The U.S. Needs $350 Billion for Internet Development

The U.S. Federal Communications Commission, FCC, has announced a plan to introduce broadband internet to every home by the end of 2020, reports the BBC. According to FCC estimates, one-third of Americans do not have access to broadband internet, which is approximately 100 million citizens.

The goal of this U.S. body, responsible for overseeing communications and granting radio and television licenses, is to provide every citizen with a speed of 100 megabits per second, compared to the current average of four megabits per second. Broadband internet for every resident of the U.S. is not an overly ambitious plan and is absolutely necessary, explained former FCC Chairman Reed Hundt to the BBC, adding that the consequences of failing in this endeavor would be dire, primarily due to the fact that every state needs a medium around which it can gather, given that it is clear that this medium will undoubtedly be the internet; it is unacceptable that one-third of the population does not have access to it.

In a summary published before the FCC proposed its plan to Congress, it is emphasized that broadband internet is the foundation of economic growth and development, the creation of new jobs, global competition, and a better quality of life in general. One of Google’s leading figures, Eric Schmidt, commented on this FCC decision as a significant investment in America’s future that should facilitate the resolution of some crucial national issues such as employment, education, healthcare, energy, and security, reports computerweekly.com. On the other hand, industry analyst Erik Sherman from BNet.com emphasizes that this FCC plan should not be viewed as some sort of universal solution to all currently pressing issues in the U.S. The summary published before addressing the U.S. Congress also highlights that the number of high-speed internet users has significantly increased, from eight million users in the U.S. twenty years ago to nearly 200 million users today.

It is estimated that $350 billion is needed to implement this plan, and how this investment will be divided between private and public investments is still unknown. For now, it is assumed that the FCC will grant licenses for approximately 500 megahertz of frequencies it holds to cover part of the costs; it is also assumed that more than $7 billion will be obtained from President Obama’s stimulus package designed to improve and expand broadband internet across the country. For years, the American technology industry has pressured the government to finally adopt a national plan for the development of high-speed internet. It seems that they will now receive it; however, the question remains who will finance it and how. Broadband internet is critical for America’s long-term well-being, and given that society is rapidly transitioning to this type of technology, the cost of not having such internet is also rising, emphasize the signatories of the letter to FCC Chairman Julius Genachowski, which includes some of the strongest American and global companies, Cisco, Sony, Microsoft, Facebook, Intel.   (T.Vi.)