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The FCC has decided to include broadband subsidies in the lifeline/linkup program for the poor, a universally popular idea. Michael Copps will soon have to give up the FCC Chair to Jules Genachowski and I think would be proud to get this down while he's chair.  The state commissioners' have just sent him a note urging he "create a three-year federal Lifeline and Link-Up Pilot Program for broadband Internet access services and enabling access devices." Those "access devices" may include free or cheap computers for poor families. It's a feel-good program that everyone supports - if it isn't half wasted like the current USF program.

Some carriers want to charge full retail ($30-45) for a decent service, although DSL/cable costs them only $5-10/month for each customer added to an existing network. That figure is based on company and wall street costs and EBIDTA calculations, and would require exceptions for <a very few> special cases. If the U.S. is going to buy millions of DSL subs for hundreds of millions of dollars, the public should get a decent rate. $12-18 for decent speed (at least 2 meg down) allows a generous profit. Verizon is advertising everywhere DSL for $17.95.  Above that (likely) is a giveway.

NARUC seems to get that government money isn't free,

"all broadband Internet access service providers which are eligible to participate in any FCC broadband program, including the Pilot Program, be required to make equitable financial contributions to support such programs." The obvious way to make that contribution is to offer a price that's profitable but reasonable.

The stimulus would be doing well to get 3M more homes connected for $7.2B, well over $2,000/home. Subsidizing a $15 price down to $5 costs $120/home/year, and $360M/year for the same 3M homes. The payoff for helping poor people directly is substantially higher than the stimulus build.