Technology Policy Institute

The Broadband Connectivity Index (BCI) measures overall internet connectivity and compares it across areas. The BCI uses principal components analysis of the availability of internet service, how many people have internet service at home, and the speed of internet service. The BCI is adjusted to range from zero (worst) to one (best), by county.

The National Telecommunications and Information Administration (NTIA) is beginning an epic effort to implement the broadband provisions of the Infrastructure Investment and Jobs Act (IIJA). Congress allocated $42.45 billion to build rural broadband through the Broadband Equity, Access, and Development (BEAD) Program, and these resources have the potential to provide internet access to most if not all households that do not currently have access. NTIA states in its Notice of Funding Opportunity (NOFO) that its focus is to provide service to unserved and underserved areas.

US regulatory agencies have been required to consider the equity and distributional impacts of regulations for decades. This paper examines the extent to which such analysis is done and provides recommendations for improving it. The Technology Policy Institute (TPI) analyzed 187 cost-benefit analyses (CBAs) prepared by agencies from October 2003 to January 2021. TPI finds that only two CBAs provided net benefits of a policy for a specific demographic group.

The Infrastructure Investment and Jobs Act (IIJA) has made money for broadband and other infrastructure much less scarce than it normally is. Unfortunately, the real resources—labor and equipment—appear to be far scarcer than they normally are. Even with the additional money, the IIJA will not succeed if these constraints on real resources are not addressed. The only real-time solution is to waive the “buy American” rules on equipment and encourage more immigration to help ease the labor shortage.

Several core recommendations emerge from this history of broadband policymaking:

The Federal Communications Commission asks a series of questions about the current set of programs supported though the Universal Service Fund, particularly in light of the broadband initiatives funded through the American Rescue Plan Act of 2021 (ARPA) and the Infrastructure Investment and Jobs Act (IIJA). Commenters have focused heavily on how to fund universal service programs given the problems with the current contribution mechanism and ways to modify existing support programs. We have reviewed these comments and respectfully submit reply comments.