US mulls US$6bn broadband commitment

The US House of Representatives is considering a plan to invest $6bn (£4bn) in expanding the nation's broadband internet system.

The money would be used to fill gaps in rural and underdeveloped parts of the country where commercial broadband has yet to penetrate, according to proposals from the House Appropriations Committee.

The proposed funding is part of a larger package designed to spark economic growth in science and technology. An additional $10bn (£6.7bn) is being proposed for investment in scientific research facilities.

"For every dollar invested in broadband the economy sees a tenfold return on that investment," Committee member Dave Obey said in a written summary of the plan.

"We need to put scientists to work looking for the next great discovery, creating jobs in cutting-edge technologies, and making smart investments that will help businesses in every community succeed in a global economy."

Federal funding for broadband and telecoms networks has long been a hotly-contested issue in the US, particularly in sparsely populated rural areas where commercial providers have been hesitant to invest in cable and wireless broadband coverage.

The plan also calls for US$32bn (£21bn) to develop "smart energy grids" and US$1bn (£670m) to improve technology in schools, raising the possibility of even more investment for the IT industry.

House Appropriations Committee: American Recovery And Reinvestment proposals (PDF)