The Case for a National Broadband Policy

THE CASE FOR A NATIONAL BROADBAND POLICY
[SOURCE: Information Technology and Innovation Foundation, AUTHOR: Robert Atkinson]
This paper makes the case for proactive public policy support of broadband telecommunications. It first examines whether the United States has fallen behind in broadband. It then discusses four reasons why leaving it to the market alone is likely to lead to slower deployment and take-up of broadband, especially next generation, high-speed broadband: 1) network externalities; 2) “prosumer” investment externalities; 3) competitiveness externalities; and 4) regional externalities. As we transition to a digital society where many aspects of life will be conducted online, widespread access to broadband is becoming a central factor in ensuring opportunity for all Americans. Whether or not all Americans have access to a key enabling technology like broadband is a legitimate matter of public policy concern. To the extent that some Americans cannot afford broadband access or cannot subscribe to it, there is an equity argument that can be made for a government role to ensure widespread adoption.
http://www.itif.org/files/CaseForNationalBroadbandPolicy.pdf