The U.S. lags in broadband availability and adoption and faces...

by the government and an appropriate policy framework to enable the private sector to build on the government’s support,” the report said. Broadband is “simply not available” in some parts of the country, particularly rural areas, it said. Broadband adoption also remains a problem, it said: “Large and disturbing differences in broadband adoption still persist by income, race and ethnicity, and education.” The NTIA’s broadband grants program under the American Recovery and Reinvestment Act “has been successful in extending broadband to under-served communities,” and the FCC recently revamped its Universal Service Fund to support broadband, the report said. Spectrum is an “important resource” and “a sensible policy for managing this spectrum is crucial if the United States is to improve its competitive position,” the report said. In the report, Commerce predicts a “spectrum crunch” in three to five years. “Techniques such as improvements in spectral efficiency, increases in network density through cell site construction, and offloading traffic to wireline networks will not be sufficient to allow capacity to keep up with demand,” it said. “Wireless carriers will not be able to accommodate this surging demand without access to additional parts of the spectrum.” Government must reallocate spectrum “from existing to more efficient uses,” it said. “One aspect of this reallocation is having Congress authorize the FCC to use auctions to reallocate spectrum from TV broadcasters to wireless broadband providers. This can also involve further research and development of technologies that enable more efficient use of spectrum.” Maintaining an open Internet is critical to a “sound ICT policy,” Commerce said. “Innovators need to be able to compete on their merits and not face anticompetitive barriers.” Addressing Internet privacy and cybersecurity is also important, it said. Federal investments in research, education and infrastructure were “critical building blocks for American economic competitiveness, business expansion and job creation in the last century,” the report said. There are various initiatives under way “to help companies process large amounts of data through cloud computing.” To succeed in the global economy, government must encourage students and workers to pursue education in science, technology, engineering and mathematics, the agency said. Under-investment in 21st century infrastructure “has diminished the nation’s competitive edge,” Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., said Friday. “Sustained federal investment … will not just help grow today’s economy, but it will also lay the groundwork for generations to come."