"You can't make the money back at $35 a month," he said. "The numbers don't work."

Atkinson called on Congress to approve a mixture of tax cuts and grants to help broadband providers expand service. While a grant program would take time to set up, tax cuts would encourage providers to expand their networks almost immediately, he said.

He also called on Congress to get rid of open access and net neutrality requirements, as well as speed requirements, in the House version of the stimulus package. The House bill would require the U.S. Federal Communications Commission to define open access rules, and those rules could potentially include requirements for broadband providers to share their networks with competitors, he said.

Proponents of the open access rules say they're needed to keep broadband providers from blocking or slowing access to some Web content. But Atkinson said those requirements could drive away broadband providers from accepting stimulus money. With the requirements in place, "you'll see very little take-up of the grants," he said.