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GAO: Broadband Stimulus Helped Lower Prices, Boost Speeds

A new report by the General Accounting Office (pdf) (GAO) found that in areas where the government invested stimulus dollars to shore up middle and last mile infrastructure, businesses were unsurprisingly able to receive faster and less expensive broadband than elsewhere.

The funds, which have been delivered via the FCC, the National Telecommunications and Information Administration and the Rural Utilities Service, often shore up infrastructure in places where private investment has stalled, either due to a lack of competition or rural deployment challenges.

"GAO examined broadband services for 14 federally funded and municipal networks and found they tended to have higher speeds than other networks," notes the report. "For example, in 9 of the 14 communities where GAO collected information on broadband speeds and prices, federally funded or municipal networks offered higher top speeds than other networks in the same community and networks in nearby communities."

Prices similarly saw a slight decline in those same markets. The result, insists the GAO, is more efficient regional small business operations. The lion's share of the funding came courtesy of the $787 billion economic stimulus package passed by Congress in 2009.

"According to small businesses GAO met with, the speed and reliability of their broadband service improved after they began using federally funded or municipal networks," says the report. "Furthermore, according to small business owners, the improvements to broadband service have helped the businesses improve efficiency and streamline operations."

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tshirt
Premium Member
join:2004-07-11
Snohomish, WA

tshirt

Premium Member

Prices similarly saw a slight decline in those same markets...

.... The result, insists the GAO, is more efficient regional small business operations. The lion's share of the funding came courtesy of the $787 billion economic stimulus package passed by Congress in 2009.

Wow, broadband is cheaper where someone else paid for the plant improvements, and debt service/financing aren't the lion's share of the bill.

dvd536
as Mr. Pink as they come
Premium Member
join:2001-04-27
Phoenix, AZ

dvd536

Premium Member

Re: Prices similarly saw a slight decline in those same markets...

most of the big boys didn't want the funds,.

motoracer
join:2003-09-15
united state

motoracer

Member

Disagree

I'm paying $54.99 for 15/1...Some deal, eh?
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Disagree

What were you paying for the same service five years ago?

motoracer
join:2003-09-15
united state

motoracer

Member

Re: Disagree

said by openbox9:

What were you paying for the same service five years ago?

$54.99
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Disagree

For the same 15/1 service?

n2jtx
join:2001-01-13
Glen Head, NY

n2jtx to motoracer

Member

to motoracer
said by motoracer:

I'm paying $54.99 for 15/1...Some deal, eh?

Two years ago I was paying $49.95 for 18/5. Now I am paying $59.95 for 18/5 (it went up $5 last year and another $5 this year). If public funding is making a difference, I do not see it.

Uncle Paul
join:2003-02-04
USA

Uncle Paul

Member

Re: Disagree

said by n2jtx:

said by motoracer:

I'm paying $54.99 for 15/1...Some deal, eh?

Two years ago I was paying $49.95 for 18/5. Now I am paying $59.95 for 18/5 (it went up $5 last year and another $5 this year). If public funding is making a difference, I do not see it.

Are you in a market that the gov made investments into?

1 recommendation

CmptixnWntd

Anon

Didn't Japan do this already...

Correct me if I am wrong, but didn't Japan do this already? Their gov planned and built out the infrastructure, and then let any ISP connect to those and offer services to any region. Now they have very fast Internet connection and ISPs competing on prices and services. Yeah, interesting that the GAO is only seeing that now @_@
Skippy25
join:2000-09-13
Hazelwood, MO

Skippy25

Member

Re: Didn't Japan do this already...

As the way it should be here, but you have too much corporate interest and protectionist of big money at hand.

bebecom
@rr.com

bebecom

Anon

Selective Interviews

what about eaglenet, West VA and North Florida Broadband, were they interviewed and analyzed?
63475675 (banned)
join:2014-01-06

63475675 (banned)

Member

LOL, What a joke!

It may have helped increase speeds but it DID NOT lower prices!

It simply forced folks that don't need or want the higher speeds to pay for
more service than they want.