Most state policies aimed at speeding broadband growth are ‘ineff...
Most state policies aimed at speeding broadband growth are “ineffective,” a new study said. Scott Wallsten, a fellow at the American Enterprise Institute- Brookings Joint Center for Regulatory Studies, said universal service mechanisms and programs targeted at underserved areas…
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don’t boost broadband penetration. Such programs “may even slow it… by giving an artificial advantage to one type of provider over another,” Wallsten said in the study, released Fri. Tax incentives “appear to have no impact,” and neither do laws restricting deployment of broadband by municipalities, the study said. But some policies, such as encouraging access to public rights-of-way for broadband providers, seem to help broadband penetration, Wallsten said. He said unbundling regulations “negatively correlated with penetration,” while increases in resold lines had a positive effect. Some programs targeting rural access may work, the study said. Subsidies by USDA’s Rural Development broadband program didn’t correlate with increased rural access to broadband, but those by USDA’s broader telecom program did -- “though the analysis suggests that it is probably not a cost effective way to increase broadband access.” In a Thurs. Wall St. Journal op-ed articles, FCC Chmn. Martin said his highest priority as chairman is “creating a policy environment that speeds the deployment of broadband throughout the U.S.” He said the FCC’s latest broadband deployment report (CD July 8 p8) offers “encouraging news” that the U.S. leads in the total number of broadband connections with 38 million subscribers “and we are signing up new subscribers at an incredible rate.” Martin said an Organization for Economic Cooperation & Development (OECD) chart ranking the U.S. 12th in subscribers per 100 residents doesn’t tell the whole story: “Our OECD ranking does not match the reality. For example, in terms of size, the U.S. has more than twice the population of the other countries ahead of it… And no other country has as many urban areas or as many remote and widely-dispersed rural areas spanning huge distances.”