Create Broadband Trust Fund In United States

[Gary]

In 1950s the most important infrastructure in US was the interstate
highway system which was/is funded by the Highway Trust Fund which
extracts 20+ cents per gallon of gasoline sold in USA.

In 21st century, most important infrastructure in USA is high speed
internet connectivity. Currently 63% of USA homes connected to net do
so via dial up.

My idea is to create the Broadband Trust Fund whose mission would be
three-fold: 1)accelerate the deployment/maintenance/upgrading of high
speed connectivity to all regions of USA, 2)give financial incentive to
households using dialup to upgrade to broadband, 3)facilitate early
round investing in information technology research.

The Broadband Trust Fund (BTF) would be funded by assess a one half of
one percent surcharge on the purchase of all tech products and services
over $1000.00. Purchases under $1000 would be exempt. A family
purchasing a $1500 pc would pay $7.50, not particularly onerous.

Businesses would pay more but there would be a cap (to be determined).
Above that cap dollars put into the BTF by business would be one for
one treated as a tax credit.

BTF funds would be dispersed by the 50 states who would focus their
funding efforts on deployment/development and the $1000.00 loan
program, which would essentially fund high speed connectivity for about
one year. The bet is that once a hh goes high speed it is not going
back to dial up.

At the national level the BTF in DC would manage funding for the to be
created National Institute for Information Technology Research (NIITR).
Presently the situation for early stage IT funding is bleak. Groups
like National Science Foundation focus on "science"....DARPA on
military, NIH on health. Nothing really for information technology.

Private venture funding (excluding angel funding) not much better with
very large houses not willing to place big bets and smaller vc groups
willing to invest but want onerous ownership terms.

NIITR would aim to make it easier for IT enterpreneurs to get their
ideas off the ground.

Based on market research data, the BTF could raise about $1 billion or
more each year.
All comments appreciated.

Gary Beach
gbe...@cio.com
508 935 4202

[Gary]

This is Gary Beach, author of broadband idea. My email address is
gbe...@cio.com