NCTA Study: RUS Subsidies Wasteful, Duplicative

An NCTA-commissioned economic analysis of federal broadband stimulus projects awarded by the Department of Agriculture's Rural Utilities Service (RUS) indicates that the program's funding of duplicative broadband networks has resulted in an extremely high cost t...

An NCTA-commissioned economic analysis of federal broadband stimulus projects awarded by the Department of Agriculture's Rural Utilities Service (RUS) indicates that the program's funding of duplicative broadband networks has resulted in an extremely high cost to reach a small number of unserved households.

The study, prepared by Navigant Economics of Washington, D.C., indicates that the RUS' Broadband Initiatives Program (BIP) is not a cost-effective means of achieving universal broadband availability.

The study said, in part: "At least in some cases, millions of dollars in grants and loans have been made in areas where a significant majority of households already have broadband coverage, and the costs per incremental home passed are therefore far higher than existing evidence suggests should be necessary."

The full study results are available at http://www.ncta.com/PublicationType/ExpertStudy/Evaluating-the-Cost-Effectiveness-of-RUS-Broadband-Subsidies--Three-Case-Studies-by-Navigant-Economi.aspx.
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