Does America Need Universal Broadband?
The biggest problem with broadband service in America is not a lack of availability, it's a lack of competition. Most users have only one or two options for service, and while prices have come down slightly, they are still relatively high for Americans who feel increasingly pinched. A Pew study found an average monthly broadband bill of $34.50, down 4 percent from the previous year, but it also showed a gradual migration away from cable service, which tends to be faster and more expensive, to cheaper and slower DSL service. So the broad language in the stimulus law could end up defining an "underserved" area as simply an area without enough competition to make service affordable. Granted, there's plenty of room for skepticism here. With ambiguously written legislation cramming billions of public dollars down the throats of multiple government agencies with a mandate to spend the money quickly, the potential for confusion, waste and abuse is high. Nevertheless Derene is still cautiously optimistic, since the need for universal broadband adoption is actually far more pressing than even most public policy wonks understand. Without widespread broadband adoption, many other federal technology projects cannot move forward efficiently.