FOUR YEARS OF

BROADBAND GROWTH

Office of Science and Technology Policy

&

The National Economic Council

June 2013
Table of Contents

Introduction................................................................................................................... 2

I. The State of American Broadband in 2013.................................................. 3

Significant Private Investment..................................................................................... 4

High-Speed Wired and Wireless Access for More Americans.............................. 5

Platform for Innovation, Growth and Consumer Benefits: Smartphones, 

Tablets and other Internet-Connected Devices....................................................... 7

Significant Challenges Remain: Adoption, Speed, and Pricing........................... 8

Disparity Between Urban and Rural Access........................................................... 11

II. The Obama Administration’s Contributions .............................................14

Recovery Act Investment in Broadband .................................................................. 14

Tax Incentives for Private Investment..................................................................... 16

Freeing Spectrum for New Innovation..................................................................... 18

Light-Touch, Multi-Stakeholder Policies to Build Opportunity and Trust.... 20

III. Policy Opportunities..........................................................................................22

Schools and Anchor Institutions................................................................................ 22

Innovation in Use of Wireless Spectrum.................................................................. 24
1

“This isn't about faster Internet or fewer dropped calls. It's about connecting every part of America to 

the digital age. It's about a rural community in Iowa or Alabama where farmers and small business 

owners will be able to sell their products all over the world. It's about a firefighter who can download 

the design of a burning building onto a handheld device; a student who can take classes with a digital 

textbook; or a patient who can have face-to-face video chats with her doctor.”

- President Obama, State of the Union Address, 2012

PRESIDENT BARACK OBAMA PARTICIPATES IN A TWITTER #MY2K LIVE QUESTION AND ANSWER SESSION IN THE ROOSEVELT ROOM OF 

THE WHITE HOUSE, DEC. 3, 2012. (OFFICIAL WHITE HOUSE PHOTO BY PETE SOUZA)
2

Introduction

Broadband access is an essential part of our economy. Given the reliance of so many American 

businesses and families on this basic technology, it’s easy to overlook that just 15 years ago 

broadband barely existed for consumers.

To create jobs and grow wages at home, and to compete in the global information economy, 

the delivery of fast, affordable and reliable broadband service to all corners of the United States

must be a national imperative. The build-out of broadband infrastructure itself is a major driver 

of American investment and job creation, but even more significant are the ways that 

connectivity is transforming a range of industries, from education to entertainment to 

agriculture to travel. High-speed wired and wireless networks place the United States at the 

center of a digital economy that is one of the brightest parts of our short-term recovery and 

long-term competitiveness.

This report highlights (1) the status of broadband development in the United States in 2013,

including both progress made in achieving greater availability to broadband as well as the 

significant remaining challenges of timely and affordable deployment of broadband to all 

Americans; (2) several important contributions of the Obama Administration over the last four 

years that have accelerated the growth of broadband technology; and (3) two key opportunities

for further action.

THE STATE OF BROADBAND BY THE NUMBERS 

 In the year 2000, 4.4% of American households had a home connection to broadband; by 2010 

that number had jumped to 68%. 

 Broadband networks at a baseline speed of >10 megabits per second now reach more than 94% 

of U.S. homes.

 Overall, average delivered broadband speeds have doubled since 2009. In 2012, North 

America’s average mobile data connection speed was 2.6 Mbps, the fastest in the world, nearly 

twice that available in Western Europe, and over five times the global average.

 Annual investment in U.S. wireless networks grew more than 40% between 2009 and 2012, 

from $21 billion to $30 billion, and exceeds investment by the major oil and gas or auto 

companies; investment in European wireless networks remained flat during this time period, 

while wireless investment in Asia (including China) rose only 4%.

 There are over 500 million Internet-connected devices now in American homes and businesses.
3

I. The State of American Broadband in 2013

By nearly any metric the last four years have been a period of tremendous growth in broadband 

infrastructure, access, and the digital economy upon which they rely.

Since the President took office, national broadband availability has increased at all advertised 

speed levels.1 Today, about 91 percent of Americans have access to wired broadband speeds of 

at least 10 Mbps downstream, and 81 percent of Americans have access to similarly fast mobile 

wireless broadband. 

The last four years have also been a period of significant transition in the needs of many 

broadband subscribers. Taking advantage of low barriers to entry and an open network, 

providers of cloud computing, remote processing, media-rich content and streaming video have 

created unprecedented demand for higher-bandwidth Internet services to businesses and 

households alike. That demand has driven substantial investment in high-speed facilities.

The government commonly defines the “basic” speed for broadband at 3 Mbps downstream 

and 768 kbps upstream (3Mb/768kb), with some regulatory decisions defining basic service as 4 

Mbps downstream and 1 Mbps upstream.2 Nonetheless, we acknowledge that the country is 

rapidly reaching the point at which baseline broadband evaluations should increase, and might 

instead begin at 10 Mbps downstream.3 This evolving baseline reflects a growing need for 

increased bandwidth as more Americans use the Internet for work and to build career skills.

4

Changing attitudes about broadband also track with the growth in demand and availability. The 

number of broadband adopters continues to increase steadily, alongside the rising number of 

Americans who consider the Internet a valuable learning tool. In 2011, 77 percent of American 

Internet users ages 25 and older reported relying on the Internet for personal communications, 

 1 National Telecommunications and Information Administration. “U.S. Broadband Availability: June 2010 – June 

2012.” May 2013. Available at http://www.ntia.doc.gov/report/2013/us-broadband-availability-june-2010-june2012. (Hereafter, NTIA, May 2013). 2 E.g., the Federal Communications Commission has defined broadband for certain regulatory purposes to mean 

downstream speeds of at least 4 Mbps and upstream speeds of at least 1 Mbps. Sixth Broadband Report, 25 FCC 

Rcd 9556, 9563 ¶10 (2010).

3 Since these lower baselines were used in developing most broadband metrics to date, when determining the 

“cutoff” for broadband, data throughout this report reflects those earlier metrics. While we believe 10 Mbps 

downstream is an increasingly “basic” speed, setting a 10 Mbps baseline for future evaluations does not imply that 

such speeds will fully meet all or even most Americans’ needs. As upward evolution in broadband speeds 

continues, however, reaching that figure at affordable prices should be a low-end standard. 4 See, for example, U.S. Small Business Administration, Office of Advocacy. “The Impact of Broadband Speed and 

Price on Small Business.” Columbia Telecommunications Corporation, November 2010. Available at:

http://archive.sba.gov/advo/research/rs373tot.pdf.
4

while 66 percent relied on it for general information – and about half depended on the Internet 

for financial services, for consumer services and for entertainment.5

While broadband access and speed have grown significantly over the last four years, significant 

areas for improvement remain, as the FCC has documented.

6

 Moreover, many markets are 

subject to at most limited competition among broadband providers. 7

 Thus, areas for 

improvement remain. Ongoing efforts are needed to ensure that all Americans have access to 

affordable and reliable high-speed access – and that the infrastructure exists to support 

increases in consumer and business demand for higher speeds. 

