as a result
of Public Act 49 and was the first U.S. independent state agency with a focus on
broadband. This act provides incentives for the development of broadband services
and was created to improve the deployment in underserved areas of the state,
particularly rural Michigan. A major part of MBDA's role is to provide low-cost
financing in the form of tax-exempt bonds and other loans to private broadband
providers, thereby increasing highspeed Internet service and use in rural areas.
Michigan Legislature.
Metropolitan Extension Telecommunication Right-of-Way Oversight Act
The METRO Act came into effect in 2002 and helps to standardize the right-of-way
access by creating a legal authority that can evaluate and administer fees paid to the
municipality. The act (Public Act 48) requires that service providers include route
maps indicating their location and other information in their application for a right-
of-way permit. “Providers are required to pay a one time $500.00 administrative fee
to the Authority and are charged $.05 per linear foot annually as a maintenance fee.”
Telecommunications - The Metro Act. Available: [http://www.mml.org/legal/metro
_act.htm]. Accessed: December 12, 2003.
LinkMichigan
In May 2001, the LinkMichigan program began as an effort to provide broadband
Internet service to rural areas of northeastern Michigan. LinkMichigan's goals include
“aggregating statewide telecommunication purchases to create a high-speed
backbone, implementing taxing and permitting fairness, increasing access to
information about the telecommunication infrastructure that exists in Michigan, and
providing funds for regional telecommunication planning of last mile solutions.”
With eight counties affected, this program offered the region as many as 100
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Michigan State University telecommunications students and professors as free
consultants to help plan and build telephone and broadband service throughout the
region, forming the first rural co-op in the nation.
MINNESOTA
Minnesota Broadband Internet Initiative
This initiative under the Minnesota Department of Administration is set up to help
communities develop information technology plans to be able to participate in the
new, technology-based economy. The Broadband Internet Initiative collected survey
data based on community access to broadband technologies. This initiative will
maintain a database and develop plans to help communities gain affordable access
to high-speed Internet services.
Minnesota Broadband Internet Initiative.
Non-profit Broadband Initiative
This broadband program intends to help non-profit organizations in Minnesota with
advanced technology so that the non-profit sector has equal access. This program
informs the non-profit sector of technologies that will help them improve their
performance and add to their services.
Minnesota Council of Nonprofits Broadband Initiative. Available:
[http://www.mncn.org/broadband.htm]. Accessed: April 16, 2004.
Connecting Minnesota
Connecting Minnesota was a large project created by the Department of
Transportation and Administration in order to extend a network across the state that
would reach 80 percent of the population, including rural areas. The projected cost
was initially about $195 million, but in February 2003 the project was shut down due
to lack of funding. A crucial deadline was not met and the project was cancelled at
a 10 percent completion stage.
Connecting Minnesota.
Broadband Account
H.F. 3301 “creates a broadband access availability account for use for broadband
infrastructure deployment grants to schools, community projects and underserved
areas. Funding for this program will come from surcharges collected by
communications providers in the state.”
Telecommunications Industry Association. Available: [http://www.tiaonline.org
/policy/states.cfm]. Accessed: April 12, 2004.
MISSISSIPPI
Mississippi Broadband Technology Development Act
The Mississippi Broadband Technology Development Act, also known as Senate Bill
2979, provides tax credits and sales tax exemptions to companies investing in rural
broadband deployment.
Alliance for Public Technology. A Nation of Laboratories: Broadband Policy
Experiments. Available: [http://apt.org/publica/broadbandreport_final.pdf].
Accessed: April 12, 2004.
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Broadband Grant for North Mississippi
The Appalachian Regional Commission awarded a $2.2 million grant to build a high-
speed fiber optic network in north Mississippi. This grant is part of a $5.64 million
Mississippi Economic Growth and Point of Presence project. The fiber optic
backbone forms a ring connecting Memphis, Nashville, Birmingham and Meridian
and should be completed by mid-2004.
"$2.2M Federal Grant Goes to North Mississippi Broadband Project." The
Associated Press State & Local Wire (September 25, 2003). Online. Lexis-Nexis
Academic Universe. Accessed: January 18, 2004.
MISSOURI
MORENet
MOREnet (Missouri Research and Education Network provides connectivity for
Internet access to Missouri’s public sectors, including schools, libraries, health care
organizations and local governments. This backbone has access to Internet2 and also
provides training and videoconferencing services.
Cenic Policy Issues. Available: [http://www.cenic.org/gb/pubs/taskforce
/policyissues.htm]. Accessed: April 16, 2004.
MONTANA
Tax Credit for Broadband Investments
The 1999 S.B. 172 created 20 percent tax credits for telephone companies that
increased broadband infrastructure deployment in Montana. The act also created a
competitive broadband grant program. However, the tax credit was eliminated for
FY2002 and 2003, but may become available again in 2004 based on budget issues.
Telecommunications Industry Association. Available: [http://www.tiaonline.org
/policy/states.cfm]. Accessed: April 12, 2004.
Summiteer II
Summiteer II is the strategic plan for a state and university integrated network. Once
installed, it will fully merge voice, video and data network services for over 530 state
offices and university campuses.
Hinman, Audrey. Chief of Architecture and Internet Services Bureau, Helena,
Montana. Telephone interview, January 14, 2004.
