In case you followed the recent blog chatter about the proposed $40 billion that would go toward improving broadband availability and speeds as part of broader economic stimulus, here's some more information.
According to a Reuters article, Robert Crandall, a Brookings Institution economist said of a study he co-authored that the numbers that are being widely cited in newspaper reports are grossly overstated.
He is referring to a forecast that nearly 300,000 U.S. jobs would be created for every percentage point rise in high-speed Internet use
According to the Reuters report, Crandall said, "the Brookings Institution study, published in July 2007, is not particularly relevant now because of differing employment and related migration trends at the time of the study. Attempting to extrapolate it nationwide at this time is a "gross overstatement."
The article goes on to quote Chris King, an investment analyst at Stifel Nicolaus who believes that the section of the stimulus plan that call for targeting unserved rural areas would not really incentivize rural providers to invest.
Said King, "We believe the current plans are unlikely to stimulate private sector investment in unserved areas."
King is among a group of Wall Street analysts who maintain that tax credits for ultra-fast Internet speeds for underserved areas would likely only benefit Verizon Communications and perhaps some cable companies.
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