Figure 1: The Transformation in American Connectivity8

Significant Private Investment

Responding to the increasing consumer demand for services accessed through broadband, the 

private sector has been driving important advances in infrastructure and technology. U.S. 

telecommunications firms have made significant investments in infrastructure; for example, 

 5 National Telecommunications and Information Administration & Economics and Statistics Administration,

“Exploring the Digital Nation: America’s Emerging Online Experience.” June 2013. Available at 

http://www.ntia.doc.gov/report/2013/exploring-digital-nation-americas-emerging-online-experience. (Hereafter, 

NTIA & ESA, June 2013). 6 Federal Communications Commission, “Eighth Broadband Progress Report.,” (August 2012). Available at: 

http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-12-90A1.pdf. 7 Open Internet Order, 25 FCC Rcd 17905 ¶32 (2010). 8 National Telecommunications and Information Administration, “Digital Nation, Expanding Internet Access, NTIA 

Research Preview,” February 2011. Available at http://www.ntia.doc.gov/files/ntia/publications 

/ntia_Internet_use_report_february_2011.pdf.

41.5%

2.8% 4.4%

68.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

2000 2010

Percentage of American Households with Dial-Up Internet Connection

Percentage of Americans with a Home Connection to Broadband

Note: In 2000 broadband was considered to be 200 kbps while dial-up internet connections were typically 28.8 bps or 56 kbps
5

just two of the largest U.S. telecommunications companies account for greater combined 

stateside investment than the top five oil/gas companies, and nearly four times more than the 

big three auto companies combined.

9 In fact, since President Obama took office in early 2009,

nearly $250 billion in private capital has been invested in U.S. wired and wireless broadband 

networks. In just the last two years, more high-speed fiber cables have been laid in the United 

States than in any similar period since 2000.

10 Moreover, during President Obama’s first term, 

the annual investment in U.S. wireless networks alone grew more than 40 percent from $21 

billion to $30 billion. Projections for 2013 estimate an annual wireless network investment at

$35 billion.11

These investments in broadband, along with the openness of the network, are part of a selfperpetuating cycle that coupled with increased broadband adoption and digital literacy skills

training, have significantly improved access to higher-speed wireline and wireless broadband 

services, brought new users online and enabled the “App Economy,” a phenomenon that itself 

has driven demand for and deployment of even faster high-speed services.

High-Speed Wired and Wireless Access for More Americans

Evaluating the United States’ progress in broadband access requires a careful weighing of a 

number of characteristics, including access, speed, and geography. Measured against these 

factors, digital networks in the United States have improved greatly from even just a few years 

ago, reaching a larger percentage of households and offering much faster speeds.

Fast Speeds. The figure below displays the most recent broadband-speed availability data 

from the National Telecommunications and Information Administration (NTIA).

Figure 2: Percentage of U.S. Population with Access to Various Advertised Broadband Download

Speeds (Mbps)12

≥ 3 Mbps ≥ 6 ≥ 10 ≥25 ≥ 50 ≥ 100 ≥ 1 Gbps

All Broadband 98.18% 96.17% 94.39% 78.51% 75.15% 47.09% 3.17%

Wireline 93.41% 92.81% 90.91% 78.11% 74.85% 46.87% 3.17%

Wireless 94.37% 84.17% 80.66% 4.94% 3.03% 1.80% 0.00%

 9 Progressive Policy Institute, “Investment Heroes.” July 2012. Available at: http://progressivepolicy.org/wpcontent/uploads/2012/07/ 07.2012-Mandel_Carew_Investment-Heroes_Whos-Betting-on-Americas-Future.pdf. 10 FCC, “Significant actions and key developments in the Broadband Economy,” 2013. Available at:

http://webcache. 

googleusercontent.com/search?q=cache:Arky8AO3ehwJ:transition.fcc.gov/Daily_Releases/Daily_Business/2013/d

b0322/DOC-319728A1.doc+&cd=2&hl=en&ct=clnk&gl=us. Deployment of fiber optic cable includes of combination 

of middle-mile and last mile coverage, thus the increase in new infrastructure may not align with the increase in 

the availability of broadband via fiber to the premises. 

11 Ibid. 12 NTIA May 2013.
6

Notably, wireless (mobile and fixed) broadband has demonstrated remarkable gains in 

availability, and wired broadband access continues to improve. Even with 93% availability, 

however, millions of Americans remain without access to fixed broadband, which often 

provides the most robust connections. As described below, the Commerce Department and the 

Federal Communications Commission have made progress, and are taking numerous important 

steps to address this challenge through a number of ongoing programs.

Figure 3: Percentage of Population with Access to Broadband Speeds by Technology Type13

≥ 3 Mbps / 768 kbps ≥ 6 ≥ 10 ≥25 ≥ 50 ≥ 100 ≥ 1 Gbps

Cable 86.92% 86.95% 86.15% 76.42% 72.63% 44.20% 0.00%

DSL 73.51% 64.60% 47.39% 7.21% 0.11% 0.01% 0.00%

Fiber 20.20% 20.00% 19.86% 18.72% 18.25% 6.79% 3.16%

Fixed 

l

34.33% 25.81% 10.89% 4.88% 2.99% 1.78% 0.00%

Mobile 

l

91.81% 80.58% 78.67% 0.00% 0.00% 0.00% 0.00%

Copper 43.25% 15.37% 14.59% 1.46% 0.27% 0.12% 0.01%

Leading Wireless Technology. With the deployment of fourth-generation (4G) technologies 

such as Long-Term Evolution (LTE), advanced mobile broadband service is also much more 

widely available today than it was two years ago.14 The most recently available data from NTIA

(June 2012) indicates that 80.6 percent of Americans now have access to advanced mobile

broadband.

To place those figures in context, not only was the United States the first country to deploy 4G 

LTE networks at scale, but also, as of mid-2012 nearly half the world’s LTE subscribers were 

within the United States.

15 Likewise, in 2012, North America’s average mobile data connection 

speed was 2.6 Mbps – the fastest such average in the world, nearly twice that available in 

Western Europe, and over five times the global average.16

 13 NTIA, May 2013. 14 LTE and HSPA+ are two types of Terrestrial Mobile Wireless technologies that offer faster speeds than previous 

generations and are typically considered “4G” in marketing materials. For more information about technology 

types, see http://www.broadbandmap.gov/classroom/technology. 15 IDATE Research. “LTE 2013: Markets & Trends, Facts & Figures.” 16 Cisco, Global Mobile Data Traffic Forecast Update, 2012-2017. We note that this report does not compare 

countries on a country-by-country basis. Akamai’s State of the Internet report (below) includes mobile speed data 

by provider, but not by country. Page 31 of that report shows that of the three mobile providers studied, the 

average mobile data connection speeds were 1.4 Mbps, 2.6 Mbps and 4.6 Mbps. The fastest mobile provider with 

the fastest speeds in the world is located in Austria and provides average data connection speeds of 8 Mbps.
7

The average connection speed in the United States in the fourth quarter of 2012 was 7.4 Mbps, 

the eighth fastest among all nations, and the fastest when compared to other countries with 

either a similar population or land mass.17

Platform for Innovation, Growth and Consumer Benefits: Smartphones, 

Tablets and other Internet-Connected Devices

As of the first quarter of 2013, 500 million Internet-connected devices were in American 

homes.18 These include smartphones, tablets, and other Internet-connected devices that run 

applications. Between 2009 and 2012, U.S. smartphone ownership increased from 16 percent

to 56 percent.

19 More than 80 percent of smartphones sold globally in 2012 run operating 

systems developed by U.S. companies, up from 5 percent six years ago and 25 percent three 

years ago. Moreover, a growing number of households have transitioned away from wired 

phone lines, and the number with only mobile phones today exceeds 35 percent.