Summiteer
Summiteer is the multi-protocol network for state agencies, local government, and
universities providing voice, video and data networks. Summiteer is “cost-rate
recovered,” meaning there is a user fee ($74.50 per month in 2004) for desktop
services, which includes support, software, and Internet access. The Montana State
Legislature appropriates funds for these services as part of an agency's overall budget.
Beginning in the 1970s, Montana utilized a SNA multipoint network. In 1991, the
state built a frame relay network linking the state agencies and universities. Then in
2000, the state awarded a $10 million five-year contract to Qwest for the deployment
of asynchronous transfer mode technology (ATM) and frame relay services. To
connect state offices outside of the Qwest service area, the state is working with
independent telephone companies, such as Vision Net.
Hinman, Audrey. Chief of Architecture and Internet Services Bureau, Helena,
Montana. Telephone interview, January 14, 2004.
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Hotvedt, Carl. Bureau Chief Network Technology Services, Helena, Montana.
Telephone interview, January 29, 2004.
NEBRASKA
Nebraska Internet Enhancement Fund (NIEF)
The Nebraska legislature passed L.B. 827 in 2001, creating the Nebraska Internet
Enhancement Fund (NIEF) to help provide counties and cities with financial help to
deploy broadband infrastructure, especially in rural and underserved regions. The
Alliance for Public Technology predicted that once the NIEF was fully functional,
181 schools would be connected. However, the Nebraska Surpreme Court declared
the NIEF unlawful in 2003.
Telecommunications Industry Association. Available: [http://www.tiaonline.org
/policy/states.cfm]. Accessed: April 12, 2004.
[http://www.appanet.org/legislativeregulatory/broadband/broadbandbarriers.cfm].
Accessed: April, 20, 2004.
Public Service Commission Broadband Access Report
A study conducted in 2002 by the Public Service Commission of Nebraska states that
85 percent of Nebraska communities now have access to broadband technology, but
the rate for subscribing to these services still remains low.
Technologies Across Nebraska Newsletter, Public Service Commission Broadband
Access Report. Available: [http://extension.unl.edu/tangents/tangents_broadband8-
03.htm]. Accessed: January 28, 2004.
Rural Internet Access Plan
According to Brenda Decker, the Director of the Division of Communications for the
state, the Nebraska State Government is not focusing solely on rural
telecommunications development. The state is focusing on providing access to the
local and state government offices, K-12 education facilities, telehealth organizations
and other public entities with high-speed access, which will allow them to perform
their functions regardless of location. The state's plan is focusing on the "state" as the
anchor tenant in the majority of towns throughout Nebraska. The plan is to benefit
all citizens by attracting the telecommunications providers to serve public entities.
The State of Nebraska has not taken the position of being the implementer of
broadband telecommunications in the state, but has taken the stance of being the
"driver" of those services by working with telecommunications providers to deliver
services to public entities.
Decker, Brenda. Director, Division of Communications, Lincoln, Nebraska.
Telephone interview, November 26, 2003.
NEVADA
NevadaNet
NevadaNet is the statewide backbone network that supports the University and
Community College System of Nevada (UCCSN), the K-12 educational community,
and participating state and federal agencies. Nearly 120 predominantly rural Nevada
locations, including Native American communities and hospitals, receive data and
compressed video services from Nevada Net.
SCS oversees NevadaNet. System Computing Services, Nevada Net. Available:
[http://www.scs.nevada.edu/nevadanet/]. Accessed: January 31, 2004.
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NEW HAMPSHIRE
Regional Broadband Initiatives
Two telecommunications projects were allotted funding of $250,000 from the state
in 2001. The North Country Connect project looks for vendors who can provide
broadband connectivity at an affordable rate. The NCC task force oversees the
implementation and negotiates solutions to problems that arise. The Monadnock
Broadband Initiative is a collaboration between public and private entities to help
aggregate demand for broadband technologies in the Monadnock region. Members
receive T1 access for 50 percent less than market rates. The National Guard
Broadband Project in New Hampshire invests in providing broadband access to the
22 National Guard locations across the states. Private businesses that qualify, state,
federal and local government agencies, schools and other programs have access to
the network.
Alliance for Public Technology. A Nation of Laboratories: Broadband Policy
Experiments. Available: [http://apt.org/publica/broadbandreport_final.pdf].
Accessed: April 12, 2004.
NEW JERSEY
NJEDge.Net
Established by a non-profit corporation of the New Jersey President’s Council,
NJEDge.Net is a statewide broadband network designed to enhance New Jersey
colleges and universities.
NJEDge.Net. Available: [http://www.njedge.net/]
Garden State Network (GSN) Upgrade
The Garden State Network (GSN), the telecommunications backbone for New
Jersey's government agencies, has undergone a $2.4 million upgrade which will
improve the state's Internet connectivity, provide for the support of digital
government initiatives, as well as allow for network monitoring and the building of
a shared server infrastructure.
NASCIO Connections, June 2001. New Jersey Telecommunications Network
Upgraded. Available: [https://www.nascio.org/publications/Newsletters/0601state
trends.cfm]
NEW MEXICO
State-wide Wireless Tribal Broadband Network
The state-wide Wireless Tribal Broadband Network is a test bed network being
developed by the Albuquerque High Performance Computing Center of the
University of New Mexico, the Pueblo Tribal Nations of New Mexico and the Bands
of Mission Indians in California.
