WASHINGTON, D.C. -- Working to guarantee that all Americans can participate in an increasingly digital world, Senators John D. (Jay) Rockefeller IV (D-WV) and Olympia J. Snowe (R-ME), along with a bipartisan group of Senators, have introduced legislation that would encourage the deployment of high-speed Internet (broadband) connections to rural and underserved areas. The bill would provide tax incentives to service providers who offer both current and next generation broadband services, so that consumers and businesses in these communities can compete in the global economy.

“High-speed Internet access is an important tool for advancing economic development in every city and town,” said Rockefeller. “It is even more critical for rural communities because their pool of resources tends to be much smaller than those in urban areas. Without access to broadband technology, rural businesses fall behind their urban counterparts. The incentives in this bill can help these communities overcome the digital divide.”

“We cannot sit idly by while the digital divide widens,” said Snowe. “If we do not act, millions of Americans without access to modern technology will also find themselves unable to realize the educational and employment opportunities of the future. While efforts are being made to bring broadband service to all regions, urban and rural, the fact remains that this vital component of our telecommunications infrastructure is still being deployed more rapidly in urban areas. This legislation will ensure that all regions of our country will be able to share in the myriad opportunities and benefits provided by broadband services.”

The Broadband Internet Access Act of 2005, S. 1147, would create a temporary, two-tiered incentive system to service providers who offer advanced and next generation broadband services. Current broadband technology includes DSL or cable modem, while next-generation technology includes ultra high-speed broadband technologies, such as fiber optics. The bill would allow businesses to expense 50 percent of their investments on current generation technology and 100 percent on next-generation technology. To ensure that funds are concentrated on competitive market solutions, credits are earned only after a service provider achieves 10 percent market penetration.

The Federal Communications Commission reports that 20% of U.S. households don’t have a broadband provider in their area. Even for the 80% of households who do have a provider, only 25% of households actually receive broadband services. A recent PEW Internet & American Life Project study indicates that rural Americans have far less high-speed availability to their homes than urban and suburban residents do.