The National Broadband Plan could be the best kept secret in entrepreneurial ecosystem. If you know about it, read no further. If you don’t (and that is most people including entrepreneurs and investors directly affected by it), you almost certainly need to read further. The National Broadband Plan could be the most entrepreneur and investor friendly thing the Feds have going. And, it will affect every business (and consumer) that uses broadband.

Fortunately, this is the beginning and it is not too late to get into the details. I met with Stuart Brotman (perhaps the country’s leading authority on the Broadband Plan) the other day. He made a good point. Knowing about the Broadband Plan now is like knowing about the impending adoption of the Internal Revenue Code in 1906 (I think). And, it will be just as important.

 Just to get it out of the way, yes, the National Broadband Plan addresses a lot of physical infrastructure stuff (like telephone poles). But, and here is the part that should interest entrepreneurs and investors: It also addresses devices and applications that use broadband. Most importantly, one of its basic purposes is to foster innovation in this area and to foster increased use of broadband.

The plan will ultimately result in a series of rules promulgated by many three letter agencies (such as the FCC and the FDA (yes the FDA)). The hearings and other activities that lead up to rulemaking are taking place right now. 

Here is a partial list of the areas that will be affected (not even mentioning physical infrastructure):

            Healthcare devices and applications that use broadband

            Privacy regulations around what information can be kept stored and shared

            Smart grid applications and devices

            Education related devices and applications that use broadband

            Mobile broadband use

There are lots more. In the next six months there are likely to be in excess of 60 hearings on various Broadband Plan topics (most will be held in Washington). 

I was inspired to write this post (and will follow it up at irregular intervals with thoughts, observations and comments on the Broadband Plan and the hearings and regulations) because I had a conversation with an entrepreneur today that surprised me a little. He is developing a software application for use in the healthcare industry. Without saying more, it will use broadband communications. I mentioned that the National Broadband Plan might well impact his business. His response was something along the lines of “Never hear of it.”

He is not alone. Last week I spoke at a data storage conference in Boston and mentioned that investment in smart grid technologies was likely to be enhanced by the plan. I think one person in the audience knew what I was referring to.

The plan is the Fed’s overt effort to spur innovation and growth in the communications industry. If it is deployed properly and good rules and regulations are adopted, it may make a material and positive difference to all communications related businesses.

The venture industry should care a lot about what goes on in many of these hearings. In many cases the direction the government takes will affect the success or failure of your portfolio companies.

Stay tuned. I intend to write more on specific aspects of the plan, to collect good links to web based information on the plan and post whatever seems relevant from