20

These devices have done more than connect Americans to one another more easily. The 

integration of mobile broadband, advanced operating systems and increasingly sophisticated 

hardware, along with low barriers to entry to an open network, have enabled an entire 

economy of mobile applications to develop in the United States. This “App Economy” is one of 

America’s most dynamic and growing sectors, and one that industry studies have cited as 

creating more than 500,000 U.S. jobs since 2007.

21

Economic studies have also placed the “consumer surplus” or value consumers gain from their 

time online at roughly 2 percent of their income – a particularly impressive outcome given that 

Americans spend a tiny fraction of that amount to get broadband service.22 It is easy to imagine 

why: another study found that in answering everyday questions, those who had access to a 

search engine did so in fifteen fewer minutes than those without Internet access.23

The benefits are not just for the individual and household. Broadband is known to make a 

substantial contribution to national economic growth, as more and more citizens become 

 17 Akamai, The State of the Internet, 4th Quarter, 2012 Report, http://www.akamai.com/stateoftheInternet/. 18 NPD Group, “Internet Connected Devices Surpass Half a Billion in U.S. Homes, According to the NPD Group.”

March 2013. Available at: https://www.npd.com/wps/portal/npd/us/news/press-releases/Internet-connecteddevices-surpass-half-a-billion-in-u-s-homes-according-to-the-npd-group/. 19 Aaron Baar, Market Daily. “Tablets, Smartphones Driving CE Sales,” July 2012. Available at:

http://www.mediapost.com/ publications/article/179415/tablets-smartphones-driving-ce-sales. html# 

axzz2UeuoHIJv. Also FCC, “Significant actions and key developments in the Broadband Economy.” 20 CDC Wireless Substitution. Available at:http://www.cdc.gov/nchs/data/nhis/earlyrelease/wireless201212.pdf. 21 TechNet, February 2012. Available at: http://www.technet.org/new-technet-sponsored-study-nearly-500000-

app-economy-jobs-in-united-states-february-7-2012/. 22 Austan Goolsbee and Peter Klenow, “Valuing Consumer Products by The Time Spent Using Them: An Application 

to the Internet,” National Bureau of Economic Research, January, 2006. 23 Yan Chen, Grace YoungJoo Jeon, Yong-Mi Kim, “A Day without a Search Engine: An Experimental Study of Online 

and Offline Searches,” University of Michigan, March 6, 2013.
8

empowered to take advantage of innovative technologies and connect to each other in new 

ways. Subsequent study of that consumer surplus suggests that Internet access contributed to 

the economy an average of $34 billion per year since 2002 (equivalent to about 0.26 percent to 

annual GDP growth).24 A separate study of 25 OECD countries between 1996 and 2007 found 

that a 10 percent increase in broadband penetration raises per-capita GDP growth by 0.9-1.5 

percentage points. Another study found that within 66 high income countries during the period 

1980-2002 a 10 percent increase in broadband penetration yielded an additional 1.21 

percentage points of GDP growth.25 Increasing the speed of a nation’s broadband connectivity 

also provides an economic boost – a study of 33 OECD countries between 2008 and 2010 

concluded that doubling the broadband speed for an economy increases GDP by 0.3 percent.26

Significant Challenges Remain: Adoption, Speed, and Pricing

Today, more than 56 percent of Americans have a smartphone,

27 and more than 78 percent of 

Americans are Internet users. However, 72 percent of Americans use broadband at home. 

Despite the advances in broadband coverage – particularly considering the United States’ size 

and geography – adoption is lower than in some nations with comparable Gross Domestic 

Product (GDP) per capita.28 Connecting more homes in the United States remains an important 

policy priority; absent this connectivity, individuals cannot take advantage of opportunities for 

education and skills development, entrepreneurship and e-commerce available to those with 

the connectivity.

Given the promise that broadband connections hold for households, businesses, and the 

economy as a whole, low adoption, availability of higher-speed connections, and affordability 

remain concerns for national broadband policy.

Uneven adoption. Demographic factors influence broadband adoption. For example, home 

broadband adoption among those with at least a college degree (88%) is more than double that 

of those who did not complete high school (35%); 50 percentage points separate broadband 

use of households with annual incomes exceeding $100,000 from those with incomes below 

$25,000 (93% compared to 43%). A larger percentage of urban dwellers use broadband at 

home (72%) than rural residents (58%), while Asians (81%) and Whites (74%) have adopted 

broadband at home to a greater extent than Hispanics (56%) and African Americans (55%).29

 24 Erik Brynjolfsson and Joo Hee Oh, "The Attention Economy: Measuring the Value of Free Goods on the Internet.” 25 “The Impact of Broadband on the Economy.” International Telecommunication Union, April 2012. 26 Ericsson, Arthur D. Little, and Chalmers University of Technology, 2011. 27 Aaron Baar, Market Daily, July 2012. Available at: 

http://www.mediapost.com/publications/article/179415/tablets-smartphones-driving-cesales.html#axzz2UeuoHIJv. 28 OECD Broadband Portal, Table 1d(2). June 2011. http://www.oecd.org/dataoecd/21/35/39574709.xls. 29 NTIA & ESA June 2013.
9

In total, approximately 29 percent of Americans do not use broadband at home as of 2011 –

this includes 8 percent of Americans who access the Internet only away from home (for 

instance at the workplace or an anchor institution such as a library or community center) and 

less than 3 percent of Americans who continue to use dial-up at home. Why do millions of 

these Americans who have access still choose not to subscribe? According to recent surveys, 

cost, skills and relevance remain major concerns.

Figure 4: Percentage of Broadband Adoption by Demographic Group30

Lack of Interest. In 2011, almost half of all households that did not use the Internet at home 

reported they had no need or interest in going online. This was especially true for older 

Americans; 68 percent of Americans 65 years or older were likely to express no need or interest 

in using the Internet at home, compared to 21 percent of people between the ages of 16 and 

44.

Those who frequently visit the Internet report using it for a variety of purposes. In 2011, users 

at least 25 years of age stated they rely on the Internet for: personal communications (77%); 

general information (66%); entertainment (48%); job searches, job training, or working from 

 30 NTIA & ESA June 2013.

88%

35%

93%

43%

72%

58%

81%

74%

56% 55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

College

degree

Less than

high

school

Income

>$100K

Income

<$25K

Urban Rural Asian White Hispanic African

American
10

home (29%); healthcare (27%); and education or schoolwork (23%), among others.31 NTIA’s 

Broadband Technology Opportunities Program (BTOP) public computer center projects are 

helping to teach non-users about these benefits to encourage them to adopt this empowering 

technology. These surveys are corroborated by international data suggesting that broadband 

use in schools drives home adoption; in Portugal, for instance, students in schools with highspeed broadband were 20 percent more likely to adopt broadband at home.32

Affordability. The second most common reason cited for lack of broadband adoption is 

affordability. In 2011, 28 percent of non-adopting households did not have broadband service 

at home primarily because of the expense of Internet service, an increase of four percentage 

points above 2010 data. Cost represents a significantly greater obstacle for lower income 

Americans: compared to 18 percent of households with annual incomes above $50,000 that 

cited affordability as the main deterrent to going online, 32 percent of families with incomes 

below $25,000 responded that the high cost of Internet service prevented them from using

broadband at home. 

