Mark Jamison

One of the enduring ironies of antitrust law is that governments often step in to solve perceived problems that market forces are already addressing. A prime example: the breakup of AT&T in 1984 didn’t bring about the demise of the Bell telephone monopoly. The real shift came from new fiber optic networks—launched around 1984—and the development of cellular networks. Now, we see the same pattern with Google.

We write to provide economic insight to help states maximize the benefits of its Broadband Equity Access and Deployment (BEAD) and other funds for its residents. Several economic concepts are critical to maximizing the benefit of the BEAD money for state residents.  

On October 2, AEI hosted an expert panel to discuss how price controls might affect broadband affordability and ways to ensure broadband is affordable for all Americans. The panel featured New Street Research’s Jonathan Chaplin, Duke University’s Michelle P.

On September 29, the American Enterprise Institute hosted an expert panel to discuss states’ plans for managing the billions of dollars allotted to broadband expansion. The panel featured Duke University’s Michelle Connolly, North Carolina Department of Information Technology’s Nate Denny, ConnectLA’s Veneeth Iyengar, and Kansas Office of Broadband Development’s Jade Piros de Carvalho. Piros de Carvalho highlighted the need for solutions to the labor shortage that the deployment process will soon be facing, as well as the need for streamlined permitting processes.

How much broadband will Americans get for the $75 billion that Congress committed in 2021? That’s enough money to equip an additional 17 million households with broadband, taking the US to 99 percent broadband coverage, according to a Federal Communications Commission staff paper and data from the Census Bureau.

In 2020, the Federal Communications Commission committed to providing Starlink, a satellite internet network operating in 40 countries by Elon Musk’s SpaceX, with $885.5 million to expand broadband in unserved rural areas of the United States. But in August 2022, the FCC announced with almost no explanation that Starlink would receive nothing.

The Federal Communications Commission and the Biden administration have taken significant steps to fill the broadband gap in the United States, but bridging the divide is not easy. Figuring out where the broadband gaps are is no small task, and current mapping efforts fall short by overstating the amount of broadband in given locations—a product of relying on industry-reported data which is inherently incomplete.

 A new empirical study of net neutrality regulations in 32 Organisation for Economic Co-operation and Development (OECD) countries found that the regulations suppress broadband subscriptions and investment in fiber optics. What’s the bottom line? If the Joe Biden administration is serious about following science, it won’t try to resuscitate net neutrality. And hopefully Federal Communications Commission Chairman Ajit Pai’s investment in economics at the FCC will lead a Biden FCC to be more evidence-based in its decision-making than the last Obama FCC.

Senator and presidential candidate Elizabeth Warren (D-MA) has a plan for rural America. All of America should be concerned, because it reflects a fundamental misunderstanding of economics and business.I’ll focus on the rural broadband plan. The overarching theme is that private businesses cannot be trusted, and neither can consumers (except maybe when they are voting for Senator Warren), so government officials should take control. Other takeaways:

It is no secret that partisan politics infiltrated and shook the Federal Communications Commission’s decision-making during the waning years of the Obama administration. The rise of political considerations in FCC decisions, and the concomitant decline in substantive considerations, are also symptoms of a larger problem at the FCC; namely an organizational structure that encourages a silo mentality, favors people with legal training over people schooled in analysis, and muffles expert voices. There are several options for restructuring the FCC, but any successful reorganization must emphasi