Here at NextGenWeb, we’ve long taken issue with the apples-to-oranges methodology used by the OECD for its international broadband rankings. (Among several concerns, for example, we have a hard time accepting that the U.S. is behind countries roughly the size of Rhode Island.) Fortunately, today a more measured analysis has emerged that sheds constructive light on where we are today—and where we still need to go.
At an event hosted today by the Technology Policy Institute, Vice President for Research and Senior Fellow Scott Wallsten discussed findings in his new paper on U.S. broadband that sets the table for a more substantive discussion about the future. The good news? The U.S. is leading the world in broadband infrastructure investment and offers among the least expensive entry-level broadband plans in the world. Where can we do better? Stimulating demand among those who still feel they won’t benefit from broadband.
One of the biggest pieces of data that jumped out at me was the rise in household broadband penetration, which increased from 47 percent in March 2007 to 63 percent in April 2009. Once again, we see that people aren’t shying away from broadband in a down economy. The report’s final conclusion: “Policymakers would be wise to consider any new policies carefully to ensure that they will have net benefits and new rules do not derail aspects of the broadband market that are working well.”
Many of the speakers at today’s event echoed this concern about the risks of regulation to maintaining a policy environment that will continue to foster robust U.S. broadband investment and expansion. Here are some highlights from the conversation:
Verizon’s David Hill emphasized a constructive role for government stimulating demand. “Over 90% of Americans have access to broadband, and we have achieved a 63% broadband penetration rate,” he said. “The wireless market in the U.S. is the second most competitive in the world. Price is not the main reason for shortfalls in adoption. This is where the government can play a role, in stimulating adoption for people who site irrelevance and usability as reason for not adopting. In 2008, private-sector investment in broadband infrastructure exceeded U.S. government investment in transportation infrastructure.”
Warning that more regulation would likely harm the competitive marketplace was William Lehr, Associate Research Scholar at the Columbia University Graduate School of Business and Associate Director of the MIT Internet and Telecoms Convergence Consortium. “New regulation,” he argued, “is only going to block new competition.”
We have important conversations ahead of us on a national broadband strategy. Starting from a common (and accurate) understanding of where we are today—both the progress made to date and the collective challenges still ahead—is an essential starting point.
Click below to watch full archived footage from the event.
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July 15th, 2009 at 3:35 pm
[...] Advanced Legal & Economic Public Policy Studies added even more muscle to the notion that the OECD rankings mean very little – if anything – in the context of measuring broadband penetration and [...]
August 17th, 2009 at 4:52 pm
[...] is a look at international lessons. We’ve devoted substantial attention here at NextGenWeb to the serious flaws in the OECD’s international broadband rankings. Bottom line: The “analysis” favors tiny nations like Belgium and does little to inform how a [...]