The cost of broadband varies significantly based on speed, type of service package, and 

geographical location; the data about those costs also varies significantly. Based on a limited 

sample of prices available on provider websites, the FCC reports that in 2011 dollars, the 

average monthly price for a 1-5 Mbps connection was $35, the average cost of a 5-15 Mbps 

connection was $44, and the average price of a 15-25 Mbps connection was $56.50.33 The cost 

of “triple-play” packages (Internet, TV, and phone) also vary. New America Foundation found 

that plan prices in the United States started at $66/month for a basic package that included 

broadband speeds of 6 Mbps downstream and 1 Mbps upstream as well as TV and phone 

service. At the higher end, symmetrical service at 30 Mbps coupled with phone and TV was 

$130/month. For a stand-alone wireline service, price varies significantly depending on location 

and provider. At around $35, for example, a customer in San Francisco can subscribe to a 200 

Mbps symmetrical connection; New York and Washington, D.C., residents can subscribe to a 25 

Mbps down/2 Mbps up service; and citizens of Los Angeles can purchase a 10 Mbps down/1 

Mbps up service.34 Most data indicate the price consumers pay has remained steady or 

increased year-to-year, even though speed is increasing for those base prices over time; thus 

price remains one of the key challenges to increasing broadband adoption in the United States.

In addition to increasing adoption rates, the United States must also prepare for the increasing 

need for faster speeds by consumers, businesses and community anchor institutions. While 

broadband is accessible through multiple technologies at lower speeds, far fewer technologies 

 31 NTIA & ESA June 2013. 32 Rodrigo Belo, "Broadband in Schools: Effects on Student Performance and Spillovers for Household Internet 

Adoption." 2012. Dissertations. Paper 105. Available at: http://repository.cmu.edu/dissertations/105. 33 FCC, “International Broadband Data Report.” Available at: http://www.fcc.gov/document/internationalbroadband-data-report. 34 New America Foundation, “The Cost of Connectivity.” July 2012. Available at: 

http://oti.newamerica.net/publications/policy/ the_cost_of_connectivity.
11

offer the faster speeds necessary to take full advantage of emerging innovations (see below).35

For example, while cable, DSL, and mobile wireless are all widely available at basic broadband 

speeds, at 25 Mbps, only cable (76.42%) is widely available, followed next by fiber (18.72%).

Figure 5: Percentage of Population with Access to Top-Tier Broadband Speeds36

≥25 Mbps ≥ 50 ≥ 100 ≥ 1 Gbps

Cable 76.42% 72.63% 44.20% 0.00%

DSL 7.21% 0.11% 0.01% 0.00%

Fiber 18.72% 18.25% 6.79% 3.16%

Fixed Wireless 4.88% 2.99% 1.78% 0.00%

Mobile 

l

0.00% 0.00% 0.00% 0.00%

Copper 1.46% 0.27% 0.12% 0.01%

While it is a positive development that users often have the opportunity to choose among 

wired and wireless services at basic speeds, high-speed connections continue to show room for 

improvement both in availability, cost, and competition, particularly as more homes, companies 

and community institutions require higher speeds.

Disparity Between Urban and Rural Access

Figure 6: Broadband Availability by Urban and Rural (June 2012)37

 35 This graphic, available at http://ctcnet.us/DataSpeeds.jpg, provides a visual depiction of the speed capabilities of 

various types of broadband technology. 36 NTIA May 2013. 37 The U.S. Census Bureau categorizes each census block in the country as either “rural” or “urban.” The criteria 

defining the 2010 Census urban areas are available at http://www.census.gov/geo/www/ua/fedregv76n164.pdf; 

see also http://www.census.gov/geo/www/ua/uafaq.html).

≥ 3/768 

Mbps ≥ 6 Mbps ≥ 10 Mbps

≥ 25 

Mbps

≥ 50 

Mbps

≥ 100 

Mbps ≥ 1 Gbps

Rural 91.1 81.8 74.3 40.8 37.6 22.8 1.2

Urban 99.9 99.6 99.1 87.5 84.0 52.9 3.6

0

20

40

60

80

100

120

% of Population
12

Of great concern is also the disparity between urban and rural access, as well as uneven 

distribution of high-speed access across certain underserved geographies. Today, while almost 

100 percent of urban residents have access to download speeds of at least 6 Mbps, only about 

82 percent of residents in rural communities can access those speeds. The disparity is even 

more pronounced at higher speeds: almost 88 percent of urban residents have access to speeds 

of 25 Mbps, but less than half that percentage, about 41 percent, have access to those speeds 

in rural communities. Of course not all users require those higher speeds, and satellite and 

terrestrial wireless technologies continue to deliver promising improvements. But even 

considering the higher costs often associated with providing broadband to rural areas, limits in 

availability should not hold back rural populations seeking higher-speed, high quality Internet 

access. 

Access to broadband in rural communities also differs considerably by state. In 10 states and 

four territories, 20 percent or less of the rural population has access to speeds of 25 Mbps. In 

15 states and Puerto Rico, between 21 percent and 40 percent of the rural population has 

access to speeds of 25 Mbps. In only 12 states do more than 60 percent of their rural 

populations have access to at least this speed.38

Figure 7: Percent of Population in Rural Areas with Access to 25 Mbps Speeds39

 38 The District of Columbia is not included in these figures because all of its population is urban. 39 NTIA May 2013.

MA

CT

DE

NJ

AK

AL

AR AZ

CA CO

DC

FL

GA

HI

IA

ID

IL

NE

IN

KY

LA

TX

NM

NV

OR

WA

MS

MT

UT

WY

ND

SD

MN

WI

MI

OH

PA

SC

NC

VA WV

TN

KS

OK

NY

ME

RI

MD

MO

NH

VT

0 – 20%

21 – 40%

41 – 60%

61 – 80%

81 – 97%
13

The tables below highlight those states with the greatest broadband access at the middle three 

tiers of available speeds, as well as those with the least such access.

Figure 8: 15 States with Most Broadband Access at 10, 25 and 50 Mbps40

Most Access: ≥ 10 Mbps Most Access: ≥ 25 Mbps Most Access: ≥ 50 Mbps

1 DC 100% 1 Rhode Island 99.62% 1 Rhode Island 99.62%

2 Rhode Island 99.80% 2 Connecticut 99.09% 2 DC 98.27%

3 Connecticut 99.75% 3 DC 98.44% 3 Connecticut 97.08%

4 New Jersey 99.48% 4 New Jersey 97.77% 4 Hawaii 96.94%

5 Delaware 99.29% 5 Hawaii 96.94% 5 Massachusetts 96.55%

6 Massachusetts 99.16% 6 Massachusetts 96.84% 6 New Jersey 96.37%

7 Maryland 98.99% 7 Delaware 95.81% 7 Delaware 95.78%

8 Hawaii 98.70% 8 Washington 95.28% 8 Washington 94.76%

9 Florida 98.47% 9 Oregon 92.73% 9 Oregon 92.20%

10 New York 98.39% 10 California 91.22% 10 New York 90.97%

11 Utah 98.35% 11 New York 91.04% 11 California 89.56%

12 Washington 98.15% 12 Florida 90.71% 12 Utah 89.22%

13 California 97.95% 13 Utah 90.71% 13 Maryland 88.91%

14 Pennsylvania 97.15% 14 Maryland 89.46% 14 Nevada 84.33%

15 Illinois 96.90% 15 Illinois 87.53% 15 Michigan 83.05%

Figure 9: Five States with Least Broadband Access at 10, 25 and 50 Mbps

Least Access: ≥ 10 Mbps Least Access: ≥ 25 Mbps Least Access: ≥ 50 Mbps

47 Wyoming 81.58% 47 Arkansas 28.54% 47 Iowa 19.81%

48 Alaska 81.40% 48 Wyoming 22.17% 48 New Mexico 10.85%

49 Mississippi 78.57% 49 Vermont 20.48% 49 Wyoming 2.27%

50 Montana 75.52% 50 Montana 12.71% 50 Montana 1.42%

51 West Virginia 69.69% 51 Alaska 0.06% 51 Alaska 0.00%

 40 NTIA May 2013.
14

II. The Obama Administration’s Contributions

Once we emerge from the immediate crisis, the long-term economic gains to communities that have been left 

behind in the digital age will be immeasurable. Studies have shown that when communities adopt broadband 

access, it can lead to hundreds of thousands of new jobs. Broadband can remove geographic barriers between 

patients and their doctors. It can connect our kids to the digital skills and 21st century education required for the 

jobs of the future. And it can prepare America to run on clean energy by helping us upgrade to a smarter, stronger, 

more secure electrical grid.

