Brattle Group

Fiber deployment has significant incremental economic benefits even in the presence of other high-speed broadband technologies. The report also argues that because private actors will not capture all the benefits of fiber deployment the marketplace will not deploy enough fiber on its own. Based on these findings we suggest a few policy takeaways:

As new spectrum based services come online, the demand for spectrum has increased significantly. At the same time, greenfield spectrum to meet these needs is becoming more scarce, and clearing government and other incumbent users from currently-allocated spectrum has become more challenging.

Two broad proposals have been advanced to modernize the Universal Service Fund's contributions system: 1) expanding the contribution base to include revenues from broadband internet access service, and 2) broadening the USF contribution base to include entities including edge providers such as streaming video providers, digital advertising firms, and cloud services companies. The most economically efficient option for reform is to expand the contribution base to include broadband internet access service revenues.