CBS News/ November 9, 2011, 11:38 AM

Gov't. effort: $10 Internet, $150 computers

A third of Americans don't have high-speed Internet service at home, and that can be a challenge as daily life, from schoolwork to job hunts, increasingly goes online.

Now, the federal government is trying to open up access to more people with a new initiative to provide $150 laptops to free- and reduced-school lunch-eligible families, and two years of $9.95 per month Internet service to free school lunch-eligible families.

Executives and non-profit leaders from leading Internet service providers, technology companies, and non-profits have made in-kind commitments. "Connect to Compete" -- a national private and non-profit sector partnership run outside the government -- will implement the initiatives. Connect to Compete will launch national pilot programs beginning in the spring of 2012.

Julius Genachowski, chairman of the Federal Communications Commission, explained on "The Early Show" that, for many people, cost is a barrier, but other issues also hold people up from getting the Internet at home.

"Digital literacy is a barrier," he said. "A lot of people don't know how to use computers. A lot of people don't appreciate the value. Here is what this is about: We heard from ahigh school girl in Florida who is getting homework assignments that require her to use the Internet. That's good, because we want our kids to learn new technology to be able to participate in our economy, get jobs. Her family can't afford broadband at home. She goes to her local library at night after it's closed, in the parking lot, to use the wi-fi, so she can do homework, and that doesn't make any sense, and that's what we are trying tackle."

The initiative will cost taxpayers nothing, Genachowski said.

"This is a win/win for the country, and for all of the companies involved," he said. "If we can close that adoption gap, if we can go from 67 percent to a hundred percent, we will double the size of the online market in the United States. We will get more kids educated on new technologies. We will help people find jobs. One point: If you're looking for a job today and you don't have online access, you're in trouble, because all of the job postings are online."

"Early Show" co-anchor Erica Hill asked Genachowski whether "this also (is) the kick in the pants some of the companies needed to bring access to people? That is one of the problems in rural areas. Broadband may not have been available."

Genachowski said, "There really are two challenges, and we're tackling both. One is this deployment challenge. There are 20 million people who live in rural America, they just don't have broadband infrastructure where they live. Two weeks ago, we adopted major reforms of our rules, to update telephone programs to broadband programs. Today, we're focusing on the adoption initiative with low-cost broadband access and low-cost computers."

© 2011 CBS Interactive Inc. All Rights Reserved.
15 Comments Add a Comment
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petemcm says:
Won't cost the taxpayer - A load of crap. If the government is involved, the taxpayer will pay. Oh, and where's my $9.95 internet plan? Oh, right, I pay the internet provider a higher fee, so they can provide for those that don't have internet service, and then the providers can state that it's the cost of doing business to provide for rural America. If internet companies can provide $9.95 internet service for some, then they can do it for all. I am so tired of these freebies to the "poor".
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jackobyte says:
y'all gonna need this, 'cos what they got planned for yer ...
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123tterb says:
Just get me access to high speed interne... i will gladly pay full price.
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noloyalisti says:
Instead of creating good jobs to raise wages for Americans, the corporations who have seized and run the government want more computers to sell their cheap imported plastic crap. That way the Top 1% can continue on their quest to own and run everything, all the people, all the resources and all the goods.

Of course long before that happens, man made global climate change will equalize the human race and unfortunately all the other life on earth.
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Another_Devil_Advocate says:
There's nothing in this article that says government is going to subsidies this program so it can't be considered as an active socialism in action.

