An Economic Perspective on a U.S. National Broadband Plan

22 Pages Posted: 11 Jun 2009

See all articles by Robert W. Hahn

Robert W. Hahn

Technology Policy Institute; University of Oxford, Smith School

Scott Wallsten

Technology Policy Institute

Date Written: June 8, 2009

Abstract

This paper responds to the U.S. Federal Communications Commission’s request for guidance in designing a national broadband plan. We argue that the U.S. market for Internet services is working well overall, as evidenced by nearly ubiquitous coverage, rapid adoption, large investments, and increasing speeds. Still, the market is not working well for all people in all places, and we offer a framework for considering policies intended to mitigate those issues.

The core of the paper consists of nine recommendations. Two of our recommendations are general. First, the government should ensure that its interventions do more good than harm. Second, the government should define clear, measurable, goals that do not benefit particular firms, technologies, or regions.

The remaining seven recommendations provide specific guidance for a U.S. broadband plan. They include: liberalizing spectrum, gathering and analyzing data on broadband demand, targeting resources to where they are most needed, defining broadband access to maximize social gain, designing mechanisms that will achieve the government’s broadband goals at the lowest social cost, vigorous antitrust enforcement, and designing policies to facilitate rigorous evaluation.

Keywords: broadband

JEL Classification: l5, l96, l98

Suggested Citation

Hahn, Robert W. and Wallsten, Scott, An Economic Perspective on a U.S. National Broadband Plan (June 8, 2009). Available at SSRN: https://ssrn.com/abstract=1416426 or http://dx.doi.org/10.2139/ssrn.1416426

Robert W. Hahn

Technology Policy Institute ( email )

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University of Oxford, Smith School ( email )

Oxford
United Kingdom

Scott Wallsten (Contact Author)

Technology Policy Institute ( email )

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Ste 700
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2027309441 (Phone)

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