Broadband Policy: Does the U.S. Have it Right after All?
Jeffrey A. Eisenach
American Enterprise Institute; NERA Economic Consulting
September 9, 2008
In this paper, I compare U.S. and (briefly) Canadian broadband policies and outcomes with the policies and outcomes in other advanced nations. The results show that the relatively deregulatory American approach to broadband policy has produced highly desirable results, including high levels of investment and innovation, nearly ubiquitous broadband availability, high and increasing levels of penetration, falling prices, and high levels of consumer satisfaction. Indeed, the U.S. model is producing better overall results than in countries which continue to pursue mandatory unbundling and other highly regulatory approaches. Moreover, the advantages of the American model are likely to grow more pronounced over time. To avoid being left behind, other nations should abandon policies based on mandatory resale of incumbent networks and adopt the American approach.
Number of Pages in PDF File: 21
Keywords: broadband, telecommunications, unbundling
JEL Classification: K23, L51, L96
Date posted: September 9, 2008 ; Last revised: October 23, 2012