Broadband Stimulus Plan to Fall Short by Nearly $17 Billion, Warns Yankee Group

The Yankee group, a technology research firm, estimates that the $7.2 billion in broadband stimulus funds is woefully inadequate for extending broadband's reach to all Americans. Currently, about 12 percent of U.S. households, including those in some major metropolitan areas, have no access to broadband service. Yankee Group examines four possible approaches to addressing the problem: an ultra-cost-conscious "Discount" option, a leverage-what's-in-place "Duct Tape" method, a "Pragmatic" middle-of-the-road approach and an all-fiber-to-the-home "Gold-Plated" scenario. While all reach the Anywhere goal of at least one broadband connection per home, none are perfect. And at a minimum, they all require unprecedented vendor cooperation and regulatory foresight. "Achieving ubiquitous broadband in the U.S. will hasten economic recovery and put the nation back where it belongs in terms of technology leadership, but it will take a concerted effort on the part of all stakeholders," says Vince Vittore, principal analyst at Yankee Group and author of the report. "A minimum of $24 billion is required, and that`s only if networks are deployed in the most efficient manner and much of the middle-mile infrastructure already is in place. While the stimulus is a good start, it's just that: a start."