ITIF: More broadband regulation may be needed

ITIF: MORE BROADBAND REGULATION MAY BE NEEDED
[SOURCE: InfoWorld, AUTHOR: Grant Gross, IDG News Service]
Information Technology and Innovation Foundation President Robert Atkinson said that relying on competition may not fix problems with broadband speed and cost in the United States, because of the high cost of entry into the market. Many DC policymakers call for competition to cure issues with broadband value and build-out, but they don't recognize that the cost of building out competing networks may make broadband a natural monopoly or duopoly. "It's a mistake for policymakers to assume that if they simply 'push the competition lever,' all the problems with broadband policy will be solved," wrote Atkinson, in an ITIF paper. "The bottom line is that if policymakers want to maximize not only societal welfare but also consumer welfare, they must balance the push for more competition with the need to maintain and create an efficient broadband industry structure." Atkinson and some other speakers at an ITIF broadband policy forum argued that the United States may need more broadband regulations to achieve higher speeds and lower prices. Atkinson suggested a balance between competition and regulations that would mandate open pipes and create stronger enforcement of consumer protection and antitrust laws.
http://www.infoworld.com/article/07/10/19/More-broadband-regulation-need...

* The Role of Competition in a National Broadband Policy
Reviews the four main policy options toward broadband competition: 1) keep the same number of “pipes”; 2) spur the deployment of more pipes; 3) force incumbents to open up existing pipes to competitors, and 4) regulate “duopoly” pipes. Although each policy track will achieve some benefits, each also brings with it costs and risks.
http://www.itif.org/index.php?id=87