Ok, bear with me. This is a bit long, disjointed, and covers a few different points. I haven't bothered to do a historical study to see how we got to where we are today, but I should and I will. The history of telecommunications is rife with public funding and subsidies.
This won't all be cited perfectly. Feel free to copy and paste some of the key words into google. I started out doing a quick look and then started semi-documenting. Like I said, this is not a thesis, just factoids.
The US has the Universal Service Fund, which is used to subsidize the telecommunications industry. The catch is that the fund is funded by taxing the telecom companies themselves. The double catch is that the telecom companies just pass the cost onto their customers (sometimes as an actual line item!). So the customer is charged not only for the service he/she receives, but also for any subsidies from this fund. I think 2013 saw 8+ billion in subsidies handed out.
The National Telecommunications and Information Administration also funds internet subsidies, to a lesser extent. I think they've handed out 4 or 5 billion, but that's overall, not per year.
http://www.ntia.doc.gov/grants-combined
The US dept. of Agriculture is already handing out funding for rural areas. Not to much effect apparently. One program is called The Rural Utilities Service program.
Verizon makes deal, receives tax benefits and deregulation. Verizon reneges on contract. There are a pile of these out there.
https://www.techdirt.com/articles/20030 ... 2250.shtml
For example.
Article from 2007 regarding $200 billion worth of similar situations. This number has risen to about $300 billion since then.
http://www.pbs.org/cringely/pulpit/2007 ... 02683.html
These companies are being paid with tax payer money for services they promise to provide, then don't provide those services, then walk away with the money.
article on the US's slipping broadband market penetration as compared to other industrialized nations. Blame is put squarely on the telecom companies.
http://www.bloomberg.com/bw/articles/20 ... has-failed
article on the US being charged more than any other country for slower broadband access with a nice parallel to the power grid and it's evolution.
http://www.bloomberg.com/news/articles/ ... er-service
another article lamenting the shitty internet service the US enjoys. When I tell you that you guys suck, some of you don't understand how badly you're getting screwed. This isn't Canada enjoying all your pharma hardwork R&D for less. This is you guys getting screwed by private industry. Unforunately our (Canada's government and industry are trying to follow suit)
http://www.scientificamerican.com/artic ... -internet/
Here's a wiki quote expressing the importance of the internet. I realize it's not proof of anything, but it does convey the thoughts behind those who feel that decent access to the internet is important.
Internet access has become a vital tool in development and social progress since the start of the 21st century. As a result, Internet penetration and, more specifically, broadband Internet penetration rates are now treated as key economic indicators. The United States is widely perceived as falling behind in both its rate of broadband Internet penetration and the speed of its broadband infrastructure.[59]