Study: Broadband stimulus overlapped existing service

13.04.2011

The cost of bringing broadband to each unserved home in the three projects is US$30,104, if 3G service isn't counted as broadband, the study said. If 3G service is counted, the cost rises to $349,234 per unserved home.

"Either comparison shows the cost to connect unserved households to be extraordinarily high because the vast majority of homes are already being served by another provider," said NCTA spokesman Brian Dietz.

The ARRA allocated RUS and the U.S. National Telecommunications and Information Administration (NTIA) more than $7 billion for broadband deployment and related projects. RUS gave the Kansas project $101.2 million in grants and loans to cover 4,247 square miles with fiber- or Wi-Max-based broadband.

The Montana project received $64.1 million in grants and loans to cover 154 square miles in Gallatin County with a fiber network. The Lake County Fiber Network project in Minnesota received $66.4 million to build a fiber network in Lake County and parts of St. Louis County.

Within the boundaries of the Kansas project, five companies offer seven broadband services, including 3G, the study said. In Montana, seven broadband providers offer services, and in Minnesota, eight broadband providers, including 3G carriers, offer service, the study said. In some cases, the broadband providers offer service to a small percentage of residents within the project areas.