- President Barack Obama, July 2, 2010

The Obama Administration has made a number of contributions to the rapid growth of highspeed broadband, including (1) stoking broadband investment through the Recovery Act; (2) 

providing tax incentives for business investment; (3) freeing up spectrum for mobile 

broadband; and (4) a light-touch, multi-stakeholder approach to regulation that has fostered 

both innovation in applications and deployment of infrastructure.

Recovery Act Investment in Broadband

One important goal of the Recovery Act was to increase access to and drive adoption of 

broadband across America, including an important $6.9 billion upgrade to the nation’s 

broadband infrastructure. As part of the appropriation, $4.4 billion was administered by the 

Department of Commerce’s NTIA to deploy broadband infrastructure, support public computer 

centers and encourage adoption of broadband. The remaining $2.5 billion was directed to the 

Department of Agriculture’s Rural Utilities Service (RUS) to expand broadband access in rural 

areas.

Under the RUS’s Broadband Initiatives Program, over $1.4 billion has been awarded to 105 

broadband projects in 37 states and one territory. NTIA’s Broadband Technology Opportunities 

Program (BTOP) received more than 2,800 applications requesting more than $36 billion in 

support for potential projects in all 50 states and territories. Grant recipients were required to 

show that "but for" these Federal grant funds, there would not be a business case to serve 

these communities. As of the end of May 2013, NTIA had invested over $2.8 billion in over 220 

KEY POINTS 

 More than $2.8 billion invested in over 220 projects that have already built and 

improved over 90,000 miles of broadband infrastructure and made high-speed 

connections available to about 14,000 community institutions.

 Created tax incentives to spur one of the largest private-sector infrastructure 

investments in history.

 On track to ensure that at least 98% of Americans have access to 4G wireless broadband 

service by 2016, and to free up 500 MHz of wireless spectrum for commercial use.
15

projects in every state, territory and the District of Columbia, the vast majority of which has 

been spent building and improving over 90,000 miles of broadband infrastructure and making 

high-speed connections available to about 14,000 community institutions across the country.41

BTOP grants fell into three categories:

1. Comprehensive Community Infrastructure. Projects to deploy new or improved 

broadband facilities (e.g., laying new fiber-optic cables or upgrading wireless towers) 

and to connect “community anchor institutions” including schools, libraries, hospitals, 

and public safety facilities. These networks help ensure sustainable community growth 

and provide the foundation for enhanced household and business broadband Internet

services.

2. Public Computer Centers. Projects to establish new public computer facilities or 

upgrade existing ones that provide broadband access to the general public or to specific 

vulnerable populations, such as low-income individuals, the unemployed, seniors, 

children, minorities, and people with disabilities.

3. Sustainable Broadband Adoption. Projects that focus on increasing broadband 

Internet usage and adoption, including among vulnerable populations where broadband 

technology traditionally has been underutilized. Many projects include digital literacy 

training and outreach campaigns to increase the relevance of broadband in people’s

everyday lives.

Additionally, through the State Broadband Initiative (SBI), NTIA awarded approximately $293 

million to 56 recipients, one grant each to the 50 states, five territories, and the District of 

Columbia. With this funding, states have been collecting and validating data biannually on the 

availability, speed, type, and location of broadband services, as well as the broadband services 

used by community anchor institutions, such as schools, libraries, and hospitals. The result of 

this effort is a pioneering data source, the National Broadband Map (www.broadbandmap.gov)

that has enabled the Administration to provide the best quality information on broadband 

services ever available in the United States. In addition, states are also using this grant funding 

to organize around broadband capacity building, using the data to drive policy and support local 

and regional efforts to compete in the digital economy.

These Recovery Act investments are helping to improve access to education and healthcare 

services as well as boost economic development for communities stymied by limited or no 

access to high-speed broadband. The investments in broadband infrastructure, public computer 

centers, and sustainable adoption have helped provide job training to the unemployed or 

under-employed, helped school children access the materials they need to learn, allowed rural 

 41 For a visualization of the BTOP investments, see NTIA’s Connecting America’s Communities interactive map at 

http://www2.ntia.doc.gov/BTOPmap/. 
16

doctors to connect to more specialized medical centers, and enabled small businesses to offer 

their services to national and international markets. BTOP projects, for example, have already 

delivered about 10 million hours of technology training to about 2.8 million users. Important 

lessons about how to overcome barriers to adoption are captured in NTIA’s Broadband 

Adoption Toolkit – a further return on the nation’s investment.42

BTOP accompanied another important development in expanding broadband access: the 

Federal Communications Commission’s Connect America Fund. After a decade of unsuccessful 

reform attempts, the FCC voted unanimously in October 2011 to overhaul the Universal Service 

Fund (USF).

43 The USF was originally designed as a program for delivering telephone service to 

rural America; its reform created the Connect America Fund to ensure broadband access to all 

Americans. The Connect America Fund is a public-private partnership that will over 10 years 

work to extend broadband to un-served consumers and communities across the country. As 

part of its overhaul, the Commission also established access to mobile broadband as a universal 

service goal for the first time, and created the Mobility Fund to spur deployment of advanced 

wireless infrastructure and eliminate dead zones. In their first phases of implementation, the 

Connect America Fund and Mobility Fund are already helping extend home broadband to 

nearly 400,000 previously un-served Americans and bring mobile broadband to up to 83,000 

previously-uncovered road miles.

Tax Incentives for Private Investment

Businesses making capital investments in broadband, like in other areas, are allowed to recover 

the cost of those expenditures over time through a depreciation expense deduction. By 

allowing an immediate deduction (or “expensing”) of investment costs, the tax relief that the 

President has signed into law lowers the effective tax rate on income derived from business 

investments. (Expensing provisions reduce the after-tax cost of investment by allowing 

companies to deduct the cost of their investment in the year it purchases qualified tangible 

property and places that property into service, rather than stretching that deduction out based 

on the depreciation schedule for that investment.) This incentive increases the effective rate of 

return on investment, leading companies to make investments that might otherwise be 

unattractive.

The President signed into law one of the largest temporary tax incentives for investment in 

American history, which has played a key role in accelerating and increasing investment across 

the economy – and particularly in telecommunications. In addition to this incentive expensing 

that was in effect in 2011, the President also signed into law additional investment incentives 

every year since 2009.

