Investing in Infrastructure

Since its announcement on 17 February 2007, the United States’ Broadband Stimulus Fund has had over 2,200 applications submitted. A total of $7.2 billion was made available for the expansion and adoption of broadband services in the US, and $4.7 billion of this is to be dedicated to the deployment of sustainable broadband infrastructure in underserved areas – it is hoped that the stimulus package is going to go some way at least to bridging the digital divide in the United States. The package is part of the American Recovery and Reinvestment Act, and the response has been unexpectedly overwhelming. It is hoped that the money made available will heighten the awareness of broadband, create jobs, revenue and help to ease the country out of recession.

The same type of package has been promised in the UK. The test will be whether the deployment will be effective. There are many companies that have applied for the funding but if the technology is not deployed in the correct way it could be a complete waste of funds and time.

There can be no doubt that broadband can make a huge difference, especially for small businesses in rural areas. At a time where people are losing their jobs, setting up work at home is often a good option and this is when a high-speed Internet connection comes into its own. It is not just in rural areas though – it is across the board. Broadband enables the world to operate more efficiently and effectively and if we were to ask ourselves where we would be without it, it probably does not bear thinking about. Perhaps surprisingly, the US falls into 15th place in the worldwide broadband access ranks. Yes the government is providing money for the project but there is the question of whether there is a realisation of just how important broadband access is in this digital economy.

There is then the question of whether $7.2 billion is going to be enough funding to achieve the aim that the government has set out. We are all used to projects going over-budget, and without sounding pessimistic, it seems optimistic that $7.2 billion will cover the enormous amount of work required to bridge America’s Digital Divide in a coherent and sustainable way. Can this amount of money assure high speed Internet or is it instead going to leave the job half done with poor speeds and leave rural communities at a disadvantage?

Whilst it is encouraging to see that something is being done to address the issue of broadband access across the United States, it remains to be seem whether this fund will give enough financial support, and whether the work will be carried out in a joined-up way that makes sense and gives access to high speed Internet for everyone, no matter where they are. It’s a very, very big job.

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