Part of what I’m hoping to do with this blog is to make people aware of some of the great information out there about broadband and broadband issues.

One great example is the March 2007 “Economists’ Statement on Network Neutrality Policy” signed by 16 economists of the AEI-Brookings Joint Center for Regulatory Studies.

This is a concise and very readable study on a subject that, much too often, is obscured rather than clarified.

The economists could not be more clear. For example, here is their one-sentence summary: “Our basic concern is that most proposals aimed at implementing net neutrality are likely to do more harm than good.”

Why? The economists (who represent institutions such as MIT, Georgetown University, London Business School and Cornell University) point out that broadband markets already are dynamic and competitive. For example:

• FCC data from December 2005 show that 93 percent of all U.S. zip codes had two or more broadband providers, and 82 percent had three or more.
• Mobile wireless went from fewer than 500,000 subscribers in 2005 to more than 10 million in 2006!

More providers + more platforms = a dynamic, competitive market.

And bottom line, consumers are benefiting. Between 2001 and 2005, the average price of DSL has dropped by about one-third.

The study also comments on whether service providers would block access: “Providers need content in order to attract subscribers. If a provider restricted access, its product would be less valuable and attract fewer subscribers.” Translation: Bad business plan to keep your subscribers from their favorite websites. I think most providers know that already.

The study has much more to say, of course, and I hope you’ll go check it out for yourself.

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