 42 NTIA’s Broadband Adoption Toolkit, May 2013. Available at: http://www.ntia.doc.gov/press-release/2013/ntiabroadband-adoption-toolkit-shares-best-practices-across-us. 43 Edward Wyatt, “F.C.C. Overhauls a Telephone Subsidy,” New York Times, October 27, 2011, 

http://www.nytimes.com/2011/10/28/business/fcc-overhauls-fund-for-broadband-service.html?_r=0.

http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-11-161A1.pdf
17

Furthermore, by providing an immediate window of opportunity in which the costs of investing 

in qualified property are lower, a temporary expensing policy encourages firms to accelerate 

investment that they might delay for several years – an especially powerful incentive for 

investments in longer-lived assets, like broadband infrastructure. 

As part of the 2009 Recovery Act, the President allowed businesses to recover the costs of 

certain capital expenditures made in 2008 and 2009 – including capital investments in 

broadband infrastructure – faster than under the ordinary schedule, by depreciating 50 percent

of the cost in the year the investor placed the property in service. The President’s 2010 Small 

Business Jobs Act extended this first-year 50 percent bonus depreciation for qualifying property 

purchased and placed in service in 2010.44

In December 2010, the President signed into law legislation that provided immediate 100

percent expensing of investment costs, one of the largest temporary investment incentives in 

American history, which allowed businesses and investors to deduct immediately the full cost 

of broadband investments rather than having to depreciate them over time – a benefit that

Treasury estimated could encourage $50 billion in total additional investment.45 The American 

Taxpayer Relief Act provided 50 percent bonus depreciation for investments made in 2013.46

This tax incentive had an especially significant effect on the broadband industry. In a joint 2011 

letter, leaders from Comcast and Time Warner described the effect expensing had on their 

ability to invest in broadband infrastructure: “Despite the downturn in the economy, the cable 

communications sector has been able to continue steady investment and to retain jobs as a 

result of policies like 100 percent expensing.”47 And in 2010, the Independent Telephone & 

Telecommunications Alliance (ITTA) released a statement commending Congress for passing 

the President’s Small Business Jobs Act “and specifically for the inclusion of bonus depreciation 

language included in the Act ... [which] will allow ITTA member companies to accelerate 

broadband investment and deliver the economic, educational, and healthcare opportunities 

that broadband provides.”48

 44 The While House Blog, “President Obama Signs Small Business Jobs Act - Learn What's In It,” Sep. 2010. Available 

at: http://www.whitehouse.gov/blog/2010/09/27/president-obama-signs-small-business-jobs-act-learn-whats-it 45 The U.S. Department of Treasury, “The Case of Temporary 100 Percent Expensing; Encouraging Business to 

Expand Now By Lowering the Cost of Investment,” Oct. 2010. Available at http://www.whitehouse.gov/sites/ 

default/files/expensing_report.pdf. 46 The White House Office of the Press Secretary, “Fact Sheet: The Tax Agreement: A Victory for Middle-Class 

Families and the Economy,” Jan. 2013. Available at: http://www.whitehouse.gov/the-press-office/2013/01/01/ 

fact-sheet-tax-agreement-victory-middle-class-families-and-economy. 47 Kyle McSlarrow and Gail MacKinnon, letter to the Honorable John Boehner, Dec. 2011. Available at

http://waysandmeans.house.gov/uploadedfiles/comcast_time_warner.pdf. 48 Press statement, “ITTA Commends Congress for Passage of Bonus Depreciation,” Sep. 2010. Available at 

http://www.itta.us/advocacy/2010/BONUS%20DEPRECIATION%20SBJCA%2092310%20207%20(f).pdf.
18

Freeing Spectrum for New Innovation

As the President stated in June 2010, “America’s future competitiveness and global technology 

leadership depend, in part, upon the availability of additional spectrum. The world is going 

wireless and we must not fall behind.” The need for spectrum is a constant refrain, and the 

Administration continues to devote significant attention to the issue. 

The public policy imperative was highlighted by the Council of Economic Advisors that, in its

February 2012 report, concluded, “it is unlikely that wireless carriers will be able to 

accommodate this surging demand without additional spectrum...In short, the projected 

growth in data traffic can be achieved only by making more spectrum available for wireless 

use.”49 Private-sector studies have reached similar conclusions, noting that wireless data traffic 

in North America is likely to increase 100-fold between 2009 and 2016.50

To address this need, in 2010 the President directed NTIA to work with the FCC to re-purpose 

500 MHz of spectrum from existing Federal or nonfederal use to wireless broadband within 10 

years, almost doubling the amount of spectrum available for that use. The challenge to NTIA 

and the agencies was a daunting one: within the spectrum bands best suited for wireless 

broadband service, dozens of Federal agencies operate thousands of spectrum-dependent 

systems supporting national defense, law enforcement, and severe weather forecasting, among 

other vital Federal missions. Yet within just a few months, NTIA had identified 115 MHz of 

federally-assigned spectrum that could be re-purposed for broadband and described its plan 

and methodology for reviewing additional spectrum bands to reach the 500 MHz goal. In 

executing upon that plan, NTIA supported the formation of working groups made up of 

representatives of Federal agencies, commercial broadband providers, and other stakeholders 

who are engaged in unprecedented collaborative efforts to free up more spectrum for the FCC 

to allocate to wireless broadband service while safeguarding critical Federal activities.

In parallel with these efforts, the President announced in his 2011 State of the Union address a 

commitment to ensure that at least 98 percent of Americans had access to 4G wireless 

broadband service by 2016. Thanks to private and public investments resulting from spectrum 

policy, tax incentives, Recovery Act investments, and competition policy, we are on track to 

achieve the goals of bringing 4G to nearly all Americans by the President’s deadline.

Central to the President’s wireless agenda are the spectrum provisions he proposed in the 

American Jobs Act, which were carried forward in the Middle Class Tax Relief and Job Creation 

Act of 2012. This legislation expanded the FCC’s authority to auction spectrum, enabling more 

robust wireless broadband service for consumers while also raising billions of dollars in

 49 Council of Economic Advisors, “The Economic Benefits of New Spectrum for Wireless Broadband,” Feb. 2012. 

Available at: http://www.whitehouse.gov/sites/default/files/cea_spectrum_report_2-21-2012.pdf. 50Cisco’s Visual Networking Index: Forecast and Methodology, May 2013. Available at: 

http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-

481360_ns827_Networking_Solutions_White_Paper.html.
19

revenue. The most innovative feature of the bill is the grant of authority to the FCC to design 

and conduct “incentive auctions,” in which television broadcasters can voluntarily bid on the 

right to relinquish some or all of their spectrum rights in return for some of the proceeds raised 

when that spectrum is auctioned for flexible use, such as wireless broadband. The FCC has 

proposed rules for the incentive auctions and is reviewing public comments now.

In addition to providing incentives for federal agencies sharing or relocating from spectrum 

reallocated to commercial users, last year’s legislation also established the First Responders 

Network Authority, or FirstNet, an independent authority within NTIA tasked with the design 

and deployment of a nationwide interoperable wireless network for first responders. FirstNet 

will empower regional, state, local, tribal, and territorial public safety agencies with the 

advantages of nationwide scale and interoperability across boundaries, while also giving them 

local control and flexibility. At the same time, with dedicated spectrum of its own and $7 billion 

in funding from spectrum auctions, FirstNet will partner with commercial providers and other 

stakeholders to expand wireless broadband access across the nation.

In comparison to other nations, the United States ranks among the top countries in current 

licensed spectrum available for mobile broadband, and while we cannot predict the amount of 

spectrum freed by the incentive auctions, this forthcoming spectrum — combined with Federal 

repurposing — are likely to keep the United States well atop other nations in mobile broadband 

allocation. 

