Information Technology & Innovation Foundation

Any national infrastructure package should include 21st century digital infrastructure—not only investments in core digital infrastructure, such as broadband and government IT systems, but also hybrid-digital upgrades to existing physical infrastructure to improve its performance. There is an array of areas any infrastructure bill should target to ensure digital infrastructure deployment.

Despite years of effort and tens of billions of dollars in subsidies, the United States still faces a stubborn rural-urban broadband gap. A large, one-time injection of federal capital can succeed in bridging the rural broadband divide if it is reasonably targeted and allocated through a reverse-auction program that serves as a transition away from the Federal Communications Commission’s Universal Service Fund. The current FCC program is funded through regressive fees levied on a shrinking base of telecommunications services.

Broadband affordability is a problem for some Americans, but not the “crisis” advocates claim. Municipal broadband prices are not substantially different from private ISPs’ broadband prices. After accounting for associated costs, private entry-level broadband plans are comparable to, if not more affordable than, municipal broadband. US entry-level broadband rates are also comparable with prices in peer nations. Studies focused on advertised prices often fail to account for average income.

The Information Technology & Innovation Foundation supports quick disbursement of this critical relief—the Federal Communications Commission should focus first and foremost on quickly getting money out the door. However, it should also consider how the emergency broadband benefit program can serve as a bridge to a better, more rational subsidy program than the current Lifeline system. The Commission ideally could provide a voucher that gives flexibility and choice to eligible participants.

5G is expected to provide the connective tissue for many emerging technologies critical to productivity, innovation, and national competitiveness. Some commentators have panicked over the so-called “race” for 5G, pointing in fear at China’s hundreds of thousands of new base stations, and projections of hundreds of millions of 5G subscribers this year alone. But if we are going to base policy decisions on this race (and it is questionable that we should), understanding how infrastructure and subscription numbers are actually counted matters.

For years, policymakers have asked a series of questions related to broadband speed: How fast is fast enough? What is an appropriate target for rural networks built with government subsidies? Is current competition sufficient to see the speeds we need?