US President proposes USD 100 bln investment to reach 100% broadband coverage

Nieuws Algemeen Verenigde Staten 1 APR 2021
US President proposes USD 100 bln investment to reach 100% broadband coverage

US President Joe Biden has unveiled a plan to invest USD 100 billion in expanding access to fast broadband in the US. Part of a wider plan to invest USD 2 trillion in American infrastructure, the aim is to reach 100 percent broadband coverage for the country. Under current estimates, over 30 million Americans live in areas without access to fast broadband, the White House said. 

Biden said broadband internet "is the new electricity", making it necessary for everyone "to do their jobs, to participate equally in school learning, health care, and to stay connected". However, Americans in rural areas and on tribal lands particularly lack adequate access, and high prices mean many more cannot afford broadband service even if the infrastructure exists. 

The President’s plan prioritizes building “future proof” broadband infrastructure in unserved and underserved areas to reach 100 percent high-speed broadband coverage. It also prioritizes support for broadband networks owned, operated by, or affiliated with local governments, non-profits, and co-operatives and ensures funds are set aside for infrastructure on tribal lands. 

In addition to subsidising infrastructure, the project seeks greater price transparency and competition among internet providers. This includes lifting barriers that prevent municipally-owned or affiliated providers and rural electric co-ops from competing with private providers, and requiring internet providers to clearly disclose the prices they charge. Some subsidies for low-income households may also be provided in the short term, but Biden said this would not be a long-term solution and he would work with Congress on a way to bring down internet prices permanently. 

Chips research

The wider plan also calls for increased investment in technology research and manufacturing capacity. Biden wants to invest USD 50 billion to create a new office at the Department of Commerce dedicated to monitoring domestic industrial capacity and funding investments to support production of critical goods. The President also is calling on Congress to invest USD 50 billion in semiconductor manufacturing and research, a proposal already introduced in draft CHIPS Act.

Another USD 50 billion would go to the National Science Foundation, creating a technology directorate that will collaborate with and build on existing programs across the government. It will focus on fields like semiconductors and advanced computing, advanced communications technology, advanced energy technologies, and biotechnology. His plan also will invest USD 40 billion in upgrading research infrastructure in laboratories across the country, including brick-and-mortar facilities and computing capabilities and networks. These funds would be allocated across the federal R&D agencies, including at the Department of Energy.

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