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By Caren Bohan

ALBUQUERQUE, New Mexico, March 26 (Reuters) - President George W. Bush on Friday proposed 2007 as the goal for universal availability of high-speed Internet access to keep America competitive and innovative.

Speaking at length on the subject for the first time since August 2002, Bush discussed broadband while highlighting home ownership in the critical state of New Mexico -- a state he narrowly lost in the 2000 presidential election.

"We ought to have universal, affordable access to broadband technology by the year 2007," Bush said. "And then we ought to make sure as soon as possible thereafter consumers have plenty of choices."

"It's important that we stay on the cutting edge of technological change, and one way to do so is to have a bold plan for broadband," he said. Bush did not elaborate on how he would accomplish the 2007 goal.

Policymakers in Washington have been debating how to accelerate the rollout of high-speed Internet service. Some 20.6 million homes and small businesses already subscribe to it either from a telephone or cable television company.

Federal Communications Commission Chairman Michael Powell has pushed an agenda to reduce the regulations on telephone companies, which in the past have had to share their networks with rivals because of their dominance in serving homes.

"I look forward to working with my commission colleagues, Congress and the administration to deliver on this vision for the American people," Powell said in a statement.

Last year the agency decided that the dominant local telephone companies like BellSouth Corp. (BLS,Trade) did not have to offer rivals access to new fiber optic lines -- key for full broadband deployment -- at low, government-mandated rates.

Cable companies do not have to share their networks with rivals but some permit subscribers to have an alternative Internet service provider.

Minutes after the president spoke, Democratic presidential contender John Kerry mentioned broadband as a key growth area during a campaign speech laying out his economic policy.

"I will focus on raising American competitiveness. By spurring the growth of new industries like the broadband technology that will dominate the future," Kerry said during his speech in Detroit.

Bush also urged that broadband access be tax free. "The Congress must not tax access to broadband technology if we want to spread it around," he said.

Congress has so far been unable to renew a ban on taxing the monthly fees that Internet providers like EarthLink Inc. (ELNK,Trade) charge customers. The ban lapsed in November, but states have not moved to impose new taxes.

More consumers have signed up for the broadband from cable companies, with about 13.7 million lines compared to roughly 7.7 million using telephone companies' digital subscriber line (DSL) services.

"I think it's certainly consistent with the idea of where tomorrow's jobs will be and he's obviously showing a commitment to technological advancements," said Paul Glenchur, an analyst at Schwab Soundview Capital Markets in Washington.

"Given that you haven't seen this issue talked a lot about on the campaign trail, it's interesting that it's creeping in now," he said. "I don't know whether you can read much into it based on what you heard." (Writing by Jeremy Pelofsky, editing by Michael Miller; Reuters Messaging: jeremy.pelofsky.reuters.com@reuters.net; +1-202-789-8554))

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