American Action Forum

In the Infrastructure Investment and Jobs Act (IIJA), Congress allocated around $65 billion to connect Americans to broadband internet and gave the National Telecommunications and Information Administration (NTIA) a leadership role in guiding states on how to spend the funds. Now, it will be up to the NTIA and the states to ensure that congressional goals become a reality. This Request for Comment by the American Action Forum raises important questions about the appropriate path forward, and these comments aim to guide the NTIA to maximize the efficiency of each tax dollar spent.

Recent proposed mergers in the broadband space have brought attention to the competitive implications of these business deals.

Three broad observations should be kept in mind when evaluating broadband mergers and acquisitions:

1. Mergers and acquisitions can carry real gains for consumers by improving both the company and the dynamics of the relevant market;
2. The rapid development of the broadband industry demands a much higher threshold for evidence that should deter mergers; and
3. The broadband market is quickly evolving and as a result easily identified incumbents steadily face competitive pressures from countless new sources.

As past mergers show, mergers and acquisitions carry real gains for consumers by changing both the company and the dynamics of the market. Ultimately, a merged company will face more effective scrutiny from the market and consumers than from either the Department of Justice or the Federal Communications Commission. This is the essence of regulatory humility and indicative of the current market.