Text Version | En Español | Newsletter Signup | Home
Click here to view the At Work in Congress Section Click here to view the MA Resources Click here to view How John Kerry Can Help You Click here to view the About John Kerry Click here to view the John Kerry Working for MA Click here to view the John Kerry Newsroom Click here to Contact John Kerry
  Newsroom  
Press Releases
Floor Statements
Speeches
Op-Eds
Multimedia
Photo Gallery
Media Outlets

Search Site:
Newsroom
02/11/2001

U.S. Must Expand Access to Broadband Technology


The Seattle Post-Intelligencer By Senator John Kerry and Congressman Adam Smith

In the past decade, our economy has grown tremendously. The year-after-year expansion, record-low unemployment rates and low inflation are largely attributable to the private sector productivity increases brought about by the revolutionary changes in technology. Today, the business of America is information - and the test of any business plan hinges on the ability to access that information at higher and higher speeds, quickly and efficiently.

The caveat is simple: These expanded opportunities are available only to those with efficient and affordable access to high-speed lines. Companies locate where they have high-speed access to this new avenue of commerce and shy away from areas where access is either prohibitively expensive or unavailable.

At the beginning of the 107th Congress, we join together - and we seek to join with the new administration and other members from both parties - in an effort to ensure America's productivity continues to surge. We believe that Congress can assist millions of American businesses and families by enacting a tax credit that expands access to critical broadband technology.

As Democrats, we believe in bringing opportunity to as many people as possible. We also recognize that the private sector can be the best way to provide that opportunity. As we work to craft policies that will help grow our economy and continue raising the standard of living for Americans, we seek to partner with the private sector to encourage investments in the infrastructure, work force and research our country needs to succeed in the 21st century.

One of those investments must be in the physical infrastructure that connects us with the technology and information now available in the 21st century. Although most Americans have hooked up to the Internet, far too few have access to high-speed Internet, known as broadband.

Most Americans use traditional copper-wire technology to connect to the Internet. That's like trying to win the Indianapolis 500 with a horse and buggy - it's simply not fast enough. Broadband, which can be supercharged telephone wire, cable, fiber optics, wireless or satellite, is 10 to 20 times faster than copper wire technology. Faster doesn't just mean that Web pages will load more quickly or that your e-mail will pop up faster. It means that Americans can take advantage of the new opportunities available online, such as distance learning, better business-to-business transactions, entertainment and at-home banking and investments.

Unfortunately, far too few Americans have access to broadband, especially those living in rural and inner- city areas, because it is expensive to deploy. For example, a cable company can lay broadband infrastructure for about $143 per home in densely populated neighborhoods, but in rural areas it can cost up to $1,000 per home. Therefore, Americans living in rural areas or in costly inner-city areas are left without the infrastructure that is so critical in the New Economy.

This leads to a "double digital divide": First, America will quickly be outpaced by countries such as Sweden, Singapore and Japan, all of which are making substantial investments in broadband infrastructure; and second, rural and inner-city residents are being left behind within our own borders.

In Massachusetts, 151 of the 351 cities and towns have no cable or telephone digital subscriber lines at all. Even in Washington state, which ranks 14th in the nation, most of the rural and even suburban areas have no high-speed lines at all. If we are to remain competitive globally and spread the benefits of the New Economy to all citizens, the broadband infrastructure must grow.

That's why we're supporting legislation to give broadband suppliers an incentive to invest in the critical infrastructure of tomorrow. We believe that a five-year, two-tiered tax credit - a 10 percent credit for the deployment of 1.5 megabit service to rural and low-income areas, and a 20 percent credit for the deployment of next-generation 22 megabit service to rural, low-income and other residential areas - will help bring next-generation broadband access to the millions of Americans who are currently without this technology.

Instead of heavy-handed government regulation or promoting one broadband technology or provider over another, we're simply encouraging quick deployment of technology needed to give all citizens access to the high-speed information flow that will continue our economic growth and raise the standard of living for everyone.

As Congress and President Bush set the federal budget and make tough decisions about how to use the projected surplus, we must make sure that our investments are focused on keeping our economy strong and are broad enough to be enjoyed by as many Americans as possible. One small, but important, piece of that goal is passage of the Broadband Internet Access Act. This tax credit will help ensure that as the Internet grows - and results in even more educational and economic opportunities for citizens - no communities are left behind. With its broad bipartisan and bicameral support, this tax credit should be on the top of everyone's list in the coming year.

Sen. John Kerry is a Deomcrat from Massachusetts. Rep. Adam Smith is a Democrat from Seattle's 9th District.



Offices Locations
Washington D.C.
304 Russell Bldg.
Third Floor
Washington D.C. 20510
(202) 224-2742
Boston
One Bowdoin Square
Tenth Floor
Boston, MA 02114
(617) 565-8519
Springfield
Springfield Federal Building
1550 Main Street
Suite 304
Springfield, MA 01101
(413) 785-4610
Fall River
222 Milliken Place
Suite 312
Fall River, Ma 02721
(508) 677-0522