Figure 10: Summary of Total Available Licensed Spectrum Available for Mobile Broadband (in 

megahertz)

Country Current Pipeline Current + Pipeline

USA 608 55+ 663+

Australia 478 230 708

Brazil 554 0 554

China 227 360 587

France 555 50 605

Germany 615 0 615

Italy 540 20 560

Japan 500 10 510

Spain 540 60 600

U.K. 353 265 618

Note: US pipeline numbers do not include the significant amount of spectrum that will be 

made available for mobile broadband from incentive auctions and federal repurposing.
20

Also vital to our economy is unlicensed spectrum, which is responsible for many of the 

innovative wireless technologies in devices we use every day, such as Wi-Fi. Last year’s 

legislation confirmed the FCC’s discretion to designate spectrum for unlicensed use, such as WiFi. Unlicensed spectrum plays an important role in fostering new wireless uses by enabling 

“innovation without permission.” Unlicensed spectrum applications have transformed the 

personal electronics industry, and are poised to make substantial contributions to the retail, 

manufacturing, and other sectors. Additionally, low power, close-range connections like Wi-Fi 

are essential to easing the strain on the cellular networks of the major wireless broadband 

carriers. Studies indicate that the majority of traffic over smartphones and tablets is now 

carried over Wi-Fi.51 In comparison to the European Union, the United States has substantially 

more spectrum (as well as more diverse spectrum) available for unlicensed applications.

Figure 11: Amount of Spectrum Below 6 GHz Available for Unlicensed Broadband Use

Light-Touch, Multi-Stakeholder Policies to Build Opportunity and Trust

The Administration has also taken a comprehensive approach to broadband and Internet policy, 

with a series of policies, multi-stakeholder efforts, and processes that are improving the 

efficiency and predictability of the digital economy. They include:

 51 Yochai Benkler, “Open Wireless vs. Licensed Spectrum: Evidence from Market Adoption.” Available at: 

http://www.benkler.org/Open_Wireless_V_Licensed_Spectrum_Market_Adoption_current.pdf, p. 6.

USA EU

Band Current Pipeline Current Pipeline 

(Unknown)

TV White Spaces Unl1 0-150 + -

863-870 MHz - - 7Unl2

902-928 MHz 26Unl3 - -

1880-1930 MHz 10Unl4 - 20Unl5

2400-2483.5 MHzUnl6 83.5 - 83.5

3550-3700 MHz 50Unl7 100Unl8 -

5150-5350 & 5470-

5825 MHzUnl9

555 - 555

5350-5470 & 5850-

5925 MHz

- 195Unl10 -

TOTAL 724.5-

874.5

295+ 665.5
21

• FCC’s 2010 Open Internet Order. In 2010 the FCC established light-touch rules designed 

to ensure that the Internet remains an open platform for innovation and expression, and 

that content is delivered regardless of its origin or recipient. The rules ensure low barriers to 

entry by providers of Internet-based services, which in turn continues to stimulate demand 

for service and facilities by making the Internet more valuable to users.

• Consumer Privacy Bill of Rights. Because trust in digital systems and the companies 

handling personal information is essential to the economy, the Administration released the 

nation’s first-ever comprehensive policy document on digital privacy. As part of that policy’s 

commitment to encouraging innovation, minimizing regulatory burden, and engaging all 

stakeholders, NTIA has for the last year led an inclusive, voluntary process for developing 

privacy codes of conduct.

• National Strategy for Trusted Identities in Cyberspace. To help promote an 

ecosystem with better security than the standard username and password, the White 

House released the National Strategy for Trusted Identities in Cyberspace (NSTIC), and has 

staffed a national program office at the National Institutes of Standards and Technology 

(NIST) to coordinate the Federal activities needed to implement the trusted identity 

ecosystem. That office has been leading efforts to promote private-sector involvement, 

build consensus on legal and policy frameworks, work with industry to identify new 

standards, and promote pilot projects.

• Cybersecurity. In addition to the nation’s first top-to-bottom review of national 

cybersecurity policy (the Cyberspace Policy Review), President Obama has also taken 

important steps to reduce the economic drag and uncertainty caused by cybersecurity 

vulnerabilities. Specifically, he outlined a series of legislative actions in his May 2011 

Legislative Proposal, and in 2013 signed Executive Order 13636, which expanded 

information sharing, developed robust privacy protections, and set up an inclusive, multistakeholder effort to develop nation-wide standards for critical infrastructure cybersecurity.

• International Strategy for Cyberspace. The U.S. International Strategy for Cyberspace is 

the United States’ comprehensive foreign policy document for the digital world, outlining

our vision for sustaining a global online environment that is open to innovation, 

interoperable the world over, and secure and reliable enough to support our economic 

growth. The strategy explains how the multi-stakeholder model, free data flows, respect for 

Internet Freedom, and strong regulatory forbearance helps enhance prosperity globally.

• Internet Policy Board. To regularize the development of national policy related to the 

digital economy, the White House also established in early 2013 the Internet Policy Board, a 

senior-level forum for policy development and decision-making. The Board includes regular 

membership from the President’s Cabinet agencies, as well as several components of the 

Executive Office of the President.
22

III. Policy Opportunities

There are a variety of opportunities to drive the broadband agenda forward, including 

important priorities like promoting competition, continuing to fuel investment and innovation, 

and protecting consumers. This report focuses on two important areas where policy innovation 

can help unlock the full potential of broadband technology for Americans: expanding highspeed access for schools and anchor institutions, and continuing efforts to relieve the spectrum 

crunch.

Schools and Anchor Institutions

“[I]n an age when the world’s information is a just click away, it demands that we bring our schools and libraries 

into the 21st century. We can't be stuck in the 19th century when we're living in a 21st century economy. That’s 

why, today, we're going to take a new step to make sure that virtually every child in America’s classrooms has 

access to the fastest Internet and the most cutting-edge learning tools. And that step will better prepare our 

children for the jobs and challenges of the future and it will provide them a surer path into the middle class. And, as 

a consequence, it will mean a stronger, more secure economy for all of us.”

- President Obama, Mooresville, North Carolina, June 6, 2013

Driven by new digital technologies, the future of learning is increasingly interactive, 

individualized, and full of real-world experiences and information. While broadband access has 

improved considerably in recent years, broadband infrastructure in America’s K-12 schools and 

local libraries has lagged far behind. Unfortunately, despite the successes of the FCC’s E-Rate 

program connecting schools to the Internet for the first time, oversubscription means that the 

average school has about the same connectivity than the average American home, but serves 

200 times as many users, and fewer than 20 percent of educators say their school’s internet 

connection meets their teaching needs. And our teachers do not get enough training and 

support to integrate technology in their classroom and lessons, despite the fundamental and 

increasing importance of those skills. 

According to the State Educational Technology Directors Association, within a few years schools 

with at least 1,000 students will need at least 1 Gbps to leverage the transformative power of 

KEY POINTS 

 Schools and community anchors remain underserved, particularly at connection speeds that 

would support important advances in education crucial to national competitiveness.

 Spectrum sharing will be crucial to the future of wireless broadband, and the federal 

government should encourage the policies and technology advances to enhance it.
23

online learning.

52 By comparison, in South Korea, 100 percent of schools already benefit from 

ultrafast Internet connections. 