Analysis.com. Available: [http://www.analysys.com/default_acl.asp
?Mode=article&iLeftArticle=1071&m=&n=].
Accessed: April 16, 2004.
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Internet Exchange
On January 31, 2003, a co-op comprised of New Mexico businesses turned on
“Internet exchange” that “allows multiple ISPs to plug into each other via an existing
fiber optics networks.” The new servers will allow for in-state data transmission,
which will save time in transmitting data and help to eliminate some of the mileage
charges for ISPs.
New Mexico Business Weekly, “Local ‘Internet Exchange’ will aggregate need”
(January 31, 2003). Available:
[http://albuquerque.bizjournals.com/albuquerque/stories/2003/02/03/story4.html].
Accessed: February 20, 2004.
Statewide Broadband Inventory
The Strategic Telecommunications Alliance and Resource Team (START) created
an inventory of New Mexico's broadband infrastructure and a database of
communications service providers. In May 2003, START surveyed 796 communities
and found that 157 have DSL access. According to the research, although the
“infrastructure spreads statewide, the problem lies in the so-called ‘last-mile’ -- the
connection from a central office to business and homes.” Residents can search the
online database for service providers by city, telephone prefix or type of service.
Strategic Telecommunications Alliance and Resource Team. Available:
[http://www.nmstart.org]. Accessed: September 4, 2003.
New Mexico Business Weekly, "Group unveils plan to patch state's broadband holes"
(May 29, 2003). Available: [http://www.albuquerque.bizjournals.com/albuquerque
/stories/2003/05/26/daily10.html]. Accessed: September 4, 2003.
NEW YORK
NYC Broadband Initiative
In May 2003, the New York City Council published a report including 14
recommendations for a broadband initiative for the New York City region. These
recommendations include switching to competitive bids for servicing the local
government. The report also recommends wireless technologies as well as using the
subway tunnels to deploy affordable broadband citywide. The full report is available
online.
World TelePort. Available: [http://www.worldteleport.org/iCommunity/Fall03
/focus5.html]. Accessed: April 16, 2004.
Bell Atlantic Broadband Investment
As part of a 1995 regulatory agreement, “Bell Atlantic set aside $50 million for [the
development of] advanced telecommunications in economically disadvantaged areas.
To date, 12 projects have been implemented and funded with help from the Fund.”
One collaborative project between Bell Atlantic and a variety of partner organizations
focuses on the construction of a high-speed network for Brooklyn, the Bronx,
Queens, and Manhattan.
Alliance for Public Technology. A Nation of Laboratories: Broadband Policy
Experiments. Available:[http://apt.org/publica/broadbandreport_final.pdf]. Accessed:
April 12, 2004.
NYeNet
NYeNet is the New York State government electronic communications network. The
NYeNet integrates various individual networks into one common system. The
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NYeNet increases the speed and capacity of the individual networks, and it allows
for improved communications between agencies and government entities in all parts
of the state. The NYeNet also expands the agencies’ capacities to offer online
government services for citizens. The plan for NYeNet emerged in 1996, but the
network is not yet complete. The New York State Office for Technology manages the
NYeNet.
New York State Office for Technology, Welcome to the NYeNet. Available:
[http://www.oft.state.ny.us/nyt/nyt.htm]. Accessed: February 5, 2004.
New York State Office for Technology, NYeNet Overview. Available:
[http://www.oft.state.ny.us/nyt/overview.htm]. Accessed: February 5, 2004.
NORTH CAROLINA
Utility Account
House Bill 1734 "creates a Utility Account to provide funds for construction of or
improvements to existing public utilities, including telecommunications and high
speed broadband lines throughout the state.”
Telecommunications Industry Association. Available: [http://www.tiaonline.org
/policy/states.cfm]. Accessed: April 12, 2004.
North Carolina Information Highway
The North Carolina Information Highway (NCIH) has its roots in Governor Hunt's
1993 North Carolina Information Highway initiative. The NCIH is the state's
telecommunications network, and it connects government agencies, schools, and
libraries around the state. The network was designed to integrate state
telecommunications technology and to improve communication between state
agencies through video network services. The network's video conferencing
capabilities allows for telemedicine and distance learning programs. A 1996 report
evaluated the success of the NCIH.
A Trip Along the NC Information Highway - Where We Are Coming From.
Available: [http://www.ncih.net/infohiwa/comefrom.htm]. Accessed: February 18,
2004.
North Carolina Information Highway. Available: [http://www.ncih.net/]. Accessed:
February 18, 2004.
Broadband Subsidies
Several bills have been initiated in both the House and the Senate offering taxpayers
credits for expanding broadband Internet access infrastructure in rural and
underserved areas. These bills were initiated in the 2001-2002 Session, and the
House tried again in the 2003-2004 Session, but both bills were referred to the
Committee on Finance and never passed.
North Carolina House of Representatives, Broadband Deployment Act, House Bill
914, 2003-2004 Session. Available: [http://www.ncga.state.nc.us/gascripts
/BillLookUp/BillLookUp.pl?Session=2003&BillID=h914]. Accessed: February 2,
2004.
