Obama signs new broadband bill

US president Barack Obama has signed a $7.2 billion (£5.082 billion) stimulus package for broadband networks, it has emerged.

This forms part of the new president's $787 billion Recovery and Reinvestment Act, which is aimed at reinvigorating the American economy.

A significant portion of the stimulus funding will be devoted to improving the existing broadband network in order to reach more remote, underdeveloped areas.

This includes rural regions where commercial telecoms providers have so far been unable to provide reliable connections.

It is hoped that these measures will improve the quality of life for residents and businesses, as well as encourage private communications providers to get further involved.

According to Yahoo News, the bill summary says: "America once led the world in broadband access, but for years has fallen further and further behind other nations in our technology capacity, thereby depriving American citizens the necessary tools for success in the global economy."

"The Recovery and Reinvestment Act takes steps to ensure that nearly every community in America, urban, suburban and rural, has high-speed broadband access."

According to a forecast report by Pike & Fischer's Broadband Advisory Services, there will be around 8.5 million VoIP enabled US households by 2011.