Executive Summary Since the news broke that improving access to broadband would be part of the U.S. economic stimulus, regulators, service providers and vendors have focused significant energy on the important minutiae and mechanics of handing out $7.2 billion in federal aid. Those details clearly are important in shaping the size, shape and destination of funding. However, like many large-scale federal programs, the details are beginning to obscure the overall goal. In this case, that goal is connecting as many U.S. households as possible to the public Internet and bringing all the benefits of broadband connectivity to unserved and underserved households. Although not specifically stated in the American Recovery and Reinvestment Act (ARRA), the goal of providing every American access to an affordable broadband connection has been stated by numerous politicians and policymakers. Even before taking the oath of office, then-President-elect Obama raised the idea in his first weekly radio address: 'As we renew our schools and highways, we'll also renew our information superhighway. It is unacceptable that the United States ranks 15th in the world in broadband adoption. Here, in the country that invented the Internet, every child should have the chance to get online, and they'll get that chance when I'm President'because that's how we'll strengthen America's competitiveness in the world. However, to get to that point, Yankee Group concludes that $7.2 billion will fall woefully short. In fact, ensuring every American household has any level of access'not even factoring affordability and speed into the equation'will require a minimum of three times that amount. We came to this conclusion by developing four different scenarios that blend all available access technologies. As shown in Exhibit 1, the scenarios range from largely broadband wireless (Scenario 1) to nearly all fiber to the home (FTTH) (Scenario 4), similar to the model currently proposed in Australia.

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Ubiquitous U.S. Broadband Will Cost At Least Triple the Current
Stimulus Package
Published on September 2009
Report Summary
Executive Summary
Since the news broke that improving access to broadband would be
part of the U.S. economic stimulus, regulators, service providers
and vendors have focused significant energy on the important
minutiae and mechanics of handing out $7.2 billion in federal aid.
Those details clearly are important in shaping the size, shape and
destination of funding. However, like many large-scale federal
programs, the details are beginning to obscure the overall goal.
In this case, that goal is connecting as many U.S. households as
possible to the public Internet and bringing all the benefits of
broadband connectivity to unserved and underserved households.
Although not specifically stated in the American Recovery and
Reinvestment Act (ARRA), the goal of providing every American
access to an affordable broadband connection has been stated by
numerous politicians and policymakers. Even before taking the oath
of office, then-President-elect Obama raised the idea in his first
weekly radio address:
'As we renew our schools and highways, we'll also renew our information
superhighway. It is unacceptable that the United States ranks 15th in
the world in broadband adoption. Here, in the country that invented the
Internet, every child should have the chance to get online, and they'll get
that chance when I'm President'because that's how we'll strengthen
America's competitiveness in the world.
However, to get to that point, Yankee Group concludes that $7.2
billion will fall woefully short. In fact, ensuring every American
household has any level of access'not even factoring affordability
and speed into the equation'will require a minimum of three
times that amount. We came to this conclusion by developing four
different scenarios that blend all available access technologies. As
shown in Exhibit 1, the scenarios range from largely broadband
wireless (Scenario 1) to nearly all fiber to the home (FTTH)
(Scenario 4), similar to the model currently proposed in Australia.
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