E-NC Authority
The e-NC Authority began in January 2004 and was established in a reauthorization
bill as a continuation of three years of similar work done by the Rural Internet Access
Authority (The RIAA was formed in January 2001 as the result of General Assembly
legislation). The E-NC Authority promotes Internet access and usage among North
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Carolinians, especially in rural areas, by deploying a number of programs in rural
areas and offering grants to be used for e-communities planning, infrastructure,
public access, and training. It is successfully meeting its initial goals of offering local
dial-up Internet access from all North Carolina telephone exchanges and increasing
highspeed access and usage around the state. Seventy-two percent of all rural
households now have access to the highspeed Internet if they wish to purchase it. The
e-NC Authority receives private funding and prides itself on being a grassroots
initiative. From the e-NC Authority homepage, North Carolinians can retrieve a list
of public access sites in their area as well as interact with a GIS based website view
of telecommunications services deployed in North Carolina.
North Carolina's e-NC Authority, What is e-NC? Available: [http://www.e-nc.org
/Webpage.asp?page=10]. Accessed: January 4, 2004.
Email from Jane Smith Patterson, Executive Director, Rural Internet Access
Authority (and current e-NC Authority Executive Director), "NC Profile," March 2,
2004.
Telephone interview with Jane Smith Patterson, Executive Director, Rural Internet
Access Authority (and current e-NC Authority Executive Director), October 31,
2003.
NORTH DAKOTA
STAGEnet
Created in 1999 by the state legislature, North Dakota Statewide Technology Access
for Government and Education network (STAGEnet) is a computer network that
provides high-speed, broadband connections to all North Dakota state agencies, local
governments and schools. The North Dakota State Chief Information Officer, Curtis
Wolfe, has the ultimate decision making authority regarding the network.
North Dakota STAGEnet. Available: [http://www.stagenet.nd.gov/]. Accessed:
January 19, 2004.
OHIO
Ohio Broadband Initiative
In September, 2002, Governor Bob Taft announced the Ohio Broadband Initiative as
part of the Third Frontier Project, a $1.6 billion (trimmed to $1.1 billion in November
2003 when Ohioans voted not to fund the final $500 million) overarching plan to
make Ohio businesses more competitive and bring jobs to the state. At the time,
Governor Taft stated the Broadband Initiative would “ensure statewide access to
high-speed data lines.” Among other things the effort planned to pool businesses’
purchasing power to lower rates on broadband services, directly link all colleges and
research facilities via a dedicated network, and educate and train small businesses on
the advantages of broadband connections.
Available: [http://www.thirdfrontier.com/PressReleases/092602broadband.asp].
Accessed: April 4, 2004.
Ohio's Synchronous Optical Network (SONET)
Ohio's Synchronous Optical Network (SONET) is a “multi-agency communications
system” and comprehensive network. It is called Ohio's "fiber backbone" for state
services. Ohio SONET allows state government to effectively bring more services
into every library and classroom in the state. Ohio SONET connects 4,500 schools,
100 colleges and universities, 100 state offices, 250 public libraries and 40 public
television and radio stations in Ohio, thus minimizing the operational cost. The cost
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of a T-1 line on the state contract is approximately 75 percent less than the cost of a
commercially-purchased line. This project is administered by The Ohio Department
of Administrative Services (DAS).
Ohio SONET.
Ohio Community Computing Center Network
The Ohio Community Computing Center Network (OCCCN) was established in
1995 as an oversight and evaluation organization for Community Technology
Centers(CTC) in Ohio. As of March 2004, OCCCN consists of 18 community
technology centers, which provide basic computer training and support to low
income people who lack opportunities to learn about or use computer technology.
The centers are located in libraries, community centers, schools, churches, social
service agencies, and residential housing complexes.
Ohio Community Computing Center Network. Available: [http://www.occcn.org/].
Accessed: January 26, 2004.
OKLAHOMA
OneNet
Oklahoma has a state-wide broadband network, called OneNet, which provides
access for government agencies, schools, universities, and hospitals. In the last few
years, the state has been upgrading the network to create a new communication
pipeline for voice, data and video. The network is managed by the regents of higher
education, and has been funded by allocations from the regents, bond issues and user
fees. For example, the National Guard pays a fee for using the state network.
Fleckinger, Joe. Director of Information Services Division, Oklahoma City,
Oklahoma. Telephone interview, January 14, 2004.
Oklahoma Municipal Services Corporation (OMSC)
Approximately 400 cities in Oklahoma joined together to create the Oklahoma
Municipal Services Corporation (OMSC) in order to develop broadband service in
the area. The first of three wireless projects began in Durant, Oklahoma in the spring
of 2001. However by 2003, Purcell, Oklahoma, one of the early adopters, canceled
its contract with OMSC because the service was unreliable.
The Purcell Register. Available: [http://www.purcellregister.com/article-
display.asp?idnum=591]. Accessed: April 4, 2004.
A g r i F o o d I n n o v a t i o n s . A v a i l a b l e : [ h t t p : / / w w w . a g r i b i z . n e t
/offerings.cfm?categoryId=103]. Accessed: April 4, 2004.