The limited bandwidth in America’s classrooms is insufficient to support promising applications, 

such as online tutoring systems or graphic-rich educational games proven to increase student 

engagement and retention. In fact, most schools cannot support even multiple classrooms 

simultaneously streaming free educational resources, such as Khan Academy mini-lectures or

LearnZillion math lessons. In many cases, bandwidth will also be insufficient to support the 

interactive tests currently planned across the country that align to the new college and careerready standards that the Administration has promoted through Race to the Top and the No 

Child Left Behind reforms.

New education opportunities such as Massive Open Online Courses (MOOCs) and synchronous 

online learning are enabled by fast broadband speeds at universities and at home, and these 

education resources are changing how millions of Americans engage in postsecondary learning.

With additional broadband capacity, America’s K-12 students will also be able to benefit from 

high-speed opportunities.

Through the Recovery Act’s BTOP and BIP grants, the Federal Government sought to help 

bolster this underserved market. BTOP grant projects will connect nearly 10 percent of all K-12

schools nationwide to networks capable of speeds in excess of 100 Mbps, the speed the U.S. 

Department of Education cites as a baseline to support 21st century digital learning.

In states like North Carolina and West Virginia, BTOP has been a catalyst for getting virtually all 

schools connected to high-speed broadband – and the impact of getting schools onto a 

statewide network is tremendous. In North Carolina, over 70 percent of all schools in the state 

which did not already have high-capacity broadband available are being connected to a 

statewide network via the Recovery Act – and consolidating buying power has lowered Internet 

access prices by about 60 percent. In West Virginia’s McDowell County, schools are taking 

advantage of the improved access to broadband in ways that connect rural students to the 

entire world and provide rich, interactive learning experiences. In addition to connecting 

schools to high-speed networks, BTOP projects have offered courses to help teachers integrate 

online content into their curriculum and provided funding to support devices for students and 

teachers.

CFY (previously Computers for Youth) is using BTOP funding to provide digital literacy training 

and computers for low-income sixth graders and their families in New York City and Los 

Angeles. The CFY program focuses on high-poverty schools, offering Saturday workshops to 

teach students and parents how to use the Internet and find online educational resources that 

 52 State Educational Technology Directors Association, “The Broadband Imperative: Recommendations to Address 

K-12 Education Infrastructure Needs,” 2012. Available at: http://www.setda.org/c/document_library/get_file? 

folderId=353&name=DLFE-1515.pdf.
24

promote learning in subjects such as math and reading. CFY also trains families on its own 

PowerMyLearning.com platform, which provides free access to activities and games from 

across the Web that are designed to make learning fun.

The nation has an opportunity over the next few years to build on the success of BTOP to 

substantially increase the number of schools connected to high-speed broadband and, in turn, 

to substantially improve teacher training and digital learning in institutions across the country. 

The ConnectED Initiative

That is why on June 6, 2013, President Obama unveiled the ConnectED initiative, a 

breakthrough initiative to jumpstart learning technology across our nation’s K-12 schools. 

ConnectED will foster a robust ecosystem for digital learning, supported by robust broadband 

connectivity and wireless networks connecting 99% of America’s K-12 students. 

The ConnectED initiative will, within five years, connect 99 percent of America’s students, 

through next-generation broadband (at speeds no less than 100Mbps and with a target of 

1Gbps) to, and high-speed wireless within, their schools and libraries. The President is calling on 

the Federal Communications Commission (FCC) to modernize and leverage the existing E-Rate 

program, and leverage the expertise of the National Telecommunications and Information 

Administration (NTIA) to deliver this connectivity to states, districts, and schools.

Rural communities will experience some of the greatest benefits of new education 

technologies, as ConnectED will help provide new learning opportunities to level the playing 

field for rural students. The Universal Service Fund has been transformative in the past twenty 

years providing rural communities with telephone services, and now broadband. ConnectED 

builds on BTOP’s successes, with greater returns for communities finding it difficult to attract 

broadband investment.

Innovation in Use of Wireless Spectrum

With demand for spectrum continuing to grow among both commercial and government 

stakeholders, President Obama remains committed to developing innovative approaches to 

freeing up more spectrum for wireless broadband. As recognized by the President’s Council of 

Advisers on Science and Technology (PCAST) in its July 2012 report, Realizing the Full Potential 

of Government-Held Spectrum to Spur Economic Growth, commercial and government 

stakeholders must pursue and invest in emerging technologies and practices that will advance 

spectrum sharing and other efficiency-enhancing approaches to spectrum policy. 53

 53 PCAST, “Realizing the Full Potential of Government-Held Spectrum to Spur Economic Growth,” July 2012. 

Available at:

http://www.whitehouse.gov/sites/default/files/microsites/ostp/ pcast_spectrum_report_final_july_20_2012.pdf.
25

In some cases, Federal systems can be cleared out of a high-value spectrum band and relocated 

to alternative bands, allowing exclusive commercial access to the valuable band. This strategy is 

optimal from the perspective of the commercial service and should be pursued where feasible.

But in view of the finite nature of spectrum, it is increasingly clear that the nation must 

augment clearing opportunities with research, development, and deployment of means to 

promote more spectrum sharing – part of an “all-of-the-above” approach. 

Spectrum sharing can take several forms, but all involve two or more users having the right to 

use the same spectrum band according to rules designed to avoid interference between users. 

Sharing by Federal agencies maximizes spectrum efficiency and allows faster commercial access 

while avoiding relocation costs. Some types of sharing are already in common use, while other 

potentially more promising approaches are being developed and tested. They include:

• Temporal sharing, when one user is authorized to use a band of spectrum in some fixed

geographic area at certain times and another user has access to the same band at other 

times.

• Geographic sharing, where the government designates particular protection zones 

restricting commercial access to a particular spectrum band in certain areas, e.g. in the 

proximity of a military base or a federal satellite receiver. 

• Geo-location/database-enabled sharing, by which wireless broadband devices use 

available “white spaces,” or gaps, in bands and locations that are allocated to other uses, 

but only as directed by specific location-aware technologies and databases.

• Dynamic sensing, which is emerging as a commercially viable approach as it receives 

growing attention and investment, and allows networks and devices to react in real time, 

detecting and moving among a wide range of available spectrum bands in accordance with 

agreed-upon protocols and priorities. 

The continued development and deployment of spectrum sharing, in any of its forms, requires 

enhanced collaboration between commercial and government users, in the manner that NTIA 

has been overseeing for the last few years. Sharing of data regarding sensitive government 

systems presents risks for federal agencies, and they are to be applauded for their efforts to 

avoid undue risks while still moving in the direction of greater transparency as well as joint 

spectrum monitoring and testing with the commercial sector.

To accelerate these efforts, the Administration has released a new Presidential Memorandum, 

Expanding America’s Leadership in Wireless Innovation, which promotes efficiency, 

transparency, and collaboration. Building on the recommendations made last year by the 

PCAST, the memorandum requires Federal agencies to justify system acquisitions and requests 

for new spectrum assignments in terms of spectrum efficiency and to improve the accuracy of 

their reporting on spectrum usage. It also directs agencies to increase their collaboration and 

data-sharing with the private sector and opens up Federal facilities to greater public-private 
26

research and development. A newly-formed White House Spectrum Policy Team will oversee 

implementation of the memorandum and make further recommendations as to spectrum 

efficiency. In addition, the Administration continues to allocate Federal funding to research and 

development in spectrum sharing and other advanced communications technologies. Efforts 

such as these will unleash even greater innovation by our nation’s inventors and entrepreneurs 

as America continues to lead the way in wireless technologies.