Julius Genachowski, chairman of the Federal Communications Commission, said in comments posted Sunday that he realizes the $7.2 billion so far earmarked for creation of a national broadband infrastructure  falls far short of the amount that eventually will be needed. He said the FCC is looking at a number of funding mechanisms.
"There is no question that it will take a lot of private investment to do what's necessary," Genachowski told BusinessWeek editors. "And we're looking at what are the ways we can [provide incentives for] private investment. We've tried to lay out some cost estimates for what it would take to achieve different goals for the country. But how that investment gets made, over what time period, toward what end, and by whom is something we haven't tackled yet. That is the next phase of the process we are in."
A Billion Here, a Billion There ...
It's a vital issue, since many tens of billions of dollars will be in play. Craig Settles, a consultant who advises municipalities on broadband issues, agreed with Genachowski that much more will be needed. The keys, Settles said, are to realize that the goal is not a single monolithic national broadband infrastructure and that there are creative approaches to eliciting the necessary funding from a mix of public and private sources.
The first key is realizing that building a telecommunications infrastructure is not like building a road. "One of the big issues I have seen since the beginning of the stimulus and the national broadband strategy discussions is people with the mind-set that there is one monolithic network similar to I-95 on the East Coast or Route 66 in the middle of the country. If that is your point of reference, you would want to find a company to build or underwrite that."
If, however, the assumption is that a national broadband infrastructure will consist of a large number of local, state and regional projects that eventually will link together, the approach to funding, design and fulfillment becomes a lot more decentralized, flexible and granular.
Think Nationally, Act Locally
"What you really want to do is build a national set of guidelines or resources that can be referenced at the local or statewide level," Settles said. The most effective approach is to trust local entities to know what is needed in their region or community, and provide them with access to national funding mechanisms.
The role of the government is sort of a matchmaker, Settles said. "You use the federal government to create an environment that is consistent so local communities -- city, county and state -- can create the best solution for their respective needs. So the $7 billion isn't enough, but it is a start."
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