Rural Broadband Task Force
The state does not provide public access via OneNet. In response to questions
regarding consumer Internet access, the state legislature created a rural broadband
task force in 2003. The task force was supposed to study rural broadband access and
ways to make it financially viable for telecom companies to expand their coverage
areas. However, as of January 2004, the task force had not met.
Fleckinger, Joe. Director of Information Services Division, Oklahoma City,
Oklahoma. Telephone interview, January 14, 2004.
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OREGON
Broadband Tax Credit
In 2001, Oregon passed a 20 percent non-refundable tax credit for investment in
high-speed, dedicated or switched broadband telecommunications infrastructure. The
credit can be used against the Personal Income Tax and the Corporation Income Tax
for 20 percent of the costs or waiver of installation charges for schools, rural health
clinics and libraries. (Or. Rev. Stat. § 315.511(1) 2001.) The Economic and
Community Development Commission certifiesthe facilities that meet the law's
requirements.
Oregon Legislature.
Public Communications Network
The Public Communications Network was created in 1985 by the Metropolitan Area
Communications Commission as a partnership between AT&T, MACC and agencies
in the Tualatin Valley. The PCN works to provide cable broadband services to the
public. Those institutions using the PCN for all communications (voice, data and
video) include schools and libraries, local government agencies and emergency
services.
Public Communications Network. Available: [http://www.maccor.org/ PCNpages
/pcn.htm]. Accessed: February 17, 2004.
Telecommunications Infrastructure Account
The Telecommunications Infrastructure Account provides funds to Oregon
communities for route diversity, and broadband services. As of 2003, there were five
SONET (Synchronous Optical Network) rings and nine projects approved by the
Oregon Economic and Community Development Commission. These accounts were
created through SB 622 and carriers.
Telecommunications Infrastructure Account. Available: [http://www.econ.state.or.us
/telecom/projdesc.htm]. Accessed: February 4, 2004
Rural Infrastructure
Qwest committed $70 million to rural broadband infrastructure in 2000. According
to the company's estimates in 2002, roughly 50 percent of the infrastructure was in
place.
Oregon Rural Infrastructure. PowerPoint Report at Rural Telecommunications
Congress. Available: [http://www.ruraltelecon.org/admin/library/uploads/15].
Accessed: September 30, 2003.
PENNSYLVANIA
The Ben Franklin Technology Development Authority (BFTDA)
The Ben Franklin Technology Development Authority (BFTDA) is a government
technology development organization which provides funding for regionally-
designed grassroots strategies that extend technological capabilities to all
Pennsylvania communities. It has provided over $50 million in funding to
community-based projects. While the organization funds a variety of local business
and community initiatives, it has specifically supported broadband network projects
such as Keystone Community Network, Inc., Key-Net Alliance, I-99 Corridor Project
(Altoona Blair County Development Corporation) and the Broadband Rural Area
Information Network (BRAIN) in recent years.
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A Nation of Laboratories: Broadband Experimentation in the States. Available:
[http://apt.org/publica/broadbandreport_final.pdf]. Accessed: April 4, 2004.
RHODE ISLAND
Rhode Island Network for Educational Technology (RINET)
Established in 1994, Rhode Island Network for Educational Technology (RINET)
provides connectivity, services and training to “over 95 percent of the state’s K-12
public school districts, parochial and independent private schools, municipal
buildings, and non-profits.”
Rhode Island Network for Educational Technology (RINET). Available:
[http://apt.org/publica/broadbandreport_final.pdf]. Accessed: April 16, 2004.
SOUTH CAROLINA
South Carolina Information Network (SCINet)
The South Carolina Information Network (SCINET) provides statewide connectivity
for state and local government, K-12 and higher education. The network services
over 5,000 locations with the public school connections at T-1 levels or higher and
the state connections at an OC-12 to Internet 2 level.
SREB Educational Technology Cooperative. Available: [http://www.sreb.org
/programs/EdTech/survey/selectNetwork.asp?state=43&submit=Go]. Accessed:
April 6, 2004.
South Carolina Rural Infrastructure Fund
The Rural Infrastructure Fund provides financial support to qualified counties in
building the infrastructure necessary for economic growth and development. This
includes improving public and private telecommunication systems. Created by Bill
4706, “funding originates from unclaimed Job Development Credits.”
South Carolina Department of Commerce. Available:
[http://www.callsouthcarolina.com/callsc.cfm?page=grants&document=home].
Accessed: April 6, 2004.
A Nation of Laboratories: Broadband Experimentation in the States. Available:
[http://apt.org/publica/broadbandreport_final.pdf]. Accessed: April 6, 2004.
SOUTH DAKOTA
Rural Broadband
Studies of high-speed Internet access based on ZIP codes don’t accurately reflect the
state of South Dakota, because a large ranch often has its own ZIP code. Instead, the
state government uses population data to analyze Internet access penetration.
According to the state’s analysis in 2003, 67 percent of the population has broadband
access (DSL or cable). There are currently no government initiatives for increasing
consumer access to the Internet because they “don’t think that it is necessary,” said
Jim Edman, wide-area network manager. “Realistically, only satellite access is
feasible in most rural areas,” said Edman.
