US infrastructure proposal to include broadband

POLICY

US President Donald Trump has announced that his $1 trillion infrastructure package is to include rural broadband expansion. The overall $1 trillion package includes $200 billion in government spending, with the remainder to be funded by private investors, incentivized by grants and loans.

Ajit Pai

CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION

In a statement, FCC Chairman Ajit Pai explained that closing the digital divide needs to be a national priority: “Far too many families and businesses in rural communities do not have access to adequate broadband, limiting their opportunities in the digital age.” Pai has proposed a comprehensive plan to promote broadband deployment to all Americans. In his opinion, the US federal government must make it easier to for broadband providers to retire copper lines in favor of next-generation technologies such as fibre.

“We think we ought to have the same push to have broadband connectivity all over the country because in the 21st century it is just as important as a telephone, water, sewer, roads”, said US Agriculture Secretary Sonny Perdue. “It has become an infrastructure of necessity.” Perdue also commented that a greater federal role in expanding broadband could be appropriate because private investors are more likely to focus on profitable urban areas over rural regions. Farm lobbies have expressed their concerns about low broadband adoption, which they feel is effectively stalling economic development efforts.

94% of Americans in urban areas have access to download speeds higher than 25 Mb/s, according to a Federal Communications report from 2016, but in in rural areas this is no more than 55%. Incorporating broadband into the government’s infrastructure package aims to narrow this digital divide. 34 million Americans, of whom, 23.4 million live in rural areas, still lack broadband internet access.

According to recent research by Deloitte, an investment of $130 bn to $150 bn is required in fibre infrastructure across the USA over the next five to seven years. This would probably come from a variety of sources, including communications service providers, financial investors, and public/private partnerships.

Deloitte says fibre currently passes less than one-third of U.S. homes and points out that the success of 5G depends on fibre availability. The research house believes U.S. policymakers should consider eliminating regulatory barriers that prevent carriers from operating a single IP network, impede deployment of additional fibre assets, or restrict the types of services on offer.

USA: HIGHER SPEEDS TO MORE RESIDENTIAL PROPERTIES

A recent Comcast study conducted amongst more than 200 building managers suggests that Wi-Fi access and high-speed Internet are more important to MDU residents than any other amenity.

87% of those surveyed believe technology plays either an extremely or very important role in keeping residents satisfied. 75% reported that the majority of residents ask about communications services in their building prior to renting. 30% believe quality communications services boosts property values by at least 20%.

Find out more here.

In a statement, FCC Chairman Ajit Pai explained that closing the digital divide needs to be a national priority: “Far too many families and businesses in rural communities do not have access to adequate broadband, limiting their opportunities in the digital age.” Pai has proposed a comprehensive plan to promote broadband deployment to all Americans. In his opinion, the US federal government must make it easier to for broadband providers to retire copper lines in favor of next-generation technologies such as fibre.

“We think we ought to have the same push to have broadband connectivity all over the country because in the 21st century it is just as important as a telephone, water, sewer, roads”, said US Agriculture Secretary Sonny Perdue. “It has become an infrastructure of necessity.” Perdue also commented that a greater federal role in expanding broadband could be appropriate because private investors are more likely to focus on profitable urban areas over rural regions. Farm lobbies have expressed their concerns about low broadband adoption, which they feel is effectively stalling economic development efforts.

94% of Americans in urban areas have access to download speeds higher than 25 Mb/s, according to a Federal Communications report from 2016, but in in rural areas this is no more than 55%. Incorporating broadband into the government’s infrastructure package aims to narrow this digital divide. 34 million Americans, of whom, 23.4 million live in rural areas, still lack broadband internet access.

According to recent research by Deloitte, an investment of $130 bn to $150 bn is required in fibre infrastructure across the USA over the next five to seven years. This would probably come from a variety of sources, including communications service providers, financial investors, and public/private partnerships.

Deloitte says fibre currently passes less than one-third of U.S. homes and points out that the success of 5G depends on fibre availability. The research house believes U.S. policymakers should consider eliminating regulatory barriers that prevent carriers from operating a single IP network, impede deployment of additional fibre assets, or restrict the types of services on offer.