Friday, March 5, 2010

FCC’s National Broadband Plan May Cost $25 Billion | Telecompetitor

In about two weeks the FCC is scheduled to deliver a national broadband plan to Congress. The American Recovery and Reinvestment Act of 2009 mandated that the FCC author the plan, with the idea that the billions of dollars that are being allocated to broadband infrastructure should be wisely invested. The broadband stimulus plan allocates $7.2 billion towards the broadband cause. It appears to be a down payment.

The Wall Street Journal is reporting that the FCC’s national broadband plan will call for an additional $25 billion in spending. Of that $25 billion, approximately half or more will be allocated to a nationwide broadband public safety network for first responders. The FCC hopes to pay for this portion through future wireless spectrum auction proceeds. Additionally, the plan calls for $9 billion in funding for bringing broadband to rural areas. But it’s not entirely clear where that funding will come from...