Edman, James. Wide Area Network Manager, Pierre, South Dakota. Telephone
interview, January 14, 2004.
Rural Subsidies
As the number of state agencies has grown, the state has required
telecommunications companies to build lines to provide business level services to
meet government needs. Once the infrastructure is in place, the company can offer
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services to the local public. This anchor-tenant relationship has provided government
subsidy of telecom development in rural areas.
Edman, James. Wide Area Network Manager, Pierre, South Dakota. Telephone
interview, January 14, 2004.
Statewide Broadband Network
South Dakota has an extensive broadband network, the Digital Dakota Network,
which is available to all of the state agencies, K-12 schools, higher education
institutions, libraries, municipal governments, and state hospitals. There are 286
video conferencing sites on this network, which supports on average 125-150 online
distance learning classes per day, according to Jim Edman, wide area network
manager. The Department of Education funded the development of the infrastructure
within the schools, however the schools do not pay for access. The higher education
campuses, counties, and municipalities pay a fee for the network service.
Edman, James. Wide Area Network Manager, Pierre, South Dakota. Telephone
interview, January 14, 2004.
TENNESSEE
Tennessee State-Wide Area Network
The network provides connectivity for all state agencies and 150 of the 1,800 K-12
schools in Tennessee.
SREB Educational Technology Cooperative. Available: [http://www.sreb.org
/programs/EdTech/survey/selectNetwork.asp?state=45&submit=Go]. Accessed:
April 6, 2004.
Tennessee Rural Internet Access Authority
In 2002, the state legislature established the Tennessee Rural Internet Access
Authority to oversee, manage, and monitor efforts to provide rural counties with
broadband access. (H.B. 2322/S.B. 2594).
TIA Assessment of State Broadband Initiatives. Available:
[http://www.tiaonline.org/policy/states.cfm]. Accessed: April 15, 2004.
Tennessee General Assembly Archives. Available:
[ h t t p : / / w w w . l e gi s l a t u r e . s t a t e . t n . u s / i n f o / Le g _ A r c h i v e s / 1 0 2 G A / b i l l s
/BillStatus/HB2322.htm]. Accessed: April 18, 2004.
ConnectTEN Internet Project
In 1996, Tennessee's ConnectTEN initiative equipped all of Tennessee' s elementary
and secondary public schools with access to direct, high-speed Internet. Currently,
ConnectTEN connects over 214,000 computers across the state's 1,800 K-12 public
schools. One of the program's goals is to increase bandwidth in order to lower the
student–to-computer ratio from 5:1 to 2:1 within five years. “All network facilities
and services are outsourced to the contracted vendor.” The annual budget is $18
million with the state providing approximately 30 percent of the funds and E-Rate
the remaining 70 percent.
ConnectTEN. Available: [http://www.connect-tn.org/about_connecTEN.htm].
Accessed: April 6, 2004.
The Journal. Available: [http://www.thejournal.com/magazine/vault/A1592.cfm].
Accessed: April 5, 2004.
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Tennessee Information Infrastructure (TNII)
According to the State Report, TNII is the state’s project to consolidate executive
branch and higher education network infrastructures in order to create a single
statewide network serving the respective operations group for each government
entity. The project covers several issues regarding telecommunications services in the
private sector and the facilitation of advanced applications for the state’s agencies.
E-government Resource Centre. Available:
[http://www.egov.vic.gov.au/International/TheAmericas/UnitedStates/StateGovt
Websites/USStateGovt.htm]. Accessed: October 15, 2003.
TEXAS
PUC Substantive Rules
Chapter 26, Subchapter G is the section of the PUC Substantive Rules that refers to
advanced services in Texas telecommunications. The subchapter addresses the need
and the methods for telecommunications service providers to provide, when
requested, rural telecommunications services at comparable costs and conditions to
urban services.
Public Utility Commission of Texas, Advanced Services in Rural Areas. Available:
[http://www.puc.state.tx.us/telecomm/advserv/index.cfm]. Accessed: January 30,
2004.
Broadband Deployment Bill
An amendment to the Public Utility Regulatory Act of 1995, House Bill 2128 began
the Telecommunications Infrastructure Fund (TIF), and offered discounted
telecommunications rates to public schools and libraries. The act also took steps to
deregulate the telecommunications market in Texas by making it easier for local
service providers to compete with larger telecommunications companies.
Texas State Library and Archives Commission, Appendix B Laws Affecting Texas
Libraries. Available: [http://www.tsl.state.tx.us/ld/pubs/plant/appenb.html].
Accessed: January 30, 2004.
Dana Williams, "Texas Telecommunications Deregulation: Its Effects and Its
Future." Available: [http://www.utexas.edu/lbj/21cp/dana_williams.htm]. Accessed:
January 30, 2004.
Telecommunications Infrastructure Fund
Created by the State Legislature in 1995, the Telecommunications Infrastructure
Fund was a state grant program designed to increase Internet access and usage
throughout the state, especially in rural and underserved areas. TIF grants were
funded by a special tax paid by telecommunications vendors and customers in Texas,
and they offered public schools, libraries, universities, and health care facilities the
opportunity to develop community technology initiatives, including public access
stations, technology training programs, community networks, and infrastructure
acquisitions and upgrades. The legislature authorized TIF to fund $1.5 billion in
grants over 10 years, yet because of state budget difficulties, TIF was disbanded in
2003. Many public schools and libraries relied on TIF funding for technology
integration projects, and without TIF funding, program sustainability becomes a
serious concern.
