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Broadband Internet Access and the Digital Divide: Federal Assistance Programs
Summary
The "digital divide" is a term that has been used to characterize a gap between "information haves
and have-nots," or in other words, between those Americans who use or have access to
telecommunications and information technologies and those who do not. One important subset of
the digital divide debate concerns high-speed Internet access and advanced telecommunications
services, also known as broadband. Broadband is provided by a series of technologies (e.g., cable,
telephone wire, fiber, satellite, wireless) that give users the ability to send and receive data at
volumes and speeds far greater than traditional "dial-up" Internet access over telephone lines.
Broadband technologies are currently being deployed primarily by the private sector throughout
the United States. While the numbers of new broadband subscribers continue to grow, studies and
data suggest that the rate of broadband deployment in urban/suburban and high income areas are
outpacing deployment in rural and low-income areas. Some policymakers, believing that
disparities in broadband access across American society could have adverse economic and social
consequences on those left behind, assert that the federal government should play a more active
role to avoid a "digital divide" in broadband access.
With the conclusion of the grant and loan awards announced by broadband programs temporarily
established by the American Recovery and Reinvestment Act of 2009 (P.L. 111-5), the Rural
Broadband Access Loan and Loan Guarantee Program and the Community Connect Broadband
Grants, both at the Rural Utilities Service of the U.S. Department of Agriculture, are currently the
only ongoing federal funding programs exclusively dedicated to deploying broadband
infrastructure. However, there exist other federal programs that provide financial assistance for
various aspects of telecommunications development. The major vehicle for funding
telecommunications development, particularly in rural and low-income areas, is the Universal
Service Fund (USF). While the USF's High Cost Program, as currently designed, does not
explicitly fund broadband infrastructure, subsidies are used, in many cases, to upgrade existing
telephone networks so that they are capable of delivering high-speed services. Additionally,
subsidies provided by USF's Schools and Libraries Program and Rural Health Care Program are
used for a variety of telecommunications services, including broadband access.
To the extent that the 112t Congress may consider various options for further encouraging
broadband deployment and adoption, a key issue is how to strike a balance between providing
federal assistance for unserved and underserved areas where the private sector may not be
providing acceptable levels of broadband service, while at the same time minimizing any
deleterious effects that government intervention in the marketplace may have on competition and
private sector investment.Congressional Research Service
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Kruger, Lennard G. & Gilroy, Angele A. Broadband Internet Access and the Digital Divide: Federal Assistance Programs, report, October 24, 2011; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc809651/m1/2/: accessed April 17, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.