Framing a National Broadband Policy

By Robert D. Atkinson
January 18, 2008

This article appeared in the Fall 2007 issue of Commlaw Conspectus, a telecommunications law journal.

It is difficult to pick up a business or technology magazine without reading that the United States is falling behind other nations in broadband telecommunications. The real question is not whether the United States is falling behind-it is, as will be demonstrated-but whether the country should have a national broadband policy in response and, if so, what it should look like.

The answer to this question is not obvious. After all, a host of other exciting digital technologies have recently been introduced, and there is no talk of an Xbox gap or a national MP3 player strategy. On the other hand, broadband is unique in that the social returns of broadband investment exceed the private returns to companies and consumers. Therefore, market forces alone will not generate the societally optimal level of broadband in the foreseeable future.

Part II of this article assesses how far and why the United States has fallen behind in broadband. Part III then discusses why leaving broadband to the market alone will likely lead to adoption of broadband at a less than societally optimal rate. These reasons, laid out in Part IV, are: (1) network externalities; (2) “prosumer” investment externalities; (3) competitiveness externalities; and (4) regional externalities. Part V considers the trade-offs between various broadband goals, including universal deployment to all places, universal take-up by all individuals, faster broadband speeds, and increased competition. Fi-nally, Part VI concludes that the reasons discussed necessitate a national broadband policy, and suggests that crafting such a policy must involve sig-nificant analysis, debate, and consideration.

Read the full text of this report in the Fall 2007 issue of Commlaw Conspectus (PDF)

Related Links

"A National Broadband Plan for Our Future"
July 21, 2009
In this FCC filing ITIF discusses the policy and non-policy factors that affect broadband deployment and outlines an appropriate policy framework for a successful national broadband strategy.

"The Need for Speed: The Importance of Next-Generation Broadband Networks"
March 5, 2009

"ITIF Forum: Framing a National Broadband Policy"
October 19, 2007
See video and other details from recent ITIF Forum.

"Building the Broadband Economy and Society: A Forum"
October 19, 2007
See video and other details from recent ITIF Forum.

"C-SPAN’s The Communicators: Broadband Internet Access"
July 7, 2007
ITIF President Robert Atkinson and Scott Wallsten of Progress and Freedom Foundation discuss broadband on C-SPAN’s new show, The Communicators. Click the link for streaming video (RealPlayer). Download Realplayer.

"ITIF Debate: Is the United States Falling Behind in Broadband?"
June 15, 2007
See video, presentation slides, and other details from recent ITIF Debate.

"Broadband Blues"
June 4, 2007
Rob Atkinson’s Huffington Post blog entry outlining the need for proactive broadband policies to address America’s lagging broadband.

"Assessing Broadband in America: OECD and ITIF Broadband Rankings"
April 24, 2007
An examination of international broadband rankings, including the ITIF Broadband Rankings, which measure penetration, price and speed. The report also outlines several steps policymakers should take to reach the goal of high-speed ubiquitous broadband.