Texas Library Association, TIF: Background and Review of Legislative Activity.
Available: [http://www.txla.org/html/legis/tif/tiflegis.html]. Accessed: January 30,
2004.
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Texas Agency Network: TEX-AN 2000 Network
Used by all state agencies except for universities and the state legislature, TEX-AN
2000 is the state’s central telecommunications system. Owned completely by
telecommunications vendors, it offers voice, data, and video services to all users,
including some local governments and other public entities, and it allows users to
receive contract services at prearranged prices. Using AT&T and Southwestern Bell
as its primary vendors, the TEX-AN 2000 network was establish to minimize state
infrastructure and telecommunications services costs and to unite state agencies
under one telecommunications system.
State of Texas Department of Information Resources, TEX-AN 2000: A Network and
a Family of Contracts.
Available: [http://www.dir.state.tx.us/tex-an/index.htm]. Accessed: January 29, 2004.
State of Texas Department of Information Resources, TEX-AN 2000:
Telecommunications for a Connected Texas.
UTAH
UTOPIA
UTOPIA is an initiative to build fiber optic cable to every home within the 18
communities it represents. Modeling it after the city wide network built by Provo,
Utah, the consortium will own the network, backed by bonds, and lease the dark fiber
to commercial service providers. The system is expected to cost $450 million to build
and should service over 723,000 residents, 248,000 households and 34,500
businesses. The planners predict that high-speed Internet connectivity will cost users
around $28 per month and provide 100 megabits per second access (well in excess
of the 3 megabits per second).
Oveson, Val. Chief Information Officer, Utah Governor's Office, Salt Lake City,
Utah. Telephone interview, February 2, 2004.
American Public Power Association. Available: [http://www.appanet.org/newsroom
/magazine/2004/WashFocus-JF04.cfm]. Accessed: February 2, 2004.
VERMONT
Vermont Telecommunications Service Availability Project
The Economic Development Department of Vermont sponsored a study in 2000, to
identify what telecommunication resources are available in each county. The study
was updated in October 2001. By maintaining a list of Internet service providers,
specifically broadband providers, Vermont is hoping to attract and also maintain
businesses in their state.
Vermont Department of Economic Development. Available:
[http://www.thinkvermont.com] Accessed: February 2, 2004.
GovNet
GovNet is a state-wide network infrastructure that has a backbone consisting of 15
T-1 lines that are further supplemented by 50 56-Kbps lines. GovNet connects all
government agencies around the state in an attempt to create better efficiency and
additional information sharing. The need for GovNet was identified by the Vermont
Information Strategy Plan (now known as Information Resource Management
Advisory Council). GovNet later led to the creation of K-12 Net.
GovNet. Available: [http://www.govnet.state.vt.us/]. Accessed: February 2, 2004.
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K-12 Net
In 1995, Vermont expanded their GovNet program to implement K-12 Net, which
would develop an infrastructure to interconnect all public schools and libraries in the
state. Nearly 300 of the 400 schools in Vermont are connected to K-12 Net. Schools
and libraries may purchase annual Internet access through K-12 Net with prices
ranging from $250 to $4,300 to $18,000 a year depending on the type of connection.
Nearly 25 percent of schools use a highspeed connection through the K-12 network,
while the remaining schools utilize dial-up connections. In addition, more than 100
public libraries use K-12 Net.
GovNet. Available: [http://www.govnet.state.vt.us/k12net.htp]. Accessed: September
22, 2003.
VIRGINIA
Net.Work.Virginia
Net.Work.Virginia, which started as a project led by Virginia Tech, Old Dominion
and the Virginia Community College system, “is an advanced, broadband network
delivering Internet and Intranet services statewide.” The goal of the project was to
provide access to competitive advanced services to all of Virginia. Previously only
open to schools, public libraries and government agencies, the network can now be
accessed by commercial customers. Currently, customer service charges provide
complete funding for the network which is contracted to service providers and
coordinated by Virginia Tech. “Net.Work.Virginia provides access for more than 1.3
million Virginians through educational institutions alone.”
Net.Work.Virginia. Available: [http://www.networkvirginia.net/]. Accessed: April
6, 2004.
SREB Educational Technology Cooperative. Available: [http://www.sreb.org
/programs/EdTech/survey/selectNetwork.asp?state=45&submit=Go]. Accessed:
April 6, 2004.
Virginia Community Improvement Grants
The Virginia Department of Housing and Community Development offers grant
funding through its Community Development Block Grant to assess current
broadband availability and usage, and to implement projects that target the “last
mile”of broadband.
Community Improvement Grants Home page. Available:
[http://www.dhcd.virginia.gov/CD/CDBG/Community%20Improvement
%20Grants.htm]. Accessed: January 26, 2004.
Broadband Rural Project
The Center for Innovative Technology and the Secretary of Technology were tasked
with recommending plans for rural broadband access. In a report submitted to the
Governor and General Assembly in November 2002, findings and recommendations
were made to assist rural communities in broadband access.
