AT&T, Verizon Caught in Broadband Web

Updated with AT&T comment and broadband adoption information.

NEW YORK (TheStreet) -- With almost a third of the U.S. population disconnected from high-speed Internet, Washington's ambitious national broadband plan, due later this month, has the potential to transform the country from broadband straggler to Web-connection superpower.

It also could heavily impact telco behemoths AT&T(T) and Verizon(VZ), which are waiting to hear how the transcontinental buildout plan will impact their businesses.

President Obama's national broadband plan will become reality on March 17.

Aimed at the 93 million Americans who have fallen through the broadband net, the new strategy is expected to extend service to underserved areas, stimulate investment in faster Internet speeds and boost broadband adoption in lower income households.

There are a lot of factors that will come into play when America kicks off its broadband revolution. Many of the 93 million, for example, could have access to high-speed services today, although the Federal Communications Commission (FCC) recently warned that cost and lack of digital skills are the main barriers to broadband adoption.

The national broadband plan also has potential to open up new revenue for the nation's two largest broadband providers, as more of the wireless spectrum -- America's airwaves -- get auctioned off. In a speech in Washington last week, FCC Chairman Julius Genachowski explained that the broadband plan will free up 500 MHz of the wireless spectrum over the next 10 years, boosting mobile services.

>>Who's Got Broadband?

Under the FCC's plan, existing spectrum licensees such as broadcasters could relinquish unused airwaves for a share of the auction proceeds.

"Spectrum is something that wireless operators need," Craig Moffett, a senior analyst for the U.S. telecom market at Bernstein Research, told TheStreet. "[But] if it's coming from the broadcasters, don't hold your breath."

AT&T has already welcomed Genachowski's spectrum plan.

"It is encouraging that Chairman Genachowski has identified spectrum availability as a major near-term challenge," said Jim Cicconi, senior executive vice president for external and legislative affairs at AT&T, in an email to TheStreet. "He's absolutely right, and should be commended for his willingness to tackle the issue head on and make it a top priority of his chairmanship."

Cicconi explained that AT&T is dealing with phenomenal increases in mobile data use -- a massive 5,000% over the last three years. "Such usage patterns cannot be sustained without bold action to address the looming spectrum crunch, and that is exactly what FCC Chairman Genachowski has promised," he added.