Cost of expanded broadband service could reach $350B

FCC officials finally have a cost estimate for accomplishing the goal of extending high-speed Internet technology to all Americans: $20 billion to $350 billion.

But with only a few months to go before the agency presents a sweeping national broadband plan to Congress, questions remain about how much money ultimately would be needed, whether government funding would be sought and if the private sector is willing to invest billions of dollars on a federal initiative.

"All of the different policy options will have to be explored between now and February," FCC Chairman Julius Genachowski told reporters after a public meeting that featured a status report on the blueprint, required by this year's economic stimulus package and due on Feb. 17.

Despite gaps in statistics on broadband availability, Genachowski expressed confidence the FCC will have sufficient data for framing policy recommendations.

"I'm less confident that the commission will have the spectrum it needs to meet the purposes that were outlined in the presentation today," he warned, raising a fresh concern.

The low end of the cost estimate would accommodate basic e-mailing and Web surfing, while a more robust network at the high end would accommodate bandwidth-heavy services such as high-definition movies and video conferencing.

Upcoming agency decisions on how broadband should be defined, at least for purposes of crafting the plan, will help narrow the cost down.

Blair Levin, the FCC official tasked with overseeing the effort, added that implementing the final recommendations would require more than the resources Congress has set aside to expand broadband availability -- including $7.2 billion in stimulus funding.

The five-member commission was briefed for four-and-a-half hours on dozens of facets of the plan, from its impact on education and public safety to its potential for enabling telemedicine services.

Due in 140 days, the plan will be far-reaching in other ways, seeking to boost student achievement, assist with job searches and career training and improve the lives of the disabled.

Statistics underscore the hurdles the agency faces: only 63 percent of Americans are signed up for broadband, 33 percent choose not to subscribe and 4 percent have no access. And when Americans do receive the service, the actual speeds -- especially during peak periods -- are often considerably slower than advertised, sometimes by as much as 50 percent.