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Biden to unveil broadband expansion projects to boost jobs

Vice President Biden goes to Georgia Thursday to announce $182 million in stimulus grants for increasing broadband access to homes and businesses in 17 states. A total of $2.5 billion of stimulus money has been set aside for broadband projects.

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Erik S. Lesser/AP
Vice President Joe Biden speaks at the Impulse Manufacturing plant, as Georgia Gov. Sonny Perdue (r.) and plant owner Ron Baysden listen, in Dawsonville, Ga., on Thursday.

In the late 1920s, the Republicans crowed about how their policies had put a 鈥渃hicken in every pot.鈥

The White House this week is dispatching Vice President Biden to southern Appalachia 鈥 the historic backdrop for economic hardship 鈥 to update that slogan to 鈥渁 broadband connection in every home.鈥

Mr. Biden will announce Thursday in Dawsonville, Ga., $182 million of American Recovery and Reinvestment Act grants to go to 18 so-called "middle-mile" broadband projects in 17 states. "Middle-mile" refers to the critical link between the Internet backbone network and the local servers that connect to households.

One project in north Georgia would mean broadband access for 42,000 households and 10,000 businesses, according to the White House, which has been under fire for lagging job numbers.

The result of the 18 projects could be 鈥渢ens of thousands of jobs,鈥 said White House economic adviser Jared Bernstein in a conference call with reporters Wednesday night.

More broadband, more jobs?

The main hope is that with the help of new or boosted broadband access, rural business owners will be able to expand markets for their products and laid-off workers will be able to more easily take college courses online to reshape their careers. The stimulus package allocates a total of $2.5 billion to physically deploy new broadband projects and another $4.5 billion to help Americans make use of the technology.

"The new broadband access will help underserved and often hard-hit communities overcome the distance and technology barrier by expanding connectivity between educational institutions, enabling remote medical consultations and attracting new businesses as well as the jobs that come with them," the White House said in a statement.

Expanding broadband access to all Americans to close the so-called 鈥渄igital divide鈥 has been a tough slog. President George W. Bush accelerated the effort of pushing broadband access 鈥 which allows for high-speed, large capacity Internet connections 鈥 into communities, including the so-called 鈥渓ast-mile鈥 issue of actually hooking homes up to the network. Mr. Bush鈥檚 call for complete broadband access by 2007 fell short, although according to some studies nearly 90 percent of US households today can hook up to high-speed Internet.

Major carriers such as AT&T have now backed a goal of 100 percent broadband coverage in the US by 2014 鈥 an ambitious target that the company says will be predicated on support from the government.

Just a modest increase in broadband adoption could add $134 billion to the US economy a year, according to a report last year by Connected Nation, a national nonprofit group. 鈥淕reater broadband deployment can restore economic growth, reduce our dependence on foreign oil and expand opportunities for those who have been left behind," the report concluded.

Costs v. benefits

But the cost of physically connecting the 600,000 rural households currently without broadband could be over $5 billion, with the connection cost per household something like $9,000, according to of TMCnet, a technology website. That's one reason, he writes, that "some say wireless is really the logical way to upgrade isolated locations."

What鈥檚 more, rural Americans are slower to adopt broadband technology when it's available than urban dwellers, according to the Pew Internet & American Life Project.

鈥淸P]eople should be realistic,鈥 Mr. Kim writes. Federal broadband funding "will be hugely important to the couple hundred thousand new isolated locations," he says, but it is not likely to "nudge national statistics very much.鈥

There's less than a year left for those stimulus grants to be approved. Lawrence Strickling, the White House鈥檚 assistant secretary for communications and information, rebuffed suggestions by reporters that a dearth of fundable projects had led to delays.

鈥淲e actually have a terrific inventory of projects, but we want to make sure that they鈥檙e going to be there five years from now, so we鈥檙e spending time understanding the budget and management [of each proposal],鈥 Mr. Strickling said. 鈥淭hese are complicated projects.鈥

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