Saying 'Yes' to Broadband

[Commentary] Google's real innovation was to tunnel under the regulatory morass that inhibits physical broadband deployment.

Why is Google introducing Google Fiber in Kansas City and not its native California? Google's own Milo Medin has explained repeatedly that regulatory brambles make California "prohibitively expensive." Kansas City not only is more business friendly, it slashed the taxes and mandates that municipalities inflict on cable and telco operators. Most crucial was allowing Google selectively to extend its network into neighborhoods where customers would make it worth Google's while. This is a regulatory revolution in a world where, to build out their cable systems, cable operators for decades have not only been dunned for economically unjustified franchise fees (read gratuitous taxes to plump up local government) but shakedowns for everything from youth centers to studios and equipment for government-run public access channels.

Would that Washington were ready to join the clearing of obstacles to this new spurt of broadband competition. The truth is, competition has been more than adequate so far to police the Internet, and now competition is getting jacked up a serious notch as the video explosion stimulates a deluge of new investment. Now if the regulatory establishment would just take "yes" for an answer.