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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 and advanced telecommunications services, also known as broadband. Broadband is provided by a series of technologies (e.g., cable, telephone wire, fiber, satellite, wireless) that give users the ability to send and receive data at volumes and speeds far greater than traditional "dial-up" Internet access over telephone lines. Broadband technologies are currently being deployed primarily by the private sector throughout the United States. While the numbers of new broadband subscribers continue to grow, studies and data suggest that the rate of broadband deployment in urban and high income areas are 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 unserved and underserved areas. Economic stimulus legislation enacted by the 111th Congress includes provisions that provides federal financial assistance for broadband deployment. On February 17, 2009, President Obama signed P.L. 111-5, the American Recovery and Reinvestment Act (ARRA). The ARRA provides a total of $7.2 billion for broadband, consisting of $4.7 billion to NTIA/DOC for a newly established Broadband Technology Opportunities Program and $2.5 billion to existing RUS/USDA broadband programs. Meanwhile, it is expected that the Obama Administration will ultimately develop a national broadband policy or strategy that will seek to reduce or eliminate the "digital divide" with respect to broadband. It is likely that elements of a national broadband policy, in tandem with broadband investment measures in the American Recovery and Reinvestment Act, will significantly shape and expand federal policies and programs to promote broadband deployment and adoption. A key issue is how to strike a balance between providing federal assistance for unserved and underserved areas where the private sector may not be providing acceptable levels of broadband service, while at the same time minimizing any deleterious effects that government intervention in the marketplace may have on competition and private sector investment. This report will be updated as events warrant.

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