Politics and Technology

Market research firm Strategy Analytics reportedly is praising President Barack Obama for including rural broadband deployment in his new stimulus package, saying the program will yield 500,000 new jobs.

 

The stimulus bill, designed to prevent the U.S. economy from dipping deeper into recession, is struggling to make its way, intact, through Congress. Some analysts believe the package that Obama is pressing ahead with will expand the information superhighway to all corners of America, giving an electronic edge to companies and offering verities of jobs to rural residents.

 

According to reports, the stimulus package has earmarked between $6 billion and $9 billion for broadband deployment, largely for the expansion of high speed Internet to rural and underserved areas in United States.

 

“Some sources suggest that the stimulative effect of the spending could translate into 500,000 new jobs,” the firm said.

 

This renewed emphasis on broadband deployment is an important step forward for the United States which, according to Strategy Analytics (News - Alert), has lost its broadband foothold.

 

“America’s broadband policy over the past eight years has been characterized by nebulous goals and inaction – the country now finds itself trailing the developed world in virtually all aspects of broadband,” said Ben Piper, Analyst and Director of the Strategy Analytics Multiplay Market Dynamics service.

 

The report cites data placing the United States behind its European and Asian counterparts in broadband service, including speed, availability, penetration and price.

 

The firm gives the example of South Korea, which recently unveiled plans to build out a fiber optic infrastructure capable of delivering 1 Gbps service to the home by 2013.

 

In addition, the report draws parallels between current broadband deployment efforts and rural electrification policy under Franklin Delano Roosevelt in the 1930’s. Both policies, Strategy Analytics said, hinge on the belief that increased access translates into improved competitiveness.

 

“South Korea’s recent announcement further underscores the need for quick and decisive action,” Piper said.