Friday, January 30, 2009

Stimulus Package - Build Out of Broadband

Congress has earmarked the build out of high speed internet as part of the economic stimulus package to the tune of $6.5b.........sounds logical as we are lagging many countries with our broadband penetration........however, a few stats to consider: 70% of US households have access to broadband via dsl or cable; another 28% can obtain through satellite (Wildblue.com and hughesnet.com), leaving 2%. Assume only half want broadband or 2.1m homes. This equates to more than $3,000 per home (3 years of broadband), and per the broadband providers isn't close to enough money.............at worst, provide a subsidy to customers to buy Wildblue or Hughesnet.

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