FCC has primary responsibility for regulating broadband. The  Department of Commerce’s National Telecommunications and  Information Administration (NTIA) is the President’s principal  telecommunications and information adviser and works with other  executive branch agencies to develop the administration’s  telecommunications policies. A 2008 NTIA report reaffirmed President Bush’s vision of universal  broadband access by noting, “rom its first days, the   Administration has implemented a comprehensive and integrated package  of technology, regulatory, and fiscal policies designed to lower barriers  and create an environment in which broadband innovation and  competition can flourish.”
The Broadband Data Improvement Act of 2008 was enacted to “improve  the quality of Federal and State data regarding the availability and quality  of broadband services and to promote the deployment of affordable  broadband services to all parts of the Nation.”
Officials at OSTP, FCC, and NTIA during the Bush Administration told us  that the current federal broadband policy was market-based; OSTP told us  that the Bush Administration had implemented fiscal, technology, and  regulatory policies based on the recognition that a competitive  marketplace provides the best environment for achieving the United  States’ broadband goals, and competitive markets should be deregulated;  an official at FCC characterized FCC’s broadband policy in recent years as  one that reduced barriers to entry, lessened regulation of broadband, and  encouraged investment; and NTIA told us that federal broadband policies  of the past few years flow from an early speech made by President Bush  that emphasized the deployment of broadband, and that NTIA has  executed initiatives to remove economic disincentives. Furthermore, according to these officials, the role of the government in  carrying out this policy was to create market incentives and remove  barriers to competition; the role of the private sector was to fund the  deployment of broadband. Under this market-based policy, broadband infrastructure has been  extensively deployed in the United States. However, gaps remain, primarily in rural areas, because the market does  not support private broadband infrastructure investment in low-density  areas. For example, officials from several states said that rural areas in  their states often lack broadband service. Multiple Federal Programs Support Telecommunications Infrastructure Deployment, Primarily in Rural Areas, with Two Programs Specifically Funding Broadband

Eleven federal programs administered by six federal agencies help fund  telecommunications infrastructure deployment, but just 2 of these  programs—Rural Broadband Access Loans and Loan Guarantees program  and the Community Connect Grant program—focus specifically on  broadband infrastructure deployment. Both programs are administered by  the Department of Agriculture’s Rural Development, Utilities Program  (RDUP). III provides  information on these other federal programs.) Stakeholders Credit Federal Programs with Advancing Broadband Deployment, but Said More Investment Is Required to Reach Goal of Universal Availability

Industry stakeholders credit federal programs with helping to increase the  deployment of broadband infrastructure throughout the United States. The Broadband Policies of a Number of Other OECD Nations with Higher Broadband Subscribership Are More Detailed Than U.S. Market-Based Policy

A number of the OECD nations that lead the United States in  subscribership have broadband policies that are more detailed than the  U.S. policy and often include timelines, action plans, and some  performance metrics. States Vary in Their Approaches to Increasing Broadband Deployment

Officials from 48 states and the District of Columbia reported wide  variation in their approaches to increasing the level of broadband  deployment in their states. To address these gaps, CIOs said they were  considering or had taken a variety of actions, including mapping, planning,  and allocating funds. Mapping broadband deployment. In addition to these existing plans, CIOs from 6 states said  they are in the process of developing broadband deployment plans. Fourteen state CIOs told us  their states had provided some type of financial support to local providers,  state cooperatives, or state agencies for broadband deployment, ranging  from bonds to grants to appropriations from state budgets. The recently enacted  American Recovery and Reinvestment Act establishes universal access to  broadband as a goal and provides federal funding to RDUP and NTIA for  grants and loans, to NTIA for mapping broadband infrastructure, and to  FCC for developing a national plan for broadband deployment. Figure 1 compares broadband rankings for the  United States and other OECD countries. We selected these items because the  Government Performance and Results Act of 1993 (GPRA) emphasizes  these elements as important for the effective and efficient management of  government programs.
Why GAO Did This Study

The United States ranks 15th among the 30 democratic nations of the Organisation for Economic Co-operation and Development (OECD) on one measure of broadband (i.e., high-speed Internet) subscribership. The Federal Communications Commission (FCC) has regulatory authority over broadband, and several federal programs fund broadband deployment. This congressionally requested report discusses (1) the federal broadband deployment policy, principal federal programs, and stakeholders' views of those programs; (2) how the policies of OECD nations with higher subscribership rates compare with U.S. policy; and (3) actions the states have taken to encourage broadband deployment. To address these objectives, GAO analyzed the broadband policies of the United States and other OECD nations, reviewed federal program documentation and budgetary information, and interviewed federal and state officials and industry stakeholders.

What GAO Found

According to federal officials, the federal approach to broadband deployment is focused on advancing universal access. Federal officials said that historically the role of the government in carrying out a market-driven policy has been to create market incentives and remove barriers to competition, and the role of the private sector has been to fund broadband deployment. Under this policy, broadband infrastructure has been deployed extensively in the United States. However, gaps remain, primarily in rural areas, because of limited profit potential. Eleven federal programs help fund telecommunications infrastructure deployment, particularly in rural areas, and two of these programs, administered by the Department of Agriculture's Rural Development Utilities Program (RDUP), focus specifically on broadband infrastructure deployment. Industry stakeholders credit federal programs with helping to increase broadband deployment, particularly in rural areas, but told GAO that because of the high cost and low profit potential of providing broadband services in rural areas, the federal government will likely need to provide additional funding to achieve universal access. The American Recovery and Reinvestment Act of 2009 provides more than $7 billion to the Department of Commerce's National Telecommunications and Information Administration (NTIA), FCC, and RDUP, to map broadband infrastructure in the United States, develop a plan for broadband deployment, and issue loans and grants to fund broadband access and availability in rural areas. This funding will greatly increase the potential for achieving universal access, but overlap in responsibilities for these new broadband initiatives makes coordination among the agencies important to avoid fragmentation and duplication. Current administration officials said they are still formulating their telecommunication agenda. In comparison to the policies of several other OECD countries with higher broadband subscribership rates per 100 inhabitants, the U.S. policy lacks elements identified by the Government Performance and Results Act of 1993 as essential to achieving effective and efficient policy outcomes. Specifically, according to officials of these countries' governments, several of the OECD nations with higher rankings have written broadband policies, action plans, goals, and performance measures. A number of these other countries also have provided financial support, created financial incentives, or taken other steps to promote broadband. In interviews with state officials, GAO learned that states vary in their actions to encourage deployment. Officials in more than half the states cited gaps in broadband deployment and said their states were considering or had taken actions to address these gaps. Officials in 12 states said they had mapped their states and 13 more said they had plans to map; officials in 12 states said they have broadband deployment plans; and officials in 14 states said they have provided some type of financial support for broadband deployment.