Center for Innovative Technology and the Secretary of Technology. Advancing
affordable, high bandwidth electronic networks in rural Virginia. (Richmond 2002)
WASHINGTON
Strategic Plan for Rural High-Speed Internet
According to a January 19, 2004 news story, "Twenty families in a rural Indian
community [Darrington, WA] will receive new, high-powered computers within the
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month. ... Today's announcement comes as part of the Affiliated Tribes of the
Northwest Indians Economic Development Corporation (ATNI-EDC) and Verizon
Avenue's (VZA) strategic plan to bring high-speed Internet service and wireless
network to communities with limited financial resources and infrastructure."
Internet Technology Comes to Rural Washington Community.
BPA Public Benefits Fiber Program
The Bonneville Power Administration and the Washington Public Utility Districts
Association signed an agreement in October 1999 to make fiber optic cables
available to public and private entities and the communities that these entities serve.
The program is known as the Bonneville Power Administration's (BPA) Public
Benefits Fiber Program.
BPA, PUDs Agree to Use Fiber Optics for Public Utility, Community Purposes.
Available: [http://www.bpa.gov/corporate/BPAnews/archive/1999/nr100499.pdf].
Accessed: April 8, 2004.
WEST VIRGINIA
The West Virginia Network (WVNET)
The West Virginia Network (WVNET) provides connectivity to the state's
institutions of higher education. As part of Operational Direct 9801 issued in 1998
by the Governor's Office of Technology, the WVNET is leading an initiative to
develop a statewide network which will include state government, K-12 institutions,
public libraries, and county government.
The West Virginia Network (WVNET). Available: [http://www.wvnet.edu
/aboutwvnet/aboutus.html]. Accessed: April 6, 2004.
West Virginia Education Information System (WVEIS) World School
The West Virginia Education Information System (WVEIS)/World School Network,
a closed network, provides connectivity for all public K-12 schools in the state. Local
school districts funded about 51 percent of the network costs. The remaining funding
came from the state (35 percent) and Verizon (14 percent) grants. Connection speeds
vary greatly, ranging from 56Kb to 1.544Mb (T1).
SREB Educational Technology Cooperative. Available:
[ h t t p : / / w w w . s r e b . o r g / p r o g r a m s / E d T e c h / s u r v e y/ s e l e c t N e t w o r k . a s p
?state=52&submit=Go]. Accessed: April 6, 2004.
Rural Telecom Subsidies & Investment
According to the IT Strategic Plan, “West Virginia is the one of the most rural states
in the nation, making digital divide issues a very real concern.” The state's strategy
is to encourage assistance and partnering with private firms.
West Virginia IT Strategic Plan. Available: [http://www.state.wv.us/got
/webITreport.pdf]. Accessed: February 16, 2004. Page 11 of 20.
WISCONSIN
Broadband Deployment Bill
In March 2004, the Wisconsin State Assembly passed the Broadband Deployment
Bill (SB 272) to “encourage free market competition and foster broadband
deployment.” In other words, the bill attempts to prevent local government from
forcing “tax payers to subsidize the building of telecommunication infrastructure.”
While the bill does not prevent communities without a high-speed Internet provider
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from building a broadband utility, it does restrict “communities that wish to compete
with the private sector.” Under the bill, these communities would have to “conduct
a three-year cost-benefit business plan of the proposed broadband utility, give the
public 30 days to review the proposal before conducting a public hearing, and refrain
from using taxpayer subsidies to fund the service.”
Representative Phil Montgomery. Press Release. March 5, 2004.
Education Telecommunications Access Program
Education Telecommunications Access Program “provides subsidized access to new
data lines for direct Internet access” for K-12 public schools, libraries and colleges.
Members are charged a capped monthly rate “based on the speed of their line” while
the program pays for costs that exceed the maximum rate.
A Nation of Laboratories: Broadband Experimentation in the States. Available:
[http://apt.org/publica/broadbandreport_final.pdf]. Accessed: April 6, 2004.
WYOMING
WTC Broadband Initiative
According to a draft plan of the WTC Broadband Initiative, released on April 16,
2004, "The Wyoming Legislature has allocated up to $250,000 of the Wyoming
Business Council’s Business Ready Communities Program budget to fund the
Wyoming Telecommunications Council (WTC) Broadband Initiative. Under the
budget, the overall objective of the broadband initiative remains the same: identifying
those areas of the state most in need of broadband infrastructure upgrades for
purposes of developing and implementing a plan to achieve ubiquitous broadband
access for Wyoming businesses and citizens." The next public work session will be
held on April 23, 2004.
The Plan of the Wyoming Telecommunications Council To Upgrade Broadband
Infrastructure in Wyoming.
SweetNet
The cities of Rock Springs and Green Water in Sweetwater County are teaming up
to build the Southwestern Wyoming Enhanced & Expanded Telecommunications
Network (SweetNet). Expected to cost over $31 million and have a 50-70 percent
customer penetration rate, the SweetNet will be funded by revenue bonds (75
percent) and contributions from private partners (25 percent).
Southwestern Wyoming Enhanced & Expanded Telecommunications Network
(SweetNet). Available: [http://www.sweetnet.us]. Accessed: April 18, 2004.