American Broadband Market Works, Economists Say

Reports of the death of American broadband have been greatly exaggerated, said a group of economists Friday at a panel on broadband market competition sponsored by the Progress and Freedom Foundation. Because American broadband was deregulated just five years ago, "competition is driving innovation," says Emperis managing partner Jeffrey Eisenach. But Information Technology and Innovative Foundation President Rob Atkinson said there is a difference between government "facilitation" of deregulation and actual deregulation on the broadband system. "I think we are behind, and I think it is a duopoly," he said. But Americans are "lucky to have two pipes" compared with many countries, he said. Introducing a municipal third pipe would be "overbuilding [and] a huge waste of money."