There's a private non-profit organization (http://connect2compete.org ) that has been busy encouraging this idea and they should be recognized for promoting the initiative.
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LoadedAndDangerous says:
I just told my wife that we will quit our jobs and become Liberals so we can get the freebies....but we won't vote for Socialist Obama. Free rent, free college, free babysitting, foodstamps, the internet, free computer, free birth control (abortions) and so on....why work.
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tsigili says:
There is zero justification, for the government to pay for connecting the poor to the internet. Absolutely NO justification........except POLITICS!!
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kennyfrew says:
The internet should be 100% free! Here we go with another reason why it should be. The internet is so full of advertising as it is , it should pay for itself. Instead these money hungry second party money grabbing cable and phone companies are making billions on something they are already getting paid for on the internet. As long as we keep paying their unrealistic fee's and bill's they will just exploit it further including speed and what you can do online and cannot. It never ends this way. Free internet for all everywhere- use the satelite network or something with a little initiative. Technology is way better than this archaic process we have now.
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ky1946 replies:
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I work for one of those telcos you mention. For your info. we don't get a penny back from any advertising entity and yet we spend tens of thousands a month to provide the GIGe backhaul to make those internet connections. Our internet and dsl platforms cost about 10 thousand dollars per one hundred customers after you factor in copper and fiber plant, labor associated with pole routes and buried plant, in addition to ongoing maint. and support after day one. At the present time copper facilities (cable) cost around 35 a foot for 600 pair cable. You figure how support is going to continue if you can't earn enough revenue to keep employees to install, maintain and trouble shoot subscriber trouble. If you give anyone something for nothing, somebody, somewhere is going to have to pay 'make up the difference'. A typical telephone company is allowed to make somewhere around 5 per cent profit overall. This is a regulated business. Anything over and it must be put back into the business. This small company alone used about three million in RUS borrowed money this year. I would emphasize borrowed as in pay back asap.
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jtdev1 says:
Just another example of when you're extremely poor or extremely rich you get government breaks.

Us middle class people have to pay full price for basic services.


when am I going to get a break???
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credibility2 replies:
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Many that would qualify for this think nothing of having expensive cell phones, or smoking, or drinking, or buying flashy clothes for themselves and all of their kids, or buying the latest Nike sneakers, etc. If the government is going to allow this type of pricing, it should extend it to everyone, otherwise, it should have pre-conditions of it for the so-called poor, and that is they can't have any other extravagant things...otherwise, they need to dump them in order to qualify. This is ridiculous. The government only cares about socialism for its preferred lower class that keeps them elected and in office.
petemcm replies:
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I don't feel so alone anymore. Where's the bailout for those that are living within their means, paying taxes, working to try and make a better living? Nope, suck it up, you don't need help. We'll bail out Wall St and continue to give more freebies to the poor, and you'll just have to like it.
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Bojax39 says:
"She goes to her local library at night after it's closed, in the parking lot, to use the wi-fi, so she can do homework, and that doesn't make any sense"

No, it doesn't. Especially when all it takes is a few neighbors going in together on an internet account and using wi-fi to create an ad hoc network so they can all use it.

Got to hand it to the kid, though. War driving the library for a connection is pretty creative. And how about all those fast food places which offer wi-fi hotspots for the price of a cup of coffee?

Still, a government initiative to lower the cost of connection is a good idea. Now if we can bring the connect speed up to match the speed many Europeans enjoy, we'd be world class. :-)
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jtdev1 replies:
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for a large price they will increase your speed, but it's useless if every website is dog slow.
ky1946 replies:
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I work for a communications company (independent telephone company). We are putting up a million and receiving 3 million to deploy fiber, telephone service and internet in two of our most remote exchanges. There will be jobs and money flowing for a year or two. At the end of the build, we will assume maint. and control of a potential 1100 subscribers. There is not one chance in 1000 that we will ever recover our expendetures and show a profit, if in fact we can not bill and receive a just rate of return. The RUS which replaced REA, which provided low cost loans to make electricity and later phone service available to everyone has been indicating future loans will exclude copper plant and mandate fiber. Fiber to every home in america would cost trillions and still not produce revenue at 10 dollars.
Backhaul, i.e., access to the internet costs big money. GigE backhaul would have to be in place everywhere for everyone to get
high speed dsl. At 10 dollars a month, someone, somewhere is going to have to pay. If not the government, who do think that will be. Rates will have to go up on all who pay full price to grant the reduced rates to those who get it basically free.
Pure socialism.
Another reason to stay in the rut of lower income. Food stamps, aid to dependent children, no taxes, free school lunches, free internet services, earned income credit, 99 weeks of un-employment and now free internet.
SOMEBODY IS GOING TO PAY FOR THIS AND IT IS NOT OBAMA.
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